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U.  S.  INFORMATION  SERVICE  IN  YUGOSLAVIA  .  Statement 
by  Acting  Secretary  Clayton 637 

MEETING  OF  NATIONAL  COMMISSION  ON  EDUCATIONAL, 
SCIENTIFIC  AND  CULTURAL  COOPERATION  .  .  .Addresses 
by  the  President  and  Assistant  Secretary  Benton 633 

NATIONALIZATION  IN  GREAT  BRITAIN:  THE  FIRST  YEAR 
Article  by  Irwin  M.  Tobin 615 

GERMAN  DOCUMENTS:  CONFERENCES  WITH  AXIS  LEAD- 
ERS, 1913    607 


Vol.  XV,  No.  379 
October  6,  1946 


For  complete  conterUs  see  back  cover 


0.  S.  SUF£R«<>E"D"'^  ^' 


"ATS,  o» 


zy/ie  z/)€/i€L'yt'nie'nt  ^£^ t/iale 


bulletin 

Vol.  XV,  No.  379     •      Publication  2638 
October  6,  191^6 


For  sale  by  the  Superintendent  of  Documents 

U.   S.   Government  Printing   Office 

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Published  with  the  approval  of  the 
Director  of  the  Bureau  of  the  Budget 


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GERMAN  DOCUMENTS:  CONFERENCES  WITH  AXIS  LEADERS 


The  Fuhrer  and  the  Duce,  with  their  military  and  diplo- 
matic advisers,  discuss  the  war  situation  at  the  time  of  the 
Allied  invasion  of  Sicily,  the  supply  of  vital  raw  materials, 
U-boat  warfare,  conversion  of  naval  vessels  for  transport 
purposes,  new  secret  weapons,  plans  for  strengthening 
Italian  defenses  in  Sicily  and  on  the  mainland,  and  the 
reinforcement  of  military  and  civilian  morale. 


Memorandum  of  Conversation  Between  the  Fuhrer 
and  the  Dues  in  North  Italy  on  July  19,  1943.  Also 
Present  Under  Secretary  of  State  Bastianini,  Am- 
bassadors Mackensen,  Hewel  and  Alfieri,  Field  Mar- 
shals Keitel  and  Ambrosio,  and  Generals  Warlimont 
and  Rintelen 

The  Fiilirer  opened  the  conference  with  a  dis- 
cussion of  the  military  situation.  One  could  not 
draw  conclusions  as  to  the  outcome  as  a  whole 
from  partial  evidence,  for  the  present  war  was  no 
war  of  single  states  like  the  German-French  War 
of  1870  -  1871,  but  it  was  a  struggle  being  fought 
for  the  destiny  of  Europe.  Experience  demon- 
strated that  historically  such  conflicts  had  never 
proceeded  at  an  even  pace,  but  that  always  after 
a  certain  time  the  decision  fell  in  favor  of  one  or 
another  of  the  contending  parties.  It  was,  there- 
fore, a  question  of  producing  the  necessary  basic 
materials  which  were  required  for  carrying  on  a 
war,  in  order  to  conclude  the  struggle  victoriously. 
To  that  end  there  were  necessary  certain  prerequi- 
sites of  a  material  and  of  a  personal  nature. 

With  regard  to  the  material  bases  for  conducting 
the  war,  there  were  several  factors  in  possession  of 
the  Axis  which  must  not  be  destroyed,  since  such 
destruction  would  mean  the  end  of  the  Axis'  power 
to  carry  on  the  war.  Since  the  entry  of  America 
into  the  war  the  material  sides  of  the  struggle  had 
assumed  an  especially  important  character.  This 
did  not  mean  at  all  that  the  material  position  of 


the  Axis  was  unfavorable.  It  was  generally  over- 
looked by  the  world  at  large  that  befoi'e  the  war 
England  had  13,000,000,  America  18,000,000,  but 
Germany  23,000,000  workers  engaged  in  industry. 
Also  American  industry  was  one-sided  and  con- 
centrated in  certain  areas,  while  German  industry 
was  much  more  comprehensive  and  well  grounded. 

Regarding  iron  and  steel  production,  that  was 
completely  assured  in  the  area  controlled  by  Ger- 
many. Iron-ore  production  would  be  sufficient  in 
any  circumstances.  Plentiful  supplies  existed  in 
the  territory  of  the  German  Reich,  especially  in 
Lorraine,  even  though  the  ore  from  there  did  not 
have  such  a  high  iron  content  as  the  Swedish  ore 
which  was  imported  into  Germany. 

Coal  was  also  available  in  quantity.  In  addi- 
tion there  was  also  the  coal  and  iron,  and  ore  as 
well,  from  the  East,  which  was  now  available  to 
the  Reich. 

Of  more  importance  than  iron  was  the  man- 
ganese supply  from  Nikopol,  which  was  absolutely 
essential  for  production  of  high-grade  steel.  Also 
molybdenum,  which  came  only  from  the  Balkans, 
was  of  great  importance  for  steel  production,  and 
chrome,  which  previously  had  been  secured  exclu- 


These  are  translations  of  documents  on  German- 
Italian  conversations,  secured  from  German  Government 
files,  and  are  among  the  German  official  papers  which  the 
BULLETIN  is  currently  publishing. 


607 


608 


DEPARTMENT  OF  STATE  BULLETIN 


sively  from  Turkey  but  was  now  being  imported 
from  the  former  Yugoslav  area  and  from  Bulgaria. 
These  substances  were  of  absolutely  vital  import- 
ance for  carrying  on  the  war.  Without  them  the 
war  effort  would  come  to  a  halt.  If  the  Balkans 
were  lost  Turkey  would  also  be  lost  as  a  source  of 
chrome,  and  steel  production  would  no  longer  be 
possible.  In  such  a  case  the  important  supply  of 
molybdenum  also  coming  from  the  Balkans  would 
no  longer  be  available  either. 

Nickel,  too,  was  among  the  basic  substances 
which  were  absolutely  vital  for  carrying  on  the 
war.  For  that  reason  there  were  German  divi- 
sions in  Finland  to  protect  the  nickel  mines  of 
Petsamo. 

The  supply  of  copjDer  fi-om  the  Balkans  was 
procured  from  the  mines  of  Bor,  while  phosphates 
had  unfortunately  been  lost  with  North  Africa. 

Petroleum  was  just  as  important.  For  this 
reason  the  Fiilirer  had  had  the  intention  to  secure 
the  petroleum  resources  of  the  Caucasus.  This 
undertaking  had  unfortunately  not  succeeded. 
For  that  reason  the  Rumanian  petroleum  area  was 
now  all  the  moi'e  important. 

The  vital  importance  of  the  aforementioned 
basic  materials  required  the  assignment  of  forces 
for  the  protection  of  the  areas  producing  them. 
In  order  to  provide  for  this  one  must  understand 
the  industrial  bases  of  the  conduct  of  the  war. 
This  understanding  was  often  lacking  in  military 
circles.  This  lack  of  understanding  had  appeared 
in  the  past  even  in  Germany.  For  instance,  the 
Fiilirer  had  had,  in  dealing  with  military  circles, 
to  go  thoroughly  into  the  importance  of  the  Donets 
Basin  for  war  industry  before  he  had  been  able 
to  convince  the  military  leaders  that  the  manga- 
nese ore  derived  from  there  could  not  be  replaced 
by  any  feats  of  valor  if  the  Donets  Basin  were  once 
lost.  The  number  of  troop  units  necessary  for  the 
defense  of  such  territories  would  have  to  be  em- 
ployed. Without  nickel  and  without  chrome,  for 
examples,  the  production  of  airplane  engines 
would  cease  completely,  so  that  in  these  cases  also 
the  necessary  defense  of  the  sources  of  production 
was  essential. 

Passing  to  the  question  of  the  food  supply,  the 
Fiilarer  remarked  that  that  could  only  be  solved 
by  possession  of  the  Ukraine.  Regarding  the  ob- 
jection sometimes  raised  that  the  Ukraine  did  not 
export  food,  he  declared  that  this  was  so  at  the 
moment,  but  that  the  Ukraine  nevertheless  sup- 


plied the  army  of  millions  stationed  in  the  East, 
so  that  no  additional  supi^lies  were  required  for 
them.  The  Ukraine  could  export  additional 
amoimts  if  more  fuel  were  available  for  agricul- 
ture, especially  for  the  tractors.  At  this  point 
again  arose  the  periodically  reappearing  neces- 
sity of  deciding  between  provision  of  fuel  for  the 
troops  in  the  field  or  for  agriculture. 

If  North  Norway,  over  which  the  transport  of 
iron  ore  from  Sweden  passed,  were  to  be  lost,  and 
North  Finland  with  its  nickel  deposits,  Krivoi  Rog 
with  its  ore  fields,  the  Balkans  with  their  supplies 
of  copper,  chrome  and  molybdenum,  it  would  mean 
the  end  of  the  Axis'  capacity  to  carry  on  war.  If, 
however,  the  safety  of  these  areas  could  be  assured 
the  war  could  be  carried  on  indefinitely.  Its  con- 
tinuation would  then  be  only  a  question  of  mobiliz- 
ing the  necessary  labor  force.  This  was  a  matter 
of  will-jjower  in  determining  to  shrink  from  no 
severity  which  might  be  required  to  save  the  nations 
from  disaster.  One  must  not  hold  the  basically 
false  idea  that  disasters  of  the  present  could  be 
made  good  by  later  generations.  History  had 
niunerous  examples  showing  that  nations  had  often 
required  hundreds  of  years  to  recover  from  disas- 
ters. Besides,  he  (the  Fiihrer)  took  the  position, 
possibly  somewhat  lacking  in  modesty,  that  no 
greater  man  was  coming  after  him,  who  would  be 
able  to  manage  affairs  better.  Therefore  he  was 
sacrificing  his  whole  time  and  his  personal  conven- 
ience in  order  to  obtain  the  decision  in  his  own  life- 
time. He  was,  accordingly,  determined  to  adopt 
the  sternest  measures  to  make  full  and  complete 
use  of  the  possibilities  which  were  undeniably  at 
hand. 

Historically,  there  had  always  been  fluctuations 
in  the  course  of  wars.  The  only  thing  that  mat- 
tered was  the  final  result.  As  to  when  the  war 
would  end,  in  previous  history,  even  the  victors 
themselves  had  not  been  able  to  supply  an  answer 
during  the  course  of  the  war.  They  had  only  pre- 
served the  iron  determination  to  conquer  through- 
out the  alternations  between  attack  and  defense 
and  thereby  in  the  end  come  through  to  victory. 

It  was  also  wrong  to  say  that  the  war  should 
have  been  postponed  until  a  higher  degree  of 
armament  had  been  attained.  Experience  dem- 
onstrated that  there  was  always  something  that 
seemed  to  be  missing  to  complete  a  country's 
readiness,  so  that  one  could  really  never  fix  upon 
a  moment  when  preparedness  was  complete.    The 


OCTOBER  6,  1946 


609 


Fiilirer  accompanied  this  expression  of  opinion 
with  several  examples  from  history  and  added  that 
the  course  of  the  war  itself  had  made  possible 
the  further  development  of  Germany's  armed 
force.  Before  the  war  Germany  had  built  Tanks 
I,  II,  and  III,  and,  if  war  had  not  broken  out, 
would  probably  have  produced  them  in  larger 
quantities.  In  the  light  of  experience  during  the 
war,  however,  it  was  now  realized  that  these  tanks 
were  entirely  worthless  and  improved  models  had 
been  concentrated  upon. 

At  this  moment  there  was  handed  to  the  Duce 
a  message  on  the  basis  of  which  he  made  an  an- 
nouncement of  the  air  attack  on  Kome.  It  had 
struck  the  main  railway  station,  the  Corso  Vittorio 
Emanuele,  the  University,  and  other  places  in  the 
city. 

In  the  further  course  of  the  discussion  the 
Fiihrer  declared  that  in  several  fields,  as  for  ex- 
ample in  U-boat  warfare,  difficulties  had  been  en- 
countered. This  was  of  no  consequence  for  the 
ultimate  development  of  the  U-boat  war  since  the 
English,  even  at  the  end  of  the  World  War,  had 
asserted  that  U-boat  warfare  had  been  eliminated 
for  all  time  by  the  convoy  system.  That  this  was 
not  the  case  had  been  sufficiently  demonstrated  by 
the  course  of  events.  Thus  now  again  in  a  short 
time  the  difficulties  which  had  been  encountered  in 
the  U-boat  war  would  be  overcome.  Even  now  the 
statistics  of  sinkings  had  begun  to  rise  again,  which 
was  in  part  to  be  accounted  for  by  the  change  in 
methods  of  attack.  Measures  had  already  been 
taken  which  would  again  make  valueless  the  de- 
fensive steps  undertaken  by  the  English  and  Amer- 
icans against  the  U-boats.  The  U-boats  would  be 
equipped  with  devices  by  whose  help  they  could 
not  be  detected  by  the  enemy  without  becoming 
aware  of  it.  Also  deceptive  apparatus  would  be 
installed,  as  a  result  of  which  a  turning  point 
would  be  definitely  attained  in  the  U-boat  war, 
especially  as  in  the  early  part  of  the  year  a  large 
number  of  new  ships  would  be  produced  equipped 
with  the  aforementioned  latest  technical  devices. 
Thus  the  English  supply  lines  would  again  be  at- 
tacked in  very  strong  force  and  the  U-boat  arm, 
which  was  the  principal  weapon  in  the  struggle 
against  the  English,  would  again  come  into  full 
play.  As  regards  the  Luftwaffe,  mass  production 
of  airplanes  was  now  just  beginning  to  get  under 
way.  Even  so  the  production  figure  was  already 
much  higher  in  comparison  with  the  previous  year 


and,  while  at  the  moment  there  was  still  the  prob- 
lem of  machine  tools,  in  a  very  brief  time  produc- 
tion would  so  increase  that  the  problem  would  lie 
rather  in  the  training  of  crews. 

In  tanks  Germany  was  completely  predominant 
and  had  now  produced  in  the  ''Panther"  a  new  mass 
production  tank  of  40  or  45  tons,  which  would  be 
turned  out  in  great  quantity. 

Next  the  Fiihrer  referred  to  a  new  weapon,  con- 
cerning which  he  did  not  wish  to  give  any  details, 
but  which  by  the  end  of  the  winter  would  be  em- 
ployed against  the  English  and  against  which  they 
would  have  no  defense.  Germany  also  had  no  de- 
fense against  it  except  her  geogi-aphical  position, 
whereas  with  respect  to  other  weapons,  as,  for  ex- 
ample, the  magnetic  mines  and  the  sonic  mines, 
when  these  devices  were  used,  she  had  already 
devised  a  defense  against  them. 

Passing  on  to  military  operations  the  Fiihrer  de- 
clared that  in  the  East  it  was  a  problem  of  weaken- 
ing the  enemy  to  the  greatest  extent  possible  before 
the  beginning  of  the  winter.  Not  only  the  21  divi- 
sions which  had  been  lost  at  Stalingi'ad,  but  addi- 
tional divisions  as  well  were  being  reconstituted. 
In  the  previous  year  32  divisions,  among  them  8 
light  armored  divisions  (4  SS  divisions  and  4  reg- 
ular divisions)  had  been  assigned  for  the  attack  on 
Mesopotamia.  Unfortunately  they  had  had  to  be 
employed  during  the  winter  in  Russia  to  surmount 
the  crisis  there,  whereby  the  idea  of  their  original 
employment  had  had  to  be  changed.  If  the  winter 
crisis  in  Russia  had  not  arisen,  these  32  divisions 
would  have  been  able  to  capture  the  entire  Mesopo- 
tamian  oil-producing  area  of  the  English. 

The  creation  of  new  units  naturally  took  time. 
The  greatest  emphasis  had  to  be  laid  on  the  thor- 
ough training  of  officers.  Also  their  outfitting 
with  equipment  required  considerable  periods  of 
time.  Germany  was  constituting  46  divisions 
anew,  which  were  being  supplied  with  the  most  ef- 
fective type  of  equipment.  The  bottleneck  in  this 
situation  was  especially  the  production  of  motor 
trucks  and  self-propelled  vehicles,  not  of  tanks. 
If  one  considered  that  a  division  required  5,000 
motor  trucks,  without  which  they  could  not  operate 
in  the  East  at  all,  one  could  form  a  picture  of  the 
difficulties  of  equipping  them. 

In  connection  with  the  crisis  which  had  arisen . 
the  Fiilirer  declared  that  he  must  emphasise  in 
every  way  that  Germany  had  given  to  the  Luft- 
waffe everything  which  she  could  give  and  that 


610 


DEPARTMENT  OF  STATE  BULLETIN 


she  was  not  neglecting  others'  territories  in  favor 
of  her  own.  She  had  to  supply  terrific  extents 
of  front  with  Luftwaffe  material,  beginning  with 
the  North,  wliere  the  convoys  had  to  be  protected 
which  brought  the  iron  ore  from  Sweden  to  Ger- 
many. If  there  were  no  more  iron,  no  more  air- 
plane motors  could  be  built.  So  these  transport 
routes  must  be  protected.  This  was  being  done 
with  the  assistance  of  an  excellent  ground  organi- 
zation, which,  for  example,  in  Norway,  where  at  the 
entry  of  the  German  troops  only  a  small  number 
of  airfields  were  in  existence,  now  had  available 
over  50  airfields,  in  part  equipped  with  runways 
from  114  to  2  kilometers  long,  which  permitted 
even  the  overloaded  planes  to  get  a  start.  These 
airfields  Germany  had  constructed  in  a  brief 
period  of  time  by  exerting  great  energy  and  em- 
ploying ruthlessly  every  fonn  of  labor.  Thus 
with  the  help  of  this  ground  organization  Ger- 
many was  able  to  get  the  most  possible  out  of  the 
Luftwaffe,  since  the  units  at  hand  could  be  quickly 
allocated  in  accordance  with  the  requirements  of 
the  situation  and  could  be  readily  reassigned  to 
take  up  their  activity  in  the  most  distant  sections 
of  the  country. 

It  was  the  same  way  with  the  organization  in 
the  East.  Here  also  were  a  large  number  of  air- 
fields which  made  it  possible  to  move  units  from 
Leningrad  and  to  employ  them  on  the  central 
front  and,  if  necessary,  even  farther  south  in  the 
Kuban.  All  this  was  possible  only  because  of  the 
marvelous  ground  organization  whose  value  could 
certainly  not  be  set  too  highly.  This  could  only  be 
attained  if  each  individual  man  were  so  well 
disciplined  that  no  one  left  his  field  during  at- 
tacks, but  took  refuge  in  shelter  trenches  and 
immediately  after  the  disappearance  of  the  last 
enemy  bomber  carried  out  repairs  with  utmost 
energy  and  in  the  briefest  time,  so  that  the  field 
would  be  usable  again  as  soon  as  possible.  On 
the  vast  air  front  extending  from  Kirkenes  to 
Hendaye,  as  well  as  in  southern  and  eastern 
Europe,  one  could  operate  only  with  a  gi'ound 
organization  which  sternly  and  ruthlessly  com- 
pelled every  man  to  keep  his  place  in  spite  of 
enemy  attacks  and  to  continue  his  work. 

The  individual  fields  were  generally  so  arranged 
that  the  machines  were  completely  dispersed  over 
the  area.  To  provide  the  necessary  space  often 
caused  great  hardship.  In  Germany,  however, 
they  had  not  held  back  on  that  account.    Whole 


areas  had  been  razed  for  these  purposes.  In  the 
course  of  these  operations  an  inquiry  had  been 
made  of  him  (the  Fiihrer)  as  to  whether  a  village 
in  which  his  ancestors  had  lived  should  not  be 
spared.  He  had  refused  to  do  so  and  that  village 
also  had  been  removed  to  provide  an  extension  for 
an  airfield.  For  him  only  one  thing  counted: 
Victory ! 

If,  as  had  happened,  some  300  or  400  machines 
out  of  500  or  600  were  destroyed  on  the  ground, 
that  meant  that  the  organization  was  bad.  In 
situations  like  that  no  attention  could  possibly 
be  given  to  private  interests.  Every  hardship  ex- 
perienced now  was  a  smaller  hardship  in  com- 
parison with  what  would  happen  if  the  war  were 
lost.  Germany  had  drawn  the  necessary  con- 
clusions from  realizing  this.  Attention  to  pri- 
vate interests  had  been  eliminated.  Airfields  had 
been  enlarged,  runways  for  the  planes  had  been 
built,  and  shelters  for  the  individual  planes 
against  fragmentation  had  been  provided  wher- 
ever these  were  necessary,  without  regard  to  pri- 
vate objections.  Even  the  question  of  damages 
was  of  no  consequence.  If  the  war  were  won 
damages  could  be  paid.  If  it  were  lost,  that  would 
not  be  necessary,  since  those  who  might  present 
the  claims  for  damages  would  not  be  alive. 

The  Fiihrer  described  it  as  absolutely  intoler- 
able that  in  Sicily,  through  unskilful  and  un- 
soldierly  conduct  of  the  ground  personnel,  on  one 
day  27  machines  should  have  been  destroyed  on 
the  groimd  and  on  another  day  25.  The  labor 
forces  for  these  airfields  must  be  made  up  by  Italy 
herself.  That  sort  of  personnel  could  not,  of 
course,  be  supplied  from  Germany.  The  necessary 
men  were  simply  not  available.  With  a  thorough 
and  efficient  organization  the  losses  of  planes  on 
the  ground  could  be  kept  down  to  a  very  small  per- 
centage. In  Germany  it  amounted  to  1.2  percent. 
If  the  Luftwaffe  were  to  lose  as  many  planes  in 
the  East  as  had  been  the  case  in  Italy  through 
poorly  organized  airfields,  they  would  have  suc- 
cumbed to  the  Russians  long  ago. 

The  Russians  on  their  part  maintained,  in  gen- 
eral, an  excellent  airfield  discipline.  They  dis- 
persed the  machines  properly,  protected  them  by 
shelters,  and  repaired  damage  which  had  been  in- 
curred very  quickly,  so  that  attacks  on  Russian 
airfields  no  longer  paid. 

One  could  not  employ  more  machines  than  he 
had.    But  he  could  employ  those  that  he  had  more 


OCTOBER  6,  1946 


611 


carefully  and  thereby  increase  their  effectiveness, 
a  lesson  which  had  been  learned  on  other  fronts. 

If  there  were  lost  through  destruction  on  the 
ground  some  3,000  or  4,000  planes,  there  were  re- 
quired 2  million  first-class  workers  to  replace  them, 
while  on  the  other  hand,  only  200,000  to  300,000 
ordinary  laborers  were  required  to  avoid  such 
losses  bj'  the  proper  operation  of  the  ground  organ- 
ization. The  conclusion  to  be  drawn  from  such  a 
comparison  was  apparent.  Therefore  the  Luft- 
waffe had  carefully  investigated  every  case  of 
destruction  of  planes  on  the  ground  and  by  court- 
martial  proceedings  had  determined  why  the  de- 
struction had  occurred,  what  steps  had  been  taken 
to  prevent  it,  and  when  the  field  would  again  be 
usable.  Against  those  at  fault  proceedings  had 
been  taken  with  barbaric  severity.  Some  of  the 
courts  martial  had  imposed  death  sentences. 

The  English  in  general  were  just  as  thorough  in 
their  ground-force  organization.  On  Pantelleria 
and  in  Sicily  they  had  frequently  constructed  air 
strips  of  11/2  kilometers  in  length  within  a  few 
days.  It  was  tragic  to  see  how  quickly  the  English 
solved  such  problems  which  created  such  diiScul- 
ties  for  the  Italians  (and  which  did  not  even  arise 
either  in  the  East  or  in  the  West  on  the  German 
airfields) .  To  illustrate  how  important  the  repair 
operations  after  attacks  on  airfields  were,  the 
Fiihrer  cited  a  case  where  27  macliines  had  suffered 
damage  to  their  tires  in  landing  because  bomb 
splinters  had  not  been  picked  up  and  removed. 
The  Duce  would  have  to  appoint  officers  who  would 
see  with  their  own  eyes  that  the  necessary  measures 
were  carried  out.  For  only  when  they  saw  these 
things  with  their  own  eyes  could  they  form  a  pic- 
ture of  the  true  situation  in  such  cases.  The  Fiilirer 
emphasized  this  with  examples  drawn  from  his 
own  experience  where,  for  example,  fortifications 
had  been  reported  to  him  as  having  been  com- 
pleted, which  on  observation  turned  out  to  have 
been  scarcely  begun. 

One  of  the  prerequisites  for  utilizing  properly 
the  aviation  material  which  Germany  could  de- 
liver was  the  aforementioned  efficient  ground  or- 
ganization. If  for  10  months  in  a  row  100  ma- 
chines a  month  were  lost,  that  represented  1,000 
fewer  machines  which  wei'e  available  for  training 
or  operations  and  which  were  entirely  unneces- 
sarily and  uselessly  destroyed  on  the  ground.  This 
was  inexcusable  folly,  when  one  considered  that 
highly  skilled  workers  in  airplane  factories  which 


in  Germany  were  located  in  areas  in  danger  of 
bombing  were  thus  working  at  the  risk  of  their 
life  to  no  purpose  at  all.  It  was  not  the  number 
of  planes  which  was  decisive.  The  World  War 
had  shown  that,  but  it  was  a  matter  of  having  one's 
own  weapon  so  firmly  in  hand  as  to  be  able  to 
make  up  for  weaknesses  by  its  more  efficient  use. 
[Germany  and  Italy  were  weaker  than  England 
and  America.]' 

To  what  a  situation  the  neglect  of  the  airfields 
might  lead  was  shown  by  the  example  of  the 
special  bombing  formations,  which  for  a  start  un- 
der full  load  required  a  starting  runway  of  1,800 
meters  in  length.  Because  no  such  runway  was 
available  on  any  Italian  airfield,  these  very  useful 
bomber  groups  had  to  take  off  from  French  air- 
fields in  order  to  make  an  attack  in  Sicily. 

These  were  all  matters  which  were  best  taken 
up  by  the  Italian  and  the  German  air  commanders 
in  the  presence  of  the  Duce,  in  order  that  the 
difficulties  and  the  responsibility,  as  well  as  the 
amount  of  assistance  required,  be  made  com- 
pletely clear. 

In  Field  Marshal  von  Eichthofen  he  had  made 
available  the  best  Luftwaffe  officer,  who,  every- 
where where  he  had  been  active,  had  been  able  to 
clear  up  all  difficulties,  especially  since,  by  jug- 
gling the  number  of  machines  which  were  available 
to  him  and  by  passing  from  one  sector  of  the  front 
to  another,  he  had  always  been  able  to  employ  his 
strength  most  effectively  where  it  was  required. 

In  connection  with  the  discussions  of  the  strate- 
gic situation  the  Fiihrer  recalled  that  it  had  re- 
quired very  strong  pressure  on  the  German  Navy 
by  himself  personally  to  compel  it  to  employ  war- 
ships for  transport  purposes.  At  the  time  of  the 
Norwegian  campaign  the  Navy  had  done  this  for 
the  first  time,  even  though  with  nuich  gnashing  of 
teeth.  Now,  with  the  new  High  Command  of  the 
Navy,  there  were  no  longer  any  difficulties  in  this 
respect.  Convoys  could  not  be  protected  fully  by 
the  Luftwaffe.  There  must  also  be  a  defending 
force  of  ships  and  scouting  craft,  and  no  one  must 
abandon  a  damaged  ship  but  must  attempt  by  every 
means  to  put  out  the  fires  and  repair  the  damage. 
In  tliis  way  Germany  would  have  a  much  stronger 
sea-transport  system,  so  that  the  exchange  of  ore 
and  coal  between  Sweden  and  the  Ruhr  area  could 
be  carried  on  under  the  eyes  of  the  enemy.    This 


'  This  sentence  stricken  out  in  the  original. 


612 


DEPARTMENT  OF  STATE  BULLETIN 


sort  of  convoy  could  not,  however,  be  protected  by 
fighting  planes.  Such  planes,  taking  into  account 
the  flight  out  and  back,  could  remain  with  the  ship 
at  most  only  from  10  to  20  minutes,  so  that  a  huge 
number  of  fighter  planes  would  be  required  if  the 
protection  of  the  convoys  was  to  be  assured  by 
fighters  alone. 

In  this  connection  the  Fiilirer  referred  to  the 
necessity  of  employing  cruisers  also  as  transport 
ships,  since  these  swift  vessels  were  less  easily  as- 
sailable from  the  air.  He  referred  in  that  connec- 
tion to  the  example  of  the  English  cruisers  which 
had  kept  Malta  supplied  through  the  most  difficult 
times.  All  of  the  objections  raised  by  the  Navy 
on  grounds  of  prestige  must  be  rejected.  The 
cruisers  must  have  their  turrets  removed  and  they 
must  be  employed  for  more  useful  purposes.  It 
was  here  not  a  question  of  being  to  blame  or  not 
to  blame,  but  only  one  of  profiting  by  experience 
and  determining  how  one  could  do  the  thing  better. 
It  was  folly  to  allow  cruisers  to  lie  in  harbors  when 
one  well  knew  that  some  day  they  would  be 
damaged  from  the  air.  He  had  on  similar 
grounds  withdrawn  the  Scharnhorst  and  the 
Gneisenaii;  as  well  as  several  cruisers,  from 
Brest,  in  order  to  make  use  of  them  for  other  pur- 
poses. Regarding  the  objection  raised  as  to  who 
then  in  time  of  peace  would  display  the  German 
flag  on  the  high  seas,  he  had  taken  the  position 
that  only  those  who  had  actually  engaged  in  com- 
bat could  display  the  flag,  that  was  to  say  the 
U-boats.  For  Sardinia,  Corsica,  and  the  Dode- 
canese the  speediest  means  of  transport  of  the  kind 
which  he  had  mentioned  were  necessary.  In  such 
a  matter  sentiment  must  be  eliminated.  Thus  he 
had  removed  the  guns  from  the  battleships  and 
had  mounted  them  as  coast  artillery  batteries  on 
the  Norwegian  coast  in  the  neighborhood  of  Nar- 
vik, Trondheim  and  Bergen.  Regarding  the  ob- 
jection that  one  ought  not  to  break  up  such  noble 
ships,  he  could  only  reply  that  they  were  only 
noble  if  they  could  use  their  guns  and  that  the 
ships  must  either  fight  or  be  converted  to  trans- 
ports. If  they  were  not  suitable  for  either  they 
would  have  to  be  scrapped. 

Regarding  the  defense  of  the  areas  held  by  the 
Axis  against  hostile  landing  attempts,  the  Fiihrer 
was  of  the  opinion  that  the  enemy  must  always  be 
attacked  at  the  very  seashore,  as  otherwise  the 
counter-attack  divisions  would  have  no  jDurpose. 
The  coast-defense  units  must  be  ordered  to  defend 


themselves  until  forced  to  surrender.  The  officers 
must  realize  that  if  they  retreated  it  meant  the  end 
for  them.  Only  if  all  the  troops  inside  the  defense 
system  carried  out  their  orders  and  held  out  to  the 
end  could  the  large-scale  intentions  of  the  attack 
be  determined.  If  there  was  a  general  withdrawal 
of  the  first  lines  of  the  defense,  one  would  never 
learn  which  of  the  various  landing  attempts  of  the 
enemy  were  the  true  ones  and  which  were  only  de- 
ceptions. It  was  only  if  the  defense  held  out  to 
the  utmost  that  one  could  assume  that  at  the  point 
where  a  break-through  then  occurred  a  large-scale 
attack  was  being  launched  and  could  accordingly 
concenti-ate  the  counter-attack  divisions  against  it. 

This  system  had  been  followed  for  instance,  at 
Dieppe,  where  the  attacks  had  been  stopped  right 
on  the  beaches  and  actually  by  a  single  regiment 
which  had  been  assigned  the  duty  of  coastal  de- 
fense on  the  sector.  If  their  defense  had  not  been 
so  keen  the  29  transports  which  were  lying  out  at 
sea  would  have  been  able  to  come  into  the  harbor 
and  to  land  their  troops  there,  and  the  English 
would  have  been  able  to  realize  their  actual  in- 
tention of  creating  a  large  beachhead. 

The  landing  places  at  which  the  landing  of 
troops  was  possible  were  generally  known  and 
must  be  everywhere  defended  to  the  utmost.  The 
same  held  good  for  the  ports.  In  the  West  the 
most  energetic  officers  had  been  named  comman- 
dants of  the  port  cities,  since  without  harbors  the 
large  ships  could  not  land  troops  anywliere  and 
any  landing  attempt  without  ports  would  be  very 
much  dependent  on  the  weather.  The  troops  as- 
signed to  the  defense  of  the  harbors  had  been  given 
the  command  to  resist  or  die. 

Passing  to  the  question  of  Sicily  the  Fiihrer  de- 
clared that  he  was  of  two  minds  on  this  subject.  If 
it  were  possible  to  insure  the  supply  line,  Sicily 
should  be  defended  and  at  a  certain  point  the  de- 
fense should  be  transformed  into  an  attack.  For 
this,  however,  it  was  necessary  that  the  hinterland 
also  be  made  secure.  If  this  were  not  the  case,  it 
would  be  better  to  withdraw  from  Sicily,  although 
he  was  sure  that  this  would  cause  a  severe  blow  to 
morale. 

The  best  thing,  of  course,  would  be  if  the  island 
could  be  defended  and,  as  he  had  already  indicated, 
the  defense  could  be  tui-ned  after  a  period  into  an 
attack,  which,  of  course,  would  have  to  be  carried 
out  by  other  arms.  The  Americans  could  surely 
not  hold  out  against  the  rocket  projectors  and 


OCTOBER  6,  1946 


613 


heavy  tanks  which  would  then  be  employed. 
These  weapons  could  only  be  employed,  however, 
if  the  supply  of  munitions  and  fuel  for  them  were 
assured.  For  this  the  protection  of  the  supply 
lines  was  an  absolute  necessity,  especially  the  pro- 
tection of  the  crossing  to  Messina. 

For  defensive  operations  strong  and  well  out- 
fitted infantry  divisions  were  far  better  than  Pan- 
zer divisions,  which  were  good  on  the  attack  but 
were  not  suited  for  defense. 

It  was  here  a  question  of  making  a  basic  decision 
whether  one  actually  wanted  to  put  up  a  defense. 
In  that  case  it  would  be  essential  to  draw  the  neces- 
sary conclusions  with  a  completely  fanatical  out- 
look. If  the  struggle  was  not  to  be  continued  it 
meant  that  every  man  who  was  sent  to  Sicily  from 
here  on  was  pure  loss. 

For  the  protection  of  the  supply  lines  Reich 
Marshal  Goring  was  prepared  to  concentrate  a 
large  number  of  flak  batteries  at  Messina.  Bat- 
teries of  10.5  and  12.8  centimeters  could  be  brought 
up  from  other  parts  of  Italy,  where  they  could 
be  replaced  by  arms  brought  from  Germany.  If 
60  or  80  or  perhaps  even  100  heavy  flak  batteries 
could  be  concentrated  at  the  crossing  to  Messina 
he  believed  that  it  was  not  impossible  that  in  that 
way  the  transit  traffic  could  be  completely  pro- 
tected. Several  of  these  batteries,  as  for  example 
the  12.8,  which  could  attain  a  range  of  14  kilo- 
meters, could  be  transported  only  by  railway. 
They  could,  however,  be  employed  against  targets 
out  at  sea  as  far  as  20  kilometers. 

Then  the  Fiilirer  came  to  the  question  of  preven- 
tion of  attacks  from  the  sea  in  the  area  of  the 
Straits  of  Messina,  for  which  he  could  supply  21- 
centimeter  long-barrelled  batteries,  and  24- 
centimeter  batteries,  and  could  even  bring  up  the 
German  28-centimeter  batteries  which  were  now 
at  Constanta. 

It  was  of  decisive  importance,  however,  that 
every  soldier  and  every  officer  who  abandoned  a 
naval  coast-defense  battery  as  long  as  even  one 
more  shot  could  be  fired,  should  be  shot.  There 
was  presented  here  a  problem  in  indoctrination, 
which,  judging  by  experience,  would  require  some 
time.  Therefore,  Germany  would  at  first  provide 
determined  and  experienced  German  gim  crews 
along  with  any  batteries  which  were  supplied. 

For  defense  against  attacks  on  South  Italy  a 
great  many  more  units  must  be  concentrated  in 
the  "boot"  than  were  there  at  present. 


Basically,  it  was  important  to  know  whether  it 
was  believed  that  the  decisive  battle  would  take 
place  in  Italy  itself.  If  that  were  the  case  it  meant 
that  every  man  who  from  now  on  was  transported 
over  to  Sicily  was  pure  loss.  Panzer  divisions 
which  had  been  once  lost  could  only  be  reconsti- 
tuted very  slowly.  For  armored  warfare  was  very 
much  a  matter  of  routine  and  experience  and  there- 
fore required  a  long  j^eriod  of  training  and  prac- 
tice for  the  troops.  However,  if  it  was  intended 
to  hold  Sicily,  then  the  necessary  conclusions,  even 
the  most  extreme,  must  be  drawn.  In  such  a  case 
Germany  would  send  superior  troops  down  there. 
Such  a  decision  required  great  capacity  in  the  way 
of  leadership.  What  was  now  done  in  Sicily  could 
not  be  recalled.  Many  German  units  must  be  dis- 
patched down  there  in  order  first  to  establish  a  de- 
fensive front  and,  following  that,  a  front  suitable 
for  an  attack. 

In  this  connection  the  Fiihrer  spoke  again  of 
the  airfield  organization  and  declared,  with  refer- 
ence to  his  previous  remarks,  that  approaches,  fa- 
cilities for  storing  planes,  and  shelters  must  be  pro- 
vided at  all  costs,  and  that,  just  as  in  Germany, 
the  airfields  must  be  immediately  repaired  and 
searched  for  fragmeiits  and  slow-burning  incen- 
diaries. Also  the  air  raid  warning  system  must 
be  set  up  effectively.  Under  those  circumstances 
the  increasing  arrivals  of  planes  could  be  taken 
care  of  properly.  At  first  there  must  be  accom- 
plished through  the  aforementioned  good  ground- 
force  organization  what  Germany  was  not  able  to 
accomplish  by  force  of  nmnbers.  If  the  position 
in  Sicily  were  held  and  attacks  were  concentrated 
on  the  English  supply  lines,  it  would  come  about 
as  he  had  previously  indicated  that,  as  a  result  of 
the  i-ecently  begun  U-boat  war,  the  English  in  a 
few  months  would  find  themselves  in  the  greatest 
difficulties.  The  Sicilian  expedition  could  result 
for  them  in  a  catastrophic  defeat  (a  Stalingrad). 

He  (the  Fiihrer)  had  always  been  against  put- 
ting off  a  good  deed  to  the  next  day.  So  also  he 
was  not  in  favor  of  saying  that  Sicily  would  not 
be  held,  but  that  South  Italy  would.  Then  finally 
one  would  only  be  able  to  hold  Central  Italy,  and 
next  only  North  Italy.  The  farther  forward  the 
line  of  defense  lay,  the  more  effective  it  would  be, 
and  it  would  also  have  a  favorable  effect  on  the 
areas  in  the  interior  which  were  endangered  by 
air  raids.  Thus  he  could  conceive  that  some  day 
the  English  would  halt  their  air  attacks  on  the  in- 


614 


DEPARTMENT  OF  STATE  BULLETIN 


terior  areas  in  Germany  and  concentrate  them  on 
the  areas  around  Cape  Gris  Nez. 

As  he  had  said,  if  it  were  determined  to  hold  out, 
the  hardest  conchisions  must  be  drawn,  just  as  he 
had  taken  the  most  severe  measures  in  Germany. 
Young  people  15  years  of  age  were  being  employed 
as  assistants  in  the  air  force  on  the  flak  batteries. 
The  fire-fighting  forces  in  the  areas  threatened  by 
air  raids  were  composed  of  the  old  and  very  young 
people  together.  Women  were  being  used  to  a  far 
reaching  extent  to  increase  the  labor  supply. 
Since  the  peasant  women  were  needed  on  the  land 
and  many  women  had  already  been  employed  in  in- 
dustry, these  measures  affected  principally  women 
from  the  middle  and  upper  classes  of  society.  At 
the  same  time  he  had  taken  action  on  the  front  and 
had  dismissed  even  experienced  officers  who  had 
temporarily  lost  their  nerve.  Italy  also  was  now 
confronted  by  the  necessity  of  making  a  basic  deci- 
sion, which  involved  drawing  the  sternest  con- 
clusions and  made  it  necessary  to  break  down  all 
resistance. 

Among  the  troops  it  was  a  question  coming  down 
to  the  individual  man.  The  morale  must  be  up- 
held by  the  officers.  Just  as  a  bad  attitude  in  a 
district  unit  of  the  Party  indicated  that  the  dis- 
trict unit  leader  was  poor,  so  bad  morale  among 
the  troops  must  be  blamed  on  the  officers.  The 
latter  must  maintain  the  proper  morale  among 
their  men. 

If  a  nation  lost  faith,  and  looked  to  its  future 
without  confidence,  the  sternest  measures  must  be 
taken  even  as  they  affected  personalities.  The 
people  wanted  to  see  something  accomplished  and 
their  morale  must  be  reestablished  by  energetic 
action.  Stalin,  by  the  sternest  measures,  had  com- 
pletely restored  the  home  front  which  had  threat- 
ened to  collapse. 

Witli  regard  to  purely  material  requirements 
the  Fiihrer  declared  that  it  was  certain  that  a  re- 
quest for  2,000  planes  from  Germany  could  not 
possibly  be  fulfilled  in  practice  and  therefore  had 
little  purpose.  It  was  also  not  possible  simply  to 
transfer  elements  of  the  Luftwaffe  from  the  East 
to  Italy,  since,  because  of  the  entirely  different  tac- 
tics, they  would  have  to  be  given  a  training  period 
of  several  months.  Specialized  units  with  most 
effective  types  of  machines  would  be  available  in 
a  few  months.  There  were  immediately  available 
two  special  bomber  groups  which  used  a  special 
type  of  bomb,  on  which  they  had  been  drilled  for 


two  years.  If  anything  happened  to  these  units, 
they  could  not  be  replaced. 

The  war  would  be  won  by  tanks,  anti-tank  guns, 
airplanes  and  flak.  In  the  construction  of  tanks 
Italy  should  not  allow  herself  to  be  governed  by 
considerations  of  prestige,  but  she  should  construct 
the  models  which  Germany  had  proved  after  the 
expenditure  of  a  huge  amount  of  money  for  ex- 
perimentation. For  instance,  work  had  been  car- 
ried on  on  the  "Panther"  since  1941.  For  that 
reason  Italy  ought  not  to  undertake  new  experi- 
ments. The  same  held  good  for  anti-tank  guns  and 
airplanes,  in  which,  however,  according  to  the 
statements  of  the  Luftwaffe,  Italy  had  produced 
some  outstanding  fighter  types.  Also  in  the  case 
of  motors  he  asked  that  Italy  should  build  the 
same  types  which  Germany  had  developed  with 
great  effort. 

In  conclusion  the  Fiihrer  came  to  the  question 
of  the  Southeast.  The  occupation  forces  on  Crete 
were  on  too  small  a  scale,  even  if  they  had  a  cor- 
rect conception  of  the  defensive  tasks  which  were 
assigned  to  them.  The  preservation  of  order  in 
the  rearward  areas  was  of  extreme  importance. 
If  roads  were  blown  up  it  made  no  difference  for 
what  reason  it  happened,  whether  from  anti-  or 
pro-Axis  sympathies.  The  damage  in  any  case 
was  extremely  great.  For  that  reason  there  must 
be  no  others  bearing  arms  in  the  Balkan  area, 
except  German  and  Italian  soldiers.  The  Balkans 
must  be  combed  over  again  and  again  until  the 
last  non-German  or  non-Italian  bearer  of  arms 
was  seized  and  made  harmless. 

In  connection  with  Greece  the  Fiihrer  remarked 
that  he  would  assemble  all  Greeks  who  were  not 
usefully  occupied  into  labor  battalions  and  would 
put  them  to  work  on  necessary  fortification  con- 
struction. He  had  no  idea  of  carrying  out  these 
measures  through  the  Greek  Government  and  with 
the  help  of  money  payments,  which  would  mean  a 
great  loss  of  time  and  a  large  factor  of  uncertainty. 
The  time  for  toleration  had  definitely  ended.  The 
only  beai-ers  of  arms  must  be,  as  he  had  said,  the 
Italians,  otherwise  the  English  would  land  and 
they  would  have  immediately  at  their  disposal  in 
Serbia,  Montenegro,  and  perhaps  also  in  Croatia, 
an  army  consisting  of  the  Communists  of  those 
areas,  whom  they  would  only  have  to  equip  with 
modern  weapons.  It  was  a  good  thing  that  hard 
blows  had  been  delivered  against  these  bands  re- 

(Continued  on  page  6S9) 


NATIONALIZATION  IN  GREAT  BRITAIN— THE  FIRST  YEAR 


By  Irwin  M.  Tobin 


A  discussion  of  the  legislative  steps  taken  in  Great  Britain 
during  the  first  year  of  the  Labor  Government  to  bring  under 
public  ownership  seg7nents  of  the  British  economy:  the 
Bank  of  England;  the  fuel  and  power  industries;  inland- 
transport  services;  the  iron  and  steel  industry  {in  part); 
overseas  telecotmnunications ;  civil  aviation;  the  develop- 
ment of  atoTnic  energy;  and  the  purchase  of  cotton. 


I.  The  Program 

The  public  ownership  of  basic  industries,  as 
Prime  Minister  Clement  Attlee  pointed  out  at  the 
June  1946  annual  conference  of  the  Labor  Pai'ty, 
is  the  "distinctive  side"  of  the  Labor  program.  The 
Labor  Party's  electoral  declaration  of  April  1945, 
entitled  "Let  Us  Face  the  Future",  adopted  in  large 
measure  the  schemes  of  national  economic  planning 
projected  in  the  Coalition  White  Paper  of  1944. 
British  Labor,  however,  went  beyond  the  Coali- 
tion in  standing  before  the  electorate  on  a  plat- 
form which  called  for  the  enlistment  of  certain 
basic  industries  in  the  "direct  service  of  the  nation" 
through  public  ownership  and  management.  To 
quote  the  platform  statement : 

".  .  .  Britain  needs  an  industry  organized  to 
enable  it  to  yield  the  best  that  human  knowledge 
and  skill  can  provide.  .  .  .  Each  industry  must 
have  applied  to  it  the  test  of  national  service.  .  .  . 
There  are  basic  industries  ripe  and  over-ripe  for 
public  ownership  and  management  in  the  direct 
service  of  the  nation.  .  .  ." 

Accordingly,  the  Labor  Party  proposed,  if 
elected,  to  place  under  public  ownership,  "on  a 
basis  of  fair  compensation",  the  production  of 
fuel  and  power  (coal,  gas,  and  electricity) ;  inland- 
transport  services  (rail,  road,  air,  and  canal) ; 
and  the  iron  and  steel  industry.    The  Party  also 


proposed  that  the  Bank  of  England  should, 
through  nationalization,  be  incorporated  in  the 
state  planning  machinery. 

Labor  having  been  elected  by  an  overwhelming 
majority,^  the  order  of  priorities  in  carrying  out 
this  program  was  announced  in  the  Speech  from 
the  Throne  which  opened  the  first  session  of  the 
present  Parliament  on  August  15,  1945.  In  this 
initial  statement  of  Government  policy  the  coal- 
mining industry  and  the  Bank  of  England  were 
selected  for  early  nationalization  as  part  of  the 
general  plan  designed  to  secure  British  industry's 
"maximum  contribution  to  the  national  well- 
being  ...  by  suitable  control  or  by  an  extension 
of  public  ownership".  However,  Labor's  five-year 
program  remained  uncertain  until  November  19, 
1945,  when  Herbert  Morrison,  Lord  President  of 
the  Council,  made  it  plain  that  the  Government 
intended  to  fulfil,  with  only  one  possible  exception, 
the  nationalization  program  formulated  in  "Let 
Us  Face  the  Future".  The  electricity  and  gas  in- 
dustries, he  declared  in  the  House  of  Commons, 
would  be  nationalized  as  part  of  the  scheme  "for 
the  coordination  of  the  fuel  and  power  industries" ; 
unification  in  the  field  of  transport  would  similarly 


'  Labor,  393 ;  Conservative,  189 ;  all  others,  58.  The  popu- 
lar vote  gave  roughly  15,000,000  to  the  Labor  and  allied 
parties,  and  10,000,000  to  the  Conservatives  and  their 
supporters. 


615 


616 


DEPARTMENT  OF  STATE  BULLETIN 


require  national  ownership  of  railways,  canals,  and 
long-distance  road  haulage.  While  dock  and  har- 
bor enterprises  with  "certain  ancillary  activities" 
were  to  be  included  in  the  transport  plan,  ocean- 
going and  coastwise  shipping  wei'e  specifically  re- 
moved from  its  scope.  Thus,  of  the  enterprises 
scheduled  for  nationalization  in  the  general  elec- 
tion campaign,  only  the  future  of  iron  and  steel 
remained  in  doubt;  Mr.  Morrison  revealed  that 
the  Government  would  await  completion  of  a  Coa- 
lition-initiated report  from  the  British  Iron  and 
Steel  Federation  before  undertaking  to  decide  the 
"future  organization"  of  the  industry. 

The  presentation  of  the  Federation's  report  to 
the  Cabinet  in  December  1945  was  followed  after 
many  months  of  Cabinet  discussion  by  a  decision 
announced  on  April  17,  1946  that  the  position  of 
the  steel  industry  and  its  importance  in  the  na- 
tional economy  required  a  large  measure  of  public 
ownership.  With  this  announcement  the  Govern- 
ment gave  notice  that  it  intended,  within  its  five- 
year  term  of  office,  to  carry  out  to  the  full  its 
electoral  pledges.  Meanwhile,  however,  the  Gov- 
ernment had  proposed  four  further  measures  of 
nationalization  in  the  economic  field :  overseas  tele- 
communications, civil  aviation,  the  development  of 
atomic  energy,  and  the  continuation  of  the  bulk 
purchase  of  cotton  by  the  Government. 

II.  The  Bank  of  England 

The  Bank  of  England  was  the  first  enterprise 
to  be  nationalized  under  the  Labor  program.  The 
bill  "to  bring  the  capital  stock  of  the  Bank  of 
England  into  public  ownership"  and  to  provide 
for  its  direction  by  a  Government-appointed  Gov- 
ernor and  Board  was  introduced  on  October  10, 
1945  and  became  law  some  four  months  later,  on 
February  14,  1946.  It  provided  for  the  transfer 
to  the  Government  of  the  capital  stock  of  the 
Bank,  shareholders  being  guaranteed  an  annual 
income  from  Government  securities  equal  to  the 
average  earned  over  the  last  20  years.  The  only 
clause  in  the  act  which  gives  the  Bank  (and  there- 
fore the  Government)  new  powers  is  that  which 
enables  it,  if  so  authorized  by  the  Treasury,  to  re- 
quire joint-stock  banks  to  comply  with  its  policy 
recommendations  and  requests  for  information. 

According  to  Hugh  Dalton,  Chancellor  of  the 
Exchequer,  public  ownership  of  the  Bank  means 
the  effective  occupation  of  "the  key  position  for 


economic  .  .  .  and  financial  planning".  However, 
the  Government  made  it  clear,  in  proposing  na- 
tionalization, that  the  policies  and  personnel  of  the 
Bank  would  remain  substantially  unchanged.  The 
act,  in  effect,  legalizes  a  long  tradition  of  coopera- 
tion between  the  Treasury  and  the  Bank,  and 
simply  guarantees  that,  in  the  event  of  a  difference 
of  opinion  between  the  two,  the  former  will  have 
the  final  word. 

That  the  position  of  the  Bank  in  the  nation's 
economy  will  remain  substantially  unchanged  was 
foreshadowed  by  the  cooperation  of  Lord  Catto, 
Governor  of  the  Bank,  and  the  reappointment  by 
the  Government  of  most  of  the  incumbent  members 
of  the  Bank's  Court  of  Directors,  to  which  only 
three  new  members  were  added.  Against  a  back- 
ground of  intimate  cooperation  between  the  Bank 
and  the  Treasury,  general  agreement  as  to  the  fair- 
ness of  the  compensation  terms,  and  universal 
praise  for  the  caliber  of  the  Government's  ap- 
pointees to  the  Court  of  Directors,  the  transition 
to  public  ownership  was  accomplished  smoothly. 
Lord  Catto,  referring  to  the  Bank's  new  status, 
undoubtedly  echoed  the  opinion  of  the  vast  ma- 
jority when  he  declared,  in  February,  that  the  "Old 
Lady  of  Threadneedle  Street"  had  come  through 
"her  major  operation  in  fine  shape". 

III.  Coal 

The  bill  for  the  nationalization  of  the  coal  in- 
dustry— of  far  greater  significance  than  the  Bank 
of  England  measure — was  introduced  on  December 
20,  1945,  sent  to  the  House  of  Lords  on  May  20, 
1946,  and  received  the  royal  assent  on  July  12, 1946. 
It  provides  that  all  mines  and  ancillary  establish- 
ments— coal  itself  having  been  nationalized  in 
1938 — will  pass  to  the  state,  owners  being  com- 
pensated by  Goverimient  securities  in  an  amount 
based  upon  the  earning  capacity  of  each  firm, 
after  an  estimate  of  the  earning  capacity  of  the 
industry  as  a  whole  has  been  determined  by  a  three- 
man  tribunal.  The  management  of  the  entire  in- 
dustry, according  to  the  terms  of  the  bill,  is  to  rest 
in  the  hands  of  a  National  Coal  Board  of  nine 
members,  who  are  to  be  selected  by  virtue  of  their 
wide  experience  in  industry,  science,  labor,  or 
finance.  They  are  to  serve  full  time  and  receive 
salaries  comparable  to  those  of  industrial  manag- 
ers, $34,000  a  year  for  the  chairman  and  $20,000 
for  the  remaining  members.  Wliile  the  Board  is 
to  enjoy  considerable  freedom  of  action,  it  will  be 


OCTOBER  6,  1946 


617 


subject  to  general  directions  issued  by  the  Minister 
of  Fuel  and  Power,  who  is  in  turn  to  be  advised 
by  two  councils  of  consumers,  industrial  and  do- 
mestic. A  sum  of  $600,000,000  will  be  made  avail- 
able by  the  Treasury  during  the  next  five  years  for 
the  urgently  required  modernization  of  the  mines. 
It  is  further  provided  that  the  books  of  the  industry 
are  to  balance  "on  an  average  of  good  and  bad 
years".  Emanuel  Shinwell,  Minister  of  Fuel  and 
tower,  admonished  the  delegates  to  the  recent 
Labor  Party  Annual  Conference  that  subsidization 
of  nationalized  industries  from  the  Exchequer 
would  be  "the  way  to  bankruptcy". 

The  urgency  with  which  the  Government  re- 
gards the  future  of  the  nationalized  coal  industry 
is  suggested  by  the  composition  of  the  National 
Coal  Board,  which  is  already  informally  at  work. 
Lord  Hyndley,  its  chairman,  has  been  associated 
with  the  coal  industi-y  for  40  years,  having  served 
as  director  of  the  efficient  Powell-Duffryn  Coal 
Company,  director-general  of  mines  in  the  Minis- 
try of  Fuel  and  Power,  and  chairman  of  the  Lon- 
don Coal  Committee.  The  Board's  two  experts  in 
labor  relations  are  Sir  Walter  Citrine,  formerly 
secretary  of  the  Trades  Union  Congress  and  chair- 
man of  the  World  Federation  of  Trade  Unions,  and 
Ebby  Edwards,  formerly  secretary  of  the  National 
Union  of  Miners.  Sir  Charles  Eeid,  author  of 
the  Eeid  Report  on  the  efficiency  of  the  mining  in- 
dustry, is  regarded  as  one  of  the  ablest  and  most 
progressive  mine  operators  in  the  country.  Pro- 
fessor Ellis  is  rated  as  one  of  the  most  capable 
scientists  in  Britain.  These  men  and  their  col- 
leagues make  up  what  the  Economist  describes  as 
"a  talented  Board,  representing  great  experience  of 
colliery  technique,  labor  organization,  science,  and 
commercial  practice". 

The  Board  will  assume  its  task  of  reorganization 
and  modernization  against  a  grim  background  of 
declining  coal  production,  which  may  result  next 
winter  in  unemployment  of  over  a  million  indus- 
trial workers.  It  will  fall  heir  to  an  inefficiently 
oi-ganized  and  critically  undermanned  industry 
which  is,  at  the  same  time,  the  linchpin  of  the 
British  economy.  It  is  hardly  surprising,  there- 
fore, that  Mr.  Shinwell  should  refer  to  nationali- 
zation of  the  coal  industx-y  as  an  "audacious  experi- 
ment" upon  the  success  of  which  the  entire  future 
of  the  Labor  program  will  depend.  "If  it  should 
fail",  he  warned  the  Labor  Party  conference,  "we 


cannot  hope  to  promote  further  schemes  of  na- 
tionalization." 

IV.  Civil  Aviation 

The  bill  to  establish  wholly  state-owned  civil- 
aviation  services  was  placed  before  the  House  of 
Commons  on  April  5,  1946,  passed  its  final  stage 
in  that  House  on  July  11,  and  rested  in  the  "com- 
mittee" of  the  House  of  Lords  when  the  Parlia- 
mentary recess  began  early  in  August.  Excepting 
only  private,  club,  and  charter  flying,  the  Govei^n- 
ment  plans  to  take  over,  with  reasonable  compen- 
sation, all  existing  civil-aviation  assets  and  merge 
them  into  three  public  corporations  covering  the 
entire  field  of  air  transport:  the  existing  British 
Overseas  Airways  Corporation  (whose  capital  will 
be  increased  from  $40,000,000  to  $200,000,000)  ; 
British  European  Airways  (with  a  capital  of  $80,- 
000,000)  covering  Great  Britain  and  the  European 
Continent;  and  British  South  American  Airways 
(with  a  capital  of  $40,000,000).  The  Minister  of 
Civil  Aviation,  who  will  name  the  members  of  the 
three  Boards,  will  also  have  the  power  to  direct 
them  to  exercise  their  functions  according  to  the 
Government's  conception  of  the  public  interest ;  it 
is  intended,  however,  to  allow  the  corporations  to 
function  "on  business  lines".  An  Air  Transport 
Advisory  Council  will  advise  the  Minister  and  act 
as  a  channel  for  public  criticism  and  suggestions. 
Unlike  the  methods  adopted  to  finance  the  nation- 
alized Bank  of  England  and  the  coal  industry,  the 
three  aviation  corporations  will  issue  their  own 
stock,  guaranteed  by  the  Treasury  in  the  amounts 
stated  above.  In  addition,  the  corporations  will  be 
launched  with  a  Government  subsidy  of  $40,000,000 
between  them  for  each  of  the  next  two  years  and 
$32,000,000  annually  thereafter  until  1956. 

Although  many  Conservatives  criticized  the 
Labor  Government's  departure  from  the  Coalition 
civil-aviation  plan,  which  permitted  private  ship- 
ping and  rail  interests  to  share  in  the  proposed 
public  corporations,  the  principle  of  public  re- 
sponsibility for  the  development  of  civil  aviation  is 
widely  accepted  in  Great  Britain.  The  Labor 
Party  platform,  furthermore,  had  specifically 
called  for  the  public  ownership  of  domestic  air 
services  as  part  of  a  coordinated  and  unified  in- 
land-transport system.  Government  participation 
in  the  financing  and  direction  of  the  BOAC  pro- 
vided an  additional  precedent  which  the  Govern- 
ment could  cite  in  support  of  its  bill.    According 


618 


DEPARTMENT  OF  STATE  BULLETIN 


to  Lord  Winster,  the  Minister  of  Civil  Aviation, 
Great  Britain  will  welcome  the  opportimity,  when- 
ever it  should  come,  of  merging  the  three  British 
corporations  into  a  single  international  owning 
and  controlling  body,  the  establishment  of  which  is 
still  regarded  as  the  ultimate  objective  of  British 
aviation  policy. 

V.  Telecommunicaiions 

The  plan  to  transfer  to  the  Government  the  en- 
tire capital  stock  of  Cable  and  Wireless,  Ltd.,  the 
British  overseas-communications  monopoly,  was 
introduced  on  April  24,  1946,  passed  the  House  of 
Commons  without  a  record  vote  on  July  11,  and 
had  reached  the  House  of  Lords  "committee"  stage 
by  the  recess.  The  Conservative  decision  not  to 
oppose  the  measure  was  due  largely  to  the  fact  tliat 
it  conforms  to  the  wishes  of  the  British  Dominions. 
Furthermore,  the  Conservative  Party  had  partici- 
pated in  formulating  the  plan  in  1945.  Unlike 
previous  nationalization  measures,  this  bill  fails 
to  specify  the  future  organization  of  the  industry, 
it  being  left  to  future  determination  whether  the 
service  will  be  run  by  a  public  board  or  the  Post 
Office,  which  now  handles  all  internal  telegraph 
business.  Nor  does  the  bill  indicate  whether  any 
change  will  be  made  in  the  complicated  structure 
of  subsidiary  companies  of  Cable  and  Wireless. 
In  effect,  it  simply  provides  the  legislative  basis  for 
carrying  into  effect  the  unanimous  recommenda- 
tions of  the  Commonwealth  Telecommunications 
Conference,  held  in  the  summer  of  1945,  which  had 
called  for  the  public  ownership  of  the  overseas- 
telecommunications  services  of  all  the  Common- 
wealth Govermnents  and  their  coordination  by  a 
Commonwealth  Telecommunications  Board. 

VI.  Iron  and  Steel 

The  long-awaited  policy  decision  of  the  Govern- 
ment on  the  nationalization  of  the  iron  and  steel 
industry  was  made  on  April  17, 1946.  It  was  then 
announced  that  the  Government  had  concluded 
that,  in  view  of  the  basic  unportance  of  the  in- 
dustry and  its  need  for  extensive  reorganization 
and  modernization,  it  should  in  large  measure  be 
transferred  to  public  ownership.  Pending  the  en- 
actment of  appropriate  legislation,  which  may  not 
occur  for  another  year  or  two,  a  new  Control 
Board,  replacing  the  present  Iron  and  Steel  Con- 
trol, will  be  responsible  for  the  general  supervision 
of  the  industry. 


A  more  detailed  explanation  of  this  Government 
decision,  which  evoked  considerable  opposition 
from  Conservative  and  industrial  circles,  was  made 
in  the  course  of  a  debate  at  the  end  of  May.  The 
Government's  policy,  the  Mmister  of  Supply  ar- 
gued, is  justified  in  view  of  the  monopolistic  char- 
acter of  the  industry  and  its  inability  to  finance 
without  Government  aid  the  $672,000,1)00  moderni- 
zation progi'am  which  the  Iron  and  Steel  Federa- 
tion itself  held  to  be  necessary.  Furthermore,  it 
was  contended,  the  Federation  lacks  power  to  carry 
out  its  own  modernization  plan,  which  in  general 
meets  with  the  approval  of  the  Cabinet.  The  Gov- 
ernment intends  to  include  in  the  public-ownership 
scheme  such  basic  elements  as  iron  ore,  mining, 
coke  ovens,  pig-iron  and  steel-ingot  production, 
jjrimary  and  heavy  rolling  sections,  and  lai'ge 
integrated  steel  companies.  On  the  other  hand  the 
manufacture  of  iron  castings,  specialties,  and 
motor  cars,  and  the  engineermg  and  shipbuilding 
industries  are  to  remain  in  private  hands. 

Although  the  Conservative  Opposition,  the  Fed- 
eration of  British  Industries,  the  Iron  and  Steel 
Federation,  and  the  National  Union  of  Manufac- 
turers have  plainly  indicated  that  they  will  fight 
the  nationalization  of  the  steel  industry  at  every 
step,  this  statement  of  policy  was  supported  by  the 
customary  Labor  majority,  and  the  Government 
has  indicated  its  intention  of  proceeding  with  its 
plans  to  frame  the  necessary  legislation. 

VII.  Other  Nationalization  Measures 

One  of  the  most  controversial  of  the  Govern- 
ment's measures,  which  can  only  receive  brief  men- 
tion here,  was  its  decision,  in  the  face  of  the  op- 
position of  most  of  the  cotton  interests,  to  continue 
Government  bulk  purchase  of  cotton  on  a  perma- 
nent basis.  The  perpetuation  of  the  Government 
purchase  of  cotton,  which  was  approved  by  the 
House  of  Commons  on  March  29,  1946,  was  sup- 
ported by  Sir  Stafford  Cripps,  President  of  the 
Board  of  Trade,  on  the  grounds  that  it  will  enable 
the  country  to  buy  cotton  "at  least  as  economically 
as  by  private  importation,"  and  is  in  the  interest 
of  the  textile  industry — contentions  which  were 
vehemently  rejected  by  most  sections  of  the  in- 
dustry. 

The  bill  for  the  development  of  atomic  energy, 
introduced  early  in  May,  can  likewise  be  given  only 
brief  mention.  The  Atomic  Energy  Bill  confers 
upon  the  Minister  of  Supply  very  wide  powers  and 


OCTOBER  6,  1946 


619 


contemplates  an  initial  expenditure  of  about  $120,- 
000.000  towards  the  development  of  atomic  energy. 
Having  had  its  first  reading  in  the  House  of  Com- 
mons in  May,  the  bill  was  held  up  during  its  second 
reading  pending  the  outcome  of  discussions  be- 
tween the  Government  and  scientists  concerned 
with  the  development  of  atomic  energy. 

Of  the  remaining  nationalization  schemes  al- 
ready scheduled,  a  bill  to  nationalize  the  electrical 
industry  is  now  being  prepared  by  the  Ministry 
of  Fuel  and  Power ;  legislation  for  gas  and  tx'ans- 
port  will  come  along  later. 

VIII.  Conclusion 

By  the  end  of  Labor's  first  year  in  office,  the 
Labor  Parliament  had  laid  the  legislative  founda- 
tion for  the  nationalization  of  the  Bank  of  Eng- 
land and  the  coal-mining  industry.  The  bills  for 
the  nationalization  of  civil  aviation  and  Cable  and 
Wireless  are  already  far  advanced  and  may  be 
expected  to  pass  by  the  end  of  1946;  the  atomic- 
energy  legislation  may  take  longer.  The  decision 
to  continue  the  bulk  purchase  of  cotton,  although 
it  received  the  approval  of  Parliament,  required 
no  specific  legislative  authority.  There  remain  for 
introduction  at  the  1946-1947  or  later  sessions  en- 
abling bills  for  the  nationalization  of  inland  trans- 
port, gas  and  electricity,  and  sections  of  the  iron 
and  steel  industry. 

With  these  measures,  the  Government  will  have 
completed  its  basic  five-year  nationalization  pro- 
gram. Its  fulfilment  will  establish  a  new  balance 
between  state  and  private  enterprise,  in  which  the 
latter  will  continue  to  predominate.  The  public 
sector  will  include  two  of  Britain's  chi'onically  de- 
pressed basic  industries,  coal  mining  and  steel,  as 
well  as  the  supply  of  cotton,  which  is  a  critical  ele- 
ment in  the  third  major  "sick"  industry,  textiles. 
The  gas  and  electricity  enterprises,  which  are  al- 
ready owned  to  a  considerable  degree  by  local  au- 
thorities, would  probably  have  been  nationalized 
by  any  post-war  Government,  whatever  its  political 
complexion ;  as  evidence  one  may  cite  the  recent  re- 
port of  the  non-partisan  Heyworth  Committee,  ap- 
pointed by  a  Conservative  Minister  in  the  Coalition 
Government,  which  recommended  national  owner- 
ship of  the  entire  gas  industry.  Even  under  Con- 
servative governments,  the  Bank  of  England  had 
become  in  effect  an  arm  of  the  Treasury ;  the  Coali- 
tion Government  had  already  gone  far  towards  the 


nationalization  of  civil  aviation;  the  decision  to 
nationalize  Cable  and  Wireless,  Ltd.,  was  essen- 
tially non-partisan ;  the  need  for  some  drastic  inte- 
gration of  inland  transport  is  widely  recognized ; 
and  the  public  development  of  atomic  energy  is 
regarded  by  all  as  an  unexceptionable  measure. 

Of  all  the  Government  steps  on  the  road  to  na- 
tionalization, the  decisions  on  steel  and  the  bulk 
purchase  of  cotton  aroused  the  most  intense  oppo- 
sition from  Conservative  and  industi-ial  circles. 
In  these  two  instances,  critics  of  the  Govermuent 
protested  that  no  clear  case  had  been  made  to  prove 
that  nationalization  would  be  more  efficient  than 
private  enterprise  supervised  by  the  Government. 
Although  Winston  Churchill,  leader  of  the  Oppo- 
sition, had  previously  indicated  his  disapproval  of 
the  entire  nationalization  approach,  these  two  par- 
ticular instalments  provoked  him  recently  to  renew 
his  charge  that  the  Government  is  responsible  for 
"the  disturbance  and  enfeeblement  of  industry  and 
enterprise  tlirough  the  launching  of  vague  ill- 
thought-out  schemes  of  nationalization.  .  .  ."  More 
representative,  probably,  of  the  attitude  of  British 
industry  towards  the  nationalization  program  as 
a  whole — although  there  may  be  disagreement  on 
specific  items — was  the  statement  last  December 
by  Sir  Clive  Baillieu,  president  of  the  Federation 
of  British  Industries :  industry,  he  held,  must  oper- 
ate within  the  framework  of  Government  policies; 
the  control  of  industry  is  no  longer — solely  and  ex- 
clusively— a  matter  for  the  proprietors ;  and  "Brit- 
ain's future  can  only  be  assured  if  we  reproduce 
in  the  days  ahead  the  close  and  intimate  under- 
standing which  linked  Government  and  industry 
together  in  the  war." 

The  cooperative  spirit  shown  by  British  industry 
has  been  in  many  respects  complemented  by  the 
attitude  of  the  leaders  of  the  Labor  Government. 
Face  to  face  with  the  concrete  problems  of  nation- 
alization, they  appear  to  be  deeply  conscious  of  the 
responsibilities  they  are  assuming  and  fully  aware 
that  nationalization  itself  is  far  from  being  a  pana- 
cea for  Britain's  industrial  ills.  As  Herbert  Morri- 
son put  it,  nationalization  by  itself  merely  provides 
an  opportunity  for  the  revitalization  and  I'eorgani- 
zation  of  industry.  Wliat  is  made  of  this  oppor- 
tunity will  go  far  to  decide  not  only  the  fate  of 
the  "audacious  experiment"  of  nationalization  but 
the  entire  future  of  British  political  and  economic 
development. 


THE  PARIS  PEACE  CONFERENCE 


Investigations  on  United  Nations  Property  in  Rumania 

REMARKS  BY  WILLARD  THORP  > 


[Released  to  the  press  September  25] 

The  members  of  the  Commission  will  doubtless 
remember  that  we  had  a  prolonged  discussion  con- 
cerning United  Nations  property  in  Kumania  sev- 
eral days  ago.  In  the  course  of  that  discussion  a 
number  of  speakers  were  disturbed  because  there 
was  so  little  factual  information  available.  The 
Delegate  of  the  Soviet  Union  declared  that  he  did 
not  have  sufficient  data  to  make  a  satisfactory  judg- 
ment on  the  problem.  Similarly,  the  Delegates  of 
Yugoslavia,  Byelorussia,  and  Ukraine  all  indicated 
their  wish  to  have  figures  and  precise  facts  as  a 
basis  for  determining  a  just  solution  of  the  prob- 
lem. This  is  a  point  of  view  with  which  I  have  a 
good  deal  of  sympathy.  We  are  accustomed  in  the 
United  States  to  use  facts  and  figures  to  guide  our 
policy  decisions  whenever  possible.  That  is  why  I 
have  tried  to  assemble  as  much  and  as  accurate  data 
as  possible  bearing  on  the  particular  problem  dealt 
with  in  paragraph  4  of  article  24,  namely  the  com- 
pensation to  United  Nations  nationals  for  damage 
to  their  property  in  Rumania.  We  now  present  to 
the  members  of  the  Commission  the  results  of  our 
investigations.  In  the  first  place  we  endeavored 
to  get  some  sort  of  estimate  for  the  total  damage 
caused  to  the  property  of  United  Nations  nationals 
in  Rumania.  We  do  not  have  exact  figures  but 
thanks  to  the  replies  given  by  the  Rumanian  Dele- 
gate to  my  questions  yesterday  morning  it  is  now 
possible  for  us  to  reach  a  fairly  good  approxima- 
tion of  the  total  of  the  damages.  Assuming  that 
the  figures  given  by  the  Rumanian  Delegate 
are  correct,  we  have  a  definite  basis  on  which 
to  approach  the  problem.     The  Rumanian  Dele- 


'  Made  in  Paris  on  Sept.  23  at  tlie  meeting  of  the  Eco- 
nomic Commission  for  Finland  and  the  Balkans.  Mr. 
Thorp  is  a  member  of  the  U.  S.  Delegation  to  the  Paris 
Peace  Conference. 

620 


gate  declared  that  the  total  value  of  United  Nations 
property  in  the  petroleum  industry  is  $150,000,000. 
He  said  in  answer  to  an  oral  question  that  the  total 
value  of  all  property  of  the  United  Nations  was 
somewhat  more  than  $200,000,000.  On  this  basis, 
we  are  justified  in  placing  the  value  for  the  total 
of  United  Nations  property  at  $250,000,000.  As  a 
matter  of  fact  this  figure  is  somewhat  more  than 
that  which  we  had  estimated  ourselves  from  other 
sources,  but  for  our  purposes  here  let  us  assume 
that  it  is  correct.  As  to  the  damage  we  have  a 
reply  given  by  the  Rumanian  Delegation  placing 
the  damage  in  the  petroleum  industry  at  between 
$47,000,000  and  $50,000,000.  You  will  recall  that 
in  response  to  an  oral  question  from  me  the  Ru- 
manian Delegate  states  that  the  greatest  damage 
to  ijroperty  in  Rumania  was  done  to  railroads 
(obviously  no  railroad  property  belongs  to  nation- 
als of  United  Nations)  and  the  petroleum  industry. 
In  other  cases  the  damage  was  at  a  substantially 
lower  rate.  Since  the  figures  for  the  petroleum 
industry  indicate  the  damage  to  be  about  one  third 
of  the  total  value  it  would  seem  to  be  reasonable  to 
fix  the  corresponding  rate  for  the  remaining  prop- 
erty at  20  percent.  I  am  sure  this  is  on  the  liberal 
side.  At  any  rate,  it  would  indicate  that  the  dam- 
age for  this  remaining  property  was  $20,000,000 ; 
we  therefore  arrive  at  a  figure  for  total  damages 
of  $70,000,000:  $50,000,000  for  petroleum  and 
$20,000,000  for  all  other  types  of  property. 

The  Rumanian  Delegation  also  indicated  that 
$10,000,000  of  damages  to  foreign  property  in  the 
petroleum  industry  have  already  been  taken  care 
of  by  the  Rumanian  Government  through  the  me- 
dium of  loans.  However  their  reply  also  indicated 
that  these  loans  were  repayable  in  lei,  and  in  view 
of  the  subsequent  inflation  they  have  been  virtually 


OCTOBER  6,  1946 


621 


wiped  out.  Therefore,  of  the  $70,000,000  of  origi- 
nal damage  $10,000,000  have  already  beeix  cared 
for  by  the  Eumanian  Government,  and  there  re- 
mains a  potential  cost  to  the  Rumanian  Govern- 
ment of  $60,000,000  under  this  paragraph  in  the 
treaty.  This  figure  I  must  repeat  is  my  own  esti- 
mate based  on  the  facts  and  statements  which  I 
have  reported  to  you.  It  is  obviously  an  approxi- 
mate figure,  but  I  am  sure  that  it  cannot  be  sub- 
stantially above  or  below  the  actual  fact.  I  re- 
peat, therefore,  that  by  virtue  of  paragraph  4  of 
article  24  the  Rumanian  economy  would  have  to 
meet  a  charge  of  approximately  $60,000,000,  but 
this  figure  alone  does  not  provide  the  necessary 
basis  for  judging  the  total  situation.  We  must 
also  have  some  idea  of  the  total  burden  which  the 
Rumanian  economy  must  carry  at  the  present  time. 
The  Rumanian  Delegation  has  alleged  that  its  bur- 
dens are  tremendous  and  that  the  compensation 
demanded  by  the  United  Nations  nationals  when 
added  to  that  imposed  from  other  sources  is  more 
than  the  Riunanian  economy  can  bear.  In  order 
to  meet  the  points  made  by  the  Yugoslav  and 
Byelorussian  Delegates,  it  would  seem  to  us  neces- 
sary to  value  as  correctly  as  possible  the  total  bur- 
den on  Rumania  so  that  we  could  see  the  burden 
of  this  particular  paragraph  in  its  true  perspective. 
You  may  recall  that  I  asked  the  Rumanian  Dele- 
gation to  give  me  their  best  estimate  as  to  what 
the  total  burden  growing  out  of  the  war  on  their 
economy  might  be,  and  you  also  may  recall  that 
the  answer  was  that  they  had  no  such  estimate. 
Incidentally,  it  seems  to  me  quite  extraordinary  to 
insist  that  a  weight  is  intolerable  if  one  has  no  idea 
of  what  it  is.  For  this  reason,  I  think  we  can  dis- 
regard any  conclusions  which  the  Rumanian  Dele- 
gation may  have  made  about  this  article  since  they 
clearly  were  not  basing  them  on  anything  more 
than  hypotheses.  We  have  endeavored  to  make 
such  an  estimate  based  on  the  best  evidence  which 
we  could  obtain.  I  would  certainly  not  pretend 
that  we  have  exact  figures,  but  at  least  we  can  give 
some  idea  of  the  general  order  of  magnitude  of 
the  burden.  Some  figures  have  appeared  in  the 
public  press;  some  figures  have  even  been  avail- 
able from  official  sources.  I  shall  therefore  give 
you  the  figures  which  seem  to  me  to  give  the  most 
accurate  picture  taking  into  account  the  various 
items  in  the  total  burden  on  Rumania.  I  shall  not 
give  you  merely  a  total  figure  but  figures  for  a 

716290 — 46 3 


series  of  subheadings.  While  particular  subhead- 
ings may  be  greater  or  less  than  actual  fact  as  it  is 
ultimately  determined,  these  individual  variations 
should  tend  to  offset  each  other  and  the  total  figure 
should  be  more  accurate  than  the  figure  for  the 
individual  parts. 

The  main  burdens  on  Rumania  are  established 
by  certain  clauses  in  the  armistice  agreement  and 
the  draft  peace  treaty.  In  the  armistice  agreement 
article  10  relates  to  the  maintenance  of  occupation 
troops.  On  the  basis  of  comments  made  by  the 
Rumanian  Delegation  we  can  establish  this  figure 
in  the  general  neighborhood  of  $325,000,000.  Arti- 
cle 11  relates  to  reparations  payments.  We  of 
course  all  know  that  the  total  reparations  agree- 
ment for  Rumania  requires  delivery  of  goods 
worth  $300,000,000.  However,  the  goods  are  to  be 
valued  in  terms  of  1938  dollars.  In  view  of  the 
rise  in  the  world  price  level  this  means  that  the 
total  amount  of  goods  which  will  be  delivered  in 
connection  with  reparations  will  be  substantially 
more  than  $300,000,000  of  current  dollars.  If  one 
considers  the  70  odd  million  dollars  which  I  under- 
stand have  been  paid  up  to  now  by  Rumania,  it 
would  be  a  reasonable  estimate  that  the  cost  to 
Rumania  in  current  dollars  would  be  in  the  neigh- 
borhood of  $100,000,000. 

Passing  now  to  article  12,  that  relating  to  resti- 
tution: The  best  figure  which  I  can  establish  is 
that  up  to  the  present  time  approximately 
$175,000,000  have  been  spent  under  this  heading 
by  the  Rumanian  Government.  Finally  there  is 
an  item  which  is  very  difficult  to  value  for  requisi- 
tions and  other  direct  takings  of  goods  and  services 
which  of  course  do  not  enter  into  the  fiscal  records 
of  the  government.  This  we  understand  is  in  the 
neighborhood  of  $425,000,000.  In  addition  there 
ai'e  several  smaller  items  which  can  be  valued  at 
$25,000,000,  so  that  I  think  that  we  can  take  as  a 
total  cost  up  to  the  present  a  total  of  $1,050,000,000. 

Incidentally,  I  perhaps  might  mention  briefly 
that  there  is  another  article  in  the  armistice  which 
is  entitled  "The  Restoration  of  Rights  of  United 
Nations  Nationals".  As  far  as  I  can  determine 
the  total  expenditure  by  the  Rumanian  Govern- 
ment which  can  be  allocated  to  this  purpose  is  less 
than  $100,000.  Up  to  now  I  have  been  discussing 
only  the  figures  which  relate  to  burdens  on  Ru- 
manian economy  in  the  past.  Now  we  must  turn 
to  the  question  of  the  future.     Here  obviously  we 


622 


DEPARTMENT  OF  STATE  BULLETIN 


are  in  an  area  of  speculation.  We  can  easily  un- 
derestimate, because  the  reparations  arrangement 
permits  of  certain  penalties.  Of  course  we  cannot 
tell  what  those  penalties  may  amount  to,  but  in 
order  to  be  on  the  conservative  side  let  us  assume 
that  what  we  all  hope  will  be  true,  and  the  Ruman- 
ian Goverimient  will  escape  from  increasing  its 
already  heavy  burdens.  I  have  already  said  that 
approximately  $70,000,000  have  been  credited 
against  the  reparations  obligation.  This  leaves 
$230,000,000  yet  to  be  paid  in  the  future.  How- 
ever, again  I  must  remind  you  that  this 
$230,000,000  is  that  value  of  goods  at  1938  prices 
but  that  the  Rumanian  Government  will  have  to 
obtain  commodities  at  current  prices.  Having  in 
mind  the  increase  in  world  prices  since  1938,  I 
should  think  that  we  would  have  to  regard  the  fu- 
ture reparations  burden  as  being  in  the  neighbor- 
hood of  $350,000,000. 

Now  as  to  restitution,  I  understand  that  the  re- 
maining obligation  is  for  approximately  $200,- 
000,000.  In  this  case  we  have  to  make  two  cor- 
rections. Not  only  is  there  a  price  correction  since 
April  1945  (the  price  base  in  the  convention  deal- 
ing with  this  matter) ,  but  also  an  allowance  must 
be  made  for  the  cost  of  transportation  and  various 
other  charges.  It  is  difficult  to  know  what  these 
additional  costs  will  be,  and  I  have  seen  estimates 
which  bring  the  total  up  nearly  to  $700,000,000. 
However,  again  I  wish  to  be  conservative  and 
shall  suggest  that  we  include  for  our  calculation 
a  figure  of  $350,000,000  for  completing  the  resti- 
tution program. 

The  next  item  is  the  continued  cost  of  occupa- 
tion. Presumably  this  will  continue  in  substantial 
form  until  90  days  after  the  peace  treaty  is  signed 
and  possibly  beyond  that.  In  connection  with  the 
maintenance  of  lines  of  communication  with  Aus- 
tria— again  to  be  on  the  low  side  I  would  include 
$100,000,000  for  this  item. 

Finally,  there  are  various  German  and  Italian 
assets  which  one  might  have  expected  could  revert 
to  Rumanian  ownership  but  which  are  in  the  proc- 
ess of  being  transferred  to  other  foreign  owner- 
ship. In  connection  with  relevant  international 
agreements  it  may  be  that  there  are  other  items 
which  should  be  included  beyond  these  four,  but 
they  make  a  total  of  $950,000,000.  When  the  past 
and  future  costs  are  added  together  we  get  the 
staggering  sum  of  $2,000,000,000. 


Again,  I  must  say  that  I  am  sure  that  these 
figures  are  not  exactly  correct.  The  total  may  be 
somewhat  smaller  or  it  may  be  somewhat  larger, 
but  at  any  rate  we  do  have  a  clear  impression  of 
the  very  substantial  character  of  Rumania's  finan- 
cial obligations. 

The  exactitude  of  this  figure  of  $2,000,000,000  is 
not  important.  Wliat  is  important  is  its  contrast 
with  the  $60,000,000  which  would  be  required  for 
the  full  compensation  for  the  nationals  of  all  the 
United  Nations.  This  $60,000,000  represents  3 
percent  of  the  $2,000,000,000.  It  is  not  important 
as  to  whether  the  figure  is  3  percent  or  2  percent 
or  4  percent.  What  is  important  is  the  tremendous 
difference  between  the  two  figures. 

I  must  confess  that  these  estimates  reinforce  the 
surprise  which  I  have  felt  at  the  attitude  taken  by 
the  Rumanian  Government.  Their  representatives 
have  protested  most  vigorously  against  the  heavy 
burden  of  the  $60,000,000.  They  have  never  even 
mentioned  the  items  involved  in  the  $2,000,000,000. 
Under  such  circumstances  I  find  it  very  difficult  to 
give  any  weight  to  the  wailings  of  the  Rumanian 
Government  about  the  provisions  for  treatment  of 
United  Nations  nationals.  They  remind  me  of  an 
old  saying:  "One  should  not  be  concerned  with  a 
fly  in  the  drinking  water  if  there  is  a  hippopotamus 
in  it."  1  believe  that  it  is  necessary  to  keep  this 
total  picture  in  mind  if  we  want  to  appreciate  the 
burden  imposed  on  the  Rumanian  economy  by  the 
treaty.  That  burden  is  so  great  that  the  United 
States  does  not  wish  in  any  way  to  be  responsible 
in  however  little  measure  for  increasing  the  diffi- 
culties of  Rumania  which  arise  primarily  from  the 
various  clauses  and  articles  in  the  treaty.  Though 
it  is  not  substantial  as  compared  with  the  total 
picture,  we  propose  to  reduce  our  own  requests  for 
full  compensation  as  presented  in  article  24.  This 
will  parallel  the  action  which  we  have  taken  in  the 
case  of  the  Italian  treaty.  However,  I  must  point 
out  that  any  such  reduction  can  only  remedy  in  a 
very  slight  way  the  serious  situation  with  which 
the  Rumanian  economy  is  threatened  by  the 
totality  of  all  of  the  clauses  in  the  armistice  and 
the  peace  treaty.  Even  if  all  the  United  Nations 
nationals  eliminated  their  demands  completely  the 
reduction  of  $60,000,000  would  make  only  the 
smallest  dent  in  the  $2,000,000,000  total. 


THE  UNITED  NATIONS 
U.  S.  Proposal  for  Conference  on  Resource  Conservation  and  Utilization^ 

LETTER  FROM  U.  S.  REPRESENTATIVE  ON  ECONOMIC  AND 
SOCIAL  COUNCIL  TO  ACTING  PRESIDENT' 


September  13,  1S46. 
Dear  Dr.  Stamp ar  : 

The  Government  of  the  United  States  wishes 
to  call  attention  to  one  of  the  fundamental  prob- 
lems involved  in  improving  the  economic  con- 
dition of  the  people  of  the  world,  namely,  the 
conservation  and  effective  utilization  of  natural 
resources. 

During  the  war,  which  drew  heavily  on  the 
world's  resources,  many  new  techniques  of  re- 
source conservation  and  utilization  were  de- 
veloped in  the  various  countries.  It  is  important 
to  rapid  world  economic  reconstruction  and  ad- 
vancement that  the  knowledge  of  these  new 
techniques  be  shared  widely  among  nations. 

To  this  end,  I  should  like  to  propose  that  the 
Economic  and  Social  Council  call  a  United 
Nations  Scientific  Conference  on  Resource  Con- 


servation and  Utilization  to  meet  in  the  last  six 
months  of  1947.  I  would  appreciate  your  having 
this  proposal  placed  on  the  agenda  of  the  present 
session  of  the  Council.  There  is  enclosed,  for  cir- 
culation among  Members  of  the  Council,  a  draft 
resolution  that  I  plan  to  put  forward  formally  at 
the  appropriate  time  and  also  President  Truman's 
letter  to  me  on  this  subject,  to  which  there  is  at- 
tached an  informal  memorandum  suggesting 
possible  topics  for  discussion  at  such  a  conference. 
You  will  note  that  President  Truman  has 
authorized  me  to  inform  you  that  this  Govern- 
ment would  be  glad  to  have  the  conference  held  in 
the  United  States  and  to  make  available  resource 
experts  to  aid  in  the  preparatory  work. 

Sincerely, 

John  S.  Winant 


DRAFT    RESOLUTION    PROPOSING    A    UNITED  NATIONS  SCIENTIFIC 
CONFERENCE    ON    RESOURCE    CONSERVATION    AND     UTILIZATION 


The  Economic  and  Social  Council,  recognizing 
the  drain  of  the  war  on  the  world's  natural  re- 
sources, the  importance  of  these  resources  to  the 
reconstruction  of  devastated  areas,  and  the  need 
for  continuous  development  and  widespread  ap- 
plication of  the  teclmiques  of  resource  conserva- 
tion and  utilization : 

1.  Decides  to  call  a  United  Nations  Scientific 
Conference  on  Resource  Conservation  and  Utiliza- 
tion for  the  purpose  of  exchanging  information 
on  techniques  in  this  field,  their  economic  costs 
and  benefits,  and  their  interrelations; 

2.  Establishes  a  Preparatory  Committee  for  the 
Conference,  consisting  of  the  following  countries : 
(List  will  be  submitted  later.) 

3.  Requests  the  Preparatory  Committee  to  pre- 
pare the  Conference  programme,  to  select  experts 
to  present  the  subject  matter  and  organize  the 


Conference  discussions,  to  choose  the  place  and 
date  of  the  Conference  (preferably  during  the 
second  half  of  1947,  and  to  co-operate  with  the 
Secretary-General  in  arranging  for  the  Con- 
ference ; 

4.  Requests  the  Preparatory  Committee  to  plan 
the  Conference  as  a  meeting  devoted  solely  to  the 
exchange  of  ideas  and  experience  among  engineers, 
resource  technicians,  economists,  and  other  experts 
in  the  natural  and  social  sciences ; 

5.  Requests  the  Preparatory  Committee  to  con- 
sult with  representatives  of  all  agencies  of  the 
United  Nations  having  important  responsibilities 
in  the  subject  matter  fields  of  the  Conference,  and 
to  consider  suggestions  which  may  be  submitted  to 
it  by  Members  of  the  United  Nations. 


'  E/139.     Sept.  14,  1946. 
'  Dr.  Andrija  Stampar. 


623 


624 


DEPARTMENT  OF  STATE  BULLETIN 


LETTER    FROM  PRESIDENT  TRUMAN  TO  U.  S.  REPRESENTATIVE 
ON  ECONOMIC  AND  SOCIAL   COUNCIL 


The  White  House, 
Washington,  September  4-,  lO^B. 
Mt  Dear  Mk.  Winant  : 

I  wish  to  suggest  that  you,  as  the  representative 
of  the  United  States  on  the  Economic  and  Social 
Council  of  the  United  Nations,  propose  to  that 
organization  at  its  meeting  in  September  that  it 
sponsor  an  international  scientific  conference  on 
the  conservation  and  utilization  of  natural  re- 
sources, and  express  my  hope  that  it  will  be  held 
in  this  country  in  the  autumn  of  1947. 

It  is  my  belief  that  the  need  for  such  an  exchange 
of  thought  and  experience  was  never  greater. 
Warfare  has  taken  a  heavy  toll  of  many  natural 
resources;  the  rebuilding  of  the  nations  and  the 
industrialization  of  underdeveloped  areas  will  re- 
quire an  additional  large  depletion  of  them. 
Waste,  destruction  and  uneconomic  use  of  re- 
sources anywhere  damage  mankind's  common 
estate.  The  real  or  exaggerated  fear  of  resource 
shortages  and  declining  standards  of  living  has 
in  the  past  involved  nations  in  warfare.  Every 
member  of  the  United  Nations  is  deeply  interested 
in  preventing  a  recurrence  of  that  fear  and  of  those 
consequences.  Conservation  can  become  a  major 
basis  of  peace.  Modern  science  has  itself  become  a 
major  international  resource  which  facilitates  the 
use  of  other  resources.  Their  adequate  utilization 
can  become  a  major  basis  of  world  prosperity. 

It  is  my  liope  that  such  a  scientific  conference 
would  bring  together  all  the  new  techniques  of  re- 
source conservation  and  utilization  particularly 
for  the  benefit  of  underderelo}}ed  areas,  since  the 
problems  of  these  areas  represents  the  hopes  of 
millions  of  people  for  freedom  from  starvation 
and  for  opportunity  in  life.  The  conference  could 
properly  and  usefully  evaluate  tlie  outstanding 
developments  in  the  resource  field  as  aids  to  under- 
developed regions,  to  areas  suffering  from  resource 
depletion,  and  also  to  areas  subject  to  rapid  post- 
war change  in  their  patterns  of  resource  use.  I 
believe  that  the  possible  peaceful  uses  of  atomic 
energy  within  the  next  few  decades  might  well  be 
examined  in  this  connection.  It  is  also  my  hope 
that  such  a  scientific  conference  would  examine  the 
world's  expected  resource  needs. 


It  is  my  belief  that  a  conference  composed  of 
engineers,  resource  technicians,  economists  and 
other  experts  in  the  fields  of  physical  and  social 
science  would  ofi^er  the  most  desirable  method  of 
presenting  and  considering  the  definite  problems 
now  involved  in  the  resource  field.  It  is  my 
thought  that  these  experts  would  not  necessarily 
represent  the  views  of  the  governments  of  their 
nations,  but  would  be  selected  to  cover  topics  within 
their  competence  on  the  basis  of  their  individual 
experience  and  studies.  I  am  sure  that  such  a 
scientific  conference  can  be  helpful  to  the  basic 
organizations  of  the  United  Nations  without  im- 
pinging upon  the  valuable  work  which  they  are 
undertaldng.  Its  success  will,  of  course,  depend 
upon  the  active  cooperation  of  all  the  participating 
nations,  and  of  the  staff  of  already  established  or- 
ganizations of  the  United  Nations,  including  par- 
ticularly the  Food  and  Agriculture  Organization, 
which  should  be  considered  in  the  development  of 
Part  I  of  the  Program. 

I  am  attaching  for  your  use  and  reference  a 
preliminary  and  condensed  program  outline  pre- 
pared by  the  resource  agencies  of  this  Government. 

It  is  my  hope  that  the  conference  can  be  held 
no  later  than  the  autumn  or  winter  of  1947  in  this 
country.  In  the  event  of  favorable  action  by  the 
Council  on  this  proposal,  and  if  it  so  desires,  I 
shall  be  glad  to  make  available  to  it  a  skilled  re- 
source staff  to  aid  in  the  preparatory  work. 
Sincerely  yours, 

Harry  S.  Truman 

OUTLINE    OF    PROGRAM    FOR    THE    RESOURCE 

CONSERVATION  AND  UTILIZATION 

CONFERENCE 

OBJECTIVE 
There  is  great  need  for  an  international  scien- 
tific conference  on  the  conservation  and  utilization 
of  natural  resources.  Many  resources  have  been 
used  up  during  the  war.  The  rebuilding  of  na- 
tions and  the  industrialization  of  under-developed 
areas  will  continue  to  deplete  them.  The  preven- 
tion of  any  waste  and  uneconomic  use  is  desirable 
for  all.  Meanwhile,  new  techniques  and  even 
new  resources  have  been  discovered  which  can  im- 
prove and  hasten  economic  progress.     The  under- 


OCTOBER  6,  1946 


625 


standing  of  their  significance  and  tlieir  possible 
application  is  of  importance  to  all  nations. 

The  proposed  conference  is  intended  to  bring 
together  the  best  technical  thinking  and  experience 
of  the  resource  experts  of  all  the  nations  which 
has  accumulated  in  recent  years  in  a  form  which 
will  lead  to  the  broadest  general  understanding  of 
possibilities  for  economic  progress.  These  spe- 
cialists will  cover  the  development  of  the  new 
technologies  of  conservation  and  of  resource  utili- 
zation, and  estimate  their  costs  and  economic  bene- 
fits, and  their  inter-relations. 

Since  the  conference  is  unique  and  will  presum- 
ably not  be  repeated  for  many  years,  and  since  its 
objective  is  the  interchange  of  information  and 
judgment  among  experts  in  each  field,  no  attempt 
will  be  made  at  the  conference  to  secure  exjires- 
sions  of  any  Governmental  opinion  or  to  affect 
any  Governmental  action.  Assistance  from  out- 
standing experts  in  such  organizations  as  the  Food 
and  Agriculture  Organization  will  be  asked  on  the 
basis  of  individual  competence  in  the  resource 
problems  on  the  conference  program.  It  is  hoped 
that  the  individual  Governments  will  make  the 
ablest  technicians  in  their  countries  available  for 
the  conference  in  their  individual  capacities. 

The  scientific  nature  of  the  conference  deter- 
mines the  formulation  of  the  problems  covered  by 
the  program.  These  presented  here  for  the  con- 
sideration of  the  Economic  and  Social  Council  were 
developed  by  a  working  committee  of  representa- 
tives of  four  Departments  of  the  Government  of 
the  United  States  of  America. 

The  first  three  parts  of  the  programme  are  de- 
voted to  the  three  principal  categories  of  resources 
(renewable,  non-renewable  and  energy),  each  of 
which  is  covered  separately.  The  inter-relation- 
ship of  the  problems  of  conserving  and  developing 
each  resource  would  be  the  subject  of  Part  IV  of 
the  programme  discussion  of  which  woukl  most 
logically  be  scheduled  to  follow  that  of  the  other 
parts. 

The  programme  briefly  outlined  here  is,  of 
course,  subject  to  change  within  its  technical  lim- 
its. It  is  expected  that  a  programme  committee 
will  be  constituted  which  will  proceed  rapidly  with 
an  exact  formulation  of  topics,  and  also  select  ex- 
perts from  all  parts  of  the  world  who  will  be  able 
to  co-ordinate  the  subject  mattei*.  The  support 
and  co-operation  of  all  of  the  United  Nations  will 


be  necessary  for  the  full  development  of  all  the 
possibilities  in  the  programme. 

CONFERENCE  PROGRAMME,  PART  I 

The  Problems  of  Renewable  Resources 

This  part  of  the  programme  should  cover  prob- 
lems of  the  renewable  resources,  including: 

The  major  new  techniques  of  land  and  forest 
conservation,  including  soil  and  range  use,  land 
reclamation  and  drainage,  protection  of  fish  and 
wildlife. 

The  new  utilizations  of  renewable  resource  prod- 
ucts and  the  possibilities  of  substitution. 

The  costs  and  benefits  of  new  conservation  tech- 
niques and  utilization  methods  in  different  areas. 

Comparison  of  local  administrative  methods  for 
all  types  of  renewable  resources,  including  soil  con- 
servation districts,  European  chambers  of  agri- 
culture, Governmental,  co-operative,  and  other 
forms  of  land  and  forest  management.  Compari- 
son of  the  obligations  of  owners  for  land  and  forest 
conservation. 

The  effects  of  new  conservation,  extraction  and 
utilization  methods  on  the  economies  of  already 
developed  areas. 

The  possibilities  of  developing  and  applying 
new  methods  of  both  conservation  and  utilization 
to  under-developed  areas,  including  areas  subject 
to  rapid  change  in  the  pattern  of  resource  use, 
and  areas  subject  to  rapid  resource  depletion. 

Estimates  of  the  future  world  demand  and  sup- 
ply position  and  its  possible  variation  in  regard 
to  the  products  of  basic  renewable  resources. 

CONFERENCE  PROGRAMME,  PART  II 

The  Problems  of  Non-Renewable  Resources 

Tliis  part  of  the  programme  should  cover  the 
non-renewable  resources,  including : 

The  possibilities  and  effects  of  new  techniques 
of  mineral  and  fuel  extraction,  metallurgical 
processing,  hydrogenation,  and  fabrication  of 
minerals,  including  costs  and  benefits. 

The  possibilities  and  effects  of  new  manufac- 
turing processes. 

The  problems  of  depletion,  and  the  possibilities 
of  substitutions. 

The  local  administration  of  non-renewable  re- 
sources in  the  ground  and  of  their  extraction. 

Future  world  needs  for  non-renewable  resources. 


626 


DEPARTMENT  OF  STATE  BULLETIN 


considering  economically  useful  reserves,  varying 
levels  of  world  needs,  and  substitution  possibilities 
among  the  non-renewable  resources. 

CONFERENCE  PROGRAMME,  PART  m 

Problems  of  Energy  Resources 

This  part  of  the  programme  should  cover  the 
problems  of  energy  resources,  including: 

Major  economic  uses  of  atomic  energy,  by  areas, 
based  on  varying  assumptions  of  production  cost. 

New  developments  and  possibilities  in  steam- 
electric  and  hydro-electric  power  plant  construc- 
tion, in  long-distance  transmission  and  in  dam- 
construction. 

Comparative  costs,  efficiencies  and  benefits  of 
steam-electric  plant  and  hydro-electric  plant 
opei-ation. 

The  effect  of  energy  supplies  at  varying  costs 
on  under-developed  areas,  and  on  industrialized 
areas. 

Problems  of  energy  use  for  large-scale  pumping 
and  river  diversion. 

The  competitive  effects  of  alternative  energy  re- 
sources. 

The  local,  regional  and  national  administration 
of  energy  resources,  including  private  corpora- 
tions, central  electricity  administrations  and  rural 
electric  co-operatives. 

Future  world  needs  and  possibilities  for  energy, 
based  on  varying  assumptions  of  world  economic 
development. 


CONFERENCE  PROGRAMME,  PART  TV 

Joint  Problems  of  Resource  Conservation  and 
Utilization 

This  part  of  the  programme  should  cover  the 
problems  of  conservation  and  utilization  affecting 
several  groups  of  resources,  including: 

The  joint  application  of  the  new  developments 
in  two  or  more  resources  fields  to  under-developed 
areas,  to  areas  suffering  from  resource  depletion, 
and  to  areas  subject  to  rapid  change  in  the 
patterns  of  resource  use,  and  to  other  special  area 
problems  such  as  river  basins. 

The  joint  effects  on  the  economies  of  developed 
areas,  of  applying  modern  conservation  and 
utilization  methods  in  all  resource  fields. 

The  possibilities  of  single-agency  administra- 
tion of  resource  development  (such  as  the  Ten- 
nessee Valley  Authority).  The  administration 
and  financial  problems  of  multiple-agency  and 
single-agency  development  of  combined  resources. 

The  past  and  possible  future  effects  of  changes 
in  patterns  of  resource  use  on  the  size  and  economic 
condition  of  the  population. 

The  combined  estimate  of  future  world  needs 
and  reserves  of  all  types  of  resources,  allowing 
for  varying  levels  of  demand  and  for  probable 
substitution  among  all  types  of  resources,  as  in 
particular  substitution  of  non-renewable  re- 
sources by  plastics  and  use  of  synthetics  instead  of 
renewable  resources. 

Washington,  August  29,  194.6 


Summary  of  Preliminary  Report  of  Subcommission  To  Study 
the  Economic  Reconstruction  of  Devastated  Areas 


The  Subcommission  established  by  the  Economic 
and  Social  Council  on  June  21,  1946  to  study  the 
economic  reconstruction  of  devastated  areas  met 
in  London  from  July  29  to  September  13, 1946. 

It  consisted  of  the  following  twenty  member 
countries:  Australia,  Belgium,  Canada,  China, 
Czechoslovakia,  Ethiopia,  France,  Greece,  India, 
Netherlands,  New  Zealand,  Norway,  Peru,  the 
Philippine  Kepublic,  Poland,  Ukrainian  S.  S.  R., 
U.  S.  S.  R.,  U.  K.,  U.  S.  A.,  Yugoslavia.  Tlie 
representative  of  France  was  elected  chairman  and 
the  representative  of  China  vice-chairman. 

The  consideration  of  its  preliminary  report  is 
one  of  the  main  items  on  the  agenda  of  the  third 


session  of  the  Economic  and  Social  Council,  now 
being  held  at  Lake  Success. 

The  report  is  addressed  to  the  Secretary-General 
of  the  United  Nations  for  transmission  to  the 
Economic  and  Social  Council.  In  the  words  of  the 
secretary  of  the  subcommission,  Raoul  Aglion, 
Director  in  the  Department  of  Economic  Affairs 
of  the  United  Nations,  who  wrote  the  introductory 
letter  to  the  Secretary-General,  this  preliminary 
report  of  nearly  450  pages  contains  "a  detailed 
picture  of  the  nature  and  scope  of  the  economic  re- 
construction problems  of  devastated  countries  of 
Europe  and  of  the  progress  in  these  countries." 

It  points  out  certain  problems  which  may  arise 


OCTOBER  6,  1946 


627 


fi'om  the  contemplated  reconstruction  problems. 

Finally,  the  report  includes  a  proposal  jointly 
presented  by  the  delegates  of  Poland,  the  United 
Kingdom,  and  the  United  States  for  the  establish- 
ment of  an  Economic  Commission  for  Europe. 
Tliis  proposal  is  referred  to  the  Economic  and 
Social  Council  for  immediate  consideration. 

The  Subcommission  also  recommends  the  estab- 
lishment of : 

1.  A  permanent  international  housing  organi- 
zation. 

2.  An  agency  to  study  and  prepare  plans  for  the 
coordinated  development  of  European  power  re- 
sources, the  construction  of  hydroelectric  plants, 
and  the  establishment  of  an  international  grid. 

3.  The  endorsement  of  the  UNRRA  suggestion 
to  establish  or  designate  an  agency  or  agencies  to 
review  the  needs  in  1947  for  financing  urgent 
imports  and  make  recommendations  for  financial 
assistance  required  to  meet  foreign  exchange  dif- 
ficulties. 

The  report  covers  not  only  western,  eastern,  and 
southern  Europe,  but  also  Africa,  Asia,  and 
the  Far  East.  The  letter  of  introduction  is 
followed  by  a  15-page  document  containing  the 
recommendations  of  the  subcommission  concern- 
ing Europe  alone.  These  recommendations  con- 
cerning Europe  include  sections  on  food,  housing, 
man-power,  coal,  electric  power,  raw  materials, 
machinery  and  equipment,  transport,  trade,  finan- 
cial needs,  and  coordination  of  long-range  develop- 
ment plans. 

The  Subcommission  recommends  that,  pending 
the  creation  of  any  agency  or  any  other  action  by 
the  Economic  and  Social  Council  pertaining  to 
the  rehabilitation  and  development  of  Europe,  the 
Secretariat  be  instructed  to  make  special  and  ade- 
quate arrangements  for  obtaining  such  relevant 
materials  as  have  not  been  available  in  the  prepa- 
ration of  this  report. 

A  considerable  proportion  of  the  delegates  to  the 
Subcommission  favor  the  proposal  for  the  estab- 
lishment of  an  Economic  Commission  for  Europe, 
but  because  the  remaining  delegates  have  as  yet 
received  no  instructions  from  their  Governments, 
the  Subcommission  refers  the  proposal  originally 
presented  by  the  Delegates  of  Poland,  United 
Kingdom  and  United  States  to  the  Economic  and 
Social  Council  for  immediate  consideration. 

Having   regard   to   the   importance   of   intra- 


European  cooperation  in  the  economic  field,  for 
jjurposes  of  reconstruction  and  development,  the 
Subcommission  recommends  as  follows: 

1.  An  Economic  Commission  for  Europe  shall 
be  established  by  the  Economic  and  Social  Council 
in  accordance  with  article  68  of  the  Charter. 

2.  In  cooperation  with  the  National  Govern- 
ments and  Specialized  Agencies,  the  Commission 
shall  be  charged  with  the  task  of  facilitating  con- 
certed action  for  the  economic  reconstruction  of 
Europe,  and  of  initiating  and  participating  in 
measures  necessary  for  the  expansion  of  European 
economic  activity  and  for  the  development  and 
integration  of  the  European  economy. 

During  its  initial  stages,  the  Commission  shall 
give  prior  consideration  to  the  economic  recon- 
struction of  devastated  countries,  Members  of  the 
United  Nations. 

3.  The  Commission  may  establish  subsidiary 
agencies  or  Committees  as  may  be  necessary  for 
facilitating  these  objectives. 

4.  The  Commission,  in  agi'eement  with  the  Gov- 
ernments concerned:  (a)  shall  collect,  evaluate, 
disseminate  and  publish  such  economic,  techno- 
logical and  statistical  information  and  data  as  it 
deems  necessary  and  appropriate;  (h)  may 
undertake  such  investigations  and  studies  of 
economic  and  technological  problems  and  develop- 
ments in  Europe  and  within  any  member  country 
as  it  deems  useful  and  appropriate. 

5.  (a)  The  Economic  and  Social  Council  taking 
account  of  recommendations  by  the  Commission 
and  the  Specialized  Agencies  concerned  shall  con- 
sider the  measures  necessary  for  utilizing  the 
Commission  as  a  coordinating  body  with  respect 
to  its  activities  and  those  of  the  Specialized 
Agencies,  (b)  Immediately  upon  its  establish- 
ment, the  Commission  shall  undertake  the  do- 
ordination  and,  in  agreement  with  the  member 
governments  of  EECE,  ECO,  and  ECITO,  the 
absorption  or  termination  of  the  activity  of  these 
bodies  while  insuring  that  there  is  no  interruption 
in  the  work  performed  by  them. 

6.  The  Commission  shall  submit  to  the  Eco- 
nomic and  Social  Council,  for  the  Council's  con- 
currence, such  of  the  Commission's  proposed 
activities  as  have  important  efi'ects  on  the  economy 
of  the  world  as  a  whole,  and  shall  submit  a  report 
of  all  the  Commission's  activities  and  of  those  of 

( Continued  on  page  632 ) 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetingsi' 


In  Session  as  of  September  29,  1946 

Far  Eastern  Commission 

Washington 

February  26 

United  Nations: 
Security  Council 
Military  Staff  Committee 
Commission  on  Atomic  Energy 
ECOSOC:   Third  Session  with  Commissions  and  Subcommissions 

Lake  Success,  N. 
Lake  Success,  N. 
Lake  Success,  N. 
Lake  Success,  N. 

Y. 
Y. 
Y. 
Y. 

March  25 
March  25 
June  14 
September  11 

Paris  Conference 

Paris 

July  29 

Fifth  Congress  of  the  Postal  Union  of  the  Americas  and  Spain 

Rio  de  Janeiro 

September  1-26  or  27 

German  External  Property  Negotiations  with  Portugal  (Safehaven) 

Lisbon 

September  3 

PICAO: 

Interim  Council  Meeting 

U.K.  Demonstrations  of  Radio  Aids  to  Air  Navigation 

Conference  on  North  Atlantic  Ocean  Stations 

Montreal 

London 

London 

September  4 
September  9-30 
September  17 

ILO:  Twenty-ninth  Session  of  International  Labor  Conference 

Montreal 

September     19-October 

12 
September  20-October  5 

International  Film  Festival 

Cannes 

International  Fund  and  Bank:    Joint   Meeting  of  the   Boards  of 
Governors 

Washington 

September  27 

Five  Power  Preliminary  Telecommunications  Meeting 

Moscow 

September  28 

Scheduled  for  September-December  1946 

Caribbean  Tourist  Conference 

New  York 

September  30-October  9 

PICAO: 

Middle  East  Regional  Air  Navigation  Meeting 

U.S.  Demonstrations  of  Radio  Aids  to  Air  Navigation 

Cairo 

New  York-Indianapo- 

October  1-15 
October  7-26 

Meeting  of  the   Meteorological  Division  of  the  Air  Navigation 

Committee 
Special  Radio  Technical  Division  of  the  Air  Navigation  Committee 
Communications  and  Radio  Aids  to  Navigation:    Division  of  the 

Air  Navigation  Committee 
Search  and  Rescue:    Division  of  the  Air  Navigation  Committee 
Rules  of  the  Air  and  Air  Traffic  Control  Practices:   Division  of  the 

Air  Navigation  Committee 

lis 
Montreal 

Montreal 
Montreal 

Montreal 
Montreal 

October  29 

October  30-November  8 
November  19 

November  26 
December  3 

International  Tourist  Organizations  Conference 

London 

October  1-7 

Second  Pan  American  Congress  of  Mining  Engineering  and  Geology 

Rio  de  Janeiro 

October  1-15 

Second  Pan  American  Congress  of  Physical  Education 

Mexico  City 

October  1-15 

Eighteenth  International  Congress  for  Housing  and  Town  Planning 

Hastings,  Englar 

d 

October  7-12 

Conference  on  Tin 

London 

October  8-12 

Preparatory  Commission  of  the  International  Conference  on  Trade 
and  Employment 

London 

October  15 

Permanent  Committee  of  the  International  Health  Office 

Paris 

October  23 

United  Nations: 

General  Assembly  (Second  Part  of  First  Session) 

Flushing  Mead 
N.  Y. 

0  ws, 

October  23 

United  Maritime  Consultative  Council: 
Second  Meeting 

Washington 

October  24-30 

'  Prepared  by  the  Division  of  International  Conferences,  Department  of  State. 


628 


OCTOBER  6.  1946 

Calendar  of  Meetings — Continued 


629 


International  Commission  for  Air  Navigation :  Twenty-ninth  Session 
(CINA) 

UNESCO:  "Month"  Exhibition 
General  Conference 

World  Health  Organization:  Interim  Commission 

International  Technical  Committee  of  Aerial  Legal  Experts  (CITEJA) 

Inter-American  Commission  of  Women 

ILO: 

Industrial  Committee  on  Textiles 

Industrial  Committee  on  Building,  Engineering  and  Public  Works 


Dublin 

October  28-31 

Paris 

October  28-December  1 

Paris 

November  (Exact  date 

undetermined) 

Geneva 

November  4 

Cairo 

November  6 

Washington 

November  11-20 

Brussels 

November  14 

Brussels 

November  25 

Activities  and  Developments 


INTERIM  REPARATIONS  REMOVALS: 
SYNTHETIC  OIL  AND  SYNTHETIC 
RUBBER  INDUSTRIES' 

The  action  specified  below  should  be  taken  with 
respect  to  facilities  identified  in  the  following 
categories  of  Japanese  industry.  Such  action,  un- 
der the  Interim  Reparations  Removals  Program, 
should  be  taken  without  prejudice  to  furtlier 
removals  that  may  be  ordered  under  a  final 
reparations  program. 

1.  Synthetic  Oil  Industry 

(Definition:  Those  plants  and  establishments 
both  government  and  privately  owned,  engaged  in 
the  manufacture  of  petroleum  products  from  coal, 
whether  by  high-jDressure  hydro-genation,  the 
Fischer-Tropsch  hydro-carbon  synthesis,  or  low 
temperature  carbonization). 

a.  All  facilities  identified  within  this  category 
should  be  made  available  for  claim,  subject  to  the 
following  reservations : 

(1)  Any  plant  designated  as  suitable  for  ac- 
tual or  potential  conversion  to  the  manufacture 
of  sulphate  of  ammonia  for  fertilizers  should 
be  retained  in  operation  until  the  supply  of  fixed 
nitrogen  from  other  sources  becomes  adequate. 

2.  Synthetic  Rubher  Industry 

(Definition :  Plants  and  establishments  engaged 
in  the  production  of  synthetic  rubber). 

a.  All  facilities  which  have  been  engaged  in  the 
production  of  synthetic  rubber  should  be  made 
available  for  claim. 


U.  S.  DELEGATION  TO  MIDDLE  EAST 
REGIONAL  AIR  NAVIGATION  MEETING' 

Acting  Secretary  Clayton  announced  on  Sep- 
tember 25  that  the  President  has  approved  the 
composition  of  the  United  States  Delegation  to 
the  Middle  East  Regional  Air  Navigation  Meet- 
ing of  the  Provisional  International  Civil  Aviation 
Organization  scheduled  to  convene  in  Cairo  on 
October  1,  1946. 

This  Conference  is  the  fourth  regional  meeting 
scheduled  in  a  series  of  conferences  called  by  the 
Provisional  International  Civil  Aviation  Organi- 
zation to  determine  international  requirements  for 
the  safety  of  aerial  flights  and  related  matters,  in- 
cluding aviation  communications,  air-traffic  con- 
trol, search  and  rescue,  airdromes  and  ground  aids, 
and  meteorology.  The  first  of  these  conferences 
was  held  at  Dublin  in  March  and  covered  the  North 
Atlantic  area ;  the  second  in  Paris  in  April  covered 
the  European  and  Mediterranean  areas;  and  the 
third  in  Washington  in  August  covered  the  Carib- 
bean air  routes. 

In  addition  to  regional  problems  to  be  discussed 
in  Cairo,  four  members  of  the  United  States  Dele- 
gation will  cooperate  in  PICAO  inspection  of  the 
Hassani  Airfield  in  Athens  at  the  request  of  the 
Greek  Government,  with  the  view  to  investigating 
the  need  for  international  assistance  in  its  main- 
tenance and  operation.  These  members  left 
Washington  on  September  17  in  order  to  complete 
the  mission  prior  to  the  Cairo  conference.  Follow- 
ing the  Cairo  conference,  five  members  of  the  Del- 
egation will  proceed  to  Paris  to  attend  a  second 
session  of  the  Air  Traffic  Control  Committee  for 
the  European-Mediterranean  area. 


'  Policy  statement  adopted  by  the  Far  Eastern  Commis- 
sion on  Sept.  12. 
'  Released  to  the  press  Sept.  25. 


630 


DEPARTMENT  OF  STATE  BULLETIN 


The  Egyptian  Government,  at  the  request  of 
PICAO,  has  invited  some  15  countries  and  four 
international  organizations  to  send  delegates  to 
the  Cairo  meeting. 

The  membership  of  the  official  United  States 
Delegation  is  as  follows:  Delegate,  Glen  A.  Gil- 
bert, Consultant  to  the  Administrator,  Civil  Aero- 
nautics Administration.  Alternate  Delegates: 
Robert  D.  Hoyt,  Coordinator  of  International 
Air  Regulations,  Safety  Bureau,  Civil  Aeronau- 
tics Board,  and  Maj.  Gen.  Laurence  S.  Kuter, 
United  States  representative  of  the  Interim  Coim- 
cil  of  PICAO.  Advisers:  James  F.  Angier,  Rep- 
resentative for  Aerodromes,  Air  Routes  and 
Ground  Aids,  Office  of  the  Administrator,  Civil 
Aeronautics  Administration;  T.  L.  Bai'tlett, 
Assistant  to  the  President,  Aeronautical  Radio, 
Inc.;  Clifford  P.  Burton,  Representative  of  Air 
Traffic  Control,  Office  of  the  Administrator,  Civil 
Aeronautics  Administration;  James  D.  Durkee, 
Chief,  International  Aviation  Section,  Engineer- 
ing Division,  Federal  Communications  Commis- 
sion; Norman  R.  Hagen,  Meteorological  Attache 
to  the  London  Embassy,  London,  England;  L. 
Ross  Hayes,  Representative  for  Telecommunica- 
tions and  Radio  Aids  to  Air  Navigation,  Office  of 
the  Administrator,  Civil  Aeronautics  Adminis- 
tration ;  Capt.  A.  S.  Heyward,  PICAO  Coordina- 
tor, Navy  Department;  Arthur  L.  Lebel,  Chief, 
Communications  Section,  Aviation  Division,  De- 
partment of  State;  Lt.  Comdr.  J.  D.  McCubbin, 
Search  and  Rescue  Agency,  United  States  Coast 
Guard;  Ray  F.  Nicholson,  Representative  for 
Flight  Operations,  Office  of  the  Administrator, 
Civil  Aeronautics  Administration;  Donald  W. 
Nyrop,  PICAO  Representative  for  Air  Transport 
Association;  Col.  Lawrence  M.  Thomas,  Air 
Transport  Command,  Army  Air  Forces.  Secre- 
tary, Merle  K.  Wood,  Executive  Officer,  Office  of 
Near  Eastern  and  African  Affairs,  Department  of 
State.  Administrative  Assistajit,  Mary  Bean, 
Civil  Aeronautics  Administration.  Stenographer, 
Ruth  Skartvedt,  Department  of  State. 

SECOND  PAN  AMERICAN  CONGRESS  OF 
MINING  ENGINEERING  AND  GEOLOGY' 

Acting  Secretary  Clayton  announced  on  Sep- 
tember 26  that  the  President  has  approved  the 


'  Released  to  the  press  Sept.  26. 

'  Prepared  by  the  Division  of  International  Conferences, 
Department  of  State. 


composition  of  the  United  States  Delegation  to  the 
Second  Pan  American  Congress  of  Mining  Engi- 
neering and  Geology  which  is  scheduled  to  convene 
at  Rio  de  Janeiro,  Brazil,  October  1, 1946. 

Tlie  forthcoming  Congress,  called  pursuant  to  a 
resolution  adopted  at  the  First  Congress  held  at 
Santiago,  Chile,  in  January,  1942,  will  study  the 
present  status  of  the  mineral  resources  and  mineral 
industry  of  the  Americas.  Included  on  the  agenda 
of  the  Congress  are  discussions  of  technical  and 
general  problems  affecting  the  development  and 
production  of  the  mineral  wealth  of  the  Americas. 
The  Congress  will  conclude  with  field  trips  to  the 
important  mining  areas  of  Brazil. 

The  Chairman  of  the  United  States  Delegation 
will  be  Mr.  Paul  C.  Daniels,  Counselor  of  Embassy 
of  the  American  Embassy  at  Rio  de  Janeiro.  The 
composition  of  the  Delegation  is  as  follows : 

Chairman: 

Paul  C.  Daniels,  Counselor  of  Embassy,  Amer- 
ican Embassy,  Rio  de  Janeiro,  Brazil. 

Delegates: 

Dr.  R.  R.  Sayers,  Director,  Bureau  of  Mines, 

Department  of  Interior 

Dr.  Edward  Steidle,  Pennsylvania  State  College 
Dr.  William  E.  Wrather,  Director,  Geological 

Survey,  Department  of  Interior 

Technical  Advisers: 

Clarence  C.  Brooks,  Counselor  of  Embassy  for 
Economic  Affairs,  American  Embassy,  Rio  de 
Janeiro,  Brazil 

Emerson  I.  Brown,  Minerals  Attache,  Rio  de 
Janeiro,  Brazil 

Ivan  G.  Harmon,  Petroleum  Attache,  American 
Embassy,  Rio  de  Janeiro,  Brazil 

Roger  Rhoades,  Chief  Geologist,  Bureau  of 
Reclamation,  Department  of  Interior 

Special  Assistant  to  the  Chairman: 

Clarence  A.  Wendel,  Division  of  International 
Resources,  Department  of  State 

EIGHTEENTH  INTERNATIONAL  CONGRESS 
FOR  HOUSING  AND  TOWN  PLANNING' 

The  President  on  September  20  approved  the 
designation  of  those  whose  names  appear  on  the 
following  list  as  members  of  the  United  States 
Delegation  to  the  Eighteenth  International  Con- 
gress for  Housing  and  Town  Planning,  which  is 
scheduled  to  convene  at  Hastings,  England,  on 
October  7, 1946 : 


OCTOBER  6.  1946 


631 


Chairman 

PliillilJ  Hannah,  Assistant  Secretary  of  Labor 
Vice  Chairman 

Coleman  Woodbury,  former  Assistant  Adminis- 
trator, National  Housing  Agency 

Delegates 

Fredrick  J.  Adams,  Professor  of  City  Planning, 
Massachusetts  Institute  of  Technology 

Walter  Blucher,  Executive  Director,  American 
Society  of  Planning  Officials 

John  Ihlder,  Director,  National  Capital  Housing 
Authority 

John  G.  Stutz,  Executive  Director,  Kansas 
League  of  Municipalities,  Topeka,  Kans. 

Herbert  Wilkinson,  Special  Trade  Policy  Ad- 
viser, Department  of  Commerce 

Catherine  Bauer  Wurster,  Housing  Expert,  Har- 
vard University 

Consultant 

Charles  F.  Palmer,  former  Coordinator  of  De- 
fense Housing 

Adviser 

Louis  Johnson,  Field  Assistant,  Department  of 
Labor 

GLOBAL  MARITIME  ORGANIZATION  TO 
BE  DISCUSSED  AT  UMCC  MEETING' 

In  accordance  with  the  unanimous  desire  of  the 
member  nations  of  the  United  Maritime  Consulta- 
tive Council,  as  expressed  at  the  Council's  meeting 
in  Amsterdam  last  June,  the  Department  of  State 
announced  on  September  26  that  it  has  requested 
its  missions  in  the  country  of  each  UMCC  member 
to  extend  an  invitation  to  the  second  session  of  the 
UMCC  in  Washington,  D.  C,  October  24-30, 
1946. 

The  Department  stated  that  the  following  topics 
have  been  proposed  for  the  agenda,  which  will  be 
finally  determined  by  the  UMCC  itself : 

1.  The  consideration  of  the  Working  Commit- 
tee's draft  plan  and  report  concerning  a  possible 
world-wide  intergovernmental  maritime  organi- 
zation. 

2.  Preparation  of  a  reply  to  an  inquiry  from 
the  United  Nations  regarding  establishment  of 
such  an  organization  to  deal  with  technical 
matters. 

3.  A  review  of  the  working  of  the  machinery 


established  pursuant  to  the  recommendations  of 
the  former  United  Maritime  Executive  Board  to 
insure  the  orderly  transportation  of  certain  car- 
goes after  the  termination  of  the  United  Maritime 
Authority. 

4.  A  review  of  the  progress  made  in  the  restora- 
tion of  normal  processes  of  international  shipping. 

The  UMCC  is  an  official  but  temporary  organi- 
zation with  advisory  and  consultative  functions 
which  succeeded  the  United  Maritime  Authority. 
To  date  Australia,  Belgium,  Brazil,  Canada,  Chile, 
Denmark,  France,  Greece,  India,  the  Netherlands, 
New  Zealand,  Norway,  Poland,  South  Africa, 
Sweden,  the  United  Kingdom  and  the  United 
States  have  acceded  to  membership  in  the  Council. 

The  first  session  of  UMCC  was  held  at  Amster- 
dam, June  18-25,  1946,  when  the  Working  Com- 
mittee was  appointed  to  draft  plans  for  the  con- 
sideration of  the  Washington  meeting.  The 
committee  met  in  London  on  July  18,  1946.  Kep- 
resented  on  the  committee  were  the  following 
nations:  Belgium,  Canada,  France,  Netherlands, 
Norway,  Poland,  United  Kingdom,  and  the  United 
States. 

The  UMCC  was  the  outgrowth  of  a  meeting 
in  London,  February  4-11,  1946,  of  the  United 
Maritime  Executive  Board,  consisting  of  repre- 
sentatives of  the  18  governments  which  had  ac- 
ceded to  the  "Agreement  on  Principles  having  ref- 
erence to  the  coordinated  control  of  merchant 
shipping,"  signed  August  5, 1944.  The  18  govern- 
ments represented  were :  Australia,  Belgium,  Bra- 
zil, Canada,  Chile,  Denmark,  France,  Greece,  In- 
dia, Netherlands,  New  Zealand,  Norway,  Poland, 
South  Africa,  Sweden,  United  Kingdom,  United 
States,  and  Yugoslavia. 

The  Board  adopted  machinery  for  the  discon- 
tinuance of  United  Maritime  Authority  controls 
March  2, 1946,  and  also  unanimously  recommended 
to  the  member  governments  that  they  should  enter 
into  a  temporary  agreement^  (expiring  October 
31, 1946),  providing  for: 

1.  The  meeting  of  ocean-transportation  require- 
ments of  UNRRA  and  of  liberated  areas  in  an 
orderly  and  efficient  manner.  The  adjustment  of 
ships'  space  and  cargoes  is  to  be  effected  by  a 
working  committee  in  Washington  and  a  subcom- 
mittee in  Canada.    There  will  also  be  a  coordinat- 


'  Released  to  the  press  Sept.  26. 

'For  text  of  agreement  see  Btilletin  of  Mar.  24,  1946, 
p.  4S8. 


632 


DEPARTMENT  OF  STATE  BULLETIN 


ing  and  review  committee  in  London  to  consider 
UNERA's  requirements  for  loading  and  to  keep 
tlie  tonnage  situation  constantly  under  review,  per- 
forming both  functions  in  respect  to  loading  areas 
other  than  the  United  States  and  Canada. 

2.  A  temporary  consultative  council  for  the  pur- 
pose of  studying  any  shipping  problem  (other  than 
pi-oblems  within  tlie  terms  of  reference  of  other 
established  governmental  conferences  or  associa- 
tions active  in  the  field)  which  may  arise  during 
the  period  of  transition  from  United  Maritime 
Authority  controls  to  free  commercial  shipping, 
such  council  to  possess  no  executive  powers. 

INVITATION  TO  THE  WORLD  TELECOM- 
MUNICATIONS CONFERENCE,  1947 

The  Department  of  State  has  instructed  the 
American  Legation  at  Bern  to  present  the  follow- 
ing invitation  to  the  Director  of  the  Bureau  of  the 
International  Telecommunication  Union  for  a 
World  Telecommunications  Conference  to  be  con- 
vened in  the  United  States  in  the  spring  of  1947 : 

"The  Government  of  the  United  States  has  the 
honor  to  invite  the  governments  members  of  the 
International  Telecommunication  Union  to  attend 
a  plenipotentiai'y  conference  to  revise  the  Madrid 
Telecommunication  Convention,  1932.  To  date 
the  jjovernments  of  the  following  countries  have 
indicated  their  agreement  without  reservation  to 
the  convening  of  this  conference  in  the  United 
States  in  accordance  with  language  of  article  18 : 
Canada,  China,  Colombia,  Cuba,  Dominican 
Republic,  Ethiopia,  Finland,  Haiti,  Italy,  Leba- 
non, New  Zealand,  Panama,  Paraguay,  Poland, 
Siam,  Syria,  Turkey,  United  States,  Uruguay, 
Vatican  City,  Venezuela.  Sections  one  and  two  of 
Article  18  read  as  follows : 

"  '1.  The  provisions  of  the  present  Convention 
shall  be  subject  to  revision  by  conferences  of  pleni- 
potentiaries of  the  contracting  Governments. 

"  '2.  Revision  of  the  Convention  shall  be  under- 
taken when  it  has  been  so  decided  by  a  preceding 
conference  of  plenipotentiaries,  or  when  at  least 


twenty  contracting  governments  have  so  stated 
their  desire  to  the  government  of  the  country  in 
which  the  Bureau  of  the  Union  is  located.' 

"The  Government  of  the  United  States  has  the 
honor  to  indicate  that  the  conference  will  be  held 
in  or  near  Washington,  D.C.  beginning  April  15, 
1947." 

Devastated  Areas — Continued  from  page  627 

its  subsidiary  bodies  to  each  session  of  the  Eco- 
nomic and  Social  Council. 

7.  The  Commission  shall  make  recommenda- 
tions on  any  matter  within  its  competence  directly 
to  its  member  and  observer  governments  and  to 
those  international  organizations  with  which 
relations  have  been  established  in  accordance  with 
paragraph  5  («). 

8.  The  Economic  Commission  for  Europe  shall 
consist  of  all  European  members  of  the  United 
Nations  and  the  United  States. 

9.  The  Commission  shall  invite  any  member  of 
the  United  Nations  not  a  member  of  the  Com- 
mission, and  representatives  of  the  specialized 
agencies,  to  participate  in  its  deliberations  on  any 
matter  of  particular  concern  to  that  non-member 
or  agency. 

10.  The  Commission  may  admit  European  non- 
member  nations,  and  representatives  of  the  Allied 
Control  Authorities  of  occupied  territories,  in  a 
consultative  capacity,  when  any  matter  of  parti- 
cular concern  to  non-members,  or  those  author- 
ities, is  under  discussion. 

11.  The  Commission  shall  adopt  its  own  rules 
of  procedure,  including  the  method  of  selecting 
its  chairman. 

12.  The  administrative  budget  of  the  Economic 
Commission  for  Europe  shall  be  financed  from 
the  funds  of  the  United  Nations. 

13.  The  Secretary-General  of  the  United  Na- 
tions shall  designate  members  of  his  Secretariat 
to  serve  with  the  Commission  continuously. 

14.  The  seat  of  the  Commission  shall  be  de- 
termined by  the  Economic  and  Social  Council. 


THE  RECORD  OF  THE  WEEK 


Meeting  of  National  Commission  on  Educational,  Scientific 
and  Cultural  Cooperation 


REMARKS  BY  PRESIDENT  TRUMAN  > 


[Released  to  the  press  by  the  White  House  September  25] 

Thank  you,  Mr.  Benton.  I  have  to  keep  this 
hand-shaking  arm  in  good  trim  during  election 
year — and  to  a  bipartisan  group  it's  good  exercise. 

It's  a  pleasure  to  have  you  here.  I  think  this 
organization  can,  if  it  will,  contribute  as  much  as 
any  other  organization — in  connection  with  the 
United  Nations — to  the  peace  of  the  world. 

It  is  understanding  that  gives  us  an  ability  to 
have  peace.  When  we  understand  the  other  fel- 
low's viewpoint,  and  he  understands  ours,  then  we 
can  sit  down  and  if  there  are  differences  work  them 
out. 

If  there  is  no  understanding,  there  can  be  no 
peace;  and  if  there  is  no  education,  there  can  be 
no  peace.  If  we  can  exchange  educators  with  all 
the  countries  in  the  world,  and  send  ours  to  those 
countries  to  show  our  viewpoint,  it  won't  be  long 
until  we  have  the  world  situation  as  we  have  it  in 
the  48  States — we  don't  have  any  difficulties,  or  any 


insoluble  difficulties,  between  the  48  States  that 
can't  be  settled  on  a  peaceful  basis.  The  reason  for 
that  is  that  we  understand  each  other. 

I  am  extremely  interested  in  this  organization. 
I  think  it  can  make  the  greatest  contribution  in  the 
history  of  the  world  to  the  welfare  of  the  world 
as  a  whole,  if  it  really  goes  at  it  in  the  spirit  that 
is  intended. 

From  what  Mr.  Benton  has  told  me  about  the 
people  you  have  elected  to  your  official  positions,  I 
believe  that  you  are  on  the  road  to  do  the  job. 
That's  all  I  ask  of  you. 

There  are  two  things  in  the  world  I  want  above 
everything  else — peace  in  the  world  and  unity  at 
home.  That's  what  I  have  been  fighting  for  since 
I  have  been  here.  That's  what  President  Roosevelt 
was  fighting  for  while  he  was  here. 

You  can  make  that  contribution  on  a  world  basis. 
I  want  you  to  do  it. 

Thank  you  very  much. 


ADDRESS  BY  ASSISTANT  SECRETARY  BENTON' 


Mr.  Chairman  and  Members  of  the  Commis- 
sion :  I  welcome  you  to  membership. 

I  am  sorry  that  Secretary  Byrnes  is  not  here 
personally  to  extend  you  his  welcome.  But  he 
is  needed  where  he  is.  The  papers  tell  us  that  he 
has  some  other  problems  on  his  hands.  From 
Paris  he  sends  me  the  following  message  for  you : 

"I  am  happy  to  send  this  greeting  to  the  United 
States  National  Commission  on  Educational, 
Scientific  and  Cultural  Cooperation,  on  the  occa- 
sion of  its  first  meeting,  which  I  hope  may  prove 
historic. 

"The  President  and  the  Congress  of  the  United 
States  have  pledged  the  support  of  the  Govern- 
ment of  the  United  States  to  the  United  Nations 
Educational,  Scientific  and  Cultural  Organiza- 
tion. The  National  Commission  has  been  created 
to  join  in  fulfilling  that  pledge. 

"The  National  Commission,  by  its  broadly  rep- 
resentative character,  gives  promise  that  the  peo- 


ple of  our  country  will  work  with  and  through 
UNESCO  to  build  'the  defenses  of  peace'  in  the 
minds  of  men. 

"UNESCO  is  an  integral  part  of  the  inter- 
national cooperative  system  of  the  United  Nations. 

"The  road  to  international  cooperation  is  a  hard 
one  at  best.  Suspicion  and  mistrust  make  the 
going  the  more  difficult.  If  UNESCO  can  help 
to  clear  away  these  barriers,  the  peoples  of  the 
world  will  push  ahead  more  surely  and  more 
rapidly. 

"I  welcome  the  assistance  which  the  National 
Commission  will  give  to  the  State  Department,  by 
its  advice  and  action,  in  assuring  that  UNESCO 
achieves  its  high  and  difficult  aims." 


'  Made  before  the  members  of  the  National  Comiuission 
on  the  United  Nations  Educational,  Scientific  and  Cultural 
Organization,  at  the  White  House,  Sept.  25,  1946. 

"Delivered  before  the  Commis.sion  in  Washington  on 
Sept.  23  and  released  to  the  press  on  the  same  date. 


633 


634 


DEPARTMENT  OF  STATE  BULLETIN 


Mr.  Chairman,  only  a  few  weeks  hence,  in 
November,  the  United  Nations  Educational,  Scien- 
tific and  Cultural  Organization  (UNESCO)  will 
inherit  the  seats  of  the  meek  and  the  mighty  in 
Paris.  This  will  be  the  first  meeting  of  the  Gen- 
eral Conference  of  UNESCO.  In  London  last 
fall  the  main  lines  of  organization  were  fixed  by 
the  conference  wjiich  agreed  upon  UNESCO's 
constitution.  At  the  Paris  meeting  in  November, 
organization  will  b©  completed  and  UNESCO 
must  decide  upon  the  opening  gambit  of  its 
program. 

Wliat  will  be  the  position  of  the  United  States 
Delegation  at  this  crucial  conference  in  Paris 
which  is  the  embi-yo  that  will  determine  the  nature 
of  the  child  ?  How  will  UNESCO  project  its  poli- 
cies within  the  United  States?  You  have  been 
appointed  to  help  provide  an  answer  to  these  two 
questions.  You  are  expected  to  advise  the  Ameri- 
can Delegation  to  the  UNESCO  General  Assembly 
as  to  the  policies  it  should  advocate.  You  are  ex- 
pected to  help  carry  out  the  UNESCO  program 
within  the  United  States. 

If  we  who  profess  a  belief  in  education  really 
believe  the  words  which  we  so  often  use,  namely, 
that  understanding  among  peoples  is  necessary  to 
the  maintenance  of  peace,  then  we  who  are  respon- 
sible for  this  National  Commission  face  a  chal- 
lenge that  is  terrifying.  But  we  must  not  admit 
that  the  challenge  is  beyond  our  grasp.  You,  the 
members,  must  build  that  understanding  among 
peoples.  You  must  build  it  brick  by  brick.  And 
you  must  provide  the  mortar  that  holds  the  bricks 
together.  Only  you  and  men  like  you  can  do  this 
job,  here  in  the  United  States  as  in  other  countries. 

We  are  at  the  beginning  of  a  long  process  of 
breaking  down  the  walls  of  national  sovereignty 
and  of  persuading  the  peoples  of  this  world  to 
study  each  other  and  to  cooperate  with  each  other. 
In  this  process  UNESCO  can  be — and  indeed  must 
be — the  pioneer.  And  in  the  work  of  UNESCO 
the  United  States  is  in  a  position  to  play  a  leading 
role.  You,  the  members  of  this  National  Commis- 
sion, can  be  responsible  in  a  large  measure,  if  you 
so  choose,  for  the  way  in  which  that  role  is  played. 

I  am  thus  privileged  humbly  to  welcome  you 
here  today.  You  are  indeed  a  hand-picked  group. 
You  are  even  well  screened.  And  as  members  of 
the  National  Commission  you  are  going  to  be  fur- 
ther screened  here.  You  will  be  screened  for  your 
ability  and  willingness  to  work  hard  at  this  job. 


Many  of  you  here  this  morning  have  already 
given  us  in  the  State  Department  a  splendid  ex- 
ample of  what  Ave  shall  expect  from  the  members 
of  the  National  Commission.  From  Archibald 
MacLeish,  from  our  chairman  of  this  morning, 
Mr.  Cherrington,  and  from  many  others  the  De- 
partment has  received  guidance  and  leadership 
both  in  the  creation  of  UNESCO  and  of  the  Na- 
tional Commission.  These  men  believe  in  this 
work.  They  have  put  in  long  hours  proving  their 
belief.     We  are  deeply  indebted  to  them. 

This  meeting  is  only  your  commencement.  You 
are  about  to  leave  the  ivy-covered  towers  which 
have  sheltered  you.  You  will  serve  for  several 
years  as  members  of  this  National  Commission. 
Your  actions  will  be  closely  followed  and  often 
severely  criticized.  Many  demands  will  be  made 
upon  your  time  and  energy.  I  dedicate  you  here 
to  hard  work.  I  dedicate  you  here  to  the  aggres- 
sive pursuit  of  international  understanding  upon 
which  peace  must  be  based. 

If  you  have  read  the  material  I  have  sent  you, 
I  need  not  review  the  background  underlying 
this  National  Commission.  The  constitution  of 
UNESCO  invited  all  national  governments  to  as- 
sociate the  appropriate  private  organizations  with 
the  work  of  UNESCO.  These  organizations  in- 
clude the  media  of  mass  communications  for  rea- 
sons which  I  hope  are  obvious  to  most  of  you,  or 
at  least  will  become  more  obvious  as  you  devote 
yourselves  to  the  objectives  set  forth  in  UNESCO's 
constitution. 

The  Congress  of  the  United  States  created  this 
National  Commission  in  its  bill  authorizing  the 
United  States  to  join  UNESCO.  Congress  as- 
signed to  the  Department  of  State  the  respon- 
sibility for  bringing  you  into  being.  The 
Department  was  authorized  to  select  50  national 
voluntary  associations  interested  in  the  aims  of 
UNESCO,  and  to  invite  each  of  these  organiza- 
tions to  name  one  representative  on  the  National 
Commission.  The  Commission  itself  was  au- 
thorized to  select  10  additional  organizations. 
Further,  the  Department  of  State  was  authorized 
to  select  "forty  outstanding  persons"  as  members 
of  the  National  Commission,  this  number  to  in- 
clude 10  officials  of  the  national  government,  15 
representatives  of  state  and  local  governments, 
and  the  remaining  15  to  be  chosen  at  large. 


OCTOBER  6,  1946 


635 


The  Secretary  of  State  delegated  the  responsi- 
bility in  these  matters  to  me.  He  assigned  me  no 
easj'  task. 

Not  only  did  Congress  authorize  the  State  De- 
partment to  organize  tlie  National  Commission 
but  it  gave  the  Department  continuing  responsi- 
bility for  and  to  the  National  Commission.  The 
Department  is  authorized  to  provide  the  secre- 
tariat for  the  Commission.  The  Department  is 
ordered  by  law  to  listen  to  what  you  say. 

I  am  happy  to  tell  you  at  this  time  that  Mr. 
Charles  Thomson  will  serve  as  Acting  Executive 
Secretary  of  the  National  Commission.  He  will 
be  assisted  by  Mr.  Stephen  Dorsey.  They  are 
men  with  big  ears;  they  are  good  listeners,  as  I 
shall  try  to  be. 

And  now  for  some  of  the  opportunities  as  I  see 
them,  and  some  of  the  dangers  and  pitfalls  which 
lie  before  you.  It's  a  wise  child,  I'm  told,  that 
knows  its  own  father.  The  Department  of  State 
has  fathered  this  National  Commission.  As  in- 
dividuals you  all  seem  to  me — as  I  look  at  j'ou 
from  this  platform,  and  from  what  I've  read  about 
you  in  Who^s  Who  in  America — to  be  people  of 
respectable  age  and  experience.  But  collectively 
as  a  National  Commission  you  are  a  very  young 
person.  Perhaps  I  might  borrow  some  of  the 
authority  of  the  more  aged  Department  of  State 
and  offer  a  few  fatherly  words  of  counsel  to  you 
as  a  young  man  starting  out  on  life.  Though  I 
myself  am  only  13  months  old  in  the  State  De- 
partment, I  too  have  learned  and  you  look  very 
young  to  me. 

As  a  young  man,  your  opportunity  is  unlimited. 
You  are  not  only  an  unprecedented  body  but  a 
body  without  precedent.  Here  you  are,  a  national 
conference,  but  meeting  in  the  international-con- 
ference room  of  the  Department  of  State.  You 
are  made  up  in  considerable  part  of  representatives 
of  national  voluntary  organizations,  and  yet  you 
are  created  by  the  will  of  Congress  and  appointed 
by  tlie  Department  of  State.  You  give  for  the  first 
time  in  our  history  a  collective  brain  to  the  whole 
nervous  system  of  American  culture,  science,  edu- 
cation, and  means  of  communication.  Every- 
thing tliat  you  may  now  do  will  establish  a  prece- 
dent. You  will  have  the  opportunity  to  insure 
that  this  Commission  makes  a  distinctive  place  for 
itself  in  American  life  and  in  world  culture.  This 
is  an  unprecedented  opportunity. 


You  have  received  copies  of  the  proposed  pro- 
gram for  UNESCO,  prepared  by  the  secretariat 
of  the  Prejiaratory  Commission  which  has  been 
meeting  in  London.  These  proposals  will  be  con- 
sidered by  the  General  Conference  of  UNESCO 
in  Paris  in  November.  Already,  by  mail,  you 
have  advised  the  State  Department  on  the  compo- 
sition of  the  American  Delegation  which  is  to  be 
appointed  by  the  President ;  and  you  must  decide 
here,  in  the  next  four  days,  what  advice  you  will 
give  this  Delegation.  Thus  you  can  be  an  im- 
IDortant  voice  in  determining  the  world  program 
of  UNESCO. 

Further,  you  are  the  potential  instrument 
through  which  UNESCO  acts  in  this  country  to 
win  support  for  its  program  and  to  carry  it  for- 
ward. You  are  in  touch  with  our  schools  and  col- 
leges, and  witli  organized  private  groups  through- 
out this  country;  it  will  be  your  task  and  your 
opportunity  to  bring  these  organizations,  and  the 
tens  of  millions  of  individual  human  beings  which 
comprise  them,  into  active  participation  in  the 
work  of  UNESCO.  This  is  one  of  the  greatest 
opportunities  and  the  greatest  challenges  that 
educators  and  intellectual  leaders  of  this  or  any 
other  country  could  be  offered. 

Perhaps  it  is  more  important  for  me  today  to 
stress  the  dangers  which  confront  you.  Dangers 
tend  to  be  hidden.  They  are  unpleasant  to  talk 
about,  even  between  father  and  child.  We  do  not 
like  to  pull  the  dangers  from  their  dark  corners. 
We  prefer  to  talk  about  opportunities,  and  these 
latter  are  apparent  even  to  a  casual  reader  of 
UNESCO's  constitution. 

First — I  shall  speak  as  frankly  as  I  can — you 
may  be  nothing  more  than  a  debating  society. 
True,  you  may  issue  some  noble  pronouncements 
and  engage  in  some  stimulating  discussions — and 
indeed  you  should  do  so — but  then,  each  year  after 
jour  annual  oratory,  you  may  quietly  hibernate. 
Will  you  come  out  with  hard-headed  proposals, 
urge  them  on  this  government,  push  them  with 
UNESCO,  publicize  them  in  this  country,  press 
them  on  the  national  organizations?  This  is  a 
year-around  job.  Will  you  build  fires  that  no 
amount  of  inertia  and  apathy  can  put  out  ? 

Secondly,  the  constitution  of  UNESCO  dedi- 
cates its  members  to  tliis  goal :  that  peoples  shall 
speak  to  peoples  across  national  boundaries.  This 
is  the  first  and  the  primary  plank  in  the  constitu- 
tion.    Yet  this  plank  is  not  immediately  obvious 


636 

to  all  people  in  the  phrase  "educational,  scientific 
and  cultural."  This  first  and  primary  plank  is 
the  concept  that  makes  UNESCO  unique  in  world 
history.  To  many  intellectual  leaders  this  is  a 
strange  new  concept  in  international  relations. 
In  carrying  out  this  new  concept,  peoples  must 
speak  to  peoples  with  the  new  instruments  of  the 
age  in  which  they  live.  These  instruments  are 
chiefly  the  press,  radio,  and  the  motion  picture. 

Where  are  the  leaders  to  be  found  who  will 
exploit  these  instruments  to  the  fullest,  so  that 
peoples  may  hear  peoples  and  see  peoples  and 
understand  peoples  the  fastest  and  the  clearest 
way? 

It  is  easy  for  such  a  group  as  this  to  look  down 
on  radio  and  the  films.  The  very  fact  that  they 
have  "popular"  appeal  damns  them  in  some  eyes. 
To  many  educators,  they  still  seem  suitable  only 
for  serving  up  light  entertainment.  Further,  they 
have  a  commercial  taint. 

I  know  all  about  that. 

But  I  also  know  that  people — hundreds  of  mil- 
lions of  them — listen  to  radio  and  see  the  films — 
hundreds  of  millions  who  do  not  read  books,  who 
never  went  to  college.  If  UNESCO  fails  to  reach 
these  millions  through  the  media  that  they  use, 
how  will  they  be  reached?  Above  all,  how  will 
they  be  reached  quickly  ? 

Our  great  universities  have  been  laggard  in  rec- 
ognizing broadcasting  and  the  films  as  instru- 
ments of  education.  To  the  older  and  most 
honored  professors,  in  the  older  and  most  honored 
disciplines,  the  radio  has  not  seemed  respectable. 
In  the  University  of  Chicago  it  was  10  years  be- 
fore many  of  the  most  distinguished  professors 
would  appear  on  the  "University  of  Chicago 
Bound  Table"  broadcasts. 

There  is  great  danger,  then,  that  educators  and 
intellectuals  will  not  welcome  or  understand  or 
encourage  the  use  of  the  instruments  of  today  to 
communicate  with  peoples.  These  educators  and 
intellectuals  are  the  groups  most  likely  to  control 
UNESCO  policies.  If  these  groups  in  control  do 
not  use  the  mass  media  on  a  vast  scale,  they  will 
not  live  up  to  UNESCO's  constitution.  This 
danger  is  greater  in  the  viewpoint  of  other  coun- 
tries than  in  our  own.  Thus  this  Commission 
must  take  world  leadership  in  this  area. 

How  well  you  succeed  in  this  leadership  de- 
pends in  part  on  whether  you  can  avoid  the  third 
pitfall— let  us  call  it  the  danger  of  log-rolling  by 
vested  interests.     More  than  half  of  you  have  been 


DEPARTMENT  OF  STATE  BULLETIN 

nominated  by  a  private  organization.  All  of  you 
have  some  special  area  of  competence  close  to  your 
heart.  Thus  your  vision  may  be  limited  by 
loyalty  to  your  own  organization  or  to  your  special 
field.    In  fact,  it  is  sure  to  be. 

The  round  tables  or  sections  that  have  been 
scheduled  for  your  meetings  here  illustrate  this 
point.  Similarly,  the  organizational  structure 
that  has  been  proposed  for  UNESCO  itself,  with 
similar  sections — natural  science,  education,  fine 
arts,  mass  media,  and  the  rest — may  have  an  un- 
fortunate divisive  effect.  In  fact,  they  are  sure 
to  prove  divisive.  The  idea  now  seems  to  be  that 
these  various  sections  will  put  their  parts  to- 
gether to  make  a  progi'am. 

My  point  is  that  UNESCO  can't  do  everything, 
or  a  little  bit  of  everything.  Its  leaders  should 
work  out  a  list  of  priorities,  and  instead  of  allo- 
cating a  small  part  of  the  UNESCO  budget  to 
each  of  an  infinite  variety  of  activities  they  should 
concentrate  UNESCO  funds  and  energies  in  the 
fields  where  UNESCO  has  the  greatest  chance  of 
making  its  greatest  impact — and  soon.  Log-roll- 
ing between  vested  interests  is  not  conducive  to 
this  objective.  The  university  administrators 
who  are  in  this  rOom  will,  I  am  sure,  agree  with 
me. 

UNESCO  has  not  been  set  up  only  to  give  us 
moi'e  specialized  knowledge.  Its  job  is  to  put 
knowledge  to  work  all  over  the  world,  in  the  in- 
terests of  the  masses  of  the  people  of  the  world 
and  in  the  cause  of  human  welfare  and  peace. 

Thus  you  should  not  create  committees  exclu- 
sively of  experts.  Let  us  encourage  the  educators 
to  face  up  to  the  opportunities  in  broadcasting. 
Let  us  encourage  the  broadcasters  to  face  up  to 
their  obligations  in  the  field  of  adult  education. 
Cross-fertilization  is  the  intellectual  need  of  the 
hour. 

Further,  those  of  you  who  have  been  nominated 
by  national  organizations  should  bear  in  mind 
that  you  have  been  appointed  as  individuals  to  be 
members  of  this  National  Commission.  There  are 
hundreds  of  other  organizations,  though  perhaps 
not  so  luminous,  which  are  just  as  much  concerned 
with  UNESCO  as  your  own ;  and  you  as  individ- 
uals must  represent  them  all.  You  have  a  respon- 
sibility to  all  the  people  and  not  merely  to  your 
organization.  I  hope  this  sense  of  general  respon- 
sibility will  be  kept  at  a  high  pitch. 

The  peoples  of  the  world  long  for  peace.  They 
wish  to  break  down  the  bars  that  separate  them 


OCTOBER  6,  1946 


637 


and  to  strenji;then  the  ties  that  bind  them  together 
as  human  beings.  They  wish  to  break  down 
specialization,  fragmentation,  departmentaliza- 
tion— tlie  vested  interest  of  the  group  or  of  the 
countrjr  operating  against  the  interests  of  tlie 
many  and  the  world.  Your  danger  is  that  you  as 
individuals  will  fail  to  recognize  this  in  your  activ- 
ities as  members  of  this  body. 

The  quest  of  the  peoples  of  the  world  is  urgent. 
This  Commission  caimot  sit  back  and  wait  for  the 
kind  of  unity  that  may  come  after  the  irrational 
misuse  of  science  has  reduced  the  world  to  a  uni- 
form desolation. 

The  world  cannot  find  unity  by  seeking  agi'ee- 
ment  merely  in  the  political  and  economic  spheres. 
The  constitution  of  UNESCO  clearly  recognizes 
this.  In  conclusion,  I  shall  remind  you  of  a  line 
from  its  preamble:  "A  peace  based  exclusively 


upon  the  political  and  economic  arrangements  of 
governments  would  not  be  a  peace  which  could 
secure  the  unanimous,  lasting  and  sincere  support 
of  the  peoples  of  the  world,  and  that  the  peace 
must  therefore  be  founded,  if  it  is  not  to  fail,  upon 
the  intellectual  and  moral  solidarity  of  mankind." 

UNESCO  has  been  formed  to  prosecute  this 
search  for  intellectual  and  moral  solidarity  in  the 
minds  of  men. 

It  is  the  mandate  of  this  National  Commission 
on  International  Educational,  Scientific  and  Cul- 
tural Cooperation  to  inspire  and  to  assist  all  people 
in  this  country  to  construct  in  their  own  minds, 
and  in  the  minds  of  their  neighbors,  this  intellect- 
ual and  moral  solidarity.  Only  in  this  way  can 
this  Conunission  help  to  build  the  true  defenses 
of  peace. 


Operation  of  U.S.  Information  Service  in  Yugoslavia 


STATEMENT  BY  ACTING  SECRETARY  CLAYTON' 


I  would  like  to  make  a  statement  to  you  re- 
garding the  reports  which  have  appeared  in  the 
press  to  the  effect  that  the  United  States  Informa- 
tion Service  in  Yugoslavia  has  by  direction  of  the 
Yugoslav  Govermnent  been  closed  or  discon- 
tinued. 

The  Department  of  State  has  received  word 
that  the  operation  of  this  service  in  Belgrade  was 
suspended  yesterday  at  the  request  of  the  Yugo- 
slav Government.  In  communications  to  the 
American  Embassy  calling  for  this  action,  the 
Yugoslav  Government  has  asserted  that  the 
service  was  engaged  in  "anti-Yugoslav  activities." 

The  activities  of  U.S.I.S.,  as  it  has  been  called, 
have  been  the  following:  the  maintenance  of  a 
public  reading-room  containing  American  books, 
magazines,  and  newspapers;  distribution  of  a 
daily  information  bulletin  containing  texts  of 
official  United  States  statements,  speeches,  and 
documents,  including  diplomatic  notes  exchanged 
between  the  United  States  and  other  governments, 
and  representative  editorial  comment  "from  the 
American  press  and  radio ;  the  holding  of  lectures 
on  American  life  by  American  officials ;  the  pres- 
entation of  recorded  music,  documentary  films, 
and  photographic  displays;  and  establishing  con- 
tacts between  Yugoslav  universities  and  medical, 

'Made  at  press  and  radio  news  conference  on  Sept.  27 
and  released  to  the  press  on  the  same  date. 


scientific,  literary,  and  musical  organizations  and 
comparable  organizations  in  the  United  States. 
These  activities  are  not  different  from  those  con- 
ducted by  the  United  States  Information  Service 
throughout  the  world.  The  information  im- 
parted is  only  that  which  is  readily  available  to 
every  American  citizen  and  to  every  free  people. 

Wliile  the  United  States  Government  recognizes 
that  the  Yugoslav  Government  has  the  right  in 
the  exercise  of  its  sovereignty  to  require  the 
closing  of  this  service,  nevertheless  we  find  it 
very  difficult  to  believe  that  Yugoslavia  really 
means  to  deny  to  its  people  the  basic  freedom  for 
which  the  American  people  with  their  Allies 
undertook  the  war  against  Fascism. 

Indeed,  it  seems  to  us  that  that  is  the  real  issue 
involved.  It  is  not  the  narrow  issue  of  a  reading- 
room  in  Belgrade.  It  is  the  fundamental  and 
basic  democratic  issue  of  whether  the  people  of 
one  country  are  to  be  denied  access  to  the  opinions 
of  and  information  about  other  peoples. 

It  seems  to  us  that  without  that  access  to  such 
information  there  is  perhaps  little  hope  of  under- 
standing between  nations,  and  without  such 
understanding  it  is  needless  to  say  that  the  patient 
efforts  of  statesmen  to  try  to  find  ways  and  means 
of  maintaining  for  all  time  to  come  the  peace 
of  the  world  may  be  gi'eatly  hampered. 


538  DEPARTMENT  OF  STATE  BULLETIN 

Economic  Situation  in  Hungary 

U.S.  ASSISTANCE  TOWARD  REHABILITATION  OF  HUNGARY 


[Released  to  the  press  September  24] 

On  March  2, 1946  the  Government  of  the  United 
States  in  a  note  to  the  Government  of  the  Union 
of  Soviet  Socialist  Republics  asked  for  tripartite 
consideration  of  the  economic  situation  in  Hun- 
gary in  accordance  with  the  obligation  undertaken 
by  the  heads  of  the  Governments  of  the  United 
States,  the  United  Kingdom,  and  the  Union  of 
Soviet  Socialist  Republics  at  the  Crimea  Confer- 
ence. In  a  reply  of  Ajiril  21,  A.  Y.  Vyshinsky 
rejected  this  proposal.  The  United  States  made 
a  further  approach  in  a  note  of  July  22.  V.  G. 
Dekanozov,  Soviet  Deputy  Minister  for  Foreign 
Aifairs,  in  a  note  of  July  27  ^  again  rejected  the 
proposal  of  the  United  States  for  tripartite  con- 
sideration of  the  economic  situation  in  Hungary, 
but  no  reference  was  made  to  the  obligation  of  the 
Union  of  Soviet  Socialist  Republics  under  the 
Crimea  Declaration. 

Notwithstanding  the  failure  of  the  Union  of 
Soviet  Socialist  Republics  to  agree  to  tripartite 
cooperation  in  assisting  Hungary,  the  United 
States  has  undertaken,  within  limits  imposed  upon 
it  by  the  lack  of  such  cooperation,  to  render  such 
assistance  as  might  be  effective  toward  the  rehabili- 
tation   of    Hungary.     The    Government    of    the 


United  States  has  already  volimtarily  returned  to 
Hungary  gold  valued  at  approximately  $32,000,- 
000.  The  Goverimient  of  the  United  States  has 
also  granted  Hungary  a  long-term  credit  amount- 
ing to  $15,000,000  for  the  purchase  of  surplus 
property.  In  addition,  the  United  States  com- 
manders in  Germany  and  Austria  have  been 
instructed  to  restitute  identifiable  displaced  prop- 
erty removed  under  duress  from  Hungary.^  De- 
spite the  United  States'  endeavors  to  expedite 
action  in  this  matter,  return  of  such  property  to 
Hungary  from  Germany  has  been  delayed  by  fail- 
ure to  obtain  quadripartite  approval  of  the  restitu- 
tion program  in  the  Allied  Control  Council,  Berlin, 
and  the  Soviet  Government  is  one  of  the  govern- 
ments whose  approval  of  this  measure  intended 
to  help  Hungarian  economy  has  not  been  readily 
forthcoming.  This  concrete  affirmative  aid  by  the 
United  States  is  designed  to  assist  Hungarian  re- 
habilitation directly ;  on  the  other  hand  Soviet  aid 
mentioned  in  the  Soviet  Government's  note  of  July 
27  consists  principally  of  partial  postponement  of 
economic  drains  on  the  Hungarian  economy  in  the 
form  of  reparations.  Meanwhile  it  is  understood 
that  requisitions  and  removals  by  the  Soviet  Army 
are,  in  practice,  continuing. 


FURTHER  URGING  OF  TRIPARTITE  COOPERATION 
ON  HUNGARIAN  ECONOMIC  PROBLEMS 


In  view  of  this  obviously  unsatisfactory  state  of 
affaire  and  in  order  to  fulfil  the  obligations  which 
it  shares  with  the  Union  of  Soviet  Socialist  Re- 
publics and  the  United  Kingdom  under  the  Crimea 
Declaration,  the  United  States  has  instructed  its 
representative  in  Moscow  to  communicate  a  fur- 
ther note  to  the  Government  of  the  Union  of  Soviet 
Socialist  Republics  regarding  tripartite  coopera- 
tion in  assisting  Hungary  to  solve  its  pressing  eco- 
nomic problems.     The  text  of  the  note  follows : 

Moscow,  September  21,  lOJfi. 

His  Excellency  Victor  George  Dekanozov, 
Deputy  Minister  of  Foreign  Affairs, 
Moscow. 

Excellency  : 

I  have  the  honor  under  instructions  from  my 
Government  to  commimicate  to  you  the  following : 


The  Soviet  Government  in  its  note  of  July  27, 
1946  regarding  the  economic  situation  in  Hungary 
has  disputed  the  facts  contained  in  the  note  of  July 
22,  1946,  which  was  sent  on  instructions  of  my 
Government.  I  have  been  instructed  by  my  Gov- 
ernment to  state  that  it  cannot  accept  the  state- 
ments set  forth  in  the  Soviet  Government's  note 
of  July  27,  1946,  as  a  refutation  of  the  facts  con- 
tained in  the  United  States'  note  of  July  22, 1946, 
which  were  based  on  careful  study.  I  have  also 
been  instructed  to  say  that  my  Government  not 
only  reaffirms  those  facts  as  presenting  an  accu- 
rate account  of  the  economic  situation  in  Hungary 
but  that  they  have  been  confirmed,  to  the  satisfac- 
tion of  my  Government  by  information  obtained 


'  Bulletin  of  Aug.  11,  1946,  p.  263. 
'  Bulletin  of  June  30,  1946,  p.  1120. 


OCTOBER  6,  1946 


639 


subsequent  to  the  delivery  of  the  United  States' 
note  of  July  22, 1946. 

My  Government  has  regretfully  concluded  that 
it  •will  be  impossible  to  obtain  agreement  between 
our  two  Governments  as  to  the  exact  situation  now 
existing  in  Hungary  and  as  to  the  causes  of  that 
situation,  and  accordingly  my  Government  con- 
siders that  no  useful  purpose  will  be  served  by 
further  assertions  and  denials. 

On  the  other  hand,  there  can  be  no  question  of 
the  fact  that  assistance  is  required  by  Hungary  if 
that  country  is  to  solve  its  pressing  economic  prob- 
lems and  contribute  to  the  general  economic  recov- 
ery of  Europe.  As  pointed  out  in  the  United 
States'  note  of  July  22,  1946,  the  Hungarian  Gov- 
ernment had  requested  the  assistance  of  the  Allied 
Powers  in  solving  the  serious  financial  and  eco- 
nomic difficulties  facing  that  country  during  its 
period  of  rehabilitation. 

In  short,  the  need  of  Hungary  for  assistance  to 
facilitate  its  economic  recovery  is  not  only  obvious 
to  all,  but  is  emphasized  by  representatives  of  the 
Hungarian  Government  itself. 

In  the  circumstances,  my  Government  must 
again  draw  the  attention  of  the  Soviet  Government 
to  the  undertaking  entered  into  by  the  President  of 
the  United  States  of  America,  the  Premier  of  the 
Union  of  Soviet  Socialist  Republics,  and  the  Prime 
Minister  of  the  United  Kingdom,  at  the  Crimea 
Conference,  when  they  jointly  declared  "their 
mutual  agreement  to  concert  during  the  tempo- 
rary period  of  instability  in  liberated  Europe  the 
policies  of  their  three  governments  in  assist- 
ing .  .  .  the  peoples  of  the  former  Axis 
satellite  states  of  Europe  to  solve  by  democratic 
means  their  pressing  political  and  economic  prob- 
lems." This  is  an  obligation  which  my  Govern- 
ment cannot  ignore.  My  Government  does  not 
believe  that  the  Soviet  Government  will  wish  to 
deny  that  the  situation  existing  in  Hungary  today 
is  just  such  a  one  as  was  envisaged  by  the  declara- 
tion quoted  above. 

Reference  was  made  to  this  undertaking,  en- 
tered into  by  the  Soviet  Government  at  Yalta,  in 
the  notes  of  March  2,  1946,  and  July  22,  1946,  to 
the  Soviet  Government,  but  the  notes  of  the  Soviet 


Government  of  April  21,  1946,  and  July  27,  1946, 
have  not  been  responsive  on  this  point.  It  is  a 
matter  of  regret  to  the  United  States  Government 
that  the  Soviet  Government  not  only  has  refused 
to  implement  the  undertaking  freely  assumed  by 
it  at  the  Crimea  Conference,  but  moreover  has 
failed  to  indicate  its  reasons  for  so  refusing. 

Despite  the  unwillingness  heretofore  shown  by 
the  Soviet  Government  in  this  regard,  the  Ameri- 
can representative  on  the  Allied  Control  Com- 
mission for  Hungary  stands  ready  at  any  time  to 
consult  with  his  Soviet  and  British  Colleagues  to 
implement  the  obligation  assumed  by  the  three 
governments  at  Yalta  by  assisting  Hungary  to 
stabilize  its  economy  and  by  providing  a  frame- 
work within  which  the  rehabilitation  of  that 
country  and  its  early  integration  with  the  general 
economy  of  Europe  will  be  possible. 

Please  accept  [etc.] 

Elbridge  Duebrow 
Charge  cP  Affaires  ad  interim 

German  Documents — Continued  from  page  6I4 

Gently,  whereby  many  of  them  had  been  destroyed. 
There  would  not  be  quiet  though,  imtil  some 
100,000  to  200,000  men  had  been  rendered  harm- 
less. Therefore  the  action  against  the  bands  must 
be  carried  out  energetically. 

The  Fiihrer  announced  that  many  more  German 
divisions  would  be  assigned  to  the  Balkan  area 
and  especially  to  Greece,  because  for  the  coastal 
defense  there,  no  provision,  or  practically  none, 
had  been  made. 

Just  before  the  Fiihrer  had  breakfast  with  the 
Duce  in  private  he  again  declared  that  Sardinia 
and  Corsica  could  only  be  held  if  the  defense  acted 
with  extreme  energy  immediately  upon  a  landing 
taking  place,  and  he  indicated  that  he  was  con- 
cerned about  the  attitude  of  the  population  in 
Corsica.  The  Duce  remarked  only  that  the  popu- 
lation in  Corsica  had  remained  comparatively  calm 
up  to  this  time. 

With  that  the  conference  was  concluded. 

Schmidt 

Berlin,  July  SO,  19P 


Fundamentals  of  United  States  Trade  Policy 

BY  CLAIR  WILCOX' 


The  international  trade  policy  that  has  been  es- 
poused by  the  United  States  is  based  upon  four 
fundamental  principles.  First,  we  believe  that  the 
volume  of  international  trade  should  be  large — 
larger,  certainly,  than  it  was  between  the  wars. 
Second,  we  believe  that  internatioiaal  purchases 
and  sales  should  be  made,  at  our  end  of  the  trans- 
action, at  least,  by  private  enterprise.  Third,  we 
believe  that  trade  should  be  multilateral  rather 
than  bilateral.  And  fourth,  we  believe  that  it 
should  be  non-disci'iminatory.  I  should  like  to 
examine  each  of  these  propositions  in  turn. 

First,  I  have  said  that  the  volume  of  interna- 
tional trade  sliould  be  large.  We  want  large  ex- 
ports and  large  imports  and  we  want  them  for  rea- 
sons that  are  gi'ounded,  in  large  part,  in  our  own 
interests.  I  do  not  mean  to  imply  that  we  must 
push  exports  as  a  means  of  maintaining  employ- 
ment in  the  United  States.  That,  in  strict  logic, 
is  not  the  case.  If,  instead  of  seeking  both  quan- 
tity and  quality  in  our  emploj'ment,  we  were  to  con- 
tent ourselves  with  quantity  alone,  we  could  doubt- 
less have  it  with  little  or  no  foreign  trade.  If  we 
were  to  accept  the  necessary  controls,  it  is  conceiv- 
able that  we  could  keep  everybody  steadily  at  work 
in  a  closed  economy.  But  it  would  require  a  dras- 
tic readjustment  for  us  to  do  so ;  it  would  reduce  the 
output  of  our  labor;  it  would  impair  the  well-being 
of  our  people. 

We  want  large  exports.  An  important  jaart  of 
our  agricultural  activity  has  long  been  directed 
toward  sales  abroad.  And  now  our  heavy,  mass- 
production  industries  are  also  geared  to  a  level 
of  output  which  exceeds  the  normal,  peace-time 
demands  of  the  domestic  market.  The  mainte- 
nance of  the  type  of  plant,  technology,  labor  force, 
and  management  that  they  require  is  essential  to 
the  preservation  of  our  economic  health  and  even 
of  our  national  security.  It  will  be  easier  for  us 
to  maintain  both  the  quantity  and  the  quality  of 
our  employment,  it  wull  be  easier  for  us  to  insure 
our  security,  if  we  keep  our  labor  at  work,  insofar 

'  Delivered  before  the  National  Industrial  Conference 
Board  in  New  York,  N.Y.,  on  Sept.  26.  For  complete  text 
of  the  address  see  Department  of  State  press  release  673. 
Mr.  Wilcox  is  Director  of  the  Office  of  International  Trade 
Policy,  Department  of  State. 


as  possible,  in  the  industries  where  it  is  most  effec- 
tively employed.  And  this  means  that  we  must 
sell  substantial  quantities  of  our  output  abroad. 

We  want  large  imports.  The  war  has  made 
great  inroads  on  our  natural  resources;  we  have 
become  and  will  increasingly  become  dependent 
upon  foreign  supplies  of  basic  materials.  The 
quantity  and  variety  of  our  demand  for  consumers' 
goods  is  capable  of  indefinite  expansion.  If  we 
are  to  sell  to  others,  we  must  be  prepared  to  accept 
jjayment  in  the  goods  that  they  are  better  able  to 
provide.  Nor  is  that  to  be  regarded  merely  as  a 
necessary  evil.  Our  imports  are  essential  to  our 
industrial  strength,  to  the  richness  and  the  diver- 
sity of  our  daily  living. 

But  abundant  trade  will  not  benefit  the  United 
States  alone.  Many  nations,  particularly  the 
smaller  ones,  are  more  dependent  on  foreign  com- 
merce than  are  we.  Wider  markets  with  increased 
specialization  and  more  active  competition  should 
enhance  the  efficiency  of  their  industries  and  cut 
their  costs.  More  goods  should  flow  from  less  ef- 
fort and  levels  of  consumption  should  be  height- 
ened all  around  the  world.  A  renewed  sense  of 
well-being  should  contribute,  in  turn,  to  domestic 
stability  and  to  international  peace.  Untram- 
meled  trade  is  not  an  end  in  itself;  it  is  a  means 
to  ends  that  should  be  held  in  common  by  all  man- 
kind. 

Our  second  principle  is  that  the  foreign  trade 
of  the  United  States  should  be  carried  on  by  pri- 
vate enterprise.  Indeed,  we  should  prefer  this 
pattern,  by  and  large,  for  international  trade  in 
general.  We  should  prefer  it  because  private 
operation,  in  our  view,  affords  the  best  assurance 
that  trade  will  be  competitive,  efficient,  progres- 
sive, and  non-discriminatory  and,  finally,  that  it 
will  be  non-political.  Businessmen  will  ordinar- 
ily seek  to  buy  in  the  cheapest  market  and  sell 
in  the  dearest  one;  governments,  if  actuated  by 
something  other  than  economic  motives,  may  de- 
liberately buy  where  prices  are  high  and  sell  where 
they  are  low.  Private  transactions  are  carried 
on  at  private  risk ;  if  they  are  displeasing  to  indi- 
viduals, they  need  not  involve  the  state.  Public 
transactions  must  be  effected  by  governments;  if 


640 


OCTOBER  6,  1946 


641 


they  give  rise  to  dissatisfaction,  they  are  all  too 
likely  to  become  the  subject  of  diplomatic  repre- 
sentations. International  relations,  in  all  con- 
science, are  difficult  enough  without  creating  a 
situation  in  whicli  any  purchase  and  any  sale  may 
assume  the  cliaracter  of  an  international  incident. 

It  must  be  recognized,  of  course,  that  the  post- 
war transition,  even  for  the  United  States,  may 
temporarily  require  some  hang-over  of  public 
trade.  Lend-lease  must  be  wound  up.  Relief  must 
be  provided.  Trade  must  be  opened  with  the  oc- 
cupied areas.  We  must  be  assured  continued  access 
to  certain  materials  that  are  still  in  critically  short 
supply.  But  our  policy  for  the  long  run  is  clear. 
The  foreign  trade  of  this  country — almost  all  of 
it — will  be  in  private  hands.  The  persisting  ex- 
ceptions will  be  few ;  they  will  be  confined  almost 
entirely  to  transactions  that  are  essential  to  our 
military  security. 

As  you  know,  the  United  States  has  requested 
the  nations  that  have  maintained  war-time  pur- 
chasing missions  in  this  country  to  limit  their  op- 
erations to  commodities  required  for  civilian  relief 
and  reliabilitation,  to  confine  them  to  the  normal 
channels  of  trade,  to  make  their  purchases  in  ac- 
cordance with  commercial  considerations,  and  to 
liquidate  their  operations  at  the  earliest  possible 
moment.  In  general,  the  responses  to  this  request 
have  been  favorable.  Several  of  the  missions  are 
expected  to  go  out  of  business  by  the  end  of  the 
year.  Others  have  curtailed  their  commercial  op- 
erations and  confined  their  activities  to  expediting 
private  trade.  Though  there  will  always  be  some 
residue  of  foreign  government  procurement  in  the 
United  States,  the  wartime  pattern  of  purchasing 
mission  activity  is  slated  gradually  to  disappear. 

We  can  determine  how  trade  is  to  be  conducted 
within  our  own  borders ;  we  cannot  determine  how 
it  is  to  be  conducted  abroad.  Nationalization  has 
made  great  progi'ess  in  many  countries  since  the 
war.  We  may  not  welcome  this,  but  there  is  very 
little  that  we  can  do  about  it.  Where  American  in- 
vestors are  expropriated,  we  can  demand  prompt 
and  effective  compensation.  Where  loans  are  re- 
quested, we  can,  if  we  choose,  refuse  to  grant  them. 
But  Ruritania's  organization  of  her  internal  econ- 
omy is  Ruritania's  business  and  if  she  embraces — 
or  tolerates — collectivism,  the  best  that  we  can  do 
is  to  accept  her  course  as  one  of  the  facts  of  life 
and  adjust  ourselves  to  it. 


Our  problem  here  is  difficult,  but  it  is  one  to 
which  a  solution  must  be  found.  We  do  not  wish 
to  isolate  ourselves  from  the  collectivist  economies, 
to  divide  the  world  into  public-trading  and 
private-trading  blocs.  Nor  do  we  believe  that  the 
forms  and  the  methods  of  collectivism  should  be 
employed  in  carrying  on  the  whole  of  the  world's 
trade  simply  because  they  provide  the  most  con- 
venient method  of  dealing  with  the  small  fraction 
of  that  trade  that  is  in  public  hands.  The  solution 
must  be  found,  rather,  in  an  arrangement  which 
will  enable  the  free  market  economies  and  the  con- 
trolled economies  to  trade  with  one  another  on  a 
basis  of  equal  treatment  and  mutual  advantage. 
And  this  is  what  we  seek. 

Our  third  principle  is  that  international  trade 
should  be  multilateral  rather  than  bilateral.  Par- 
ticular transactions,  of  course,  are  always  bi- 
lateral; one  seller  deals  with  one  buyer.  But 
vmder  multilateralism  the  pattern  of  trade  in  gen- 
eral is  many-sided.  Sellers  are  not  compelled  to 
confine  their  sales  to  buyers  who  will  deliver  them 
equivalent  values  in  other  goods.  Buyers  are  not 
required  to  find  sellers  who  will  accept  payment  in 
goods  that  the  buyers  have  produced.  Traders  sell 
where  they  please,  exchanging  goods  for  money, 
and  buy  where  they  please,  exchanging  money 
for  goods.  This  arrangement  is  the  rule  in  the 
domestic  market;  it  has  had  its  counterpart  in 
international  trade.  Thus,  in  the  years  before  the 
war,  we  bought  from  Brazil  twice  what  we  sold 
her  and  from  Malaya  ten  times  as  much  as  we  sold 
her  while,  at  the  same  time,  we  sold  the  River 
Plate  countries  twice  and  the  United  Kingdom 
three  times  as  much  as  we  bought  from  them.  Bi- 
lateralism, by  contrast,  is  akin  to  barter.  Under 
this  system,  you  may  sell  for  money,  but  you  can- 
not use  your  money  to  buy  where  you  please. 
Your  customer  insists  that  you  must  buy  from  him 
if  he  is  to  buy  from  you.  Imports  are  dii-ectly 
tied  to  exports  and  each  country  must  balance 
its  accounts,  not  only  with  the  world  as  a  whole, 
but  separately  with  every  other  country  with 
which  it  deals. 

The  case  against  bilateralism  is  a  familiar  one. 
By  reducing  the  number  and  the  size  of  the  trans- 
actions that  can  be  effected,  it  holds  down  the 
volume  of  world  trade.  By  restricting  the  scope 
of  available  markets  and  sources  of  supply,  it 
limits  the  possible  economies  of  international  spe- 


642 

cialization.  By  freezing  trade  into  rigid  patterns, 
it  hinders  accommodation  to  changing  conditions. 
True  multilateralism  is  non-discriminatory;  bi- 
lateralism is  inherently  discriminatory.  Multi- 
lateralism follows  market  opportunities  in  a  search 
for  purely  economic  advantage;  bilateralism  in- 
vites the  intrusion  of  political  considerations. 

During  the  thirties,  bilateralism  found  its  prin- 
cipal expression  in  blocked  exchanges  and  dis- 
criminatory import  quotas.  Today,  it  manifests 
itself  most  conspicuously  in  a  whole  series  of  short- 
run,  barter-trade  agreements  involving  those  na- 
tions whose  economies  have  been  most  seriously 
disrupted  by  the  war.  These  agreements  are  the 
inevitable  product  of  serious  shortages  of  goods, 
instability  of  currencies,  and  persisting  exchange 
controls.  They  may  have  made  possible  a  con- 
siderable volume  of  trade  that  otherwise  could 
not  have  taken  place  at  all.  But  as  goods  become 
available  in  ample  quantities,  as  currencies  are 
stabilized,  and  as  exchanges  are  fi-eed,  the  need 
for  them,  real  or  apparent,  should  disappear.  As 
multilateralism  comes  to  oiler  the  promise  of  su- 
perior opportunities  to  buyers  and  to  sellers,  such 
contracts  will  look  less  tempting  than  they  do  to- 
day. 

More  serious,  however,  are  a  few  cases  of  bi- 
lateral agreements  between  important  trading  na- 
tions, involving  large  quantities  of  goods  and 
running  for  long  terms  of  yeai-s.  In  our  view, 
such  agreements  are  bound  to  be  discriminatory, 
since  they  give  the  seller  an  advantage  over  all 
other  sellers  in  obtaining  access  to  markets  and  as- 
sure the  buyer  a  preferred  position  in  procuring 
supplies.  Their  very  existence  may  induce  or  even 
compel  other  nations  to  enter  into  similar  ar- 
rangements for  the  protection  of  their  own  in- 
terests. For  the  duration  of  such  contracts,  sellers 
will  not  be  free  to  dispose  of  their  goods  and  buyers 
will  not  be  free  to  bid  for  products  in  the  most 
favorable  markets.  If  any  considerable  portion 
of  the  world's  trade  were  thus  to  be  frozen  over  a 
long  period  of  time,  our  progress  toward  multi- 
lateralism would  be  seriously  retarded  if  not  com- 
pletely blocked. 

Tlie  United  States  has  raised  no  question  with 
other  nations  concerning  state  trading  per  se.  It 
has  expressed  no  concern  over  bilateral  agreements 
covering  small  quantities  for  short  terms.  Nor 
has  it  undertaken  formally  to  protest  any  of  these 


DEPARTMENT  OF  STATE  BULLETIN 

deals.  But  it  has  deemed  it  proper,  in  the  case  of 
the  large-volume,  long-term  agreements,  to  call 
their  probable  consequences  to  the  attention  of  the 
nations  concerned.  If  it  should  appear  that  such 
advice  may  be  gratuitous,  I  would  remind  you  that 
the  commitments  for  the  liberalization  of  world 
trade  that  have  been  made  not  only  by  this  nation 
but  also  by  other  nations  are  repeated  and  definite. 
The  future  pattern  of  international  trade  is  a  mat- 
ter of  legitimate  concern  to  us,  as  it  is  to  every 
other  people  on  earth,  from  Afghanistan  at  the  be- 
ginning of  the  alphabet  to  Zanzibar  at  the  end. 
The  system  of  ownership  in  Ruritania's  internal 
economy,  as  I  have  said,  is  Kuritania's  business. 
But  the  methods  that  Ruritania  employs  in  her  ex- 
ternal trade  affect  the  character  of  world  trade  in 
general.  And  world  trade  is  everybody's  business. 
Our  fourth  and  final  principle  is  that  interna- 
tional trade  should  be  non-discriminatory.  We  be- 
lieve that  every  nation  should  afford  equal  treat- 
ment to  the  commerce  of  all  friendly  states.  We 
believe  that  discrimination  obstructs  the  expansion 
of  trade,  that  it  distorts  normal  relationships  and 
prevents  the  most  desirable  division  of  labor,  that 
it  tends  to  perpetuate  itself  by  canalizing  trade  and 
establishing  vested  interests  and,  finally,  that  it 
shifts  the  emphasis  in  commercial  relations  from 
economics  to  politics.  For  all  of  these  reasons,  we 
have  been  opposed  and  shall  continue  to  be  opposed 
to  preferential  tariff  systems  and  the  discrimina- 
tory administration  of  import  quotas  and  exchange 
controls.  Discrimination  begets  bilateralism,  as 
bilateralism  begets  discrimination.  If  we  are  to 
rid  ourselves  of  either  one  of  them,  we  must  rid 
ourselves  of  both. 

These  principles  have  found  repeated  expres- 
sion :  in  our  commercial  treaties ;  in  our  reciprocal 
trade  agreements ;  in  the  Atlantic  Charter ;  in  Ar- 
ticle VII  of  the  Mutual  Aid  Agreements  concluded 
with  our  Allies  during  the  war ;  in  connection  with 
lend-lease  settlements  and  the  extension  of  credits 
to  the  United  Kingdom,  France,  and  other  powers; 
in  the  Articles  of  Agreement  of  the  International 
Monetary  Fund  and  the  International  Bank  for 
Reconstruction  and  Development ;  in  the  economic' 
clauses  proposed  by  this  Government  for  inclusion 
in  the  treaties  of  peace ;  in  the  Proposals  for  Ex- 
pansion of  World  Trade  and  Employment  which 
were  published  in  December  of  last  year;  and  fi- 
nally and  most  fully,  in  the  Suggested  Charter  for 


OCTOBER  6,  1946 


643 


an  International  Trade  Organization^  which  was 
published  last  week.^ 

If  all  goes  well,  we  should  emerge  from  these 
negotiations,  sometime  before  the  end  of  1947, 
with  a  jDrotocol  embodying  the  new  trade  agree- 
ments completed  and  signed  by  the  President, 
and  with  a  World  Trade  Charter  ready  for  pre- 
sentation to  the  Congress.  The  International 
Trade  Organization,  upon  the  adherence  of  a 
sufficient  number  of  states,  should  be  established 
and  in  operation  before  the  end  of  1948. 

We  believe  that  this  organization  should  be 
open  to  the  widest  possible  membership.  But, 
once  it  has  been  established,  we  do  not  believe  that 
all  of  the  benefits  that  flow  from  it  should  be  ex- 
tended automatically  to  those  who  decline  to  as- 
sume its  obligations.  Accordingly,  we  have  sug- 
gested that  a  year  or  more  should  be  allowed  to 
permit  adherence  to  the  organization,  but  that, 
thereafter,  unless  the  organization  consents,  mem- 
bers should  not  apply  the  tariff  concessions  agreed 
upon  among  themselves  to  the  trade  of  otlier 
countries  which,  although  eligible  for  member- 
ship, have  not  become  members,  or  have  with- 
drawn from  the  organization. 

In  conclusion,  I  should  like  to  correct  a  few 
misapprehensions  concerning  this  progz-am  that 
have  appeared  in  the  public  print.  The  first  is 
the  careless  statement  that  this  Government  is 
seeking  to  establish  free  trade.  This,  of  course, 
is  not  the  case.  Free  trade  would  require  the 
complete  elimination  of  all  protective  barriers. 
Politically,  it  would  be  impossible;  economically 
it  would  be  unwise.  As  far  as  this  Government  is 
concerned,  its  negotiations  with  respect  to  specific 
barriers  to  trade  will  be  conducted  within  the 
limits  of  the  authority  conferred  upon  the  Presi- 
dent by  the  Reciprocal  Trade  Agreement  Act  and 
in  accordance  with  the  procedures  of  public  notice, 
open  hearings,  and  quid-pro-quo  bargaining  that 
have  been  employed  for  the  past  12  years  in  the 
administration  of  that  Act.  By  a  judicious  exer- 
cise of  the  power  provided  in  the  present  law,  the 
United  States  may  lead  the  world  toward  freer 
trade.  It  cannot,  and  does  not,  seek  to  take  it  all 
the  way  to  free  trade.  We  shall  expect  to  come 
out  of  the  pending  conferences  with  something 
far  better  than  the  sort  of  restrictionism  that  has 
fastened  itself  on  the  world's  commerce  during  the 
last  20  years.  But  we  shall  be  willing  to  settle  for 
something  that  falls  short  of  Utopia. 


Another  misapprehension  has  given  rise  to  the 
comment  that  our  line  of  policy  has  been  tailored 
to  meet  the  needs  of  highly  industrialized  states 
and  is  therefore  prejudicial  to  the  interests  of 
undeveloiJed  areas.  The  fact  of  the  matter  is  that 
the  United  States  affirmatively  seeks  the  early  in- 
dustrialization of  the  less  developed  sections  of 
the  world.  We  know,  from  experience,  that  more 
highly  industrialized  nations  generate  greater 
purchasing  power,  afford  better  markets,  and  at- 
tain higher  levels  of  living.  We  have  sought  to 
promote  industrialization  by  exporting  plant, 
equipment,  and  know-how;  by  opening  markets 
to  countries  that  are  in  the  early  stages  of  tlieir 
industrial  development;  by  extending  loans 
through  the  Export-Import  Bank;  by  participat- 
ing in  the  establishment  of  the  International 
Bank.  We  recognize  that  public  assistance  may 
be  required,  in  some  cases,  to  enable  new  industries 
to  get  on  their  feet.  But  we  believe  that  such 
aid  should  be  confined  to  enterprises  that  will 
eventually  be  able  to  stand  alone ;  that  it  should  be 
limited  in  extent,  temporary  in  duration,  and  sub- 
ject to  periodic  review ;  and  that  it  should  gradu- 
ally be  tapered  off  in  accordance  with  a  pre- 
determined formula.  We  believe  that  the  Econ- 
omic and  Social  Council  and  some  of  the  special- 
ized agencies  of  the  United  Nations,  including  the 
proposed  International  Trade  Organization,  may 
make  affirmative  contributions  to  the  process  of 
industrial  development,  and  we  stand  ready  to 
consider  all  serious  proposals  that  are  directed 
toward  this  end. 

Still  another  misconception  is  revealed  by  the 
opinion,  recently  expressed  with  some  vigor,  that 
the  United  States  seeks  multilateralism  because 
this  policy  will  best  enable  it  to  exploit  the  econo- 
mies of  smaller  states.  At  the  Peace  Conference 
in  Paris  our  Government  has  proposed  treaty 
clauses  under  which  our  former  enemies  would 
grant  non-discriminatory  treatment  to  the  com- 
merce of  those  nations  that  accord  similar  treat- 
ment to  them.  This  proposal,  of  course,  appears 
to  us  to  serve  the  interests  of  victors  and  van- 
quished alike.  But  it  has  nonetheless  been  said  to 
threaten  the  "enslavement"  of  the  areas  concerned. 
If  our  country  had  made  the  opposite  proposal — 
that  special  privileges,  denied  to  other  powers,  be 
granted  to  the  United  States — such  a  characteriza- 


'  See  ButLETiN  of  Sept.  29,  1946,  p.  585. 


644 


DEPARTMENT  OF  STATE  BULLETIN 


tion  would  fairly  have  apislied.  But  reciprocity  in 
non-discrimination  serves  merely  to  protect  the 
right  of  every  nation  to  compete,  on  equal  terms, 
with  every  other  nation  in  the  markets  of  the  world, 
to  sell  more  goods,  of  better  quality,  with  superior 
service,  for  less  money,  so  that  labor  may  be  more 
productive  and  levels  of  living  more  nearly  ade- 
quate in  every  corner  of  the  earth.  It  assures  to 
smaller  states  an  opportunity  to  buy  and  sell  where 
they  please,  on  terms  as  favorable  as  those  afforded 
larger  powers.  Far  from  reducing  them  to  slavery, 
it  affords  a  guaranty  of  economic  liberty. 

And  finally,  a  word  should  be  said  about  the 
view  that  liberal  trading  principles,  being  the 
product  of  eighteenth  century  minds  and  nine- 
teenth century  practice  are  now  out  of  fashion; 
that  our  whole  project  is  hopeless;  that  multilater- 


alism is  doomed;  that  the  world  is  bound  to  be 
divided  into  competing  economic  blocs;  that  wei 
might  as  well  adapt  ourselves  to  the  inevitable. 
This,  I  submit,  is  a  counsel  of  despair.  It  is  true 
that  the  economic  and  the  political  situation  in  the: 
post-war  world  is  full  of  uncertainties.  But  thei 
future  is  not  foreordained.  For  this  country  to 
surrender  its  principles  without  a  struggle,  simply 
because  the  going  may  be  rough,  would  be  neither 
necessary  nor  wise.  Our  initiative  with  respect  ta 
matters  of  trade  policy  has  been  widely  commended 
by  other  governments.  Our  Proposals  and  our  sug- 
gested Charter  have  posed  the  issues  about  which 
the  discussion  of  these  matters  now  revolves.  Our 
present  position  imposes  upon  us  a  responsibility 
that  we  do  not  propose  to  abdicate.  It  gives  us  an 
opiDortunity  that  we  do  not  intend  to  throw  away. 


Lend-Lease  and  Surplus-Property  Settlement  With  Belgium 


A  complete  and  final  settlement  of  war  accounts 
between  Belgium  and  the  United  States  was  signed 
here  on  September  24  by  Acting  Secretary  Clayton 
and  Brig.  Gen.  Donald  H.  Connolly,  Foreign 
Liquidation  Commissioner,  on  behalf  of  the 
United  States,  and  Baron  Silvercruys,  Belgian 
Ambassador  to  the  United  States,  on  behalf  of  his 
country.^  The  settlement  covers  lend-lease  and 
reverse  lend-lease,  the  United  States  share  of  civil- 
ian supplies  furnished  by  the  Allied  armies  to  Bel- 
gium and  Luxembourg  under  the  military  supply 
program,  pajmient  by  the  United  States  armed 
forces  for  Belgian  francs  provided  by  the  Belgian 
Government  for  the  pay  of  United  States  troops, 
the  transfer  of  surplus  property  to  Belgium,  and 
claims  of  each  Government  against  the  other  which 
arose  out  of  the  war. 

Mr.  Clayton  pointed  out,  upon  signing  the  docu- 
ments involved  in  the  settlement,  that  "Belgium's 
contribution  to  the  United  States  armed  forces 
during  the  war  against  Germany  was  outstanding. 
During  the  'Battle  of  the  Bulge',  in  the  Ardennes, 
the  output  of  Belgian  factories,  Belgian  trans- 
portation and  labor,  and  the  great  port  of  Ant- 
werp were  decisive  factors  in  stemming  the  Ger- 
man advance.  Procurement  for  United  States 
troops  continued  to  be  furnished  on  reverse  lend- 


"  For  text  of  memorandum  of  understanding  and  of 
agreement,  see  Department  of  State  press  release  668  of 
Sept.  24. 


lease  through  V- J  Day,  and  was  of  great  assistance' 
to  the  occupation  of  Germany  and  the  redeploy- 
ment program  through  Antwerp,  which  was  the 
major  port  for  reshipment  of  supplies  and  inate- 
riel  in  Europe." 

Wliile  lend-lease  provided  Belgium  by  the 
United  States  amounts  to  $114,400,000,  reverse 
lend-lease  furnished  the  United  States  forces  in 
Belgium,  Luxembourg,  and  the  Belgian  Congo 
totals  $204,800,000.  Since  the  difference  of  some 
$90,000,000  in  Belgium's  favor  is  approximately 
equal  to  the  United  States  share  of  the  supplies 
furnished  to  Belgium  and  Luxembourg  under  the 
military  supply  program,  the  contributions  of  the 
United  States  and  Belgium  to  each  other  through  | 
these  channels  in  tlie  common  war  effort  are  con- 
sidered to  be  in  balance,  Mr.  Clayton  said,  and  the 
present  settlement  provides  that  neither  Govern- 
ment will  make  any  payment  to  the  other  on  these 
accounts. 

In  arriving  at  the  settlement,  due  note  was 
taken  of  the  agreement  reached  in  discussions  be- 
tween representatives  of  the  two  Governments  in 
October  1945  that,  in  accordance  with  the  provi- 
sions of  article  VII  of  the  mutual-aid  agreement 
between  the  United  States  and  Belgium  of  June 
IC,  1942,  international  discussions  will  be  held  as 
soon  as  possible  directed  to  the  expansion,  by 
appropriate  international  and  domestic  measures, 
of  production,  employment,  and  the  exchange  and 


OCTOBER  6,  1946 

•onsumption  of  goods;  the  elimination  of  discrim- 
natory  ti'eatment  in  international  commerce ;  and 
he  reduction  of  tariff  and  other  trade  barriers. 

The  Belgian  Government  has  reiterated  its 
ndorsement  of  the  comjnercial-policy  objectives 
ontained  in  the  Proposals  for  Expansion  of 
Yoiid  Trade  and  EmpJoym£nt  published  by  the 
Jnited  States  in  November  1945,  and  its  general 
upport  of  these  proposals  at  the  forthcoming  In- 
ernational  Trade  and  Employment  Conference. 
Belgium  also  signed  on  April  5, 1946  an  air-trans- 
lort  agreement  with  the  United  States. 

United  States  surplus  property  passes  to  Bel- 
ium  under  arrangements  set  forth  in  the  settle- 
lent.  Certain  surplus  property,  already  desig- 
ated  for  transfer  to  Belgium,  -will  be  paid  for  by 
Selgium  at  its  full  transfer  value  of  approximately 
18,000,000,  payment  to  be  partly  in  dollars  and 
artly  in  funds  for  educational  programs,  real 
state,  and  the  assumption  of  claims.  In  addition, 
11  United  States  surplus  property  in  Belgium  re- 
laining  unsold  on  October  1, 1946  or  declared  sur- 
lus  thereafter  (except  combat  materiel,  until  de- 
lilitarized,  and  certain  other  reserved  items)  will 
ass  to  Belgium  under  an  undertaking  by  Belgium 
D  sell  it  and  turn  over  one  half  of  the  gross  pro- 
eeds  to  the  United  States  in  dollars. 


645 

Belgium's  dollar  obligations  incurred  in  connec- 
tion with  all  acquisitions  of  surplus  property  un- 
der the  settlement  will  be  payable  in  30  annual 
installments  beginning  July  1,  1946  with  interest 
at  2%  percent,  subject  to  certain  provisions  for 
accelerated  payments. 

The  United  States,  on  its  part,  will  pay  dollars 
to  Belgium,  in  payment  for  francs  currently  fur- 
nished by  the  Belgian  Government  to  the  United 
States  armed  forces  for  the  pay  of  troops  in 
Belgium. 

Because  of  the  close  economic  relations  between 
Belgium  and  the  Grand  Duchy  of  Luxembourg, 
Mr.  Clayton  explained,  and  because  of  certain  spe- 
cific provisions,  the  settlement  between  the  United 
States  and  Belgium  affects  the  interests  of  the 
Government  of  Luxembourg  at  several  points, 
principally  acquisition  of  property,  cultural- 
exchange  programs,  and  settlement  of  claims. 
Mr.  Clayton  said  that  these  aspects  of  the  settle- 
ment had  been  submitted  beforehand  to  the  Gov- 
ernment of  Luxembourg,  which  stated  its  concur- 
rence so  far  as  it  is  concerned.  In  addition  the 
United  States  and  Luxembourg  have  signed  an 
agreement  waiving  all  but  certain  defined  types 
of  intergovernmental  claims  arising  from  the  war. 


INRRA  Operations:  8th  Quarterly  Report 


'o  the  Congress  of  the  United  States  of  America: 

I  am  transmitting  herewith  the  eighth  quarterly 

sport  covering  the  operations  of  UNRRA  and  ex- 

enditure  of  funds  appropriated  by  the  Congress 

Q  a  cumulative  basis  as  of  June  30,  1946.^ 

Since  my  last  report,  the  Congress  has  appro- 

riated  the  remaining  funds  pledged  by  this  Gov- 

mment  as  its  second  contribution  to  UNRRA. 

'ut  of  the  total  of  $2,700,000,000  appropriated  by 

lis  Government  for  the  relief  and  rehabilitation 

f  peoples  in  Europe  and  Asia  shipments  from  the 

nited  States  have  totaled  9,140,614  long  tons  with 

value  of  $1,154,072,000  as  of  June  30,  1946.     On 

le  same  date  world  shipments  were  12,766,975 

•ng  tons  with  a  value  of  $1,707,149,000.     Tonnage 

•om  the  United  States  thus  amounts  to  approxi- 

ately  71.6  percent  and  the  value  of  United  States 

jiipments  to  approximately  68  percent  of  the  total. 

I  On  August  5,  1946  the  48  member  nations  of 

j  NRRA  held  their  Fifth  Council  Session  at  Gen- 


eva, Switzerland.  One  of  the  decisions  taken 
was  that  UNRRA  could  extend  the  date  for  mak- 
ing shipments  to  Europe  out  of  available  resources 
beyond  the  date  of  December  31,  1946,  and  to  the 
Far  East  beyond  March  31,  1947.  The  Congress 
is  familiar  with  the  delays  which  made  it  impos- 
sible for  UNRRA  to  complete  its  shipments  before 
these  terminal  dates.  The  extension  of  time  will 
apply  primarily  to  industrial  and  agricultural  re- 
habilitation items,  to  the  repair  of  essential  facili- 
ties, and  to  provide  a  substitute  for  the  di-aft  ani- 
mals decimated  by  the  enemy.  The  bulk  of  food 
in  the  country  programs,  however,  will  be  shipped 
by  the  end  of  the  calendar  year. 

It  was  also  recommended  at  the  Fifth  Council 
Session  that  immediate  steps  be  taken  under  the 
direction  of  the  United  Nations  Assembly  to  de- 
termine the  need  which  will  still  exist  in  1947. 

'  For  text  of  the  report  see  Department  of  State  publi- 
cation 2617. 


646 

Measures  have  been  inaugurated  on  this  problem. 

The  Congress  and  the  people  of  the  United 
States  may  be  proud  of  the  contribution  they  have 
made  to  the  rehabilitation  of  devastated  countries 
through  UNRRA,  but  we  must  also  realize  that 
the  job  has  not  been  completed.  It  is  essential  that 
we  look  ahead  to  the  relief  requirements  which 
will  confront  war-devastated  areas  in  the  coming 
year.  At  this  time  crops  all  over  Europe  are  being 
harvested  and,  if  weather  conditions  continue  to 
be  favorable,  food  reserves  should  be  more  ade- 
quate than  in  the  past  year.  Nevertheless,  despite 
prodigious  efforts  by  the  peoples  of  the  liberated 
countries,  agricultural  production  will  still  fall 
greatly  below  the  pre-war  levels. 

Here  in  the  United  States,  we  must  continue 
our  endeavors  to  conserve  our  food  resources. 
Crops  in  the  United  States  give  promise  of  large 
yields,  but  the  world  food  situation  will  be  criti- 
cal.    Many  countries  will  be  forced  to  import  food 

Air  Coordinating  Committee 

[Released  to  the  press  by  the  White  House  September  19] 

On  the  recommendation  of  Government  agencies 
concerned  with  civil  aviation,  the  President  signed 
on  September  19  an  Executive  order  establishing 
an  Air  Coordinating  Committee.  In  issuing  the 
order,  the  President  pointed  out  that  a  former 
committee  of  the  same  name,  which  certain  Gov- 
ernment departments  had  established  18  months 
ago,  had  proved  itself  a  useful  instrument  in  co- 
ordinating policy  and  activities  in  the  field  of 
aviation,  but  that  it  had  become  essential  to  create 
a  committee  with  enlarged  responsibilities  and 
with  membership  drawn  from  among  high  officials 
of  the  Government  directly  concerned  with  avia- 
tion policy. 

As  chairman  of  the  new  Committee  Mr.  Truman 
has  appointed  Will  Clayton,  Under  Secretary  of 
State  for  economic  affairs.  The  President  recog- 
nizes, however,  that  Mr.  Clayton's  duties  in  the 
State  Department  may  prevent  his  personal  par- 
ticipation in  certain  of  the  Committee's  meetings. 
To  serve  as  chairman  when  Mr.  Clayton  is  absent 
the  President  has  appointed  as  co-chairman  James 
M.  Landis,  chairman  of  the  Civil  Aeronautics 
Board. 

Other  agencies  represented  on  the  Committee 
will  be  the  War,  Post  Office,  Navy,  and  Commerce 


DEPARTMENT  OF  STATE  BULLETIN 

in  excess  of  normal  imports  because  full  produc- 
tion has  not  yet  been  achieved.  Prudence  in  the 
consumption  of  world  food  supplies  is  necessary. 

The  United  States  is  aware  of  the  fact  that  it 
may  be  necessary  to  find  various  methods  of  afford- 
ing further  assistance  to  some  countries  in  1947. 
To  this  end  various  agencies  of  this  Government 
are  completing  plans  so  that  proper  solutions  can 
be  effected. 

Having  been  largely  successful  in  averting 
world  tragedy  during  the  most  difficult  period 
after  the  war,  it  would  be  doubly  tragic  if  we  were 
not  prepared  to  meet  the  less  difficult  task  ahead. 
We  must  be  ready  with  workable  plans  which  will 
enable  the  war-devastated  countries  to  face  the 
future  with  confidence  and  success. 

Harry  S.  Truman 

The  White  House 
September  £S,  19Ji6 


Departments.  The  President  has  requested  the 
heads  of  these  departments  to  delegate  officials 
with  the  rank  of  Assistant  Secretary  or  higher  as 
their  representatives.  The  Committee  will  also 
include  a  non-voting  member  of  the  Bureau  of  the 
Budget.  Other  Government  agencies  which  have 
a  substantial  interest  in  aviation  matters  coming 
before  the  Committee  may  participate  at  such 
times  in  the  activities  of  the  Committee. 

The  chief  function  of  the  Committee  will  be 
"to  provide  for  the  fullest  development  and  co- 
ordination of  the  aviation  policies  and  activities" 
of  the  Government,  within  existing  statutory 
limits.  The  Committee  will  repoil  periodically  to 
the  President  and  submit  important  policy  recom- 
mendations to  him. 

Aviation  specialists,  in  both  industry  and  gov- 
ernment, have  recognized  the  desirability  of  closer 
liaison  between  governmental  and  private  activi- 
ties in  the  aviation  field.  To  meet  this  need  the 
President  is  instructing  the  Committee  to  set  up 
an  Aviation  Industry  Advisory  Panel,  with  suit- 
able membership  drawn  from  private  organiza- 
tions, and  to  consult  freely  with  this  Panel. 

"This  Committee  has  been  created  in  recog- 
nition of  the  increasing  part  which  aviation  is 
playing  in  our  domestic  and  foreign  affairs",  the 


OCTOBER  6,  1946 


647 


President  stated.  "Only  a  policy-coordinating 
rommittee  representing  the  various  aviation  in- 
erests  of  the  Government  and  operating  at  a  high 
evel  of  authority  can  meet  the  needs  of  the  time. 
\jnong  its  major  duties,  the  Committee  will  play  a 
arge  part  in  helping  to  develop  unified  policy  for 
his  country's  aviation  activities  abroad  and  so 
provide  valuable  guidance  for  our  representatives 
it  international  air  conferences.  I  believe  that  the 
]!ommittee  will  markedly  accelerate  our  progress 
n  the  field  of  aviation." 
The  official  text  of  the  Executive  order  follows : 

EXECUTIVE  ORDER  ESTABLISHING  THE 
AIR  COORDINATING  COMMITTEE' 

By  virtue  of  the  authority  vested  in  me  as 
'resident  of  the  United  States,  and  in  order  to 
)rovide  for  the  fullest  development  and  coordina- 
ion  of  the  aviation  policies  and  activities  of  the 
federal  agencies,  and  in  the  interest  of  the  in- 
ernal  management  of  the  Government,  it  is 
lereby  ordered  as  follows : 

1.  (a)  There  is  hereby  established  the  Air  Co- 
)rdinating  Committee  (hereinafter  referred  to  as 
he  Committee)  which  shall  have  as  members  one 
•epresentative  from  each  of  the  following-named 
igencies  (hereinafter  referred  to  as  the  partici- 
pating agencies)  :  the  State,  War,  Post  Office, 
N"avy,  and  Commerce  Departments  and  the  Civil 
Aeronautics  Board.  The  members  shall  be  desig- 
lated  by  the  respective  heads  of  the  participating 
Igencies.  The  President  shall  name  one  of  the 
nembers  as  the  Chairman  of  the  Committee.  The 
Director  of  the  Bureau  of  the  Budget  shall  desig- 
late  a  representative  of  the  Bureau  as  a  non-voting 
;nember  of  the  Committee. 

(&)  Each  officer  or  body  authorized  under  sub- 
paragraph 1  (a)  hereof  to  designate  a  member  of 
he  Committee  shall  also  designate  one  or  more 
ilternate  members,  as  may  be  necessary. 

(c)  The  Committee  shall  establish  procedures 
o  provide  for  participation,  including  participa- 
ion  in  voting,  by  a  representative  of  any  agency 
lot  named  in  subparagraph  1  (a)  hereof  in  connec- 
ion  with  such  aviation  matters  as  are  of  substan- 
ial  interest  to  that  agency. 

2.  The  Committee  shall  examine  aviation  prob- 
ems  and  developments  affecting  more  than  one 


*Ex.  Or.  9781   (11  Federal  Register  10645). 


participating  agency;  develop  and  recommend  in- 
tegrated policies  to  be  carried  out  and  actions  to 
be  taken  by  the  participating  agencies  or  by  any 
other  Government  agency  charged  with  responsi- 
bility in  the  aviation  field ;  and,  to  the  extent  per- 
mitted by  law,  coordinate  the  aviation  activities  of 
such  agencies  except  activities  relating  to  the  exer- 
cise of  quasi-judicial  functions. 

3.  The  Committee  shall  consult  with  Federal 
inter-agency  boards  and  committees  concerned  in 
any  manner  with  aviation  activities;  and  consult 
with  the  representatives  of  the  United  States  to 
the  Provisional  International  Civil  Aviation  Or- 
ganization or  to  the  permanent  successor  thereof 
and  recommend  to  the  Department  of  State  gen- 
eral policy  directives  and  instructions  for  the  guid- 
ance of  the  said  representatives. 

4.  The  Committee,  after  obtaining  the  views  of 
the  head  of  each  agency  concerned,  shall  submit  to 
the  President,  together  with  the  said  views,  (a) 
such  of  the  Committee's  recommendations  on  avia- 
tion policies  as  require  the  attention  of  the  Presi- 
dent by  reason  of  their  character  or  importance, 
(b)  those  important  aviation  questions  the  disposi- 
tion of  which  is  prevented  by  the  inability  of  the 
agencies  concerned  to  agree,  (c)  an  annual  report 
of  the  Committee's  activities  during  each  calendar 
year,  to  be  submitted  not  later  than  January  31  of 
the  next  succeeding  year,  and  (d)  such  interim  re- 
ports as  may  be  necessary  or  desirable. 

5.  The  heads  of  the  participating  agencies  shall 
cause  their  respective  agencies  to  use  the  facilities 
of  the  Committee  in  all  appropriate  circumstances 
and,  consonant  with  law,  to  provide  the  Committee 
with  such  personnel  assistance  as  may  be  necessary. 

Harky  S.  Truman 
The  White  House 
September  19, 1946 

Foreign  Commerce  Weekly 

The  following  article  of  interest  to  readers  of  the 
Bulletin  appeared  in  the  September  14  issue  of 
the  Foreign  Commerce  Weekly,  a  publication  of  the 
Department  of  Commerce,  copies  of  which  may  be 
obtained  from  the  Superintendent  of  Documents, 
Government  Printing  Office,  for  10  cents  each : 

"Report  from  Dairen— South  Manchuria  Now", 
based  on  a  report  from  Ashley  Guy  Hope,  economic 
analyst,  American  Consulate  General,  Dairen,  China. 

U.  5.  GOVERNMENT  PRINTING   OTFlCEt  1946 


VGjitefits 


General  Policy 

Pas* 

Economic  Affairs — Continued 

Page 

Investigations  on  United  Nations  Property 

Fundamentals  of  U.S.  Trade  Policy.     By 

in  Rumania 

Clair  Wilcox 

640 

Remarks  by  Willard  Thorp 

620 

UNRRA    Operations:    Eighth    Quarterly 

Economic  Situation  in  Hungary 

U.S.  Assistance  Toward  Rehabilitation 

Report 

Air  Coordinating  Committee 

645 
646 

of  Hungary 

638 
638 

Executive  Order 

Nationalization    in    Great    Britain — The 
First  Year 

647 

Further  Urging  of  Tripartite  Coopera- 
tion on  Hungarian  Economic  Problems  . 

Article  by  Irwin  M.  Tobin 

615 

The  Paris  Peace  Conference 

U.S.  Delegation  to  Middle  East  Regional 

Investigations  on  United  Nations  Property 

Air  Navigation  Meeting 

629 

in  Rumania 

Second  Pan  American  Congress  of  Mining 

Remarlis  by  Willard  Thorp 

620 

Engineering  and  Geology 

630 

The  United  Nations 

German  Documents 

U.S.  Proposal  for  Conference  on  Resource 
Conservation  and  Utilization 

German    Documents:    Conference     With 
Axis  Leaders,  1943 

607 

Letter    From    U.S.    Representative    on 

Occupation  Matters 

ECOSOC  to  Acting  President  .... 

623 

Interim  Reparations  Removals:  Synthetic 

Draft   Resolution   Proposing   a   United 

Oil  and  Synthetic  Rubber  Industries  . 

629 

Nations     Scientific     Conference     on 

International  Information 

Resource   Conservation   and   Utiliza- 

Operation of  U.S.  Information  Service  in 

tion  

623 

Yugoslavia 

Letter  From  President  Truman  to  U.S. 

Statement  by  Acting  Secretary  Clayton  . 

637 

Representative  on  ECOSOC    .... 

624 

Treaty  Information 

Outline   of  Program  for  the   Resource 

Lend-Lease  and  Surplus-Property  Settle- 

Conservation   and    Utilization    Con- 

ment With  Belgium 

644 

ference     

624 

Global     Maritime    Organization    To    Be 

Summary  of  Preliminary  Report  of  Sub- 

Discussed  at  UMCC  Meeting  .... 

631 

commission  To  Study  the  Economic 

Reconstruction  of  Devastated  Areas  . 

626 

International  Organizations  and  Con- 

Meeting   of    National     Commission    on 

ferences 

Educational,   Scientific  and  Cultural 

Calendar  of  Meetings 

628 

Cooperation 

Activities  and  Developments 

629 

Remarks  by  President  Truman   .... 

633 

Cultural  Cooperation 

Address  by  Assistant  Secretary  Benton  . 

633 

Meeting    of     National     Commission     on 

Economic  Affairs 

Educational,  Scientific,  and  Cultural 

18th  International  Congress  For  Housing 
and  Town  Planning 

630 
631 

Cooperation 

Remarks  by  President  Truman  .... 

Address   by    Assistant   Secretary    Ben- 
ton    

633 
633 

Global    Maritime     Organization    To    Be 
Discussed  at  UMCC  INIeeting    .    .    . 

Invitation  to  the  World  Telecommunica- 

Publications 

tions  Conference 

632 

Foreign  Commerce  Weekly 

647 

^C7tto^Btct€/J^ 

Irwin  M. 

Tobin,  author  of  "Nationalization  in  Great  Britain : 

The  First  Tear",  is  British  Commonwealth  Specialist,  Division 

of  International  Labor,  Social,  and  Healtli  Affairs,  Office  of  Inter- 

na 

tional  Trade  Policy,  Department  of  State. 

' 

rhe  German  documents  in  this  issue  were  selected  and  trans- 

lated  by  J. 

S.  Beddie,  an  Officer  in  the  Division  of  Historical 

Policy  Research,  Office  of  Public  Affairs,  Department  of  State.              1 

fJAe/  ^ehct'i^tTnent/  /O^ trtaie^ 


STATEMENT  BY  THE  PRESIDENT  ON  THE  PALESTINE  SIT- 
UATION   669 

U.S.  AIMS  AND  POLICIES  IN  EUROPE     .    Address  by  the  Sec- 
retary of  State     ••      665 

THE   POLISH   NATIONALIZATION   LAW      .       Article  by  Leon 

Goldenberg  and  Laure  Metsger 651 

FINAL   REPORT   OF    U.  S.  NATIONAL  COMMISSION  FOR 

UNESCO 683 


For  complete  contents  see  back  cover 


,^  s.  surewKTtMOENT  Of  mmmi 
NOV  20 1946 


^1t«T  o» 


Me  Qe/ta^i^ent ^/ 9L(^    OUllGllil 


Vol.  XV,  No.  380     .    Publication  2639 
Oaoher  13,  1946 


my)v(?}wiid(yyA 


Leon  Goldenberg,  co-author  of  the  article  on  the  Polish  natu- 
ralization law,  is  Chief  of  the  Northern  and  Western  European 
Section  of  the  Division  for  Europe  in  the  Office  of  European 
Affairs,  Department  of  State.  Mr.  Goldenberg  was  formerly 
Chief  of  the  Eastern  European  Economic  Section  of  the  former 
Office  of  Research  and  Intelligence.  Laure  Metzger  was  con- 
nected with  the  Europe,  Near  East,  and  Africa  Intelligence 
Division  in  the  former  Office  of  Research  and  Intelligence, 
Department  of  State. 


For  sale  by  the  Superintendent  of  Documents 

U.  S.  Government  Printing  Office 

Waslilngton  25.  D.  C. 

Sobscription: 

62  issues,  $3.50;  single  copy,  10  cents 

Special  offer:  13  weeks  for  $1.00 

(renewable  only  on  yearly  basis) 

Published  with  the  approval  of  the 
Director  of  the  Bureau  of  the  Budget 


The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  of 
tlie  Government  with  information  on 
developments  in  the  field  of  foreign 
relations  and  on  the  work  of  the  De- 
partment of  State  and  the  Foreign 
Service.  The  BULLETIN  includes 
press  releases  on  foreign  policy  issued 
by  the  White  House  and  the  Depart- 
ment, 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  inter- 
national 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 . 


THE  POLISH  NATIONALIZATION  LAW 


by  Leon  Goldenherg 
and  Laure  Metzger 


The  Polish  Nationalization  Law  is  far  reaching  in  scope, 
and  its  provisions  are  such  that  practically  every  enterprise 
of  importance  falls  under  the  law.  This  article  discusses 
the  general  features  of  the  law  and  the  general  principles  of 
compensation  to  property  holders,  and  comments  on  the 
foreign  investments  in  pre-war  Poland.  Of  particular 
interest  is  the  attitude  of  the  Polish  Government  toward 
the  compensation  of  American  investments  in  Poland. 


A.     General  Features 

Early  this  year  the  Polish  Government  under- 
took the  first  important  step  in  its  over-all  economic 
planning  program.  On  January  3, 194G  the  Polish 
Provisional  Parliament  passed  a  law  nationaliz- 
ing Poland's  key  industries.^  According  to  the 
official  election  returns  in  the  referendum  of  July 
7,  1946,  the  nationalization  law  was  sustained  by 
the  electorate. 

The  Polish  Nationalization  Law  is  far-reaching 
in  scope,  and  its  provisions  are  such  that  prac- 
tically every  enterprise  of  importance  falls  under 
the  Law.  It  consists  first  of  all  of  a  punitive 
measure  for  the  nationalization — without  compen- 
sation— of  all  enterprises  owned  by  the  Ger- 
man Reich  and  by  German  citizens  (ai't.  II) .  This 
clause  is  confiscatory  in  character,  and  differs 
thereby  from  the  remainder  of  the  legislation. 
Other  industrial  enterprises  are  subject  to  nation- 
alization with  compensation  if  they  fulfil  one  of 
two  conditions:  {a)  if  they  fall  into  the  category 


of  basic  industries ;  or  (b)  if  they  are  capable  of 
employing  more  than  50  workers  per  shift. 

Article  III  of  the  Nationalization  Law  enum- 
erates 17  types  of  "basic  industries" :  mines ;  natu- 
ral- and  synthetic-oil  industries;  pipe  lines,  re- 
fineries, and  processing  works ;  electric  power  and 
gas  production  and  distribution;  public  water- 
works; iron  and  light-metal  foundries;  factories 
producing  arms,  explosives,  and  airplanes;  cok- 
eries;  sugar  mills;  alcohol  distilleries  and  fac- 
tories; breweries  with  an  annual  capacity  over 
15,000  hectoliters;  edible-oil  refineries  with  over 
500  tons  annual  capacity;  yeast  factories;  flour 
mills  over  15  tons  daily  capacity;  cold  storage 
plants ;  large  and  medium-sized  textile  industries ; 
and  printing  establishments.  Several  exceptions 
specifically  modify  the  provisions  of  Article  III : 

(a)  The  building  trades  are  excluded  from 
nationalization,  regardless  of  the  size  of  the  enter- 
prize. 

'  Polish  Law  of  Jan.  3,  1946  Regarding  the  Nationaliza- 
tion of  the  Basic  Branches  of  the  National  Economy. 


651 


652 


DEPARTMENT  OF  STATE  BULLETIN 


(b)  The  Government  is  authorized  to  raise  the 
exemption  limit  for  enterprises  employing  more 
than  50  employees  per  shift  in  industries  of  a 
purely  seasonal  character. 

(c)  Any  existing  individual  enterprise  not  fall- 
ing into  the  category  of  either  a  basic  industry  or 
an  enterprise  employing  over  50  workers  per  shift 
may  be  nationalized  on  the  recommendation  of  the 
competent  minister  if  it  "holds  a  production 
monopoly  in  an  important  branch  of  the  national 
economy".  The  law  specifies  that  this  provision 
may  be  used  as  a  basis  for  the  nationalization  of 
banking  establishments,  special  storage  facilities, 
and  transshipment  installations  connected  with 
ports  and  railroads.  On  the  other  hand,  the 
Government,  at  the  recommendation  of  the  com- 
petent minister,  may  exempt  individual  under- 
takings from  the  provisions  of  the  nationalization 
law. 

(d)  Administrative  decisions  implementing 
Article  III  of  the  nationalization  law  may  be 
taken  only  until  December  1, 1946. 

(e)  Decisions  concerning  the  nationalization  of 
individual  enterprises  are  left  to  the  discretion  of 
the  minister  under  whose  jurisdiction  a  particular 
business  belongs. 

(/)  The  formation  of  new  enterprises  in  the 
fields  of  industry,  which  are  subject  to  national- 
ization because  of  their  basic  character,  will  re- 
quire a  license  issued  by  the  competent  minister 
and  the  Central  Planning  Office. 

Articles  V  and  VI  of  the  Nationalization  Law 
deal  with  the  rights  and  obligations  of  the  state 
and  with  the  transfer  procedure  for  transferring 
enterprises  to  the  state.  Although  the  state  will 
acquire  all  the  assets  and  other  rights  of  nation- 
alized enterprises,  it  will  be  free  of  all  the  charges 
and  obligations  of  such  enterprises,  except  for 
those  of  a  "public-legal"  ^  nature. 

On  April  1,  1946  a  decree  was  issued  by  the 
Polish  Council  of  Ministers  concerning  the  pro- 
cedure governing  nationalization  of  enterprises. 
The  most  important  paragraphs  of  the  decree 
have  been  summarized  in  a  note  received  from  the 
Polish  Embassy  in  Washington  on  April  30,  1946. 
According  to  this  note,  "these  regulations  guar- 

'  The  term  public-legal  is  from  the  oflScial  Enslish  trans- 
lation prepared  by  the  Polish  Government.  As  there  is 
no  further  definition  of  the  term,  the  exact  nature  of  the 
obligations  referred  to  cannot  be  determined  on  the  basis 
of  present  information. 


antee  the  owners  of  enterprises  which  are  sought 
to  be  taken  over  by  the  State  an  opportunity  to 
assert  their  right  in  proceedings  before  the  appro- 
priate Regional  Nationalization  'Boai'ds  and  be- 
fore the  appellate  organ  which  is  the  Chief  Com- 
mission for  Nationalization  attached  to  the  Cen- 
tral Planning  Office".  The  Polish  note  further 
stated  that  the  agencies  in  charge  of  executing 
the  decree  are  required  to  publish  a  list  of  enter- 
prises to  be  taken  over  by  the  state. 

Although  the  expressed  intent  of  the  note  is  to 
allow  sufficient  time  for  filing  exceptions  by  any 
owner  concerned,  a  period  of  only  30  days  from 
the  date  of  official  publication  of  a  list  of  proper- 
ties is  allowed  for  owners  to  protest  the  nationali- 
zation of  a  firm  without  compensation  under  Arti- 
cle II  and  to  register  a  claim  for  transferring 
the  firm  to  a  list  under  Article  III  for  nationaliza- 
tion with  compensation.  When  a  list  is  not  issued 
for  several  days  after  its  official  publication  date, 
the  time  permitted  for  filing  protests  is  reduced 
correspondingly.  The  owners  are  entitled  to  call 
witnesses  and  experts  in  the  proceedings  before 
a  Regional  Nationalization  Committee.  The 
owners  concerned  may  appeal  decisions  of  the  re- 
gional commissioners  to  the  General  Nationaliza- 
tion Board  within  14  days  from  the  date  of  publi- 
cation of  such  decision  in  the  official  journal. 
Proceedings  before  the  General  Board  shall  be 
public,  and  notice  of  sessions  shall  be  given  by 
publication  in  the  Monitor  Polshi. 

Owners  aflFected  by  the  nationalization  act  may 
appoint  proxies  and  attorneys  to  protect  their 
rights  in  proceedings  before  a  Regional  Commis- 
sion. Proceedings  with  regard  to  compensation 
provided  for  in  executive  regulations  to  the  law 
of  January  3  may  be  instituted  only  after  it  has 
been  determined  whether  a  particular  enterprise 
is  subject  to  the  provisions  of  the  act  and  whether 
as  such  it  has  been  formally  taken  over  by  the 
state. 

Another  article  stipulates  the  drawing  up  of  a 
"transfer  protocol"  in  which  the  owner  of  the 
enterprise  can  participate  and  include  his  com- 
ments. These  protocols  are  to  include  an  accurate 
description  of  the  enterprise,  a  list  of  all  the  com- 
ponent parts  of  the  total  assets  of  the  enterprise, 
and  a  description  of  the  equipment.  It  was  also 
stated  that  owners  of  the  component  parts  would 
receive  compensation  on  the  same  principles  as 
creditors  of  the  enterprise  and  could  participate  in 


OCTOBER  IS,  1946 

the  drawing  uji  of  the  transfer  protocoL  Further- 
more, owners  of  the  enterprises  to  be  nationalized 
are  to  take  up  residence  on  Polish  territory  or 
appoint  an  attorney  for  receipt  of  oiScial 
documents. 

B.  Compensation  Features 

Article  VII  of  the  Nationalization  Law  outlines 
the  principles  of  compensation  to  property  holders : 

"(1)  The  owner  of  an  undertaking  taken  over 
by  the  State  (Article  III)  will  receive  compensa- 
tion from  the  State  Treasury  within  one  year  from 
the  day  of  his  receipt  of  notification  as  to  the 
legally  established  amount  of  compensation  due 
him. 

"(2)  This  compensation  will  in  principle  be 
paid  in  securities,  and  in  exceptional,  economically 
justified  cases,  may  be  paid  in  cash  or  in  other 
values. 

"(3)  The  amount  of  compensation  due  will  be 
established  by  special  commissions.  The  inter- 
ested parties  will  have  the  right  to  appear  before 
these  commissions.  In  the  event  of  necessity  and 
in  any  case  at  the  request  of  interested  parties,  the 
commission  will  call  competent  experts. 

"(4)  An  order  of  the  Council  of  Ministers  will 
determine  the  constitution  of  the  commission,  the 
manner  of  appointment  of  its  members,  the  num- 
ber of  members  constituting  a  quorum,  the  mode 
of  procedure  of  the  commission,  and  the  procedure 
for  appeals  against  its  decisions. 

"(5)  When  establishing  the  compensation  to  be 
paid,  the  following  factors  should  be  taken  into 
consideration : 

(a)  The  general  decrease  of  the  value  of  the 
national  assets. 

(h)  The  net  value  of  the  assets  of  the  enter- 
prise on  the  day  of  its  nationalization. 

(c)  The  reduction  in  the  value  of  the  enter- 
prise as  a  result  of  war  losses  and  losses  sustained 
by  the  enterprise  as  the  result  of  war  and  occupa- 
tion from  September  1,  1939  to  the  moment  of  its 
nationalization.^ 

(d)  The  amount  of  investment  after  Septem- 
ber 1,  1939. 

(e)  The  special  circumstances  affecting  the 
value  of  the  enterprise  (the  period  of  duration  of 
concessions,  licenses,  etc.) 

"An  order  of  the  Council  of  Ministers  will  de- 
termine in  detail  the  basis  of  calculating  compen- 


653 


sation,  (section  (2))  as  well  as  the  method  of 
amortizing  the  securities." ' 

As  may  be  seen  from  the  text  of  Article  VII, 
the  provisions  for  compensation  are  subject  to 
broad  administrative  interpretation. 

Hilary  Mine,  the  Polish  Minister  of  Industry, 
when  discussing  compensation  for  nationalized 
property,  emphasized  that  the  Government  had 
adopted  the  principle  of  compensation  "although 
it  burdens  the  whole  state  and  delays  reconstruc- 
tion". He  added,  however,  "I  think  I  represent 
the  whole  nation  when  I  say  that  just  compensa- 
tion should  be  paid  to  such  an  extent,  in  such  form, 
conditions,  and  terms,  that  it  would  not  handicap 
the  development  of  our  economy."  ^ 

Since  the  procedures  for  transferring  enter- 
prises to  the  state  are  dealt  with  only  in  the  broad- 
est terms  (art.  VI)  the  compensation  problems 
may  be  further  complicated  by  administrative 
decisions.  The  attitude  of  the  Polish  Govern- 
ment on  the  compensation  of  American  investors 
is  revealed  in  the  note  of  the  Polish  Embassy  dated 
April  30,  1946,  which  stated : 

"The  Polish  Government  wishes  to  stress  the 
close  relationship  existing  between  the  time  when 
it  will  be  possible  to  pay  effective  compensation 
to  citizens  of  the  United  States  and  the  time  re- 
quired for  the  reconstruction  of  Poland's  war 
ravaged  economy.  In  order  to  achieve  the  objec- 
tives sought  in  the  note  of  January  17, 1946 — that 
compensation  to  citizens  of  the  United  States  be 
'effected  in  a  manner  which  would  permit  an  ex- 
change of  the  amounts  paid  for  dollars  in  the 
shortest  possible  time' — the  dollar  reserves  of 
Poland  must  first  be  substantially  increased 
through  the  development  of  exports  which  in  turn 
is  contingent  on  the  expansion  of  the  country's 
production.  The  Polish  Government  expresses  its 
hope  that  the  stabilization  of  the  world's  economy 
will  make  it  possible  for  large-scale  financial  as- 


'  A  separate  claim  for  war  damage  can  be  filed.  It  was 
reported  that  the  War  Reparations  Bureau,  attached  to 
the  Council  of  Ministers,  is  accepting  such  claims  for 
registration  and  statistical  purposes  from  Polish  citi- 
zens as  well  as  from  foreigners.  Submission  of  the  claim 
does  not,  however,  mean  that  payment  of  the  damages 
may  be  expected  in  the  near  future. 

^  Polish  Law  of  Jan.  3,  1946  Regarding  the  Natix>naliza- 
tion  of  the  Basic  Branches  of  the  National  Economy  (art. 
VII). 

'War.saw  Radio,  Jan.  2,  1946. 


£54 

sistance  to  be  made  available  to  Poland  in  order 
that  the  reconstruction  program  may  be  accele- 
rated and  thus  permit  Poland  to  make  compensa- 
tion payments  of  the  kind  referred  to  in  the  note 
of  January  17,  1946,  sooner  than  would  otherwise 
be  the  case. 

"In  view  of  the  difficulties  explained  in  the  above 
paragraph  and  the  further  difficulty  of  making 
final  appraisal  of  any  specific  property  involved 
in  terms  of  a  transferable  foreign  currency,  the 
Polish  Government  feels  compelled  to  point  out 
that  it  would  appear  to  be  premature  at  this  pres- 
ent moment  to  undertake  final  determinations  of 
individual  cases.  The  Polish  Government  wishes, 
however,  to  express  its  readiness  to  begin  general 
discussions  with  the  Government  of  the  United 
States  on  compensation  to  any  American  citizen 
for  enterprises  taken  over  by  the  Polish  State." 

Thus  the  note  suggests  a  willingness  in  principle 
to  pay  compensation  in  dollars.  It  further  sug- 
gests that  the  Polish  Government  is  particularly 
interested  at  this  time  both  in  avoiding  specific 

*The  significant  distinction  under  Polish  law  between 
limited  liability  companies  and  joint-stock  companies 
relates   to   the  negotiability   of  securities. 

=  Concise  National  Yearbook  of  Poland,  September  1939- 
.June  1941.    Available. 


DEPARTMENT  OF  STATE  BULLETIN 

commitments  and  in  keeping  the  negotiations 
alive.  It  also  intimates  that  there  will  be  a  rela- 
tionship between  the  amount  of  "financial  assist- 
ance" made  available  to  Poland  and  the  payment 
of  adequate  compensation  to  interested  Americans. 

Note  on  Foreign  Investments  in  Pre-War  Poland 

Foreign  investments  played  an  important  part 
in  building  up  Poland's  pre-war  industries.  In 
1937,  out  of  a  total  of  1,066  active  joint-stock  com- 
panies, 391  had  foreign  participation  with  foreign 
capital  amounting  to  1,294,300,000  zlotys  ($244,- 
600,000),  or  40.1  percent  of  their  total  capital 
Foreign  investments  were  primarily  concentrated 
in  the  mining  and  petroleum  industries  and,  to  a 
lesser  extent,  in  the  textile,  chemical,  public  utility, 
communication,  and  transportation  industries. 
Foreign  participation  was  also  prominent  in 
limited  liability  companies '  and  in  business  part- 
nerships. Although  out  of  a  total  of  3,590  limited 
liability  companies  only  403  had  foreign  share- 
holders and  although  foreign  interests  were  rep- 
resented in  only  999  of  a  total  of  17,085  partner- 
ships, the  percentage  of  foreign  capital  invested 
was  considerable,  representing  103,800,000  zlotys 
($19,600,000)  or  32.7  percent  of  the  total  capi- 
tal owned  by  limited  liability  companies  and 
partnerships.'' 


Nationalization  of  Polisii  industries 

[Released  to  the  press  October  5] 
The  Pollsli  Government  released  on  September 
30,  1946  a  list  of  513  firms  in  Poland  which  are 
to  be  nationalized  without  compensation  to  the 
owners  and  another  list  of  404  firms  for  which 
the  Polish  Government  proposes  to  compensate 
the  owners.  Since  American  interests  may  be  in- 
volved, both  lists  are  being  forwarded  to  the 
Department  by  the  United  States  Embassy  in 
Warsaw  and  will  be  published  as  soon  as  they  are 
received. 

The  firms  designated  for  nationalization  with- 
out compensation  were  stated  by  the  Polish  Min- 
istry of  Industry  to  have  been  owned  by  the 
German  Government  or  by  German  citizens. 
Included  among  these  there  may  be  firms  in  which 
United  States  nationals  own  an  interest  and  in 
which  the  alleged  German  ownership  was  ac- 
quired without  the  consent  of  the  owners  subse- 
quent to  the  German  invasion  of  Poland.  In 
some  cases  it  is  understood  that  the  owners  were 
denied  access  to  tlieir  property  and  records  after 
the  seizure  by  the  Germans. 


According  to  an  order  of  the  Polish  Council  of 
Ministers,  dated  April  1,  1946,  only  30  day.s  from 
the  date  of  publication  of  these  lists  in  Poland  is 
allowed  for  entering  protests  against  nationali- 
zation with  or  without  compensation  with  the 
appropriate  Polish  Provincial  or  Central  Com- 
mittees. The  effective  date  of  publication  of 
these  lists  was  September  23,  1946,  although  they 
were  not  released  to  the  public  until  September 
30,  1946.  While  the  United  States  Government 
is  endeavoring  to  obtain  an  extension  of  time  in 
order  to  permit  proper  protection  of  American  in- 
terests, American  claimants  are  urged  to  enter 
their  protests  at  the  earliest  possible  date. 

The  Polish  Government  requires  that  owners 
of  nationalized  firms  have  a  legal  residence  or  a 
legal  representative  in  Poland  for  the  receipt  of 
official  documents  and  notices  regarding  the  hear- 
ing of  their  case.s.  Americans  who  wish  to  em- 
ploy the  services  of  attorneys  in  Poland  may 
obtain  a  list  of  attorneys  furnished  to  the  De- 
partment of  State.  The  Department,  however, 
can  assume  no  responsibility  for  the  persons 
named  therein. 


Soviet  Position  Concerning  Revision  of  Montreux  Convention 


The  recent  note  of  the  Soviet  Government,  pre- 
sented to  the  Turkish  Government  on  September 
24,  1946,1  substantially  reiterates  the  position 
taken  in  the  Soviet  note  of  August  7,  1946.^  The 
Soviet  note,  for  example,  repeats  the  charges  of 
violations  of  the  Montreux  convention  during  the 
war.  It  notes  Turkish  acceptance  as.  a  basis  for 
discussion  of  the  first  three  principles  set  forth  in 
the  August  7  note  concerning  commercial  freedom 
of  the  Straits,  opening  of  the  Straits  to  the  -war- 
ships of  Black  Sea  powers,  and  closure  to  warships 
of  non-riparian  powers  "except  in  cases  especially 
provided  for".  These  principles  had  been  outlined 
in  the  American  note  of  November  2, 1945.^ 

In  view  of  Turkish  objections,  the  Soviet  note 
discussed  points  4  and  5  involving  the  establish- 
ment of  a  regime  of  the  Straits  by  the  Black  Sea 
powers  and  the  setting  up  of  a  joint  Turco-Soviet 
system  of  defense  for  the  Straits,  at  some  length. 
In  the  opinion  of  the  Soviet  Government,  since  the 
Straits  led  into  the  assertedly  "closed"  Black  Sea 
and  diifered,  therefore,  from  world  seaways  like 
Gibraltar  or  the  Suez  Canal,  it  was  necessary  that 
a  regime  of  the  Straits  which  would  above  all  meet 
the  special  situation  and  the  security  of  Turkey,  the 
U.  S.  S.  R.,  and  the  other  Black  Sea  powers  should 
be  established.  The  note  indicated  that  Turkey 
had  accepted  the  principle  of  the  elaboration  of  a 
regime  of  the  Straits  by  Turkey  and  the  Black 
Sea  powers  in  the  treaties  of  Moscow  (March  16, 
1921)  and  Kars  (October  13,  1921)  and  in  the 
Turco-Ukrainian  agreement  of  May  21,  1922. 

The  Soviet  note  also  elaborates  on  the  theme 
of  joint  Turco-Soviet  defense  of  the  Straits, 
pointing,  among  other  things,  to  the  passage  of  the 


German  cruisers  Goeben  and  Breslau  in  August 
1914  through  the  Straits  as  well  as  to  alleged  inci- 
dents during  World  War  II.  The  fact  that  the 
Soviet  Union  has  a  shoreline  of  some  1,100  miles 
along  the  Black  Sea  which  gives  access  to  im- 
portant regions  of  the  country  is  also  cited  as  a 
reason  for  direct  participation  of  the  Soviet  Union 
in  the  defense  of  the  Turkish  Straits.  In  the 
Soviet  view,  only  a  joint  system  of  defense  could 
offer  genuine  security  to  all  parties  directly  con- 
cerned, namely  Turkey  and  the  other  Black  Sea 
states. 

The  Soviet  Government  expressed  the  view  that 
its  position  as  to  joint  defense  was  entirely  con- 
sonant with  the  principles  of  the  Charter  of  the 
United  Nations  since  the  Soviet  proposal  was 
intended  to  serve  not  only  the  general  interests  of 
international  commei'ce,  but  to  create  the  condi- 
tions for  the  maintenance  of  the  security  of  the 
powers  of  the  Black  Sea  and  to  contribute  to  the 
consolidation  of  the  general  peace. 

Finally  the  Soviet  note  stated  the  view  of  the 
Soviet  Government,  in  the  light  of  the  Potsdam 
Conference  (1945),  that  the  Straits  regime  should 
be  revised  to  meet  present  conditions  and  that  the 
calling  of  a  conference  for  this  purpose  should  be 
preceded  by  a  discussion  of  the  question  through 
direct  pourparlers  between  governments. 

'  Not  printed. 

=  Bulletin  of  Sept.  1,  1946,  p.  420. 

'Not  printed.  The  principles  whicli,  in  this  Govern- 
ment's view,  might  serve  as  a  basis  for  a  revision  of  the 
Montreux  convention,  were  announced  b.v  the  Secretary  of 
State  in  a  press  and  radio  news  conference  on  November 
7  and  were  published  In  the  Bulmtin  of  Sept.  11,  1945,  p. 
766.  For  article  on  Montreux  Convention  of  tlie  Straits 
by  Harry  N.  Howard  see  Bulletin  of  Sept.  8,  1946,  p.  435. 


655 


THE  PARIS  PEACE  CONFERENCE 


General  Principles  for  a  Free  International  Danube 


REMARKS  BY  SENATOR  VANDENBERG' 


The  Delegation  of  the  United  States  has  no  di- 
rect commercial  interest  in  the  Danube  problem, 
but  we  have  an  emphatic  interest  in  international 
peace  and  security  and  in  avoiding  international 
trade  barriers  which  invite  discrimination  and 
friction.  These  factors  here  involved  have  a  spe- 
cial temporary  interest  in  the  Danube  because  it 
is  an  important — and  now  stagnant — artery  of 
commerce  in  the  American  zones  of  occupation  in 
Germany  and  Austria.  Therefore  we  feel  entitled 
to  urge  these  general  principles  for  a  free  interna- 
tional Danube  as  contained  in  the  U.  S.  and  U.  K. 
proposal. 

As  regards  our  temporary  interest,  it  is  well 
known  that  we  want  Germany  administered  as  an 
economic  unit  pursuant  to  the  umnistakable  Pots- 
dam mandate  for  the  benefit  of  the  total  German 
economy.  It  is  historically  clear  that  Danubian 
commerce  cannot  prosper  if  it  is  at  the  mercy  of 
various  uncoordinated,  restrictive,  and  discrimina- 
tory administrations  which  respond  to  the  local 
judgments  of  the  eight  national  jurisdictions 
through  which  the  Danube  flows.     Some  of  the 


'  Made  at  the  meeting  of  the  Economic  Commission  for 
the  Balkans  and  Finland  at  the  Paris  Peace  Conference 
on  Sept.  30,  and  released  to  the  press  on  the  same  date. 
Senator  Vandenherg  is  a  member  of  the  United  States 
Delegation  to  the  Conference.  For  article  on  Danubian 
transportation  problems  in  relation  to  development  of 
the  Basin,  see  Bxjij.etin  of  June  30,  1946,  p.  1108. 


656 


troublesome  current  problems  on  the  Danube  are 
the  result  of  thus  dividing  the  Danube  in  water- 
tight compartments.  So  long,  therefore,  as 
American  occupation  continues  in  Germany  and 
Austria,  we  are  "parties  in  interest" — although  it 
is  a  very  unselfish  interest. 

But  our  basic  concern  is  something  else.  Here 
is  the  longest  navigable  waterway  in  Europe  west 
of  the  Soviet  Union.  It  is  important  to  the  com- 
merce of  eight  riparian  states  and  to  the  commerce 
of  many  other  states.  It  has  long  involved  other 
significant  impacts  upon  central  Europe.  As  was 
once  said  of  the  Thames,  the  Danube  is  "liquid 
history". 

Such  a  stream  is  an  inevitable  factor  in  the 
peace  of  the  area  it  serves ;  therefore  it  is  a  factor 
in  the  total  and  indivisible  peace  which  we  are  aU 
pledged  to  sustain. 

The  Danube  River  system  is  of  great  importance 
in  the  exchange  of  commodities  among  the  na- 
tions in  the  Danube  basin  and  as  a  means  of  con- 
tact with  the  outside  world.  Its  significance  as 
an  artery  of  trade  is  enhanced  by  the  comparative 
inadequacy  of  rail  and  highway  facilities  in  this 
area.  These  things  are  important  to  all  of  us, 
because  the  restoration  of  a  sound  economy  is 
prerequisite  to  a  sound  peace.  It  is  impossible  to 
contemplate  a  prosperous  Danube  without  an 
over-all  assurance  of  navigation  and  commerce 
free  from  discriminations  and  arbitrary  sectional 


I 


OCTOBER  IS,  1946 


657 


barriers.  It  is  equally  impossible  otherwise  to 
contemplate  a  peaceful  Danube,  because  it  is  his- 
torically a  zone  of  friction. 

These  are  old  truths.  They  have  been  recog- 
nized by  the  maintenance  of  international  admin- 
istration of  the  Danube  in  differing  degrees  since 
185G.  The  Treaty  of  Versailles  internationalized 
the  Danube,  for  example,  from  the  head  of  naviga- 
tion to  the  sea  and  established  free  navigation 
throughout  the  river's  length  with  a  control  com- 
mission including  other  than  riparian  states  as  a 
recognition  of  the  breadth  of  interest  involved. 

It  is  needless  to  trace  the  fluctuating  fortunes 
of  the  various  Danubian  commissions  since  1856. 
The  important  point  in  the  American  view  is  that 
this  relative  freedom  of  navigation  on  the  Danube 
has  been  accepted  in  one  form  or  another  as  es- 
sential for  90  years.  It  is  obviously  even  more 
essential  in  this  new  ei'a  when  the  United  Nations 
are  making  common  cause  for  peace  and  progress. 

The  pending  proposal,  Mr.  President,  declares 
a  set  of  general  principles.  Navigation  shall  be 
free  and  open  on  terms  of  equality  to  all  states. 
Laws  and  regulations  shall  be  non-discriminatory. 
No  obstacles  to  navigation  shall  be  placed  in  the 
main  channels.  No  tolls  or  other  charges  shall  be 
levied  except  to  defi'ay  the  costs  of  development 
and  maintenance,  and  the  latter  shall  be  admin- 
istered in  such  a  manner  as  not  to  discriminate 
against  any  state.  Equality  is  guaranteed  Ru- 
mania in  any  international  regime.  In  addition 
to  these  general  principles  a  conference  of  all 
interested  states  shall  meet  within  six  months  to 
establish  this  regime.  Any  disagreements  will  be 
umpired  by  the  International  Court  of  Justice. 

Mr.  President,  so  far  as  these  general  principles 
are  concerned,  I  venture  to  say  that  they  have  been 
inherent  in  the  Danubian  regime  in  one  form  or 
another  throughout  these  90  years.  This  is  no 
new  concept.  It  has  been  acknowledged  as  the 
essential  formula  for  peace  and  progress — no  mat- 
ter how  illy  implemented — for  almost  a  century. 
It  seems  to  the  American  Delegation  that  it  would 
be  a  great  mistake  for  us  to  turn  our  backs  upon 
all  this  history  and  experience.  Worse,  our  silence 
would  be  an  actual  retreat — an  abandonment  of 
freedoms  long  established  before  we  fought  World 
War  II  for  greater  freedoms.  It  seems  to  us  that 
the  world  is  entitled  to  know  that  its  peacemakers 
are  at  least  "holding  their  own"  and  not  slipping 
back  into  darker  ages. 

717247—40 2 


We  agree  that  riparian  states  have  a  special  in- 
terest, but  all  riparian  states  except  enemy  states 
are  represented  at  this  table.  The  others  have  a 
right  of  consultation  under  this  proposal  in  de- 
veloping these  plans  unless  we  intend  to  repudiate 
history  and  experience  which  we  do  not  anticipate. 
It  seems  to  us  we  should  welcome  an  opportunity 
in  this  Rumanian  treaty  to  pledge  Rumania  to 
these  general  principles,  particularly  in  view  of  the 
fact  that  it  was  Rumania  which  upset  the  fairly 
satisfactory  international  regime  in  1938  by  de- 
manding a  rendition  to  herself  of  the  substantive 
i:)owers  of  the  then  existing  Danube  Commission. 

In  a  word,  Mr.  President,  it  seems  to  the  Ameri- 
can Delegation  that  if  we  intend  that  the  Danube 
shall  resume  the  fi'eedoms  heretofore  established 
and  shall  develop  in  peace  and  progress  we  must 
say  so  now.  It  is  our  only  chance.  We  shall  not 
collide  with  any  Danubian  aspirations  unless  these 
aspirations  collide  with  these  freedoms.  In  such 
an  unexpected  event  it  is  doubly  necessary  that  we 
should  anticipate  the  protective  contract  now. 

For  these  reasons  the  United  States  Delegation 
has  joined  with  the  proposal  of  the  United  King- 
dom in  its  present  or  in  any  perfected  form. 

Regarding  the  draft  peace  treaty  with  Rumania, 
part  VII,  article  34,  Clauses  Relating  to  the  Dan- 
ube, a  redraft  submitted  September  27  by  the 
U.  K.  and  U.  S.  Delegations  of  article  34  to  super- 
sede the  existing  U.  S.  and  U.  K.  drafts  reads  as 
follows : 

"A.  Paragraphs  1  through  6  are  exactly  the  same 
as  in  the  draft  peace  treaty  with  Rumania.  There 
is  added  one  paragraph  reading :  'B.  A  conference 
consisting  of  U.  S.,  U.  S.  S.  R.,  U.  K.,  and  France 
together  with  the  riparian  states  including  Ru- 
mania will  be  convened  within  a  period  of  six 
months  of  the  coming  into  force  of  the  present 
treaty  to  establish  the  new  permanent  international 
recime  for  the  Danube'." 


Letters  of  Credence 

MINISTER  OF  RUMANIA 

The  newly  appointed  Minister  of  Rumania, 
Dr.  Mihail  Ralea,  presented  his  credentials  to 
the  President  on  October  1.  For  texts  of  the 
Minister's  remarks  and  the  President's  reply, 
see  Department  of  State  press  release  690. 


THE  UNITED  NATIONS 


International  Traffic  on  tlie  Danube  River 


DRAFT  RESOLUTION  SUBMITTED  TO  ECONOMIC 
AND  SOCIAL  COUNCIL  BY  U.  S.  DELEGATION' 


In  view  of  the  critical  limitations  of  shipping 
facilities  on  the  Danube  River  which  are  adversely 
affecting  the  economic  recovery  of  southeastern 
Europe,  the  Economic  and  Social  Council  recom- 
mends that  a  conference  of  representatives  from 
all  interested  States  be  arranged  under  the  auspices 
of  the  United  Nations,  to  meet  in  Vienna  not  later 
than  1  November,  for  the  purpose  of  resolving  the 
basic  problems  now  obstructing  the  resumption  of 
international  Danube  traffic  and  establishing  pro- 
visional operating  and  navigation  regulations. 

Interested  States  are  the  riparian  states,  states 
in  military  occupation  of  riparian  zones,  and  any 
states  whose  nationals  can  demonstrate  clear  title 
to  Danube  vessels  which  are  now  located  on,  or 
have  o^jerated  prior  to  the  war,  in  international 
Danube  traffic. 

As  a  basis  for  discussion  in  this  projected  con- 
ference of  representatives  from  interested  States, 


the  Economic  and  Social  Comicil  submits  the  fol- 
lowing recommendations : 

(a)  that  commercial  traffic  be  resumed  on  the 
Danube  fi'om  Regensburg  to  the  Black  Sea; 

(b)  that  security  from  seizure  be  guaranteed 
to  all  ships,  their  crews,  and  cargoes ; 

(c)  that  all  Danube  vessels  (except  German) 
be  allowed  to  sail  under  their  own  national  flag ; 

(d)  that  adequate  operating  agi-eements  be  ar- 
ranged between  the  interested  States  as  well  as  the 
national  and  private  shipping  companies,  under 
general  supervision  of  the  occupying  powers  to 
permit  the  maximum  use  of  the  limited  shipping 
facilities ; 

(e)  that  information  be  exchanged  freely  on 
condition  of  navigation  and  that  responsibility  be 
undertaken  for  river  maintenance  over  the  entire 
length  of  the  river. 


Assistance  to  Food  and  Agriculture  Organization  on  Longer-Term 
International  Machinery  for  Dealing  With  Food  Problems 

RESOLUTION  TO  BE  PROPOSED  BY  THE  U.  S.  DELEGATION' 


The  Economic  and  Social  Council, 

Sharing  with  the  FAO  the  basic  objective  of 
preventing  recurrences  of  the  phenomenon  of  in- 
adequate food  supplies  in  some  parts  of  the  world 
at  times  of  food  surpluses  in  other  parts  of  the 
world, 

Commends  the  FAO  for  taking  the  initiative  in 
establishing  a  Preparatory  Commission  to  recom- 
mend specific  international  action  toward  this  end, 

Appoints  as  its  two  representatives  on  the  Pre- 
paratory Commission  the  Chairman  of  the  Eco- 
nomic and  Employment  Commission  or  his  deputy 
and  the  Chairman  of  the  Preparatory  Committee 


'  Document  E/04/Rev.  1,  Agenda  item  No.  21  of  Docu- 
ment E/192,  Sept.  29,  1946. 

^  Item  6  of  the  agenda  relating  to  Document  E/198,  Sept. 
30,  1946. 

658 


for  the  International  Conference  on  Trade  and 
Employment  or  his  deputy. 

Requests  these  representatives  to  report  on  the 
deliberations  of  the  Preparatory  Commission  to 
each  session  of  the  Council  until  the  Commission 
completes  its  work, 

Requests  the  Economic  and  Employment  Com- 
mission to  keep  itself  closely  informed  of  the 
progress  of  the  deliberations  of  the  Preparatory 
Commission  and  to  advise  the  Council  as  to  the 
nature  and  timing  of  further  measures  that  may 
be  required  in  order  to  assure  progress  toward  the 
basic  objective, 

Requests  the  Secretary-General  to  provide  the 
Council's  representatives  on  the  Preparatory  Com- 
mission with  competent  and  adequate  assistance 
for  the  performance  of  this  function  and  actively 
to  assist  the  Economic  and  Employment  Commis- 
sion in  carrying  out  this  resolution. 


I 


Committee  on  the  Terms  of  Reference  of  the  Subcommissions 
of  the  Economic  and  Employment  Commission:  Proposal 
by  the  Delegation  of  the  United  States  of  America  ^ 


September  21^,  19J,G. 
Mt  Dear  Me.  Lie  : 

In  connection  with  the  current  discussions  in 
the  Economic  and  Social  Council  regarding  the 
establishment  of  a  Sub-Commission  on  Economic 
Development  under  the  Economic  and  Employ- 
ment Commission,  I  wish  to  bring  to  your  atten- 
tion the  importance  which  the  United  States  Gov- 
ernment attaches  to  the  work  of  the  United  Na- 
tions in  this  field. 

As  the  Economic  and  Social  Council  recog- 
nizes, the  main  international  function  of  promot- 
ing industrial  and  economic  development  of  under- 
developed countries  should  be  centered  in  the 
Economic  and  Social  Council.  The  Food  and 
Agriculture  Organization,  the  International  La- 
bor Organization,  the  International  Bank  for  Re- 
construction and  Development,  and,  when  it  shall 
have  come  into  existence,  the  International  Trade 
Organization,  all  have  important  contributions  to 
make  to  the  promotion  of  economic  development. 
The  co-ordination  of  these  activities  is,  of  course, 
a  responsibility  of  the  Economic  and  Social 
Council. 

In  addition  to  the  work  which  the  Food  and 
Agriculture  Organization  is  initiating  in  the  field 
of  agricultural  resources,  it  seems  important  to  the 
United  States  that  the  following  functions  be 
carried  out  in  the  field  of  industrialization  and 
non-agricultural  resources : 

{a)  To  investigate  problems  in  the  development 
of  industrialization  and  to  make  recommenda- 
tions concerning  policies  for  promotion  of  such 
development. 

{b)  To  develop  appropriate  policies  of  inter- 
national co-operation  with  res^Ject  to : 

(z)  scientific,  technological,  and  economic  re- 
search relating  to  industrial  production  and 
development ; 

{ii)  the  conservation  of  mineral  and  other  non- 
agricultural  resources  and  the  adoption  of  im- 
proved methods  of  mineral  and  industrial 
production ; 

{iii)  the  adoption  of  improved  technical  proc- 
esses to  stimulate  greater  productivity  and  more 
effective  industrial  administration. 


(c)  To  furnish  such  technical  assistance  as  mem- 
bers of  the  United  Nations  may  request,  within 
the  resources  of  the  United  Nations,  to  aid  in  the 
making  of  surveys  of  geological  and  mineral  re- 
sources, potential  markets  and  oppoi-tunities  for 
industrial  development  in  general,  and  to  organ- 
ize in  co-operation  with  the  governments  con- 
cerned such  missions  as  may  be  needed  to  perform 
these  functions. 

{d)  To  collect  statistics  on  present  and  pro- 
jected mineral  and  industrial  developments,  to 
conduct  studies  and  inquiries  concerning  such  de- 
velopments and  to  analyze  their  effects  upon  non- 
agricultural  industries  and  upon  the  world  econ- 
omy in  general. 

(e)  To  arrange  for  consultation  among  mem- 
bers of  the  United  Nations  and  to  consult  with 
members  of  their  development  programmes  with 
a  view  to  the  co-ordination  of  such  programmes 
and  to  promoting  international  adjustments  where 
necessary. 

(/)  Upon  request,  to  advise  the  International 
Bank  on  specific  industrialization  projects  and 
larger  development  programmes  with  a  view  to 
assisting  in  the  elaboration  of  financial  policies  for 
such  developmental  purposes. 

{g)  To  conduct  studies  into  the  need  for,  and 
methods  of,  the  international  incorporation  of 
private  business  firms  conducting  business  opera- 
tions on  an  international  or  world  scale. 

I  am  instructed  to  urge  that  in  the  planning  of 
the  work  of  the  Secretariat,  adequate  funds  and 
staff  be  allocated  to  enable  the  Economic  and  Social 
Council  to  perform  the  functions  which  are  out- 
lined above.  I  should  also  appreciate  your  making 
copies  of  this  letter  available  to  the  Sub-Commis- 
sion on  Economic  Development  for  its  considera- 
tion when  it  begins  the  plamiing  of  its  work. 
Sincerely  yours, 

John  G.  Winant 

His  Excellency  Trtgve  Lie, 
Secretary-General,  United  Nations, 
Lake  Success, 

Long  Island,  New  York. 


'  Economic   and   Social    Council   Document  E/AC.11/7, 
Sept.  26,  1946. 


659 


Summary  Statement  by  the  Secretary-General  ^ 


MATTERS  OF  WHICH  THE  SECURITY  COUNCIL  IS  SEIZED  AND  THE  STAGE  REACHED 

IN  THEIR  CONSIDERATION 


Pursuant  to  Eule  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  20  Septem- 
ber 1946. 

7.  The  Greek  Situation 

By  letter  dated  5  September  1946  addressed  to 
the  President  of  the  Council  (S/151),  the  Rep- 
resentative of  the  People's  Republic  of  Albania 
to  the  United  Nations  requested,  under  Article  32, 
that  he  be  invited  to  present  to  the  Council  a  state- 
ment of  facts  concerning  the  application  by  the 
Ukrainian  S.S.R.  This  request  was  considered 
at  the  sixty-second  and  sixty-fourth  meetings  and 
nine  Representatives  voted  in  favour  of  inviting 
the  Representative  of  Albania  to  make  a  factual 
statement,  one  against  and  one  abstained.  The 
Representative  of  Albania  was,  therefore,  invited 
to  the  Council  table  and  presented  his  statement. 
The  discussion  on  the  substance  of  the  Ukrainian 
S.S.R.  application  was  then  resumed,  and  con- 
tinued at  the  sixty-fifth  and  sixty-sixth  meetings. 

By  telegram  dated  11  September  1946  (S/158), 
the  Minister  of  Foreign  Affairs,  a.i.,  of  the  People's 
Republic  of  Albania  drew  the  attention  of  the 
Council  to  the  situation  created  on  the  Greco- 
Albanian  frontier  by  the  continual  provocations 
due  to  the  action  of  the  Greek  Soldiers.  He  stated 
that  the  incidents  seriously  endangered  tranquility 
in  the  Balkans  and  requested  the  Council  to  use 
all  its  influence  to  put  an  end  to  the  Greek  provo- 
cations by  availing  itself  of  all  the  means  at  its 
disposal  under  the  Charter  of  the  United  Nations. 

At  the  sixty-seventh  meeting  the  Representa- 
tive of  the  U.S.S.R.  submitted  the  following  reso- 
lution : 
"The  Secukitt  CotJNcrL  Establishes  the  Fact  : 

that  on  the  Greco-Albanian  border  there  is  of 
late  a  constant  increase  in  the  number  of  frontier 


"  Security  Council  Document  S/164,  Sept.  20,  1946. 

Tliis  summary  supplements  the  one  printed  in  the 
BtiULETiN  of  Sept.  22,  1&46,  p.  528;  the  omitted  parts 
correspond  substantially  to  the  material  formerly  printed. 


incidents  provoked  by  aggressive  Greek  monar- 
chist elements  who  are  striving  by  this  means  to 
bring  about  an  armed  conflict  between  Greece  and 
Albania  for  the  purpose  of  detaching  Southern 
Albania  for  the  benefit  of  Greece, 

that  the  persecution  of  national  minorities  in 
Greece  by  the  Greek  Government,  by  provoking 
national  strife,  is  straining  the  relations  between 
Greece  and  her  other  neighbours, 

that  the  unbridled  propaganda  of  the  aggressive 
Greek  monarchist  elements  demanding  the  an- 
nexation of  territories  belonging  to  these  neigh- 
bours threatens  to  complicate  the  situation  in  the 
Balkans,  where  for  the  first  time  as  the  result 
of  the  victory  gained  by  the  armed  forces  of  the 
United  Nations,  the  foundation  has  been  laid  for 
the  democratic  development  of  the  Balkan  coun- 
tries, and  for  their  close  collaboration  in  the  cause 
of  establishing  a  firm  and  lasting  peace, 

that  in  their  policy  of  aggression  the  aggressive 
Greek  monarchist  elements  are  striving  to  exploit 
the  results  of  the  falsified  plebiscite  held  on  1 
September  under  terroristic  conditions,  in  which 
all  the  democratic  parties  of  various  trends  were 
removed  from  political  life.  They  are  likewise 
exploiting  the  presence  of  British  troops  on  Greek 
territory,  who  in  spite  of  the  repeated  declaration 
by  the  Minister  for  Foreign  Affairs  of  Great  Brit- 
ain that  these  troops  would  be  withdrawn  after 
the  elections  of  31  March  1946,  continue  to  remain 
even  at  the  present  time  on  the  territory  of  Greece : 

that  all  these  circumstances  create  a  situation  en- 
visaged by  Article  34  of  the  Charter  of  the  United 
Nations  and  endanger  peace  and  security. 

For  the  above-mentioned  reasons  The  Secur- 
rrx  Council  Resolves  to  call  upon  the  Greek 
Government : 

Firstly,  to  take  measures  in  accordance  with  Ar- 
ticle 2,  Paragraph  4  of  the  Charter  of  the  United 
Nations  for  the  immediate  cessation  of  the  provoca- 
tive activities  of  the  aggressive  monarchist  ele- 
ments on  the  Greco-Albanian  frontier ; 

secondly,  to  call  upon  the  Greek  government  to 
put  an  end  to  the  agitation  regarding  the  state  of 
war  which  is  said  to  exist  between  Greece  and  Al- 
bania, in  spite  of  the  fact  that  Albania  is  en- 


660 


OCTOBER  13,  1946 


661 


deavouring  to  establish  normal  peaceful  relations 
with  Greece ; 

thirdly,  to  terminate  the  persecution  of  national 
minorities  in  Greece,  as  contrary  to  Article  1,  Para- 
gi'uphs  2  and  3  of  the  Charter  of  the  United 
Nations ; 

fourthly,  to  retain  on  the  agenda  of  the  Security 
Council  the  question  of  the  menacing  situation 
brought  about  as  the  result  of  the  activities  of  the 
Greek  Government  so  long  as  the  latter  fails  to 
carry  out  the  I'ecommendations  proposed  to  it  by 
the  Security  Council. 

The  Representative  of  Australia  proposed  a 
resolution 

"that  the  Secui'ity  Council  pass  to  the  next  item 
of  business".  Discussion  on  these  resolutions  and 
on  the  substance  of  the  Ukrainian  S.S.R.  applica- 
tion continued  at  the  sixty-eighth  meeting. 


At  the  sixty-ninth  meeting  the  following  resolu- 
tion was  proposed  by  the  Representative  of  the 
Netherlands : 
"The  Security  Council 

Having  been  informed  that  a  number  of  frontier 
incidents  have  taken  place  on  the  frontier  between 
Greece  on  the  one  hand  and  Yugoslavia,  Albania 
and  Bulgaria,  on  the  other  hand. 

Invites  the  Secretart-General  to  notify  the 
Governments  of  the  said  countries  on  behalf  of  the 
Security  Council,  that  the  Council,  without  pro- 
nouncing any  opinion  on  the  question  of  responsi- 
bility, earnestly  hopes  that  these  Governments,  each 
insofar  as  it  is  concerned,  will  do  their  utmost,  inas- 
much as  that  should  still  be  necessary,  to  stop  those 
regrettable  incidents  by  giving  appropriate  in- 
structions to  their  national  authorities,  and  by 
making  sure  that  these  instructions  be  rigidly 
enforced." 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 
Calendar  of  Meetings^ 


IN  SESSION  AS  OF  OCTOBER  6,  1946 

Far  Eastern  Commission 


United  Nations: 

Security  Council 

Military  Staff  Committee ^^__ 

Commission  on  Atomic  Energy 

UNRRA  Planning  Commission  for  International  Refugee  Organi- 
zation. 

Economic  and  Social  Council:  Third  Session  with  Commissions 
and  Subcommissions. 


Paris  Peace  Conference 

German  External  Property  Negotiations  with  Portugal  (Safehaven).. 

PICAO: 

Interim  Council 

Divisional 

U.  K.  Demonstrations  of  Radio  Aids  to  Air  Navigation 

Special 

Conference  on  North  Atlantic  Ocean  Stations 

Regional 

Middle  East  Regional  Air  Navigation  Meeting 


ILO:  Twenty-ninth  Session  of  the  International  Labor  Conference-. 
International  Film  Festival 


Board  of  Governors  of  the  International  Monetary  Fund  and  Bank: 
Joint  Meeting. 

'  Calendar  prepared  by  the  Division  of  International  Conferences,  Department  of  State. 


Washington . 


Lake  Success. 
Lake  Success. 
Lake  Success- 
Washington 


Lake  Success- 
Paris 

Lisbon 


Montreal 

London 

London 

Cairo 

Montreal 

Cannes 

Washington. 


February  26 

March  25 
March  25 
June  14 
July  24 

September  11-October  3 

July  29 
September  3 

September  4 

September  9-30 

September  17-24 

October  1-15 
September  19-October  9 
September  20  -October  5 
September  27-October  3 


662 


DEPARTMENT  OF  STATE  BULLETIN 


Calendar  of  Meetings — Continued 


Five  Power  Telecommunications  Meeting 

Caribbean  Tourist  Conference 

International  Tourist  Organizations  Conference 

Second  Pan  American  Congress  of  Mining  Engineering  and  Geology. - 
Second  Pan  American  Congress  of  Physical  Education 

SCHEDULED  FOR  OCTOBER-DECEMBER  1946 

Eighteenth  International  Congress  for  Housing  and  Town  Planning  . 

PICAO: 
Divisional 

U.S.  Demonstrations  of  Radio  Aids  to  Air  Navigation 

Meteorological  Division 

Special  Radio  Technical  Division 

Communications  Division 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division 

Regional 

Air  Traffic  Control  Committee,  European-Mediterranean  Region. 

Conference  on  Tin 

Preparatory  Commission  of  the  International  Conference  on  Trade 
and  Employment:  First  Meeting. 

Permanent  Committee  of  the  International  Health  Office 

United  Nations:  General  Assembly  (Second  Part  of  First  Session)  — 

United  Maritime  Consultative  Council:  Second  Meeting 

International    Commission    for    Air   Navigation  (CINA) :  Twenty- 
ninth  Session. 

FAO:  Preparatory  Commission  to  study  World  Food  Board  Proposals  . 

UNESCO: 

"Month"  Exhibition 

General  Conference 

World  Health  Organization:  Interim  Commission 

International  Technical  Committee  of  Aerial  Legal  Experts  (CITEJA). 

Inter-American  Commission  of  Women 

ILO: 

Industrial  Committee  on  Textiles 

Industrial  Committee  on  Building,  Engineering  and  Public  Works.. 


Moscow 

New  York 

London 

Rio  de  Janeiro 

Mexico  City 

Hastings,  England... 


New     York-Indian 
apolis. 

Montreal 

Montreal 

Montreal 

Montreal 

Montreal 

Paris 

London 

London 

Paris 

Flushing  Meadows  _ 

Washington 

DubUn 

Washington 

Paris 

Paris 

Geneva 

Cairo 

Washington 

Brussels 

Brussels 


September  28 
September  30-October  9 
October  1-7 
October  1-15 
October  1-15 

October  7-12 


October  7-26 

October  29 

October  30-November  8 
November  19 
November  26 
December  3 

October  28 
October  8-12 
October  15 

October  23 
October  23 
October  24-30 
October  28-31 

October  28 

October  28 -December  1 
November     (Exact     date 
not  determined) 

November  4 

November  6 

November  11-20 

November  14 
November  25 


ACTIVITIES  AND  DEVELOPMENTS  » 


U.  S.  DEMONSTRATIONS  OF  RADIO  AIDS 
TO  AIR  NAVIGATION' 

Representatives  of  62  nations  have  been  invited 
to  observe  demonstrations  of  United  States  radio 
aids  to  air  navigation  which  will  be  held  at  New 

'  Pi'epareU  by  the  Division  of  International  Confer- 
ences, Department  of  State. 


OCTOBER  13,  194G 


663 


York  and  Indianapolis  from  October  7  to  26, 
194G. 

The  demonstrations  were  requested  by  the  Pro- 
visional International  Civil  Aviation  Organiza- 
tion (PICAO) ,  which  is  attempting  to  standardize 
the  facilities  used  in  international  flying. 

The  War  and  Navy  Departments,  the  Coast 
Guard,  the  Civil  Aeronautics  Administration,  and 
various  United  States  manufacturers  will  demon- 
strate some  50  types  of  the  most  advanced  radio, 
radar,  and  television  equipment  for  safe  and 
speedy  air  operations. 

The  delegates  will  convene  in  Montreal  after 
the  demonstrations  to  discuss  a  uniform  system 
of  radio  aids  to  world  air  navigation. 

CONFERENCE  ON  TIN' 

The  Conference  on  Tin  which  is  scheduled  to 
meet  at  London  from  October  8  to  12,  1946  was 
called  upon  the  invitation  of  the  Government  of 
the  United  Kingdom.  The  main  purposes  of  the 
Conference  are  to  explore  the  prospective  world 
tin  situation  in  production  and  consumption  and 
to  consider  the  possible  need  of  establishing  an 
intergovernmental  study  group,  representative  of 
producing  and  consuming  countries.  Both  in  the 
Proposals  for  Expansion  of  World  Trade  and 
Employment  issued  by  the  United  States  Govern- 
ment nearly  a  year  ago  and  in  the  recently  issued 
Suggested  Charter  for  an  International  Trade 
Organization,  it  is  recognized  that  burdensome 
surpluses,  or  other  special  difficulties,  may  arise 
in  connection  with  the  production  of  particular 
commodities,  and  provisions  are  made  for  inter- 
governmental study  and  action  in  such  situations 
through  the  machinery  of  the  proposed  Interna- 
tional Trade  Organization.  The  Conference  on 
Tin  is  being  called  in  the  light  of  these  provisions. 

The  countries  which  have  been  invited  by  the 
United  Kingdom  to  send  delegations  to  the  Con- 
ference include  the  principal  tin  producing  and 
consuming  areas.  They  are  Belgium,  Bolivia, 
China,  France,  the  Netherlands,  Siam,  the  United 
States  of  America,  and  the  Union  of  Soviet  So- 
cialist Republics. 

The  members  of  the  United  States  Delegation 
are  as  follows : 


Chaiitnan: 

Donald  D.  Kennedy,  Chief,  International  Besources 
Division,  Department  of  State 
Advisers: 

Henry  Buckman,  Consulting  Engineer,  Washington, 
D.  C. 

H.  C.  Bugbee,  Attach^,  American  Embassy,  London, 
England 

John  J.  Croston,  Deputy  Director,  Metals  and  Min- 
erals Division,  Civilian  Production  Administra- 
tion 

Carl  Ilgenfritz,  Vice  President,  Carnegie-Illinois  Steel 
Corporation,  Pittsburgh,  Pa. 

Jesse  C.  Johnson,  Deputy  Director,  Office  of  Metals 
Reserve,  Reconstruction  Finance  Corporation 

Samuel  Lipkowitz,  Chief,  Minerals  Section,  Interna- 
tional Resources  Division,  Department  of  State 

Elmer  W.  Pehrson,  Chief,  Economics  and  Statistics 
Branch,  Bureau  of  Mines,  Department  of  Interior 
Stenographer: 

Miss  Roseann  Coulton,  Department  of  State 

In  the  period  between  the  World  Wars,  there 
developed  various  controls  over  the  production 
and  export  of  tin  in  the  main  producing  countries, 
culminating  in  the  establishment  and  operation 
of  the  International  Tin  Committee.  These  con- 
trols, in  which  the  governments  of  several  pro- 
ducing countries  participated,  were  prompted  in 
large  part  by  the  very  serious  situation  in  which 
producers  found  themselves  in  the  years  of  the 
great  depression. 

During  World  War  II,  because  of  the  great  im- 
portance of  tin  as  a  war  material  and  because  of 
the  disruption  of  supplies  caused  by  Japanese 
action  in  the  great  producing  areas  of  the  Malayan 
Peninsula  and  the  East  Indian  islands,  tin  was 
made  subject  to  the  closest  kind  of  govern- 
mental control  in  nearly  all  countries.  With 
continued  shortage  of  supplies  resulting  from  war- 
time destruction,  controls  are  still  maintained, 
including  international  allocation  by  the  Com- 
bined Tin  Committee,  upon  which  there  are  rep- 
resentatives of  the  principal  producing  and  con- 
suming nations.  At  the  same  time,  however,  there 
is  promise  of  gradual  recoveiy  of  tin  production.^ 

'  Prepared  by  the  Division  of  International  Resources 
in  collaboration  with  the  Division  of  International  Con- 
ferences, Department  of  State. 

'  The  position  of  tin  in  the  transition  period  is  described 
by  John  W.  Barnet  in  an  article  in  the  Bulletin  of  Aug. 
4,  1946. 


664 


DEPARTMENT  OF  STATE  BULLETIN 


Tin  is  so  important  a  commodity  in  the  economy 
of  several  of  the  producing  countries  and  it  is  so 
interesting  from  the  standpoint  of  the  history  of 
production  and  market  controls  that  the  present 
conference  in  London  is  one  of  more  than  ordinary 
interest. 

U.  S.  DELEGATION  TO  FIRST  MEETING  OF 
PREPARATORY  COlVirVIITTEE  FOR  INTERNA- 
TIONAL CONFERENCE  ON  TRADE  AND 
EMPLOYMENT 

[Released  to  the  press  October  4] 

Acting  Secretary  Acheson  announced  on  Octo- 
ber 4  that  the  President  has  approved  the  com- 
position of  the  United  States  Delegation  to  the 
First  Meeting  of  the  Preparatory  Committee  for 
the  International  Conference  on  Trade  and  Em- 
ployment. This  meeting  will  be  held  at  London, 
October  15, 1946,  under  the  auspices  of  the  United 
Nations  Economic  and  Social  Council. 

When  the  Economic  and  Social  Council,  on 
February  18,  1946,  approved  a  resolution  calling 
for  an  International  Conference  on  Trade  and 
Employment,  it  also  constituted  a  Preparatory 
Committee  of  19  nations:  Australia,  Belgium, 
Brazil,  Canada,  Czechoslovakia,  Chile,  China, 
Cuba,  France,  India,  Lebanon,  Luxembourg,  the 
Netherlands,  New  Zealand,  Norway,  the  Union  of 
South  Africa,  the  Union  of  Soviet  Socialist  Re- 
publics, the  United  Kingdom,  and  the  United 
States.  This  Committee  was  asked  to  elaborate 
an  annotated  draft  agenda  including  a  draft  con- 
vention for  consideration  by  the  Conference.  The 
Council  further  suggested  that  the  Preparatory 
Committee,  in  developing  the  agenda  for  the  Con- 
ference, include  the  following  topics : 

(a)  International  agreement  relating  to  the 
achievement  and  maintenance  of  high  and  stable 
levels  of  employment  and  economic  activity. 

(h)  International  agreement  relating  to  regu- 
lations, restrictions,  and  discrimination  affecting 
international  trade. 

(c)  International  agi'eement  relating  to  re- 
strictive business  practices. 

(d)  International  agreement  relating  to  inter- 
governmental commodity  ariangements. 

(e)  Establishment  of  an  International  Trade 


'  Prepared  by  the  Division  of  International  Conferences, 
Department  of  State,  in  collaboration  with  the  U.  S.  Public 
Health  Service. 


Organization  as  a  specialized  agency  of  the  United 
Nations  having  responsibilities  in  the  fields  of  (6) , 
((?),  and  {d)  above. 

In  preparing  for  this  and  subsequent  meetings, 
United  States  experts  have  prepared  and  sub- 
mitted to  the  nations  of  the  world  the  Proposals 
for  Expansion  of  World  Trade  and  EmployTnent 
and  more  recently  a  Suggested  Charier  for  an 
Inter-national  Trade  Organisation  of  the  United 
Nations. 

The  members  of  the  United  States  Delegation 
are  as  follows: 

Chairman:  Clair  Wilcox,  Director,  Office  of  International 
Trade  Policy,  Department  of  State; 

Vice  Chairman:  Harry  C.  Hawkins,  Economic  Counselor, 
American  Embassy,  London ; 

Delegates:  Lynn  R.  Edminster,  Vice  Chairman,  United 
States  Tariff  Commission ;  John  W.  Gunter,  Treasury 
Representative,  American  Embassy,  London ;  John 
H.  G.  Pierson,  Consultant  on  Employment  Policy,  De- 
partment of  Labor;  Robert  B.  Schwenger,  Chief,  Di- 
vision of  International  Economic  Studies,  Office  of 
Foreign  Agricultural  Relations,  Department  of  Agri- 
culture; Frank  Shields,  Chief  of  Commercial  Policy 
Staff,  Office  of  International  Trade,  Department  of 
Commerce ; 

Advisers:  Willis  Armstrong,  Adviser  on  State  Trading, 
Department  of  State;  Edmund  Kellogg,  Division  of 
International  Oi'ganization  Affairs,  Department  of 
State;  Donald  D.  Kennedy,  Chief,  International  Re- 
sources Division,  Department  of  State;  John  M. 
Ledd.v,  Adviser  on  Commercial  Policy,  Department  of 
State ;  Robert  P.  Terrill,  Associate  Chief,  Interna- 
tional Resources  Division,  Department  of  State; 

Technical  Secretary:  J.  Robert  Schaetzel,  Special  Assist- 
ant to  the  Director,  Office  of  International  Trade  Pol- 
icy, Department  of  State; 

Secretary:  Basil  Capella,  Division  of  International  Con- 
ferences, Department  of  State; 

Stenographers:  Mrs.  Mary  Balsinger,  Miss  Roseann 
Coulton,  and  Miss  Dorothy  Weissbrod,  Department 
of  State. 

THE  SECOND  PAN  AMERICAN  CONFERENCE 
ON  LEPROSY' 

The  Second  Pan  American  Conference  on  Lep- 
rosy is  scheduled  to  meet  at  Rio  de  Janeiro,  Brazil, 
October  19-31,  1946.  The  21  American  republics 
and  the  Pan  American  Sanitary  Bureau  have  been 
invited  by  the  Government  of  Brazil  to  send  offi- 
cial delegates,  while  the  International  Leprosy  As- 
sociation,   the    American    Leprosy    Foundation 

(Continued  on  pai/c  677) 


THE  RECORD  OF  THE  WEEK 


U.  S.  Aims  and  Policies  in  Europe 


BY  THE  SECRETARY  OF  STATE' 


I  am  not  in  Paris  today  by  accident.  While  in 
Moscow  last  December  when  the  question  of  place 
of  the  Peace  Conference  arose  I  at  once  thought  of 
Paris  and  France. 

I  telephoned  to  Mr.  Bidault  suggesting  that  if 
the  French  Government  would  invite  the  con- 
ference to  meet  in  Paris  I  felt  confident  the  in- 
vitation would  be  accepted.  The  invitation  was 
extended  and  unanimously  accepted. 

Mr.  Bidault  and  his  associates  and  the  people 
of  Paris  have  left  undone  nothing  that  would  con- 
tribute to  our  work  and  our  comfort.  The  longer 
we  stay — and  we  have  been  in  no  huri'y  to  leave — 
the  more  the  French  people  have  made  us  feel  at 
home.  They  not  only  want  to  be  hospitable  but 
they  have  the  know-how. 

Because  of  the  many  duties  devolving  on  Mr. 
Bidault,  I  am  amazed  at  his  ability  to  find  time 
to  show  such  interest  in  the  work  of  the  Con- 
ference. He  is  a  man  of  great  intelligence,  charm, 
and  industry.  And  this  intelligence,  charm,  and 
industry  he  always  uses  to  promote  the  welfare 
of  the  country  he  serves  and  loves  so  well. 

In  this  company  I  will  not  speak  of  the  long 
and  firm  friendship  which  has  existed  between  the 
people  of  France  and  the  people  of  the  United 
States — a  friendship  which  existed  before  we  at- 
tained our  independence.  That  friendship  runs 
so  deep  that  we  do  not  have  to  talk  about  it. 
Differ  as  we  may  from  time  to  time,  our  two 
peoples  always  have  stood  and  always  will  stand 
together  in  time  of  crisis.  Liberty,  equality, 
fraternity — the  rights  of  man — are  our  common 
heritage. 


Twice  in  my  generation  the  soldiers  of  France 
and  the  soldiers  of  America  have  fought  side  by 
side  in  defense  of  their  common  heritage  of 
freedom. 

America  is  proud  of  her  contribution  to  our 
common  victory  in  1945.  America  is  proud  of  her 
contribution  to  our  common  victory  in  1918.  But 
America  is  not  so  proud  of  the  course  she  followed 
after  the  victory  of  1918. 

In  1918  I  was  a  follower  of  Woodrow  Wilson. 
I  gloried  in  his  idealism  and  in  the  magnificent 
effort  he  made  to  build  the  peace  upon  the  covenant 
of  the  League  of  Nations. 

But  the  Amei'ican  people  expected  too  much 
from  Woodrow  Wilson  and  supported  him  too 
little. 

While  he  was  in  Paris  working  for  peace,  politi- 
cal opponents  at  home  bitterly  criticized  his  course 
and  questioned  his  motives.  They  exaggerated 
and  exploited  the  shortcomings  of  the  Treaty  of 
Versailles,  and  they  belittled  and  besmirched  what 
Woodrow  Wilson  had  accomplished. 

America  failed  to  join  the  League  of  Nations. 
America  refused  to  guarantee  the  defense  of  the 
French  frontier.  America  allowed  other  countries 
to  believe  that  she  had  no  interest,  and  would  not 
seriously  concern  herself,  in  what  was  happening 
in  Europe,  in  Africa,  or  Asia. 

But  wars  started,  first  in  Asia,  then  in  Africa, 
and  then  in  Euroi:)e.  Then  came  Pearl  Harbor. 
America  learned  too  late  that  this  is  one  world  and 
that  she  could  not  isolate  herself  from  that  world. 


'  An  address  delivered  in  Paris  on  Oct.  3  at  the  American 
Club  and  released  to  the  press  on  the  same  date. 


717247^6- 


665 


666 


DEPARTME'ST  OF  STATE  BULLETIN 


America  is  determined  this  time  not  to  retreat 
into  a  policy  of  isolation.  We  are  determined 
this  time  to  cooperate  in  maintaining  the  peace. 
President  Roosevelt  this  time  sought  to  avoid  the 
political  opposition  which  had  defeated  the  peace 
after  the  first  World  War.  Then  President  Wil- 
son neglected  to  invite  the  leaders  of  the  political 
party  in  opposition  to  his  administration  to  par- 
ticipate with  him  in  making  the  peace. 

President  Roosevelt,  on  the  other  hand,  asked  the 
congressional  leaders  to  participate  in  the  peace 
studies  being  made  by  the  Department  of  State 
shortly  after  our  entry  into  the  war. 

At  Yalta,  immediately  after  the  heads  of  gov- 
ernment had  agreed  to  call  the  San  Francisco 
conference  to  draw  up  the  Charter  for  the  United 
Nations,  President  Roosevelt  advised  Secretary 
Stettinius  and  me  that  he  would  appoint  on  the 
Delegation  to  the  San  Francisco  conference  Re- 
publicans as  well  as  Democrats,  and  would  name 
Senator  Vandenberg  as  the  ranking  Republican 
member  of  the  Delegation. 

Even  before  our  entry  into  the  war,  President 
Roosevelt  repudiated  the  idea  that  the  United 
States  was  not  interested  in  what  takes  place  in 
Eurojoe.  Knowing  from  the  start  that  the  war  was 
a  war  of  aggression,  he  never  asked  the  American 
people  to  be  neutral  in  spirit. 

Before  we  entered  the  war,  he  inspired  the  dec- 
laration of  principles  known  as  the  Atlantic 
Charter,  which  was  proclaimed  by  him  and  the 
Prime  Minister  of  the  United  Kingdom  on  August 
14,  1941. 

It  was  President  Roosevelt  who  at  Yalta  pre- 
sented the  declaration  on  liberated  Europe  which 
Generalissimo  Stalin  and  Prime  Minister  Church- 
ill accepted  and  which  imposed  a  responsibility 
upon  the  three  governments  to  continue  their  inter- 
est in  the  Balkan  states  and  uphold  the  basic  free- 
doms embodied  in  that  declaration. 

The  policies  inaugurated  by  President  Roosevelt 
have  been  consistently  followed  by  his  successor. 
President  Truman.  He  has  consistently  urged  the 
carrying  out  in  the  liberated  and  ex-enemy  states 
of  Europe  of  the  policies  agreed  to  by  the  heads 
of  government  at  Yalta  at  the  instance  of  Presi- 
dent Roosevelt. 

President  Truman  continued  the  practice  of  seek- 
ing the  cooperation  of  the  leaders  of  both  major 
political  parties  in  the  making  of  peace. 


It  was  with  the  approval  of  President  Truman 
that  I  invited  Senator  Vandenberg  as  well  as  Sen- 
ator Connally  to  assist  me  in  the  drafting  of  the 
peace  treaties. 

And  President  Truman  reenforced  this  bipar- 
tisan policy  by  appointing  Senator  Austin  our 
representative  on  the  Security  Council  of  the 
United  Nations. 

The  President  has  recently  made  known  to  the 
world  in  the  most  convincing  manner  possible  that 
the  foreign  policy  which  was  started  by  President 
Roosevelt  and  which  has  been  consistently  followed 
by  President  Truman  will  continue  to  be  the  policy 
of  the  American  Government. 

Because  that  policy  is  supported  by  Republi- 
cans as  well  as  Democrats,  it  gives  assurance  to 
the  world  that  it  is  our  American  policy  and  will 
be  adhered  to  regardless  of  which  political  party 
is  in  power. 

Because  today  we  have  such  a  policy  I  was  able 
to  say  recently,  with  the  approval  of  the  President, 
and  I  am  happy  to  be  able  to  reaffirm  here  in 
France,  that  so  long  as  there  is  an  occupation  army 
in  Germany  the  armed  forces  of  the  United  States 
will  be  in  the  army  of  occupation. 

I  would  not  want  you  to  believe  that  our  course 
in  this  regard  is  entirely  imselfish.  It  is  true  that 
the  United  States  wants  no  territory  and  seeks  no 
discriminatory  favors.  The  United  States  is  in- 
terested in  one  thing  above  all  else,  a  just  and  last- 
ing peace. 

The  jyeople  of  the  United  States  did  their  best  to 
stay  out  of  two  European  wars  on  the  theory  that 
they  should  mind  their  own  business  and  that  they 
had  no  business  in  Europe.    It  did  not  work. 

The  people  of  the  United  States  have  discovered 
that  when  a  European  war  starts  our  own  peace 
and  security  inevitably  become  involved  before 
the  finish.  They  have  concluded  that  if  they  must 
help  finish  every  European  war  it  would  be  better 
for  them  to  do  their  part  to  prevent  the  starting 
of  a  European  war. 

Twice  in  our  generation  doubt  as  to  American 
foreign  policy  has  led  other  nations  to  miscalcu- 
late the  consequences  of  their  actions.  Twice  in 
our  generation  that  doubt  as  to  American  foreign 
policy  has  not  brought  peace,  but  war. 

That  must  not  happen  again. 

France,  which  has  been  invaded  three  times  in 
the  last  75  years  by  Germany,  naturally  does  not 


OCTOBER  13,  1946 


667 


want  to  be  in  doubt  as  to  American  foreign  policy 
towards  Germany. 

To  dispel  any  doubt  on  that  score  the  United 
States  has  proposed  that  the  Soviet  Union,  the 
United  Kingdom,  France,  and  the  United  States 
shall  enter  into  a  solemn  treaty  not  only  to  disarm 
and  demilitarize  Germany  but  to  keep  Germany 
disarmed  and  demilitarized  for  40  years.  And  the 
treaty  can  be  extended  if  the  interests  of  interna- 
tional peace  and  security  require. 

On  Jime  5,  1945,  Generals  Eisenhower,  Zhukov, 
Montgomery,  and  De  Tassigny  entered  into  an 
agreement  providing  in  detail  for  the  disarmament 
and  demilitarization  of  Germany. 

The  treaty  I  proposed  on  behalf  of  the  United 
States  contains  all  the  provisions  of  that  agree- 
ment. It  provides  that  all  German  armed  forces, 
all  para-military  forces,  and  all  the  auxiliary  or- 
ganizations shall  be  kept  demobilized.  It  pro- 
vides further  that  the  German  General  Staff  and 
the  staffs  of  any  para-military  organizations  shall 
be  prohibited  and  no  German  military  or  para- 
military organizations  in  any  form  or  disguise 
shall  be  permitted  in  Germany.  It  provides  for 
the  complete  and  continued  demilitarization  of 
her  war  plants  and  for  a  continuing  system  of 
quadripartite  inspection  and  control  to  make  cer- 
tain that  Germany  does  not  rearm  or  rebuild  her 
armament  plants  or  reconvert  her  civilian  indus- 
tries for  war. 

So  long  as  such  a  treaty  is  in  force  the  Ruhr 
could  never  become  the  arsenal  of  Germany  or  the 
arsenal  of  Europe.  That  is  a  primary  objective 
of  the  proposed  treaty. 

The  United  States  is  firmly  opposed  to  the  re- 
vival of  Germany's  military  power.  It  is  firmly 
opposed  to  a  struggle  for  the  control  of  Germany 
which  would  again  give  Germany  the  power  to 
divide  and  conquer.  It  does  not  want  to  see  Ger- 
any  become  a  pawn  or  a  partner  in  a  struggle 
for  power  between  the  East  and  the  "West. 

The  United  States  does  not  oppose  but  strongly 
ui-ges  the  setting  up  of  effective  inspection  and 
control  machinery  to  see  that  Germany  does  not 
rearm,  does  not  rebuild  her  armament  industries 
or  convert  her  civilian  industries  for  war. 

We  propose  that  the  Allied  occupation  of  Ger- 
many should  not  terminate  until  a  German  govern- 
ment does  accept  the  required  disarmament  and 
demilitarization  clauses.  Even  then  the  proposed 
treaty  envisages  the  need  for  limited  but  adequate 


Allied  armed  forces,  not  for  occupation  purposes 
but  to  insure  compliance  with  the  treaty. 

To  keep  watch  over  war  potential  in  this  indus- 
trial age  engineers  are  more  important  than  in- 
fantry. Engineers  can  detect  at  an  early  stage 
any  effort  upon  the  part  of  a  manufacturer  of 
motor  cars  to  convert  his  machinery  to  manufac- 
ture of  tanks  or  other  weapons  of  war.  Engi- 
neers can  probe  the  mysteries  of  a  chemical  plant; 
infantry  soldiers  cannot. 

If  violations  are  discovered  they  must  be  imme- 
diately reported  to  the  Commission  of  Control. 
If  the  Commission  of  Control  finds  that  the  viola- 
tions are  not  immediately  corrected  by  orders  of 
the  engineer  inspectors,  the  Commission  should  at 
once  demand  that  the  German  Government  close 
the  plants  and  punish  the  violators  of  the  treaty. 

If  the  government  does  not  comply,  the  Allied 
representatives  in  24  hours  should  order  the  neces- 
sary forces  to  enforce  compliance. 

If  the  Allied  representatives  deem  it  necessary 
they  should  be  in  a  position  to  call  for  bombers 
from  France,  Britain,  the  United  States,  or  the 
Soviet  Union.  These  planes  could  fly  to  Ger- 
many to  enforce  immediate  compliance. 

After  the  last  war,  the  great  French  war  leader, 
Clemenceau,  hoped  to  secure  a  guaranty  that  the 
Allies  would  come  to  the  aid  of  France  if  Germany 
violated  her  frontiers.  But  President  Wilson 
failed  in  his  effort  to  get  the  American  people  to 
join  in  such  a  guaranty. 

This  time  the  American  people  propose  not  to 
wait  until  France  is  again  invaded.     They  offer, 
now  to  join  with  France,  Britain,  and  the  Soviet 
Union  to  see  to  it  that  Germany  does  not  and 
cannot  invade  France. 

Mr.  Bidault,  on  behalf  of  France,  and  Mr.  Bevin, 
on  behalf  of  Britain,  have  accepted  in  principle 
the  treaty  we  have  proposed.  I  hope  very  much 
that  the  Soviet  Union,  which  thus  far  has  re- 
garded the  treaty  as  unacceptable,  will  on  fur- 
ther examination  and  study  find  it  possible  to 
join  with  us  to  prevent  Germany  again  from  be- 
coming a  menace  to  the  peace  of  Europe. 

The  military  representatives  of  the  Soviet 
Union,  the  United  Kingdom,  France,  and  the 
United  States  easily  reached  an  agreement  pro- 
viding for  the  disarming  of  the  German  people 
and  the  demilitarization  of  German  plants,  to  con- 
tinue until  the  peace  settlement.  The  United 
States  proposes  to  continue  this  disarming  and 


668 


DEPARTMENT  OF  STATE  BULLETIN 


demilitarization  for  40  years  after  the  peace  set- 
tlement. 

If  the  Allied  nations  will  enter  into  the  treaty 
■which  the  United  States  proposes  to  keep  Ger- 
many disarmed  and  demilitarized  for  at  least  a 
generation,  the  people  of  France  and  the  people 
of  Europe  need  not  fear  the  efforts  of  the  Ger- 
man people  to  rebuild  their  devastated  country 
and  rebuild  a  peaceful  Germany. 

We  do  want  to  give  encouragement  to  the  peace- 
ful, democratic  forces  of  Germany.  We  cannot 
do  this  unless  we  do  give  them  a  chance  to  govern 
themselves  democratically. 

For  our  own  security  as  well  as  for  the  welfare 
of  the  German  people  we  do  not  want  to  see 
an  overcentralized  government  in  Germany  which 
can  dominate  the  German  people  instead  of  being 
responsible  to  their  democratic  will. 

In  the  American  zone,  we  have  placed  great 
emphasis  upon  the  development  of  a  sense  of  local 
responsibility  and  have  taken  the  lead  in  creat- 
ing lunder  or  states  so  that  the  people  will  look 
to  the  states  and  not  to  a  central  govermnent  on 
all  matters  that  do  not  basically  require  national 
action. 

We  want  to  see  the  federal  government  of  Ger- 
many created  by  the  states  and  not  the  states  cre- 
ated by  the  central  government.  If  we  so  pro- 
ceed we  do  not  think  we  will  find  that  the  respoij- 
sible  representatives  of  the  states  will  want  to 
give  excessive  powei-s  to  the  federal  government. 

We  want  a  peaceful,  democratic,  and  disarmed 
Germany  which  will  respect  the  human  rights  and 
fundamental  freedoms  of  all  her  inhabitants  and 
which  will  not  threaten  the  security  of  her  neigh- 
bors. 

We  want  such  a  Germany  not  because  we  want 
to  appease  Germany,  but  because  we  believe  that 
such  a  Gei-many  is  necessary  to  the  peace  and 
security  of  France,  our  oldest  ally,  and  is  neces- 
sai-y  to  the  peace  and  security  of  a  free  and  pros- 
perous Europe. 

After  every  great  war  which  has  been  won  by 
the  combined  efforts  of  many  nations,  there  has 
been  conflict  among  the  Allies  in  the  making  of 
peace.  It  would  be  folly  to  deny  the  seriousness 
of  the  conflict  in  viewpoints  among  the  Allies 
after  this  war. 

To  ignore  that  conflict  or  minimize  its  serious- 
ness will  not  resolve  the  conflict  or  help  us  along 
the  road  to  peace.    To  exaggerate  that  conflict  and 


its  seriousness,  on  the  other  hand,  only  makes  more 
difficult  the  resolution  of  the  conflict. 

I  concur  most  heartily  in  the  view  recently  ex- 
pressed by  Generalissimo  Stalin  that  there  is  no 
immediate  danger  of  war.  I  hope  that  his  state- 
ment will  put  an  end  to  the  unwarranted  charges 
that  any  nation  or  group  of  nations  is  seeking  to 
encircle  the  Soviet  Union,  or  that  the  responsible 
leaders  of  the  Soviet  Union  so  believe. 

I  do  not  believe  that  any  responsible  official  of 
any  government  wants  war.  The  world  has  had 
enough  of  war.  The  difficulty  is  that  while  no 
nation  wants  war,  nations  may  pursue  policies  or 
courses  of  action  which  lead  to  war.  Nations  may 
seek  political  and  economic  advantages  which  they 
cannot  obtain  without  war. 

That  is  why  if  we  wish  to  avoid  war  we  must  de- 
ci'y  not  only  war  but  the  things  which  lead  to 
war. 

Just  because  war  is  not  now  imminent,  we  must 
take  the  greatest  care  not  to  plant  the  seeds  of  a 
future  war.  We  must  seek  less  to  defend  our  ac- 
tions in  the  ej'es  of  those  who  already  agree  with 
us,  and  more  to  defend  our  actions  in  the  eyes  of 
those  who  do  not  agree  with  us.  But  our  defense 
must  be  the  defense  of  justice  and  freedom,  the 
defense  of  the  political  and  economic  rights  not  of 
a  few  privileged  men  or  nations  but  of  all  men  and 
all  nations. 

It  is  particularly  appropriate  that  here  in  the 
birthplace  of  the  doctrine  of  the  rights  of  man  I 
should  reaffirm  the  conviction  of  the  Government 
and  the  people  of  the  United  States  that  it  is  the 
right  of  every  people  to  organize  their  own  destiny 
through  the  freest  possible  expression  of  their 
collective  will.  The  people  of  the  United  States 
believe  in  freedom  for  all  men  and  all  nations, 
freedom  of  speech,  freedom  of  worship,  freedom 
of  assembly,  freedom  to  progress.  The  people  of 
the  United  States  have  no  desire  to  impose  their 
will  upon  any  other  people  or  to  obstruct  their 
efforts  to  improve  their  social,  economic  or  politi- 
cal conditions.  In  our  view  human  freedom  and 
human  progress  are  inseparable. 

We  want  to  give  the  common  men  and  women 
of  this  world  who  have  borne  the  burdens  and 
sufferings  of  war  a  chance  to  enjoy  the  blessings 
of  peace  and  freedom.  We  want  the  common  men 
and  women  of  this  world  to  share  in  the  rising 
standards  of  life  which  science  makes  possible  in 
a  free,  peaceful,  and  friendly  world. 


statement  by  the  President  on  the  Palestine  Situation 


[Released  to  the  press  by  the  White  House  October  4] 

I  have  learned  with  deep  regret  that  the  meet- 
ings of  the  Palestine  Conference  in  London  have 
been  adjourned  and  are  not  to  be  resumed  until 
December  16,  1946.  In  the  light  of  this  situation 
it  is  appropriate  to  examine  the  record  of  the  ad- 
ministration's efforts  in  this  field,  efforts  which 
have  been  supported  in  and  out  of  Congress  by 
members  of  both  political  parties,  and  to  state  my 
views  on  the  situation  as  it  now  exists. 

It  will  be  recalled  that,  when  Mr.  Earl  Harrison 
reported  on  September  29,  1945,  concerning  the 
condition  of  displaced  persons  in  Europe,  I  imme- 
diately urged  that  steps  be  taken  to  relieve  the  situ- 
ation of  these  persons  to  the  extent  at  least  of  ad- 
mitting 100,000  Jews  into  Palestine.^  In  response 
to  this  suggestion  the  British  Government  invited 
the  Government  of  the  United  States  to  cooperate 
in  setting  up  a  joint  Anglo-American  Committee 
of  Inquiry,  an  invitation  which  this  Government 
was  happy  to  accept  in  the  hope  that  its  partici- 
pation would  help  to  alleviate  the  situation  of  the 
displaced  Jews  in  Europe  and  would  assist  in  find- 
ing a  solution  for  the  difficult  and  complex  prob- 
lem of  Palestine  itself.  The  urgency  with  which 
this  Government  regarded  the  matter  is  reflected 
in  the  fact  that  a  120-day  limit  was  set  for  the 
completion  of  the  Committee's  task. 

The  unanimous  report  of  the  Anglo-American 
Committee  of  Inquiry  was  made  on  April  20, 1946, 
and  I  was  gratified  to  note  that  among  the  recom- 
mendations contained  in  the  Report  was  an  en- 
dorsement of  my  previous  suggestion  that  100,000 
Jews  be  admitted  into  Palestine.^  The  adminis- 
tration immediately  concerned  itself  with  devising 
ways  and  means  for  transporting  the  100,000  and 
caring  for  them  upon  their  arrival.  With  this  in 
mind,  experts  were  sent  to  London  in  June  1946  to 
work  out  provisionally  the  actual  travel  arrange- 
ments. The  British  Government  cooperated  with 
this  group  but  made  it  clear  that  in  its  view  the 
Report  must  be  considered  as  a  whole  and  that  the 
issue  of  the  100,000  could  not  be  considered 
separately. 

On  June  11, 1  announced  the  establishment  of  a 
Cabinet  Committee  on  Palestine  and  Related 
Problems,  composed  of  the  Secretaries  of  State, 
War,  and  Treasury,  to  assist  me  in  considering 


the  recommendations  of  the  Anglo-American 
Committee  of  Inquiry.^  The  alternates  of  this 
Cabinet  Committee,  headed  by  Ambassador  Henry 
F.  Grady,  departed  for  London  on  July  10,  1946, 
to  discuss  with  British  Government  representa- 
tives how  the  Report  might  best  be  implemented. 
The  alternates  submitted  on  July  24, 1946  a  report, 
commonly  referred  to  as  the  "Morrison  plan",* 
advocating  a  scheme  of  provincial  autonomy 
which  might  lead  ultimately  to  a  bi-national  state 
or  to  partition.  However,  ojDposition  to  this  plan 
developed  among  members  of  the  major  political 
parties  in  the  United  States — both  in  the  Congress 
and  throughout  the  country.  In  accordance  with 
the  principle  which  I  have  consistently  tried  to 
follow,  of  having  a  maximum  degree  of  unity 
within  the  country  and  between  the  parties  on 
major  elements  of  American  foreign  policy,  I 
could  not  give  my  support  to  this  jjlan. 

I  have,  nevertheless,  maintained  my  deep  inter- 
est in  the  matter  and  have  repeatedly  made  known 
and  have  urged  that  steps  be  taken  at  the  earliest 
possible  moment  to  admit  100,000  Jewish  refugees 
to  Palestine. 

In  the  meantime,  this  Government  was  informed 
of  the  efforts  of  the  British  Government  to  bring 
to  London  representatives  of  tlie  Arabs  and  Jews, 
with  a  view  to  finding  a  solution  to  this  distressing 
problem.  I  expressed  the  hope  that  as  a  result  of 
these  conversations  a  fair  solution  of  the  Palestine 
problem  could  be  found.^  Wliile  all  the  parties 
invited  had  not  found  themselves  able  to  attend,  I 
had  hoped  that  there  was  still  a  possibility  that 
representatives  of  the  Jewish  Agency  might  take 
part.  If  so,  the  prospect  for  an  agreed  and  con- 
structive settlement  would  have  been  enhanced. 

The  British  Government  presented  to  the  Con- 
ference the  so-called  "Morrison  pkn"  for  provin- 
cial autonomy  and  stated  that  the  Conference  was 
open  to  other  proposals.    Meanwhile,  the  Jewish 


^  For  text  of  Mr.  Harrison's  report  to  the  President,  see 
Bulletin  of  Sept.  30, 1945,  p.  450 ;  and  for  the  statement  of 
the  President,  see  Bullettin  of  Nov.  18,  1945,  p.  790. 

'  For  text  of  the  report  of  the  Anglo-American  Commit- 
tee of  Inquiry,  see  Department  of  State  publication  2536. 

'  For  text  of  the  Executive  order  establishing  the  Com- 
mittee, see  Bulletin  of  June  23,  194G,  p.  1089. 

'  Not  printed. 

•  BuLijsTiN  of  Aug.  25,  1946,  p.  380. 


669 


670 


DEPARTMENT  OF  STATE  BULLETIN 


Agency  proposed  a  solution  of  the  Palestine  prob- 
lem by  means  of  the  creation  of  a  viable  Jewish 
state  in  control  of  its  own  immigration  and  eco- 
nomic policies  in  an  adequate  area  of  Palestine 
instead  of  in  the  whole  of  Palestine.  It  proposed 
furthermore  the  immediate  issuance  of  certificates 
for  100,000  Jewish  immigrants.  This  proposal^ 
received  wide-spread  attention  in  the  United 
States,  both  in  the  press  and  in  public  forums. 
From  the  discussion  which  has  ensued  it  is  my 
belief  that  a  solution  along  these  lines  would  com- 
mand the  support  of  public  opinion  in  the  United 
States.  I  cannot  believe  that  the  gap  between  the 
proposals  which  have  been  put  forward  is  too 
great  to  be  bridged  by  men  of  reason  and  good-will. 
To  such  a  solution  our  Government  could  give  its 
support. 

In  the  light  of  the  situation  which  has  now  de- 
veloped I  wish  to  state  my  views  as  succinctly  as 
possible : 

1.  In  view  of  the  fact  that  winter  will  come  on 
before  the  Conference  can  be  resumed  I  believe 
and  urge  that  substantial  immigration  into  Pales- 
tine cannot  await  a  solution  to  the  Palestine  prob- 


lem and  that  it  should  begin  at  once.  Preparations 
for  this  movement  have  already  been  made  by  this 
Government  and  it  is  ready  to  lend  its  immediate 
assistance. 

2.  I  state  again,  as  I  have  on  previous  occasions, 
that  the  immigration  laws  of  other  countries,  in- 
cluding the  United  States,  should  be  liberalized 
with  a  view  to  the  admission  of  displaced  persons. 
I  am  prepared  to  make  such  a  recommendation  to 
the  Congress  and  to  continue  as  energetically  as 
possible  collaboration  with  other  countries  on  the 
whole  problem  of  displaced  persons. 

3.  Furthermore,  should  a  workable  solution  for 
Palestine  be  devised,  I  would  be  willing  to  recom- 
mend to  the  Congress  a  plan  for  economic  assist- 
ance for  the  development  of  that  country. 

In  the  light  of  the  terrible  ordeal  which  the 
Jewish  people  of  Europe  endured  during  the  re- 
cent war  and  the  crisis  now  existing,  I  cannot  be- 
lieve that  a  program  of  immediate  action  along 
the  lines  suggested  above  could  not  be  worked  out 
with  the  cooperation  of  all  people  concerned.  The 
administration  will  continue  to  do  everything  it 
can  to  this  end. 


U.  S.  Policy  in  Korea 


STATEMENT  BY  ACTING  SECRETARY  ACHESON 


[Released  to  the  press  October  1] 

At  his  press  conference  on  October  1  the  Acting 
Secretary  of  State  was  asked  if  the  United  States 
intended  to  allow  the  Russians  to  continue  pur- 
suing independently  their  own  policy  in  north 
Korea  without  taking  positive  steps  to  fulfil  the 
pronouncements  at  Cairo  and  Moscow  to  establish 
a  provisional  government  for  Korea  under  joint 
U.S.-U.S.S.R.  supervision.  He  was  further  asked 
what  steps  this  country  advocates  to  break  the 
deadlock  now  existing  between  the  United  States 
and  U.S.S.R.  administrators  in  Korea. 

Mr.  Acheson  authorized  for  direct  quotation  the 
following  answer: 

"General  Hodge  has  in  the  past  months  made 
a  number  of  efforts  to  bring  about  a  reconvention 
of  the  Joint  Soviet-American  Commission.  His 
efforts  have  not  so  far  proven  successful.  When 
we  consider  it  opportune  we  may  again  approach 
the  Russians  in  this  matter.  We  have  informed 
them  that  we  are  prepared  to  meet  with  the  Com- 

'  Not  printed 


'  Not  printed. 

'  Bulletin  of  Sept.  8, 1946,  p.  462. 


mission  at  any  time  they  wish,  and  we  hope  that 
they  may  soon  see  the  reason  and  good  sense  in 
continuing  the  discussions  of  the  Commission.  In 
the  meantime,  as  I  said  in  my  statement  of  last 
August  30,  it  is  essential  that  we  proceed  in  south 
Korea  with  the  solution  of  urgent  social  and  eco- 
nomic problems  along  lines  which  embody  the  will 
of  the  Korean  people.^  Therefore  we  desire  to 
establish  cooperation  between  all  political  parties 
and  a  Korean  legislative  body,  to  exjjress  Korean 
views  and  asipirations,  and  to  provide  Korean 
leadership. 

"At  the  time  I  made  this  statement  I  empha- 
sized two  main  points.  One  is  that  we  are  pre- 
pared at  any  time  that  the  Soviet  Government 
will  do  so,  to  resume  the  discussions  of  the  Com- 
mission, the  purpose  of  which  is  to  bring  about  a 
unified  Korea.  The  other  is  that  we  intend  to 
remain  in  Korea  and  carry  out  our  duties  there 
until  we  have  achieved  the  purpose  of  bringing 
into  being  a  united,  independent  Korea. 

"We  must  be  patient  and  persevering  in  reach- 
ing a  solution  of  this  problem." 


A  New  Instrument  of  U.  S.  Foreign  Policy 

BY  ASSISTANT  SECRETARY  BENTON  > 


Mr.  Chairman,  Ladies  and  Gentlemen  :  Geo- 
graphy, language  differences,  and  political  bound- 
aries have  never  been  barriers  to  the  free  flow  of 
bacteria.  Bacteria  affect  and  strike  the  rich  and 
the  publishers,  along  with  the  poor  and  the 
readers.  Illness,  suffering,  and  death  throughout 
history  have  been  remarkably  disrespectful  of 
national  sovereignty.  They  have  not  distinguished 
among  the  Argentines,  the  Portuguese,  and  the 
Greeks — or  the  nurses,  the  physicians,  and  the 
board  of  trustees. 

Those  wlio  care  for  the  stricken  have  always 
been  leaders  among  world  internationalists. 

I  am  very  happy,  therefore,  to  attend  this  inter- 
national dinner  of  the  American  Hospital  Asso- 
ciation. It  is  especially  fitting  at  this  time  that 
your  association  should  make  this  an  international 
dinner  and  turn  its  attention  outwards  across  na- 
tional boundaries.  Efforts  of  private  groups, 
such  as  your  association,  to  increase  the  flow  of 
knowledge  and  skills  across  national  frontiers 
contribute  greatly  to  the  kind  of  understanding 
we  must  have  in  this  desperately  troubled  world. 
The  role  of  the  Government  in  promoting  this  un- 
derstanding is  primarily  to  stimulate  and  make 
easier  the  efforts  of  such  private  organizations  as 
yours.  Only  secondarily,  our  Goverimient's  role 
is  to  do  the  necessary  things  that  private  organiza- 
tions do  not  or  cannot  do. 

Great  doctors  have  always  freely  shared  their 
ideas,  tlieir  discoveries,  and  their  skills.  There 
has  never  been  any  national  monopoly  or  national 
exploitation  of  medical  knowledge.  As  a  result, 
millions  of  people  living  in  the  world  today  have 
been  given  additional  decades  of  life  expectancy. 

America  has  learned  most  of  what  she  knows 
from  other  countries  in  medicine,  as  in  other  sci- 
ences. There  is  no  one  nation  which  can  claim 
even  a  large  proportion  of  the  great  medical  dis- 
coveries. But  America  through  its  citizens  has 
been  a  leader  in  furthering  international  coopera- 
tion in  medicine  and  in  public  health. 

Even  a  hundred  years  ago  the  American  idea  of 
the  importance  of  health  spread  with  almost  every 
American  settlement  abroad.  My  own  grand- 
'  nother  in  the  1840's  married  a  missionary  and  went 


to  Syria  for  33  years.  Before  leaving  she  took  a 
not-too-long  course  in  alleged  nursing,  and  later, 
because  there  were  no  trained  doctors  or  nurses  in 
her  area  in  Syria,  she  achieved  local  fame  as  a  rare 
medical  wizard — at  least,  so  the  family  legend 
goes. 

Today  our  medical  and  other  scientific  and  tech- 
nical experts  are  in  demand  on  all  continents. 

During  the  13  months  I  have  been  associated 
with  the  Department  of  State,  I  have  had  the 
privilege  of  serving  as  chairman  of  a  unique  gov- 
ernmental body  known  as  the  Interdepartmental 
Committee  on  Scientific  and  Cultural  Cooperation. 
This  Committee  coordinates  the  international  ac- 
tivities of  12  Government  agencies,  representing  42 
separate  bureaus.  It  is  through  this  Committee 
that  Government  projects  of  scientific  and  cul- 
tural cooperation  abroad  are  integi-ated  with 
United  States  foreign  policy.  It  is  through  this 
Committee,  for  example,  that  a  project  of  the 
Public  Health  Service  for  training  nurses  in  Li- 
beria would  be  cleared  with  the  State  Department, 
or  through  which  a  request  from  the  Liberian 
Government,  say  for  a  malaria  survey,  would  be 
passed  on  to  the  Public  Health  Service. 

This  Interdepartmental  Committee  is  part  of 
the  mechanism  through  which  we  conduct  the  Gov- 
ernment's over-all  program  of  international  in- 
formation and  cultural  affairs. 

Our  foreign  information  program  is  a  blood 
brother,  though  an  entirely  separate  unit. 
Through  the  State  Department's  Office  of  Inter- 
national Information  and  Cultural  Affairs  we 
keep  information  about  the  United  States  flowing 
to  foreign  countries  through  the  powerful  new 
communications  instruments  of  our  age — the  press, 
motion  picture,  and  the  radio.  But  it  is  through 
our  programs  of  scientific  and  cultural  coopera- 
tion— and  in  that  rather  vague  phrase  I  include 
the  exchange  of  students,  professors,  technicians, 
and  specialists,  and  the  extension  of  medical,  sci- 
entific, and  technical  assistance — that  we  may  per- 

'  An  address  delivered  at  the  International  Dinner  of 
the  American  Hospital  Association  in  Philadelphia,  Pa. 
on  Oct.  1  and  released  to  the  press  on  the  same  date. 


671 


672 


DEPARTMENT  OF  STATE  BULLETIN 


haps  make  the  greatest  impact  in  the  long  run,  if 
Congress  authorizes  a  program  of  sufficient  scope. 

Information  alone  is  a  powerful  weapon ;  it  can 
sway  people  and  it  can  even  "sell"  them  a  point  of 
View.  However,  for  true  understanding  actual 
experience  is  essential.  Many  people  learn  better 
by  doing  than  by  talking  and  by  listening.  In 
order  to  build  friendship  for  the  United  States, 
we  need  to  supplement  the  word  with  living  peoj^le 
who  can  interpret,  demonstrate,  and  work  along 
with  people  of  other  nations  in  their  local  towns 
and  villages.  And  we  must  get  to  know  the  stu- 
dents, professors,  and  scientists  of  other  countries. 
"We  must  thus  suit  the  action  to  the  word,  the  word 
to  the  action. 

Premier  Stalin  gave  the  world  some  interesting 
words  last  week.  Many  are  wondering  what 
comfort  to  take  from  them.  I\Iany  are  wondering 
what  action  will  accompany  these  words. 

There  was  one  phrase  in  Stalin's  statement  that 
was  easy  to  miss,  overshadowed  as  it  was  by  imme- 
diate political  questions.  But  this  line  was  espe- 
cially interesting  to  me,  and  may  prove  potentially 
important  for  the  State  Department's  program 
of  cultural  relations. 

Alexander  Werth,  a  British  correspondent, 
asked  Generalissimo  Stalin  what  in  his  opinion 
could  help  in  the  establishment  of  friendly  rela- 
tions between  the  Soviet  Union  and  Great  Britain, 
a  condition,  he  said,  eagerly  desired  by  the  broad 
masses  of  English  people.  Here  was  Stalin's  re- 
ply :  "I  really  believe  in  the  possibility  of  friendly 
relit  t  ions  between  the  Soviet  Union  and  Great 
Britain.  Establishment  of  such  relations  would 
be  appreciably  helped  by  sti-engthening  political, 
trade,  and  cultural  relations  between  these  coun- 
tries" [italics  Mr.  Benton's]. 

I  am  greatly  encouraged  that  Premier  Stalin 
goes  on  record  that  he  desires  to  strengthen  cul- 
tural relations  with  Great  Britain.  And  my  hope 
is  that  implicit  in  his  statement  there  is  the  idea 
that  he  wants  to  strengthen  cultural  relations  with 
the  United  States.  The  State  Department  advo- 
cates a  program  of  exchange  of  students,  profes- 
sors, technicians,  and  specialists  with  the  Soviet 
Union.  We  have  been  informed,  however,  that 
the  physical  conditions  of  life  in  the  Soviet  Union, 
and  the  present  lack  of  facilities,  make  it  difficult 
for  the  Soviet  Union  to  provide  for  the  welfare  of 
American  students,  professors,  technicians,  and 
specialists. 


Perhaps  we  now  have  reason  to  hope  for  faster 
progress  towards  the  goal  we  advocate.  That  hope 
is  strengthened  by  news  reports  from  Moscow  that 
the  universities  of  Moscow,  Leningrad,  and  other 
cities  have  been  thrown  open  to  students  from 
Bulgaria,  Czechoslovakia,  and  Yugoslavia.  The 
press  reports  that  16  Bulgarian  students  already 
have  arrived,  and  that  Czech  and  Yugoslav  stu- 
dents are  expected  to  arrive  soon.  Thus  I  very 
much  hope  that  we  may  be  able  soon  to  persuade 
the  Soviet  Government  to  extend  to  American  stu- 
dents the  same  facilities  which  are  now  beginning 
to  be  provided  for  foreign  students  from  the  Soviet 
Union's  Slavic  neighbors. 

Wliile  these  seemingly  encouraging  develop- 
ments are  occurring  in  the  Soviet  Union,  our  infor- 
mational and  cultural  program,  as  you  must  have 
read  in  the  paj)ers,  has  suffered  an  apparent  set- 
back at  the  hands  of  Marshal  Tito  in  Yugoslavia. 
As  you  know,  the  library  and  reading-room  of  the 
United  States  Information  Service  in  Belgi-ade, 
and  the  cultural  activities  carried  on  by  our  Em- 
bassy, have  been  temporarily  closed  down  at  the 
request  of  the  Yugoslav  Government.  We  have 
not  yet  accepted  this  as  a  final  answer  by  the  Yugo- 
slav Government,  and  negotiations  are  now  in 
progress.  Incidentally,  it  is  interesting  that  the 
Yugoslav  Government  seems  to  be  restricting  our 
information  and  cultural  relations  with  Yugo- 
slavia at  a  time  when  Marshal  Stalin  has  at  least 
indicated  his  willingness  to  promote  cultural  rela- 
tions with  Great  Britain,  and  I  hope  with  the 
United  States. 

I  don't  like  the  phrase  cultural  relations  to  de- 
scribe the  important  jirogram  of  the  State  Depart- 
ment which  is  covered  by  this  phrase.  This 
program  is  an  important  instrument  of  foreign 
policy.  The  phrase  seems  to  be  about  the  best  name 
that  we  can  find  for  it.  The  phrase  cultural  rela- 
tions in  French  more  accurately  describes  our  pro- 
gram than  the  connotation  of  the  phrase  ctilturai 
relations  in  English.  I  think  that  is  because  the 
French,  being  realists,  long  ago  realized  more  fully 
than  we  in  Britain  and  America  the  important 
relation  between  the  spread  of  a  culture  and  politi- 
cal fact.  The  French  have  never  scorned  cultural 
relations,  whereas  many  Americans  have  tended  to 
think  of  cultural  relations  mei'ely  in  terms  of  art 
exhibits,  choral  societies,  and  the  like.  But  we  in 
America  are  learning  that  the  promotion  of  cul- 
tural relations  between  peoples,  in  their  broad  and 


OCTOBER  13,  101,6 

all-inclusive  sense,  is  at  the  heart  of  the  problem  of 
political  relations. 

Let  me  give  you  some  examples  of  the  practical 
projects  that  the  rather  ambiguous  term  cultural 
relations  includes. 

Since  1939  we  have  had  an  interesting  experi- 
mental laboratory  for  cultural  relations  with  Latin 
America.  Nelson  Rockefeller,  as  coordinator  of 
cultural  relations  with  Latin  America,  promoted 
scores  and  indeed  hundreds  of  projects  financed 
jointly  by  the  United  States  and  Latin  American 
republics.  These  projects  were  undertaken  pri- 
marily to  cement  hemisphere  solidarity,  im- 
mediately before  and  during  the  war.  Neverthe- 
less, tlieir  peacetime  value  has  never  been  under- 
rated.   I  shall  describe  a  few  of  them. 

Picking  almost  at  random  a  few  examples,  I 
might  cite  the  two  cooperative  radiosonde  stations, 
in  Mexico  and  in  Cuba,  where  scientific  instruments 
are  sent  up  into  the  stratosphere  in  balloons  to 
secure  data  on  the  air  currents  which  affect  the 
weather  not  only  in  Mexico  and  Cuba  but  all 
through  our  South,  Middlewest,  and  east  coast  as 
well.  These  data  are  of  great  value  to  our  avia- 
tion and  our  shipping,  as  well  as  to  our  farmers. 

Another  important  cooperative  project  has  been 
our  rubber  experimental  station  in  Colombia. 
Only  a  few  months  ago  at  one  of  our  jointly  op- 
erated stations,  a  new  type  of  blight-resistant  rub- 
ber was  devebi^ed  which  is  suitable  for  small 
plantings  as  well  as  for  large  plantations.  This 
discovery  has  vast  implications  for  Colombia.  It 
is  also  useful  to  us.  Among  other  things,  it  can 
give  us  a  supply  of  much-needed  raw  material 
just  a  short  distance  away,  in  this  hemisphere. 

Many  other  agricultural  projects  of  a  similar 
nature  have  been  undertaken.  An  evidence  that 
these  projects  are  in  fact  cooperative  is  that  co- 
operating countries  spend  over  $3  for  every  $1 
spent  by  the  United  States  Government. 

Public-health  projects  have  included  the  build- 
ing of  several  American  hospitals,  to  serve  as 
models.  The  hospital  in  Peru,  for  example,  offers 
a  clinic  and  a  visiting-nurse  service  and  is  a 
center  of  health  information  for  the  entire  coun- 
try. It  is  now  run  by  a  Peruvian  staff,  with  the 
help  of  two  American  doctors  and  four  American 
nurses. 

I     In  18  countries  American  physicians,  engineers, 
land  nurses  joined  forces  with  their  Latin  Ameri- 
can counterparts  to  set  up  cooperative  public- 


673 

health  projects.     These  projects  are  now  being 
taken  over  by  local  governments. 

The  Office  of  Inter-American  Affairs,  under 
Mr.  Rockefeller,  also  set  up  demonstration  water- 
supply  systems;  translated  and  distributed  medi- 
cal books  and  pamphlets;  distributed  films  and 
circulated  exhibits.  Help  was  given  in  setting  up 
departments  of  vital  statistics  in  several  countries. 
These  and  similar  programs  are  reducing  the  death 
rate  substantially  in  Latin  America,  where,  before 
the  war,  it  was  almost  twice  as  high  as  in  this 
country. 

In  addition,  in  Latin  America,  the  Government 
has  set  u,p  "cultural  institutes"  which  function  as 
libraries  and  as  schools  in  United  States  life  and 
customs.  Also,  since  1939  we  have  brought  up 
to  the  United  States  for  study  and  investigation 
about  800  students  and  500  professors  and  special- 
ists from  the  other  American  republics,  and  we 
have  sent  south  40  American  students  and  200  pro- 
fessors and  spBcialists. 

I  would  like  veiy  much  to  be  able  to  tell  you 
about  similar  projects  in  other  parts  of  the  world. 
But  that  I  cannot  do  because  the  State  Depart- 
ment's program  of  cultural  and  scientific  coopera- 
tion is  in  effect  only  in  Latin  America.  Under 
wartime  authority  the  Department  has  carried  out 
some  few  projects  of  technical  and  scientific  assist- 
ance in  other  parts  of  the  world,  notably  in  China 
and  the  Middle  East,  but  legislation  authorizes  this 
kind  of  activity  in  peacetime  only  for  the  coun- 
tries of  Latin  America. 

The  State  Department  does  have  the  authority 
to  carry  on  our  world-wide  information  program; 
we  maintain  information  staffs  and  libraries  all 
over  the  world,  and  we  can  carry  on  radio  broad- 
casts and  send  to  all  missions  abroad  our  documen- 
tary films.  It  is  only  our  scientific  and  cultural 
program  that  is  restricted  to  Latin  America. 

Authority  for  expanding  this  program  to  the 
rest  of  the  world  was  contained  in  a  bill  introduced 
in  the  last  session  of  Congress.  The  bill,  11.  R. 
4982,  won  the  unanimous  support  of  the  House 
Committee  on  Foreign  Affairs  and  passed  the 
House  with  a  large  majority.  It  was  also  ap- 
proved by  the  Senate  Committee  on  Foreign  Rela- 
tions but  failed  to  come  to  a  final  vote  in  the  Senate 
on  the  last  day  of  the  session  because  of  the  pres- 
sure of  other  legislation. 

A  similar  bill  will  be  introduced  when  Congress 
reconvenes  next  January,  and  it  will  need  the  ac- 


674 


DEPARTMENT  OF  STATE  BULLETIN 


tive  support  of  all  those  who  believe  in  this  new 
aiDproach  to  foreign  relations. 

The  Bloom  bill  did  not  become  law  in  the  last 
session  of  Congress,  but  the  Fulbright  bill  did. 
This  law  makes  it  possible  for  the  United  States 
to  sell  its  surplus  properties  abroad  for  currency 
or  credits  whicli  can  be  used  for  such  things  as 
the  study  of  American  students  abroad,  or  the 
sending  of  American  visiting  professors  to  lecture, 
to  teach,  or  to  do  research  in  a  foreign  university. 
These  funds  can  also  be  used  to  pay  the  transpKjr- 
tation  of  foreign  students  and  professors  to  the 
United  States. 

I  cannot  at  this  time  give  you  many  details  about 
this  program,  but  it  is  potentially  a  very  important 
facet  of  our  larger  cultural-relations  program. 

There  are  some  skeptics  who  still  may  wonder 
why  the  United  States  should  carry  on  scientific, 
technical  and  cultural  projects  in  foreign  coun- 
tries in  time  of  peace.  Anyone  can  justify  such 
projects  in  wartime  on  grounds  of  military  neces- 
sity. But  the  skeptics  wonder  why  money  should 
be  spent  in  this  manner  from  now  on. 

In  my  opinion  these  projects  are  more  than  ever 
necessary  now. 

In  the  first  place,  by  helping  other  people  to 
improve  their  health  and  way  of  life  we  ci'eate 
conditions  favorable  to  the  development  of  fi'ee- 
dom  and  democracy,  and  this  is  the  surest  and 
most  direct  way  to  work  against  war.  By  lend- 
ing technicians  and  specialists  we  help  to  raise 
living  standards  in  countries  where  technology  has 
not  been  developed  as  rapidly  as  in  the  United 
States.  By  advising  on  agricultural  techniques, 
by  improving  nutritional  standards,  by  reducing 
disease,  we  are  attacking  low  living  standards  at 
their  source.  By  advising  on  electric-power  de- 
velopment, mining  techniques,  and  transportation 
we  are  creating  the  means  by  which  other  peoples 
can  better  heli^  themselves. 

In  the  second  place,  even  from  a  purely  selfish, 
national  point  of  view,  investment  of  technical 
skill  abroad  pays  high  dividends.  Wlien  living 
standards  are  raised  abroad,  a  greater  flow  of 
trade  with  the  United  States  is  automatically  jjro- 
moted.  Other  countries  can  buy  our  automobiles 
and  refrigerators  only  if  we  help  increase  their 
efficiency  and  thus  their  prosperity  by  sharing  our 
technical  and  scientific  skills  with  them. 

Finally,  by  sharing  our  skills  we  build  up  a 
true  understanding  of  America,  the  kind  of  un- 


derstanding that  promotes  good  neighbors  in 
times  of  peace  and  firm  friends  in  times  of  crisis. 
In  working  with  us,  the  peoples  of  other  coun- 
ti-ies  leani  about  us  as  a  people — our  attitudes, 
our  objectives,  our  national  character  and  way 
of  life.  They  come  to  know  our  democratic  Gov- 
ernment, our  legal  procedures,  and  our  respect  for 
individual  liberty. 

By  way  of  illustration,  I  would  like  to  tell  you 
of  some  of  the  projects  we  had  in  mind  if  the  bill 
"to  promote  the  interchange  of  persons,  knowl- 
edge and  skills"  had  finally  passed.  It  isn't  easy 
to  cite  specific  examples  because  we  live  in  a  fast- 
changing  world  where  needs  are  not  static. 

Projects  for  Europe  would  involve  chiefly  the 
exchange  of  students,  professors,  specialists,  and 
technicians.  European  countries  desperately  need 
our  help  in  training  new  professors  and  techni- 
cians, in  filling  the  gaps  in  their  knowledge  left  by 
the  intellectual  and  scientific  blackout  of  the  war 
years. 

Europeans  are  today  avidly  interested  in  the 
latest  American  developments  in  aviation,  refrig- 
eration (about  which  they  know  very  little) ,  medi- 
cine, and  hundi'eds  of  other  technical  and  scien- 
tific fields  where  progress  has  been  greatest  in 
recent  yeare.  European  students  and  technicians 
want  to  come  to  this  country  to  study  recent  de- 
velopments, and  they  also  want  all  the  informa- 
tion we  can  send  to  them  abroad.  Europe,  too, 
has  made  progress  of  which  we  should  be  in- 
formed. 

Medical  information  has  been  one  of  the  sub- 
jects of  greatest  interest.  One  large  American 
exhibit  on  public  health  has  toured  all  over 
Europe.  When  shown  in  Moscow,  along  with  a 
display  of  300  medical  and  scientific  books,  over 
2.50  medical  experts  attended  in  the  first  three 
days. 

The  Government  of  India  is  at  present  seeking 
in  this  country  experts  in  fruit  growing,  dairying, 
soil  conservation,  and  fishing.  It  is  also  seeking 
a  sanitary  engineer  and  a  director  of  veterinaiy 
service. 

In  China  there  is  a  great  need  for  experts  in 
public  administration  to  aid  in  setting  up  local 
representative  government  units.  The  Chinese 
seem  eager  to  benefit  by  American  experience  in 
self-government. 

Reforestation  is  an  urgent  need  in  China,  as  is 
animal  breeding,  crop  improvement,  flood  and  ero- 


OCTOBER  13,  1946 

sion  control.  Heljj  is  needed  in  creating  indus- 
tries of  all  kinds.  About  200  young  Chinese  now 
want  to  come  to  tliis  country  to  study  in  our  mills 
and  factories.  Public  health  and  sanitation,  law, 
and  business  administration  are  other  fields 
where  opportunities  in  China  are  limitless. 

Ceylon  is  now  requesting  the  Bureau  of  Eec- 
lamation  in  Washington  to  examine  designs  for 
various  proposed  irrigation  projects. 

These  are  the  types  of  cooperative  cultural  and 
technical  programs  the  State  Department  had  con- 
templated for  this  current  year  and  which  we 
hope  to  be  able  to  carry  through  just  as  soon  as 
Congress  provides  the  necessary  authorization. 
Though  potentially  enormous  in  their  effect,  their 
cost  is  relatively  small.  All  projects  must  be  co- 
operative, and  we  shall  never  embark  on  them  un- 
less other  governments  are  working  with  us  and 
underwriting  costs  with  us. 

Many  other  governments,  before  the  war,  re- 
cognized the  need  for  spending  money  on  such 
cultural  and  scientific  cooperation.  We  are  a  late- 
comer in  this  field.  The  overt  operation  of  cul- 
tural exchanges  started  with  France  back  in  the 
1870's.  The  Eussians  over  the  last  20  years  have 
been  alive  to  the  influence  of  cultural  exchanges. 
The  State  Department  has  no  accurate  informa- 
tion on  the  extent  of  the  Russian  program.  Great 
Britain,  a  late-comer  too,  set  up  what  is  known 
as  the  British  Council  in  1935  to  promote  knowl- 
edge of  British  thought  and  way  of  life. 

I  believe  it  might  be  said  that  the  only  unique 
part  of  our  proposed  program  in  the  United  States 
is  its  emphasis  upon  cooperative  projects  of  a 
scientific  and  technical  nature. 

Until  we  made  a  beginning  in  Latin  America  in 
1939,  the  United  States  had  no  program  in  this 
field.  American  jazz  and  motion  pictures  had 
been  our  two  great  so-called  "cultural"'  exports. 
In  Damascus  I  remember  some  years  ago  visiting 
tlu'ee  night  clubs  in  an  attempt  to  find  some  Arab 
music  and  dancing.  All  I  could  find  were  three 
Grerman  bands,  all  playing  very  bad  and  old  Amer- 
ican jazz. 

But  the  time  has  gone  when  we  as  a  nation  can 
iffoid  to  be  indifferent  to  our  scientific,  educa- 
ional,  and  cultural  exports.  If  there  is  any  hope 
'or  the  world,  it  is  that  the  peoples  of  the  world, 
ill  of  whom  want  peace,  will  understand  each 
)ther  and  will  be  willing  to  tolerate  differences 
lecuuse  they  understand  them. 


675 

One  way  to  true  understanding  between  people 
is  through  the  actual  process  of  helping  each  other. 
I  can  assure  you  that  it  is  not  easy  to  create  in 
this  country  the  kind  of  public  understanding  of 
this  problem  that  results  in  congressional  acts  and 
appropriations.  The  function  of  cultural,  scien- 
tific, and  technical  cooperation  as  an  indispensable 
adjunct  to  foreign  policy  is  too  new  in  this  country 
to  be  widely  understood.  But  when  I  consider 
how  far  we  have  come  since  1939  I  am  greatly  en- 
couraged. Up  until  1939,  the  foreign  relations 
of  this  Government  were  carried  on  almost  wholly 
through  governments  speaking  to  governments  via 
diplomatic  notes  and  conversations.  The  pattern 
hadn't  changed  appreciably  in  the  more  than  a 
century  and  a  half  of  our  existence  as  a  nation. 
The  organization  and  procedures  of  the  State  De- 
partment were  substantially  the  same  as  those  of 
the  days  of  Jefferson. 

The  major  aim  of  the  foreign  policy  of  the 
United  States  is  to  promote  peace,  and  today — 
1946 — we  know  that,  since  wars  begin  in  the  minds 
of  men,  the  defenses  of  peace  must  be  constructed 
in  the  minds  of  men,  through  dispelling  ignorance, 
suspicion,  fear,  through  bringing  peoples  of  all 
nations  together  at  the  working  level,  and  by  let- 
ting them  get  to  know  each  other  by  helping  each 
other. 

We  are  therefore  now  altering  our  State  Depart- 
ment organization  and  procedures. 

We  already  have  about  twice  as  many  people  in 
the  Department  working  on  an  informational  and 
cultural  program  than  the  entire  staff  of  the  De- 
partment in  1939.  Moreover,  the  Department  has 
taken  the  lead  in  the  organization  of  the  United 
Nations  Educational,  Scientific  and  Cultural  Or- 
ganization, which  will  seek,  at  the  international 
level,  to  encourage  peoples  to  speak  to  peoples 
across  national  boundaries.  The  Department  is 
playing  and  will  continue  to  play  a  large  role  in 
the  work  of  this  organization — known,  by  its 
initials,  as  UNESCO. 

But  the  need  is  infinite.  And  we  have  a  long 
way  to  go  before  this  new  instrument  of  United 
States  foreign  policy  will  be  operating  on  the  scale 
that  will  be  necessary  if  the  chief  aim  of  the 
United  States  foreign  policy  is  to  be  achieved. 
That  aim  is  peace,  and  that  aim  can  only  be 
achieved  by  understanding. 


Further  Protest  to  Yugoslavia  Against  Disregard 
For  Allied  Military  Regulations  in  Zone  A 


[Released  to  the  press  September  30] 

Text  of  a  note  from  Acting  Secretary  Clmjton, 
delivered  to  Sava N.  Kosanovic,  Ambassador  of  the 
Federal  People's  Republic  of  Yugoslavia  in  Wash- 
ington, on  September  27,  Wlfi 

The  Acting  Secretary  of  State  presents  his  com- 
pliments to  the  Ambassador  of  the  Federal  Peoples 
Eepublic  of  Yugoslavia,  and  has  the  honor  to  in- 
form His  Excellency  that  a  full  report  has  now 
been  received  from  the  American  military  authori- 
ties in  Venezia  Giulia  regarding  the  arrest  of  six 
Yugoslav  soldiers  and  the  alleged  detention  of 
Captain  Segota  and  his  escort  at  Trieste  on  Sep- 
tember 9,  1946,  as  set  out  in  His  Excellency's  note 
Pov.  Br.  1326  of  September  16, 1946. 

This  report  confirms  that  six  soldiers  from  the 
Yugoslav  Train  Detachment,  used  for  guarding 
UNRRA  supplies,  were  arrested  by  American  Mili- 
tary Police  at  3:25  a.m.  on  September  9  at  a 
point  in  Trieste  near  which  a  large  explosion  had 
just  occurred. 

These  soldiers  were  searched  and  found  to  be 
carrying  hand  grenades  concealed  in  their  clothing, 
contrary  to  standing  instructions  that  UNRRA 
guards  were  not  to  be  armed,  and  were  therefore 
handed  over  to  custody  of  the  Venezia  Giulia  Civil 
Police.  Further  investigation  showed  that  the 
Yugoslav  soldiers  were  apparently  not  connected 
with  the  large  explosion,  near  the  scene  of  which 
they  had  been  arrested,  and  they  were  therefore 
escorted  to  Headquarters  of  the  Yugoslav  Detach- 
ment on  September  11,  with  instructions  that  they 
be  sent  out  of  Zone  A  for  violation  of  the  standing 
orders  against  carrying  weapons. 

The  Government  of  the  Federal  Peoples  Repub- 
lic of  Yugoslavia  must  have  been  aware,  at  the  time 
its  protest  was  addressed  to  this  Government,  that 
the  six  Yugoslav  soldiers  had  been  released  to  the 
Yugoslav  military  authorities  in  Zone  A,  despite 
their  violation  of  Allied  military  orders,  and  this 
Government  is  therefore  unable  to  see  any  basis  for 
a  Yugoslav  protest  in  this  case.  Instead,  it  ap- 
pears that  this  Government  must  protest  once 
again  the  disregard  shown  by  officers  and  men  of 
the  Yugoslav  Detachment  in  Zone  A  for  Allied 
military  regulations  in  that  area. 

676 


As  regards  the  alleged  arrest  of  Captain  Segota 
and  his  escort,  the  Acting  Secretary  is  pleased  to 
inform  His  Excellency  that  as  a  result  of  Captain 
Segota's  protest  to  XIII  Corps  Headquarters,  the 
Conunanding  General,  88  Division,  United  States 
Army,  appointed  a  Board  of  Officers  to  investigate 
the  incident.  This  Board  of  Officers  has  ascer- 
tained that  Captain  Segota,  accompanied  by  four 
Yugoslav  soldiers,  arrived  at  the  American  Mili- 
tary Police  Station  in  Trieste  at  about  4 :  00  a.m. 
September  9  to  demand  the  release  of  the  six  Yugo- 
slav soldiers  who  had  been  arrested.  He  was  in- 
formed at  once  that  the  six  soldiers  were  in  custody 
of  the  Venezia  Giulia  Civil  Police.  In  the  ensuing 
discussion,  made  difficult  by  the  lack  of  a  common 
language  and  the  absence  of  an  interpreter,  the 
American  Desk  Sergeant,  who  was  alone  in  the 
room  at  the  time  of  Captain  Segota's  arrival,  be- 
came apprehensive  when  the  attitude  of  Captain 
Segota  became  menacing  and  the  latter's  escort 
surrounded  the  Desk  Sergeant.  He  thei-ef  ore  drew 
his  pistol  and  held  the  group  under  guard  while  he 
telephoned  for  the  American  Provost  Marshal  of 
Trieste.  Meanwhile,  the  Desk  Sergeant  called 
other  Military  Police  sleeping  in  an  adjoining 
room,  and  with  their  assistance  Captain  Segota  and 
his  escort  were  searched  and  their  documents 
checked.  The  Provost  Marshal  arrived  at  about 
this  time,  and  after  further  discussion  informed 
Captain  Segota  that  the  six  soldiers  could  not  be 
released  but  that  he  and  his  escort  were  of  course 
free  to  leave  at  any  time  they  wished. 

In  its  findings,  the  Board  of  Officers  held  that 
disrespectful  remarks  or  profane  language  had  not 
been  used  against  the  Yugoslav  military  person- 
nel, and  that  certain  statements  quoted  by  both 
Amei-icans  and  Yugoslavs  could  not  have  been 
known  positively  because  of  the  language  barrier. 
The  Board  also  held  that  under  normal  conditions 
tlie  acts  of  the  American  Military  Police  would 
have  been  improper,  but  that  against  the  back- 
ground of  the  wounding  of  seven  of  their  number 
by  a  hand  grenade  explosion  on  the  previous  day 
and  the  discovery  during  the  preceding  hour  that 
Yugoslav  soldiers  in  Trieste  were  illegally  armed 
with  hand  grenades,  and  in  the  light  of  the  Desk 


\ 


OCTOBER  13,  19J,6 

Sergeant's  apprehensions  over  the  suspicious  be- 
havior of  Captain  Segota's  escort  and  the  inability 
of  the  two  groups  to  understand  one  another,  the 
detention  under  armed  guard  of  the  Yugoslav 
group  until  tlie  arrival  of  a  superior  officer  was 
justified.  The  Board  recommended  that  no  disci- 
plinary action  be  taken,  and  that  constant  instruc- 
tions be  given  to  Military  Police  to  be  firm  but  fair 
in  all  of  their  dealings  in  an  endeavor  to  avoid 
similar  incidents  in  the  future.  The  findings  and 
recommendations  of  the  Board  of  Officers  have  the 
full  support  of  this  Government,  which  is  confident 
that  if  Yugoslav  military  personnel  in  Zone  A  will 
evince  an  attitude  of  loyal  cooperation  towards 
their  Allied  comrades  in  arms  in  Venezia  Giulia 
they  will  meet  with  a  most  full  and  friendly  re- 
sponse on  the  part  of  American  military  person- 
nel. 

At  the  same  time,  tliis  Government  desires  the 
Yugoslav  Government  to  know  that  it  resents  the 
charges  that  Allied  military  authorities  took  no 
steps  in  this  matter  and  that  they  inspired  a 
''fascist"  press  to  give  a  "false"  account  of  the  in- 
cident, and  that  it  rejects  these  charges  as  mis- 
chievous propaganda  without  any  foundation  in 
fact. 

Discussion  of  Double  Taxation 
Treaties  With  Belgium 
and  Luxembourg 

[Released  to  the  press  October  4] 

The  Department  of  State  announced  on  October 
•4  that  draft  conventions  have  been  formulated  for 
the  avoidance  of  double  taxation  with  respect  to 
income  taxes  in  discussions  between  a  United 
States  tax  delegation  and  representatives  re- 
I  spectively  of  the  Goverimients  of  Belgium  and 
Luxembourg. 

These  drafts  have  been  submitted  by  the  nego- 
tiators to  their  respective  governments  for  further 
consideration  with  a  view  to  signature. 

Agreement  upon  the  drafts  with  Belgium  and 
Luxembourg  completes  the  discussions  of  the 
United  States  tax  delegation  which  has  recently 
visited  the  Netherlands,  Belgium,  and  Luxembourg 
for  the  purpose  of  exploring  possible  bases  for 
conventions  with  those  countries  for  the  avoidance 
of  double  taxation. 


677 

Completion  of  a  similar  draft  convention  on  the 
avoidance  of  double  taxation  with  the  Netherlands 
was  announced  by  the  Department  on  September 
30,  1946. 

"Avoidance  of  double  taxation"  treaties  on  in- 
come taxes  are  now  in  effect  with  Sweden,  France, 
Canada,  and  the  United  Kingdom. 

It  is  expected  that  a  new  convention  with  France 
modifying  the  convention  of  1939  will  be  signed  in 
the  near  future. 


Leprosy  Conference — Continued  from  page  664 

(Leonard  Wood  Memorial),  and  various  other 
private  organizations  have  been  asked  to  send  rep- 
resentatives. 

The  United  States  Delegation  is  expected  to  in- 
clude representatives  of  the  United  States  Public 
Health  Service  and  the  American  Leprosy  Foun- 
dation. 

The  three  principal  topics  which  will  be  dis- 
cussed at  the  conference  are:  (1)  classification  of 
leprosy;  (2)  epidemiology  of  leprosy;  and  (3) 
therapeutics  in  leprosy.  Many  South  American 
experts  disagree  with  the  classification  adopted 
at  the  Cairo  conference  in  1938,  and  recommenda- 
tions for  changes  are  expected  to  emerge  from  the 
Rio  de  Janeiro  conference.  Agi-eement  on  classi- 
fication being  fundamental  to  all  studies  of  the 
disease,  scientific  workers  should  have  a  common 
understanding  regarding  terms  that  are  used  to 
designate  the  various  types  of  the  disease.  Studies 
on  epidemiology  of  the  disease,  and  especially 
those  relating  to  its  relative  prevalence  under  vari- 
ous environmental  conditions,  are  of  great  im- 
portance. While  the  cause  of  leprosy  is  consid- 
ered to  be  Hansen's  bacillus  and  although  the  dis- 
ease is  exclusively  human,  the  mode  of  transmission 
from  sick  to  healthy  persons  is  unknown.  Trans- 
mission by  some  insect  is  still  regarded  as  a  possi- 
bility. Also,  many  consider  that  a  defect  in  diet 
may  lower  natural  resistance  to  the  disease. 

In  the  field  of  therapeutics,  much  of  the  dis- 
cussion will  center  around  the  treatment  of  the 
disease  with  promin  and  diasone.  Both  are  drugs 
of  the  sulfone  group  which  have  been  synthesized 
in  the  United  States.  Favorable  results  have  been 
reported  from  the  leprosy  institutions  at  Chaca- 
chacare,  Trinidad,  and  at  Carville,  Louisiana. 


678 

Conclusion  of  Agreement  Providing 
for  Operation  of  Ocean  Weather 
Stations  in  North  Atlantic 

The  Department  of  State  announced  on  Octo- 
ber 3  the  conclusion  of  an  agreement  among  North 
Atlantic  countries  to  provide  for  the  establishment 
and  operation  of  13  ocean  weather  stations  along 
the  air  routes  across  the  North  Atlantic.  The 
agreement,  signed  in  London  on  September  26, 
will  become  effective  upon  acceptance  by  the  nine 
signatory  governments.^ 

The  United  States  Delegation  to  the  London 
conference  was  comprised  of  representatives  from 
the  United  States  Coast  Guard,  United  States 
"Weather  Bureau,  Civil  Aeronautics  Administra- 
tion, War  and  Navy  Departments,  and  Bureau 
of  the  Budget,  with  a  representative  from  the  De- 
partment of  State  as  the  chairman  of  the  United 
States  Delegation.  The  Delegation  was  unani- 
mous in  urging  that  this  Government  sign  the 
agreement. 

The  ocean  weather  stations  are  imperative  for 
the  safe  and  efficient  operation  of  trans-Atlantic 
flights.  Their  provision  has  been  an  increasingly 
difficult  problem  since  the  withdrawal  of  stations 
provided  by  the  United  States  military  services 
and  which  served  the  heavy  trans-Atlantic  mili- 
tary traffic  during  the  war.  Designed  for  the 
observing  and  reporting  of  important  weather 
data  on  the  high  seas,  the  ocean  weather  stations 
will  provide  needed  navigational  aids  through 
radio  beacons  and  other  aeronautical  equipment, 
and  will  also  be  able  to  assist  in  search  and  rescue 
operations  in  any  emergency. 

The  Conference  on  North  Atlantic  Ocean  Sta- 
tions was  called  in  London  under  the  auspices  of 
the  Provisional  International  Civil  Aviation  Or- 
ganization (PICAO)  and  convened  September 
17  1946.  Goveriunents  represented  at  the  con- 
ference included  Belgium,  Canada,  Denmark, 
France,  Iceland,  Ireland,  the  Netherlands,  Nor- 
way, Portugal,  Spain,  Sweden,  the  United  King- 
dom, and  the  United  States  of  America.  Al- 
though the  Governments  of  Denmark,  Iceland, 
Portuo-al,  and  Spain  will  not  assist  in  the  establish- 
ment of  the  ocean  weather  stations  at  this  time, 
and  hence  did  not  sign  the  London  agreement, 
provision  is  made  in  the  agreement  for  the  pay- 
ment of  cash  contributions  through  the  PICAO 

^For  text  of  the  agreement  see  Department  of  State 
press  release  697. 


DEPARTMENT  OF  STATE  BULLETIN 

Interim  Council  should  these  Governments  ac- 
tively utilize  the  services  provided  by  the  sta- 
tions. 

The  formula  used  as  a  guide  in  determining 
which  governments  should  contribute  for  the  pro- 
vision and  upkeep  of  the  stations  was  based  on 
the  frequency  of  trans- Atlantic  crossings  expected 
to  be  flown  by  the  airlines  of  the  states  involved. 
This  formula  was  modified  somewhat  in  order 
that  the  principle  of  contribution  in  kind  rather 
than  in  cash  could  be  followed  as  closely  as  pos- 
sible. 

The  United  States,  which  is  expected  to  operate 
between  65  and  75  percent  of  total  trans-Atlantic 
crossings  through  1948,  will  provide  and  maintain 
seven  of  the  ocean  weather  stations.  In  addition, 
the  United  States  will  operate  one  station  in  co- 
operation with  Canada,  who  has  agreed  to  share 
half  the  costs  of  this  station.  This  Government 
thus  will  provide  58  percent  of  the  total  weather- 
station program  planned  for  the  North  Atlantic 
Ocean.  The  United  Kingdom  will  operate  two 
of  the  stations  and  will  share  in  the  operation  of 
a  third  with  Norway  and  Sweden.  France  will  be 
responsible  for  one  station,  and  Belgium  and  the 
Netherlands  will  share  in  the  operation  of  the 
thirteenth  station.  Ireland  has  agreed  to  con- 
tribute 5,000  pounds  annually  for  the  upkeep  of 
the  13  stations. 

The  stations  for  which  the  United  States  will 
be  responsible  will  be  operated  by  the  U.S.  Coast 
Guard.  By  the  first  of  November,  the  Coast 
Guard  expects  to  have  four  of  the  stations  in 
operation.  Each  of  the  stations  will  have  com- 
plete weather-reporting  equipment  which  will  be 
operated  by  pei-sonnel  of  the  U.S.  Weather  Bureau. 

The  agreement  has  received  enthusiastic  endorse- 
ment by  responsible  aviation  officials  in  this  Gov- 
ermnent  as  well  as  by  the  Commandant  of  the 
Coast  Guard  and  the  Chief  of  the  Weather  Bureau, 
the  two  agencies  responsible  for  the  operation  of 
the  ships  to  be  used  for  the  ocean  weather  stations. 
The  weather  data  to  be  collected  and  disseminated 
every  three  hours  daily  by  the  stations  will  be 
useful  not  only  to  aviation  and  maritime  interests 
but  also  to  industry  and  agriculture  generally,  in  as 
much  as  the  data  will  be  important  to  long-range 
weather  forecasting. 

The  United  States  Delegation  was  as  follows : 

Delegate: 

.1.  Paul  Barringer,  Assistant  Chief,  Aviation  Division, 
Department  of  State 


OCTOBER  13,  19^6 

Alternate  Delegates: 

Delbert  M.  Little,  Assistant  Chief,  U.S.  Weather  Bureau, 
Department  of  Commerce 

Laurence  S.  Kuter,  Maj.  Gen..  U.S.A.,  U.S.  Representa- 
tive to  Interim  Council  of  PICAO 
Advisers: 

Paul  T.  David,  Assistant  Chief,  Fiscal  Division,  Bureau 
of  the  Budget 

Garrett  V.  Graves,  Commander,  U.S.C.G.,  Chief,  Aer- 
ology and  Oceanography  Section,  Office  of  Opera- 
tions, Headquarters,  U.S.  Coast  Guard 

Norman  R.  Hagen,  Meteorological  Attach^,  U.S.  Em- 
bassy, London,  England 


679 

Advisers — Continued 

Robert  F.  Hickey,  Captain,  U.S.  Navy,  London,  Eng- 
land 

Paul    M.    Huber,    Major,    U.S.A.,    Headquarters,    Air 

Weather  Service,  Army  Air  Forces 
Chris    M.    Lample,    Chief,    Air    Navigation    Facilities 

Service,  Civil  Aeronautics  Administration 
Harold   G.   Moore,   Captain,   U.S.C.G.,   Coordinator  for 

International    Affairs,    Headquarters,    U.S.    Coast 

Guard 

Charles  I.  Stanton,  Deputy  Administrator,  Civil  Aero- 
nautics Administration 


Peace:    A  Challenge  to  American  Leadership 

BY  ASSISTANT  SECRETARY  HILLDRING 


Today  we  are  faced  with  the  necessity  of  making 
Deace.  Making  peace  is  a  complicated  business, 
far  more  complicated  than  waging  war.  I  have  no 
loubt  that  we  will  win  the  peace,  a  good  peace 
ind  a  lasting  peace,  provided  the  people  of  the 
United  States  understand  the  part  they  must  play 
n  solving  this  problem.  It  is  on  this  issue  that 
[  wish  to  speak  to  you  today. 

We  fought  World  War  I  to  preserve  democracy, 
md  we  won  most  of  the  battles  in  that  war.  More 
mportantly  we  won  the  final  battles  that  brought 
ibout  an  armistice  and  a  set  of  peace  treaties  dic- 
ated  by  the  Allied  powers.  But  did  we  really 
.vin  World  War  I  ?  In  1918,  in  1928  —  even  in 
1938  —  most  Americans  would  have  answered  that 
luestion  in  the  affirmative. 

It  isn't  necessary  for  me  to  recite  all  the  events 
)etween  the  wars  that  clearly  indicate  that  think- 
ng  Americans  honestly  believed  that  by  winning 
he  battles  of  World  War  I  the  Allied  nations  had 
)rotected  and  made  secure  their  democratic  insti- 
utions. 

I  will  merely  mention  a  few  of  the  milestones 
hat  served  as  gages  of  the  American  attitude  of 
hose  days.  For  one  thing,  we  declined  to  partici- 
)ate  in  the  League  of  Nations.  But  worse  than 
hat  we  engaged  in  one  of  the  most  disastrous 
ntellectual  retreats  of  modern  times — a  retreat  to 
ock-ribbed  isolation  behind  our  two  oceans.  So 
mpregnable  was  this  position  and  so  great  was  the 
jense  of  well-being  in  the  American  mind  that  it 
:  ?as  incapable  of  comprehending  the  obvious  mean- 
ng  of  German  rearmament,  of  the  brutal  conquest 
f  Abyssinia,  of  the  invasion  of  Manchuria — even 


of  the  threat  of  Fascist  and  Nazi  ideologies.  What 
I  am  trying  to  say  is  that  most  thinking  Ameri- 
cans— yes,  even  most  leaders  of  American 
thought— sat  tranquilly  in  their  ivory  towers  while 
the  foundations  of  our  civilization  were  being — I 
was  going  to  say  whittled  away ;  rather,  I  should 
say,  were  being  blasted  away  from  under  us. 

But  let's  get  back  to  the  question.  Did  we  really 
win  World  War  I  ?  If  we  fought  the  war  in  order 
to  win  battles,  the  answer  is  yes.  But  if  we  en- 
gaged in  that  war  to  make  democracy  secure,  and 
I  think  that's  why  we  fought,  then  I  believe  history 
has  clearly  demonstrated  that  we  did  not  achieve 
by  the  lavish  expenditure  of  our  manhood  and  our 
treasure  the  objectives  for  which  we  waged  the 
war. 

And  so  along  came  World  War  II.  By  a  spon- 
taneous and  Herculean  effort  on  our  part  and  by 
the  miraculous  resistance  of  our  Allies,  notably 
England  and  the  Soviet  Union,  we  have  again 
won  all  of  the  battles.  All  fighting  ceased  over  a 
year  ago.  But  very  regretfully  I  am  forced  to 
express  the  opinion  that  we  have  not  as  yet 
achieved  any  of  the  main  objectives  for  which  we 
fought  World  War  II.    The  war  has  not  been  won. 

That,  my  friends,  is  just  where  we  find  ourselves 
on  this  delightful  September  afternoon  in  1946. 
The  eradication  of  Fascism,  the  elimination  of 
intolerance,  the  establishment  of  an  endurin"- 
peace,  these  are  the  objectives  for  which  we  fought, 
and  this  is  the  part  of  the  conflict  which  must  be 

'An  address  delivered  before  the  American  Legion 
Convention  in  San  Francisco,  Calif.,  on  Sept.  30  and 
released  to  the  press  on  the  same  date. 


680 

won,  if  it  is  won  at  all,  by  the  people  themselves 
under  intelligent  and  forceful  civilian  leadership. 

/;;  is  the  battle  for  peace.  So  far  as  the  United 
States  is  concerned  the  soldiery  for  this  battle  is 
all  the  men  and  all  the  women  of  America. 

You  will  be,  or  at  least  you  should  be,  the  leaders 
of  our  people  in  this  great  struggle. 

"Wliat  exactly",  you  ask,  "should  we  do?" 

Let  me  start  by  telling  you  what  shouldn't  be 
done.  "We  will  never  accomplish  our  purpose  by 
negative  measures.  This  isn't  something  that  can 
be  done  without  positive  effort  and  without  some 
sacrifices,  individually  and  collectively.  Several 
weeks  ago  a  distinguished  American  informed  me 
that  he  agreed  with  me  that  the  United  States 
should  be  represented  in  Berlin  by  the  best  mind 
in  his  field  of  endeavor  the  country  possessed. 
No,  he  personally  couldn't  accept  the  position. 
Unfortunately,  he  was  heavily  committed  at  home. 
Ten  other  distinguished  Americans  in  the  same 
field  of  activity  have  given  expressions  of  the  same 
high  purpose  as  to  the  caliber  of  the  man  we  should 
send  to  Berlin,  and  all  ten  of  them  have  been 
equally  regretful  of  their  inability  to  go  to  Berlin. 
That  is  not  the  sort  of  approach  to  the  solution  of 
world  problems  that  I  advocate. 

Neither  do  I  advocate  adherence  to  our  pre-war 
philosophy  of  virtue  and  weakness.  If  we  are  to 
discharge  our  responsibilities  of  leadership  in  the 
international  field,  we  must  be  strong  as  well  as 
good. 

As  for  positive  steps,  effective  leadership  of 
civilian  opinion  will  require  active  and  intelligent 
interest  in  world  affairs.  It  will  require  the  same 
intellectual  curiosity  that  the  American  now 
possesses  with  regard  to  the  public  school  system 
in  his  community,  to  the  cost  of  living,  to  the  kind 
of  movies  his  children  sees,  to  the  public  health,  to 
the  tariff,  and  to  the  many  other  facets  of  our 
purely  domestic  existence.  He  must  acquaint  him- 
self with  the  facts  of  life  in  the  world  at  large. 
He  should  know,  for  example,  what  the  elements 
of  the  problems  in  Germany  are  today,  what  im- 
plications these  problems  have  to  the  future  peace 
of  the  world,  and  he  should  know  these  things  in 
order  that  he  may  mobilize  the  opinion  of  his  com- 
munity behind  his  "Washington  oflScials  when  they 
are  right,  and  in  order  that  he  may  set  these  same 
officials  right  when  in  his  judgment  they  are  wrong. 
In  a  sense  we  must  revise  our  views  as  to  what 
constitutes  a  good  citizen.    Heretofore,  it  has  been 


DEPARTMENT  OF  STATE  BULLETIN 

a  generally  accepted  theory  that  an  American  is 
a  good  citizen  if  he  is  a  useful  member  of  his 
community,  if  he  votes  regulai-ly,  and  if  he  main- 
tains an  interest  in  civic  and  national  affairs.  I 
would  like  to  submit  the  thought  that  this  standard 
for  citizenship  and  for  civic  leadership  is  today 
outmoded.  "Whether  we  like  it  or  not,  we  are  now 
all  citizens  of  the  world,  and  if  we  want  the 
United  States  to  be  a  peaceful  and  prosperous  land 
we  must  come  to  grips  with  the  realization  that 
our  soal  cannot  be  attained  unless  the  rest  of  the 
woi'ld  is  also  peaceful  and  has  at  least  a  minimum 
of  economic  stability  and  security. 

You  men  of  the  Legion,  for  the  most  part,  have 
planted  your  boots  in  the  mud  of  nearly  every 
country  in  the  world. 

You  have  had  invaluable  first-hand  experience 
with  our  international  obligations.  You  know 
pretty  well  the  feelings  and  anxieties  of  the  people 
you  helped  to  liberate  and  of  our  Allies  who  helped 
us  in  "World  "War  II.  These  people  without  ex- 
ception are  looking  to  us  today.  They,  like  us, 
are  beset  by  a  multitude  of  problems.  Better  than 
any  other  class  of  our  citizenry  you  understand 
that  by  helping  them  to  solve  their  problems  we 
will  be  making  a  most  substantial  and  essential 
contribution  to  the  solution  of  our  own  problems. 
The  foremost  problems  confronting  us  in  con- 
nection with  peacemaking,  and  in  American  for- 
eign relations,  are  to  be  found  today  in  the  coun- 
tries occupied  by  our  military  forces:  Germany, 
Austria,  Japan,  and  Korea. 

The  defeat  of  the  enemy  military  forces  by  the 
Allied  powers  solved  one  problem,  but  created 
others.  "Victory  on  the  field  of  battle  set  the  stage 
for  one  of  the  greatest  experiments  the  world  has 
known.  This  country  has  undertaken  the  re- 
sponsibility of  sharing  in  the  complex  task  of 
governing  approximately  175,000,000  people. 

Millions  of  Europeans  and  Asiatics  are  now 
under  our  control.  In  determining  their  future, 
we  must  somehow  find,  and  we  will  find,  a  means 
of  getting  along  with  the  other  occupying  powers 
witli  whom  we  share  the  responsibility  for  that 
control.  To  help  you  understand  one  facet  of  the 
problem,  let  me  suggest  that  you  magnify  many 
times  the  clashing  interests,  the  different  points 
of  view,  and  the  motives  revealed  in  your  city 
council  or  State  legislature,  and  you  will  begin  to 
realize  the  complexities  of  the  negotiations  that 
must  be  undertaken  before  a  common  understand- 


OCTOBER  13,  1946 


681 


:ng  can  be  reached.  After  all,  the  differences  re- 
lected  in  a  city  council  or  State  legislature  are 
liffei-ences  within  one  country,  whereas  the  differ- 
mces  among  the  members  of  the  Control  Council 
n  Berlin  or  Vienna  are  differences  among  four 
countries  with  resjiect  to  questions  affecting  the 
jeople  of  a  fifth  country. 

No  matter  how  difficult  the  task  may  be,  we  have 
mdertakcn  the  job  of  shaping  the  destinies  of 
uillions  of  persons  along  lines  that  we  believe  will 
le  compatible  with  the  future  peace  and  prosperity 
if  the  world.  Tlie  best  thought,  the  ablest  person- 
lel,  and  the  understanding  and  resources  of  this 
ountry  are  required  to  meet  these  responsibilities. 

I  have  said  that  this  country  has  undertaken 
he  task  of  governing  millions  of  people  in  Europe 
nd  in  Asia.  We  sliare  that  responsibility  with 
he  Soviets,  the  British,  and  the  French,  and,  as  is 
n\j  natural,  their  views  and  ours  sometimes  differ 
s  to  the  metliods  that  are  to  be  followed  in  obtain- 
ng  ultimate  objectives.  We  had  similar  differ- 
nces  with  our  Allies  in  planning  strategy  and 
actics  during  the  war.  We  worked  out  those  dif- 
erences  then.  I  am  confident  that  with  patience, 
eason,  and  persistence  we  can  iron  out  our 
lifferences  now. 

There  is  no  place  in  the  world  where  the  interests 
if  the  great  powers  are  more  sharply  outlined 
han  in  Germany,  Austria,  Japan,  and  Korea, 
basically,  the  United  States  wants  to  see  these 
ccupied  countries  demilitarized  and  democra- 
ized.     I  believe  that  our  Allies  share  these  views. 

In  Germany  we  ai-e  working  to  create  a  country 
hat  will  no  longer  be  a  threat  to  peace,  that  will 
e  able  to  contribute  to  the  economic  recovery 
f  Europe,  and  that  will  develop  conditions  favor- 
ble  for  the  growth  of  democratic  institutions. 
n  defeat,  as  in  pre-war  years,  Germany  remains 
lie  crossroads  of  Europe.  Its  transportation,  its 
ommunications  system,  and  its  economy  are  es- 
mtial  to  the  prosperity  of  the  continent  of  Eu- 
Dpe.  In  order  that  Germany  may  effectively 
ontribute  to  European  economic  recovery,  it  is 
ur  belief  that  Germany  must  be  treated  as  one 
3untry  and  not  as  four  countries.  To  that  end, 
'e  have  recently  proceeded  with  the  merger  of 
le  American  and  British  zones  of  occupation. 
7e  hope  to  demonstrate  the  advantages  to  be  de- 
ived  from  breaking  down  the  artificial  zonal  bar- 
iers  that  have  hitherto  existed.  It  is  our  hope 
lat  the  Russians  and  the  French  will  soon  merjre 


their  zones  with  the  American  and  British  zones. 

The  Secretary  of  State,  in  his  recent  speech  at 
Stuttgart,  forcefully  stated  the  direction  toward 
which  our  policy  will  be  aimed  when  the  Foreign 
Ministers  of  the  United  States,  Great  Britain, 
Russia,  and  France  meet  later  this  year  to  con- 
sider the  German  question. 

In  the  meantime,  your  Government  is  proceed- 
ing with  the  revision  of  the  basic  directive — 
J.C.S.  Document  1067 — to  the  American  Com- 
mander in  Germany.  This  directive  guides  the 
Commander  of  the  United  States  Forces  of  the 
European  Theater  and  lays  down  the  policy  which 
he  will  follow.  The  American  position  will  be 
made  clear  not  only  in  the  Council  of  Foreign 
Ministers  but  also  in  the  Allied  Control  Council 
in  Berlin. 

To  turn  now  to  the  other  major  defeated  coun- 
try, Japan,  we  find  that  our  objectives  are  gener- 
ally the  same  as  in  Germany.  We  have  been 
working  to  demilitarize  Japan  industrially  as  well 
as  militarily.  As  in  Germany,  we  are  now  em- 
barking on  a  program  to  make  Japan  as  self- 
sufficient  as  possible.  The  sooner  Japan  and 
Germany  are  able  to  pay  their  own  way  economi- 
cally, the  earlier  the  American  Government  can 
cease  the  appropriation  of  funds  for  use  in  those 
countries. 

In  Japan,  our  problems  are  somewhat  simpler 
than  they  are  in  Germany,  for  we  already  have 
economic  and  internal  political  unity.  There  is 
an  indigenous  government  in  Japan,  with  juris- 
diction over  the  whole  country,  with  the  result 
that  the  problem  of  exercising  control  over  the 
Japanese  is  greatly  simplified. 

I  do  not  wish  to  leave  the  impression  that  we 
have  no  problems  in  Japan.  The  task  of  elimi- 
nating certain  industries  and  rehabilitating  and 
stimulating  others  in  the  interest  of  creating  a 
peaceful  Japanese  economy  is  a  gigantic  one. 

With  regard  to  Austria  and  Korea,  our  policy 
has  called  for  a  different  approach  from  that  with 
respect  to  Germany  and  Japan.  We  have  treated 
Austria  and  Korea  not  as  enemy  countries  but  as 
liberated  countries.  With  our  Allies,  we  agreed 
that  Austria  should  be  a  free,  democratic,  and  in- 
dependent country. 

If  the  commitments  of  this  country  are  to  have 
any  real  meaning,  we  must  make  every  effort  to 
see  that  Austria  is  maintained  as  an  independent 
and  a  united  country  in  the  heart  of  Europe.    This 


682 


DEPARTMENT  OF  STATE  BULLETIN 


Government  has  a  progi-am  of  reconstruction  for 
Austria  that  will  provide  financial  and  other 
assistance  in  order  to  aid  the  Austrians  in  develop- 
ing their  economy  and  in  maintaining  their  politi- 
cal freedom. 

As  a  result  of  the  war,  Korea  has  been  liberated 
from  Japanese  rule.  American  policy  calls  for  the 
establishment  of  a  united,  democratic,  and  inde- 
pendent Korea.  As  you  may  know,  under  the 
terms  of  the  military  occupation,  northern  Korea 
is  held  by  the  Soviet  Army,  while  we  administer 
the  southern  half  of  the  country.  We  early  sought 
to  unite  the  two  zones  of  Korea  under  a  joint  U.S.- 
Soviet commission.  Unfortunately,  that  has  been 
delayed  owing  to  a  difference  of  views  between  our- 
selves and  our  Kussian  colleagues. 

I  have  cited  only  a  few  problems  in  only  a  few 
places,  in  an  effort  to  indicate  that  high  obstacles 
lie  in  the  path  to  peace.  These  obstacles  must  be 
cleai-ed  or  we  must  detour  around  them  if  we  are 
to  achieve  peace.  Peace  will  not  fall  in  our  lap ; 
it  must  be  worked  for. 

Success,  to  no  small  extent,  depends  upon  the 
people  of  the  United  States.  It  is  a  challenge  to 
American  leadership  that  includes  all  Americans. 
The  realization  of  this  is  not  impossible,  but  it  will 
take  a  lot  of  work,  sacrifice,  patience,  and  intelli- 
gence. 

As  I  said  before,  it  is  the  battle  for  peace.  It  is 
a  cause  in  which  the  veteran  has  unique  qualifica- 
tions for  leadership.  It  is  the  final  battle  of  World 
War  II. 

U.  S.-Argentine  Negotiations  on  Air 
Transport  Agreement  Suspended 

[Released  to  the  press  October  1] 

The  United  States  and  the  Argentine  Delega- 
tions suspended  on  October  1,  for  the  time  being, 
negotiations  relating  to  the  conclusion  of  an  air- 
transport agreement  between  the  two  Govern- 
ments. 

The  Argentines  insisted  upon  provision  for  the 
division  of  air  traffic  between  the  two  countries 
according  to  a  prescribed  formula  and  also  on 
limiting  the  frequency  of  schedules  and  the  ca- 
pacity of  services  to  be  offered.  The  United 
States  upheld  the  view  that  international  air  traffic 
should  be  covered  by  free  and  fair  competition  be- 
tween the  national  airlines  of  the  respective  Gov- 
ernments, subject  to  the  safeguards  which  are  a 


part  of  the  bilateral  agreements  the  United  States 
has  concluded  with  many  other  countries. 

Suspension  of  these  conferences  is  temporary, 
and  does  not  affect  the  continuance  of  American 
air  services  now  being  furnished  by  Pan  American 
Airways  and  Panagra  to  Argentina.  At  the  close 
of  the  conference  it  was  pointed  out  to  the  Ar- 
gentine Delegates  that  despite  the  absence  of  an  air- 
transport agreement  the  Civil  Aeronautics  Act 
provided  a  means  for  the  inauguration  of  new 
services  by  a  properly  designated  Argentine  car- 
rier upon  principles  of  reciprocity  of  treatment. 
It  is  believed  that  the  Argentine  carrier,  FAMA, 
will  file  an  application  for  such  a  permit  pursuant 
to  the  act.  Similarly,  an  application  will  be  filed 
for  the  United  States  carrier,  Braniff,  with  the 
Argentine  authorities  for  permission,  pending 
further  developments,  to  fly  the  route  certificated 
to  it  in  the  recent  Latin  American  decision  by  the 
Civil  Aeronautics  Board,  with  the  approval  of 
the  President  of  the  United  States.  No  present 
changes,  other  than  improved  services,  are  con- 
templated on  the  routes  now  being  flown  by  Pan 
American  and  Panagra. 

In  the  view  of  the  State  Department  and  the 
Civil  Aeronautics  Board  the  discussions  with  the 
Argentine  Delegation  have  proved  helpful. 
Frank  discussion  was  had  on  all  aspects  of  air 
transportation,  and  agreement  was  reached  on  the 
general  principle  that  the  increase  and  improve- 
ment of  air  service  between  the  United  States  and 
Argentina  woidd  redound  to  the  mutual  benefit  of 
both  countries.  In  the  view  of  the  United  States 
representatives,  however,  full  development  of  air 
transportation  is  not  likely  to  be  achieved  until 
the  type  of  arbitrary  restrictions  to  which  the 
United  States  is  opposed  is  eliminated  by  inter- 
national agreement. 

Visit  of  Argentine  Psychologist 

Dr.  Horacio  J.  A.  Kimoldi,  Director  of  the  In- 
stitute of  Psychology  and  professor  of  biology  of 
the  University  of  Cuyo,  Mendoza,  Argentina,  is 
visiting  the  United  States  at  the  invitation  of  the 
Department  of  State.  He  plans  to  spend  a  year  at 
the  University  of  Chicago  in  taking  advanced 
training  and  research  work  in  the  jisychometric 
laborator3\  His  special  interest  is  in  the  field  of 
psychological  measurement  and  related  subjects. 
The  University  of  Chicago  has  issued  a  supple- 
mentary grant  to  facilitate  this  jjroject. 


U.S.  National  Commission  for  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization  ^ 

TRANSMITTAL  OF  FtNAL  REPORT  BY  ASSISTANT  SECRETARY  BENTON 
TO  THE  SECRETARY  OF  STATE 


September  27,  19Jfi. 
The  Honorable 

James  F.  Byrnes, 
Secretary  of  State. 
3ir: 

I  am  honored  to  transmit  to  you  the  final  report 
)f  the  United  States  National  Commission  for  the 
[Jnited  Nations  Educational,  Scientific  and  Cul- 
ural  Organization.  This  report  was  adopted 
manimously  by  the  members  of  the  National  Com- 
nission  at  the  end  of  the  session  terminating  its 
'our-day  meeting  in  Washington,  September  23 
hrough  September  26. 

This  report  highlights  the  most  important  rec- 
)mmendations  of  the  National  Commission  to  the 
Jnited  States  Government,  for  advocacy  by  the 
Jnited  States  Delegation  at  the  forthcoming  Gen- 
■ral  Conferences  of  UNESCO  in  Paris  in  Novem- 
ber. In  addition  to  this  general  summary,  there 
ire  many  other  proposals  of  vital  importance 
vhich  were  adopted  by  the  Commission  growing 
)ut  of  the  specialized  studies  by  its  round  tables  on 
education,  natural  sciences,  social  services,  creative 
trts,  cultural  institutions,  humanities,  and  mass 
ommunications. 

I  think  you  will  agree  that  the  National  Com- 
aission  recommendations  are  bold  and  construc- 
ive.  It  is  the  opinion  of  the  National  Commis- 
ion,  according  to  its  report,  that  "the  responsi- 
'ility  of  the  United  Nations  Educational,  Scientific 
nd  Cultural  Organization  in  the  present  crisis  is 
0  great  and  so  pressing  that  the  Organization 
hould  not  hesitate  to  employ  any  proper  means, 
owever  novel  or  however  costly,  which  give  prora- 
te of  success.  The  Organization  is  itself  a  new 
gency,  daring  in  jnupose  and  novel  in  structure, 
'he  means  it  employs  should  be  appropriate  to 
s  nature.  It  must  serve  as  the  cutting  edge  for 
iternational  action." 
I   The    Commission    received    with    appreciation 

\  our  message  urging  UNESCO  to  help  clear  away        

le  barriers  of  suspicion  and  mistrust  which  divide  '  Reprinted  as  Department  of  State  publication  2635. 


peoples.  The  Commission  called  upon  President 
Truman  who  told  them  that  the  Commission  could 
make  the  "greatest  contribution  in  the  history  of 
the  world  to  the  welfare  of  the  world  as  a  whole, 
if  it  really  goes  at  it  in  the  spirit  that  is  intended". 
He  told  the  delegates  he  thought  they  were  on  the 
road  to  doing  the  job. 

In  my  opening  address  to  the  Commission,  I 
warned  the  members  that  their  actions  would  be 
closely  followed  and  often  severely  criticized,  and 
that  many  demands  would  be  made  upon  their 
time  and  energy.  I  dedicated  the  Commission  to 
hard  work. 

I  have  attended  many  conferences,  but  I  have 
never  seen  as  sincere  and  hard  working  a  group  as 
this  Commission  proved  to  be  this  week.  Many 
diverse  viewpoints  wei-e  represented,  yet  out  of  this 
diversity  grew  surprising  unity.  The  Commission 
gives  every  promise  of  becoming,  as  you  and  I  had 
hoped,  the  collective  brain  to  the  whole  nervous 
system  of  American  culture,  science,  education  and 
means  of  communication. 

In  addition  to  the  obligation  imposed  by  Con- 
gress on  the  Commission,  to  advise  the  United 
States  Government  on  its  participation  in 
UNESCO,  there  is  a  second  role  for  its  members 
of  which  they  were  deeply  conscious.  This  is  to 
act  as  liaison  with  the  thousands  of  organizations 
in  this  country,  and  their  millions  of  individual 
members,  in  carrying  out  the  UNESCO  program 
within  the  United  States.  Many  of  the  members 
present  and  organizations  represented  are  already 
proceeding  energetically  to  fulfill  this  responsi- 
bility. For  example,  the  General  Federation  of 
Women's  Clubs  proposes  to  devote  the  entire  No- 
vember issue  of  its  magazine,  which  goes  to  three 
and  a  half  million  members,  to  the  meeting  of  this 
National  Commission  and  to  the  opportunities  for 
achieving  peace  through  undei'standing,  for  which 
UNESCO  was  created. 


683 


684 


DEPARTMENT  OF  STATE  BVLLETIK 


If  UNESCO  is  to  be  in  fact  "the  spearhead  of 
the  United  Nations",  as  the  Ambassador  from 
France  told  the  members  of  the  Commission  at  its 
dinner,  then  this  grass-roots  activity,  sponsored 
and  promoted  by  the  100  members  authorized  for 
the  National  Commission,  will  help  the  American 
people  achieve  an  imderstanding  of  the  aims  of 
the  United  Nations  and  its  specialized  agencies, 
and  the  aims  of  American  Foreign  policy. 

You  will  be  surprised,  perhaps,  as  were  the  mem- 
bers of  the  Commission,  at  the  statement  by  one 
of  the  members  that  a  new  Gallup  Poll  showed 
that  more  than  30  percent  of  the  people  of  the 
United  States  do  not  know  that  the  United  States 
is  a  member  of  the  United  Nations.  This  illus- 
trates both  the  domestic  need  for  the  National 
Commission  and  its  opportunity. 

Perhaps  of  greatest  interest  to  the  so-called 
practical  men  of  the  world,  as  well  as  to  their 
political  leaders,  will  be  the  attitude  unanimously 
expressed  by  this  group  towards  the  proposed 
UNESCO  budget.  The  Commission  stated  that 
even  if  the  program  were  to  cost  a  billion  dollars 
or  more  annually,  it  would  be  "cheap  insurance" 
against  another  war.  I  may  say  that  no  such 
budget  was  contemplated  because  the  Commission 
is  fully  aware  that  it  is  impossible  to  develop  a 
sufficient  number  of  hard-headed  projects,  with 
sound  administration  and  with  reasonable  hope 
of  success,  to  warrant  any  such  sum  in  the  near 
future.  However,  General  Sarnoff  estimated  for 
one  of  the  round  tables  that  it  would  cost  $250,- 
000,000  to  develop  the  worldwide  communications 
system  required  by  the  United  Nations,  capable  of 
laying  down  a  strong  and  consistent  radio  signal, 
in  all  major  areas  of  the  world,  comparable  to  the 
signal  now  received  from  a  local  radio  station. 
General  Sarnoff  says  that  such  a  world  system  is 
today  technically  feasible.  Such  a  worldwide 
radio  network  is  one  of  the  proposals  unani- 
mously endorsed  by  the  National  Commission. 

The  Commission  elected  the  following  as  its 
officers : 


Chairman  : 

Milton  Eisenhower,  President, 

Kansas  State  College  of  Agiiculture  and 
Applied  Science, 
Manhattan,  Kansas. 
Vice  Chairmen: 
Edward  W.  Barrett, 

Editorial  Director,  Newsweek, 
New  York,  New  York. 
Arthur  H.  Compton,  Chancellor, 
Washington  University, 
St.  Louis,  Missouri. 
Waldo  G.  Leland, 

American  Council  of  Learned  Societies, 
Washington,  D.C. 

Outstanding  in  leadership  and  energy  among 
the  members  present  in  Washington  this  week  was 
Mr.  Archibald  MacLeish,  who  acted  as  Chairman 
of  the  Committee  which  drafted  the  attached  re- 
port. Mr.  MacLeish 's  long  interest  in  UNESCO, 
and  his  contributions  to  the  UNESCO  Constitu- 
tion when  he  acted  as  Chairman  of  the  American 
Delegation  in  London  last  fall,  are  well  known  to 
you. 

I  may  say  that  no  experience  I  have  liad  in  my 
thirteen  months  in  the  State  Department  has 
moved  me  more  deeply  than  the  meeting  this  week 
of  this  new  and  unique  organ  created  by  Congress 
to  advise  the  Department.  As  your  representative 
at  these  meetings,  I  have  been  deeply  stirred  by  the 
passionate  desire  of  these  distinguished  private 
citizens  to  devote  themselves  to  the  same  cause  to 
which  you  are  devoting  yourself  in  Paris — the  dis- 
pelling of  the  ignorance,  mistrust  and  misunder- 
standing which  is  prevalent  throughout  the  world 
(oday — and  the  substitution  in  their  place  of  that 
moral  and  intellectual  solidarity  of  mankind 
which  is  the  goal  of  the  UNESCO  constitution. 
KespectfuUy, 

William  Benton 
Assistant  Secretary 


REPORT  OF  THE  UNITED  STATES  NATIONAL  COMMISSION 
FOR  THE  UNITED  NATIONS  EDUCATIONAL,  SCIENTIFIC  AND 
CULTURAL  ORGANIZATION  TO  THE  SECRETARY  OF  STATE 


To  the  Secretary  of  State 

Sir  :  The  United  States  National  Commission  for 
the  United  Nations  Educational,  Scientific  and 
Cultural  Organization,  organized  by  you  in  ac- 
cordance with  Section  Z  of  House  Joint  Resolution 


30.5  of  the  79th  Congress  (Public  Law  5G5,  79tl 
Congress,  Chapter  700,  2d  Session),  met  in  Wash- 
ington from  September  23  to  September  26,  1946, 
to  advise  the  Government  of  the  United  States  and 
the  United  States  Delegation  to  the  first  General 


OCTOBER  13.  J9i6 

Conference  of  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization  on  matters 
relating  to  the  Organization,  and  specifically  on 
the  position  to  be  taken  in'  the  Organization  by 
the  United  States  Delegation. 

The  purpose  of  the  Organization,  as  stated  in 
its  Constitution,  is  to  contribute  to  peace  and 
security  by  promoting  collaboration  among  the 
nations  through  education,  science  and  culture. 
The  Organization  is  not  conceived  of,  in  other 
words,  as  an  international  undertaking  to  promote 
education  and  science  and  culture  as  ends  in  them- 
selves, but  rather,  through  education  and  science 
and  culture,  to  advance  the  peace  of  the  world. 

In  the  opinion  of  the  National  Commission,  the 
position  to  be  taken  by  the  American  Delegation 
m  the  General  Conference  of  the  Organization 
should  be  determined  by  this  purpose.  The  Amer- 
ican Delegation  should  support  those  proposals  for 
action  by  the  Organization  which  give  promise  of 
advancing  directly  and  significantly  the  cause  of 
peace  through  understanding.  The  necessity  of 
this  labor  grows  clearer  from  day  to  day  as  the 
jffects  of  misunderstanding  and  distrust  and  fear 
jpon  the  conduct  of  international  relations  become 
ncreasingly  evident.  The  recognition  of  the  fun- 
damental community  of  human  interests  which 
nade  possible  the  great  collaborative  effort  of  the 
ivar  has  diminished  with  time  and  change,  and  the 
jossibility  of  common  effort  for  peace  and  for 
iecurity  has  diminished  with  it.  To  restore  and 
nake  increasingly  articulate  the  intellectual  and 
noral  solidarity  of  mankind— to  identify  and  ana- 
yze  existing  obstacles  to  that  solidarity  and  to 
levelop  action  which  will  strengthen  or  create 
'orces  to  overcome  them— is  the  most  immediate 
.nd  the  most  urgent  need  of  our  time. 

In  the  opinion  of  the  National  Commission,  the 
esponsibility  of  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization  in  the  present 
risis  in  so  great  and  so  pressing  that  the  Organiza- 
ion  should  not  hesitate  to  employ  any  proper 
leans,  however  novel  or  however  costly,  which 
ive  promise  of  success.  The  Organization  is  itself 
new  agency,  daring  in  purpose  and  novel  in  struc- 
are.  The  means  it  employs  should  be  appropriate 
)  its  nature.  It  must  serve  as  the  cutting  edge 
Dr  international  action.  If  annual  military  ex- 
enditures  of  thirteen  billion  dollars  for  the  de- 
mse  of  the  people  of  the  United  States  against 
ttack  are  justified,  ten  percent  of  that  amount, 


685 

and  far  more  than  ten  percent,  might  well  and 
wisely  be  expended  to  remove  or  greatly  to  reduce 
the  danger  of  attack.  It  would  be  cheap  insur- 
ance. In  the  first  place,  it  is  the  consensus  of 
military  opinion  that  no  adequate  military  defense 
against  the  weapons  of  modern  warfare  exists.  In 
the  second  place,  even  if  such  measures  were  avail- 
able, their  cost  in  terms  of  life  and  suffering  are  so 
inestimably  great  that  any  action  which  would 
diminish  the  necessity  for  their  use  would  be 
economical. 

The  budget  of  UNESCO  cannot  now  be  esti- 
mated. The  National  Commission  believes,  how- 
ever, that  a  budget  in  the  amount  of  a  billion  or 
a  billion  and  a  half  dollars  or  even  more  might 
well  be  justified,  if  practicable  and  useful  projects 
requiring  such  expenditures  presented  themselves. 
The  National  Commission  pledges  itself  to  sup- 
port the  Organization  to  the  limits  of  its  power 
so  far  as  the  contribution  of  the  United  States 
to  the  budget  of  UNESCO  is  concerned. 

But  though  the  American  Delegation  should  be 
prepared  to  think  and  to  act  boldly  and  imagina- 
tively in  the  General  Conference  of  UNESCO,  it 
should  never  forget,  in  the  opinion  of  this  Commis- 
sion, that  it  represents  a  people  deeply  and  firmly 
committed  to  certain  fundamental  propositions 
bearing  upon  the  nature  and  destiny  of  man.  It 
should  hold  unwaiveringly  to  the  absolute  require- 
ment of  freedom  of  thought  and  freedom  of  ex- 
pression as  the  basic  means  of  arriving  at  the 
world  understanding  which  is  the  immediate  as 
well  as  the  ultimate  objective  of  the  Organization's 
labors. 

The  Commission  has  considered  a  large  num- 
ber of  proposals  for  action  by  the  new  Organiza- 
tion as  developed  by  a  Preparatory  Commission  es- 
tablished in  London  by  the  Conference  of  the 
United  Nations  which  drafted  the  Constitution  of 
the  new  Organization  in  November,  1945.  These 
proposals  will  be  reviewed  at  the  meeting  of  the 
General  Conference  of  UNESCO.  Accordingly, 
the  National  Commission  has  considered  the  re- 
port of  the  Preparatory  Commission  as  a  point  of 
departure  and  has  not  hesitated  to  develop  and  to 
advance  additional  or  different  ideas  of  its  own. 
The  present  report  of  the  Commission  does  not 
undertake  to  list  in  full  the  reconnnendations 
adopted  by  the  National  Commission  in  the  various 
fields  of  UNESCO's  activity.  Many  of  these, 
specific  and  detailed  in  character,  are  submitted  to 


686 

you  in  a  document  supplemental  to  this  report  for 
such  use  as  you  may  think  wise  to  make  of  them. 
The  Commission  believes  that  these  recommenda- 
tions should  be  supported  by  the  American  Delega- 
tion in  so  far  as  they  are  not  inconsistent  with  the 
general  principles  laid  down  in  this  report.  The 
recommendations  here  listed  are  the  recommenda- 
tions to  which  the  Commission  attaches  greatest 
over-all  and  present  importance.  They  are,  more- 
over, recommendations  which,  in  the  opinion  of  the 
Commission,  best  illustrate  the  character  of  the 
work  UNESCO  should  undertake. 

We  have  arranged  our  proposals  in  terms  of  the 
functions  of  the  Organization  as  defined  in  the 
first  Article  of  its  Constitution.     Fundamentally, 
the  concern  of  the  Organization  is  with  the  rela- 
tions of  men  to  each  other.     It  approaches  these 
relations  in  terms  of  three  kinds  of  international 
collaboration.     First,  international  collaboration 
for  the  -preservation  of  men's  knowledge  of  them- 
selves, their  world  and  each  other;  second,  inter- 
national  collaboration  for  the  increase  of  that 
knowledge  through  learning,  science  and  the  arts ; 
third,  international  collaboration  for  the  dissemi- 
nation of  that  knowledge  through  education  and 
through  all  the  instruments  of  communication  be- 
tween the  peoples  of  the  earth  in  order  that  under- 
standing may  replace  mistrust  and  suspicion  and 
the  fear  which  leads  to  war. 

In  the  opinion  of  the  Commission,  the  order  of 
present  urgency  puts  the  third  of  these  functions 
first.  The  Commission,  therefore,  recommends  at 
this  time  only  a  limited  number  of  projects  in  con- 
nection with  the  first  and  second  activities  of  the 
Organization. 

(1)  International  Collaboration  for  the  Preser- 
vation of  Men's  Knowledge  of  Themselves,  Their 
World,  and  Each  Other. 

Here  the  Commission  reconamends  that  the 
American  Delegation  advance  and  support  pro- 
posals for  action  looking  toward  the  rehabilitation 
of  libraries,  museums,  scientific  laboratories  and 
educational  institutions  and  other  depositories  of 
the  materials  and  tools  of  art  and  learning.  The 
Commission  does  not  feel  that  it  is  appropriate  for 
the  Organization  under  its  Constitution  to  attempt 
the  work  of  reconstruction  and  rehabilitation  it- 
self. The  Organization  is,  however,  the  only  body 
which  can  properly  direct  a  general  study  of  needs 
and  draft  a  plan  of  action. 


DEPARTMENT  OF  STATE  BULLETIN 

(2)  Intemational  Gollahoration  for  the  Increase 
of  Men's  Knowledge  of  Themselves,  Their  World 
and  Each  Other  Through  Learning,  Science  and 
the  Arts. 


1 


Here  the  Commission  feels  that  the  American 
Delegation  should  advance  and  support  proposals 
looking  toward  the  development  of  conditions 
more  favorable  to  the  creative  and  investigative 
work  of  artists,  scientists  and  scholars.  Where 
agencies  capable  of  improving  these  conditions  m 
whole  or  in  part  already  exist,  the  Organization 
should  give  its  active  support  and  encouragement 
to  their  undertakings  and  should  attempt  to  facili- 
tate their  cooperation  with  each  other.  Further- 
more, the  Organization  should  encourage  the  estab- 
lislunent  of  new  agencies  of  this  character  where 
they  are  needed  but  do  not  already  exist. 

The  American  Delegation  should  advance  and 
support  proposals  for  studies  by  the  Organization 
of  social  and  international  tensions  which  create 
obstacles  to  international  understanding  and 
therefore  to  peace,  and  for  action  by  the  Organiza- 
tion to  encourage  the  development  of  appropriate 
means  for  their  elimination. 

The  American  Delegation  should  advance  and 
support  proposals  for  the  establishment  of  new 
scientific  and  scholarly  projects  for  research  in 
fields  in  which  work  can  most  effectively  be  under- 
taken on  an  international  basis,  as,  for  instance,  re- 
search in  meteorology,  oceanography,  international 
health,  and  the  study  of  epidemic  diseases. 

(3)  Intemational  Collaboration  for  the  Dis- 
semination of  Men's  Knoioledge  of  Themselves, 
Their  World  and  Each  Other  through  Education 
and  through  all  the  Instruments  of  Convfrmnicar 
tion. 

The  American  Delegation  should  advance  and 
support  proposals  for  the  establishment  or  the 
reestablishment  of  the  means  of  international  com- 
munication through  education  and  through  all 
other  media  where  they  are  needed  and  where  they 
are  at  present  lacking. 

The  American  Delegation  should  advance  and 
support  proposals  for  the  establishment  by  the 
Organization,  alone  or  in  connection  with  the 
United  Nations,  of  a  world-wide  radio  network  ca- 
pable of  laying  down  a  strong  and  consistent 
signal  in  all  major  areas  of  the  world. 

The  American  Delegation  should  advance  and 


OCTOBER  13,  194U 


687 


support  proposals  for  the  removal  of  obstacles  to 
the  free  flow  of  information  in  accordance  with 
the  report  of  the  Committee  of  Consultants  to 
the  Department  of  State  on  Mass  Media  and 
UNESCO.  The  Commission  differs,  however, 
ivith  the  Committee  of  Consultants  in  believing 
:hat  the  Organization  should  concern  itself  with 
:he  quality  of  international  communication 
through  the  mass  media  and  should  give  serious 
itudy  to  the  means  by  which  the  mass  media  may 
)e  of  more  positive  and  creative  service  to  the 
;ause  of  international  understanding  and  there- 
"ore  of  peace.  The  Organization  should,  of 
•ourse,  avoid  at  all  times  any  act  or  suggestion 
)f  censorship. 

The  American  Delegation  should  advance  and 
;upport  proposals  for  action  to  free  the  channels 
>f  international  communication  of  obstacles 
ireated  by  discriminatory  or  unduly  restrictive 
opyright  legislation,  discriminatory  or  unfair 
■ates,  or  other  similar  practices  or  laws. 

The  American  Delegation  should  advance  and 
support  proposals  that  the  Organization  concern 
tself  with  the  press,  radio  and  motion  pictures, 
md  all  other  means  of  publication,  reproduction 
md  dissemination  of  materials,  as  instruments  at 
he  service  of  art,  education,  culture  and  scientific 
idvancement  in  the  labor  of  international  under- 
tanding,  and  with  the  protection  of  the  peoples 
pf  the  world  against  any  misuse  of  these  media 
uch  as  might  result  in  their  degradation  and  per- 
'ersion  to  the  point  of  fostering  international 
11-wilI  and  misunderstanding. 

The  American  Delegation  should  advance  and 
upport  proposals  for  the  investigation  by  the  Or- 
;anization  of  methods  of  education  for  interna- 
ional  understanding  and  for  the  development  of 
ttitudes  conducive  to  peace.  Such  investigations 
hould  direct  themselves  to  the  processes  by  which 
ations  organize  and  give  practice,  within  their 
wn  boundaries,  to  their  people  in  the  arts  of 
■eaceful  cooperation.  They  should  be  more  than 
lere  fact-finding  investigations.  They  should  be 
aciological  studies  of  great  scope  and  depth. 

The  American  Delegation  should  advance  and 
upport  proposals  that  the  Organization  call  a 
onference  in  the  year  1947  on  the  principles, 
olicies  and  procedures  to  be  followed  in  the  prep- 
ration  of  textbooks  and  other  teaching  materials, 
'his  Conference  should  include  in  its  membership 


classroom  teachers  from  all  educational  levels, 
school  administrators,  writers,  publishers,  and 
other  experts  in  the  production  and  use  of  instnic- 
tional  materials. 

The  American  Delegation  should  advance  and 
support  proposals  for  the  exchange  of  students, 
teachers,  scholars,  artists,  artisans,  scientists,  gov- 
ernment officials,  and  others,  active  in  the  various 
fields  of  the  Organization's  work. 

The  American  Delegation  should  advance  and 
support  proposals  looking  to  the  increase  and  im- 
provement of  the  access  of  the  masses  of  the  people 
throughout  the  world  to  printed  and  other  mate- 
rials of  intellectual,  informational  and  cultural 
significance.  The  Commission  believes  that  the 
American  Delegation  should  advance  and  support 
proposals  for  the  development  by  the  Organization 
of  an  effective  system  of  international  inter-library 
loan,  in  original  or  copy,  together  with  the  devel- 
opment of  necessary  international  finding  lists,  and 
arrangements  to  avoid  duplication  in  abstracting 
and  bibliographical  services. 

The  American  Delegation  should  advance  and 
support  proposals  for  the  encouragement  of  the 
establishment  of  popular  library  and  museum  sys- 
tems in  those  areas  of  the  world  where  such  systems 
do  not  now  exist. 


Tax  Treaty  With  the  Netherlands 

[Released  to  the  presB  September  30] 

Representatives  of  the  United  States  and  repre- 
sentatives of  the  Netherlands  have  completed  dis- 
cussions in  The  Hague  exploring  the  possible  bases 
for  conventions  for  avoidance  of  double  taxation 
with  respect  to  income  taxes  and  estate  taxes. 

As  a  result  of  these  discussions  there  has  been 
drawn  up  a  draft  convention  which  deals  with  in- 
come taxes  and  contains  provisions  also  with  re- 
spect to  certain  extraordinary  taxes  in  the  Nether- 
lands. The  draft  convention  is  being  submitted  by 
the  representatives  of  the  two  countries  to  their 
respective  Governments  for  further  consideration 
with  a  view  to  signature. 

The  discussions  on  estate  taxes  have  not  been 
completed.  It  is  expected  that  the  matter  will  be 
given  further  consideration  in  the  near  future  by 
the  authorities  of  the  two  countries. 


status  of  Civil  Aviation  Documents 

FORMULATED  AT  CHICAGO,  DECEMBER  7,  1944 
Compiled  as  of  October  2, 194G  by  the  Treaty  Branch,  Office  of  the  Legal  Adviser,  Department  of  State 

Dates  oj  Signatures 


Country 


Afghanistan 

Australia 

Belgium .-. 

Bolivia _ 

Brazil 

Canada -- 

Chile -- 

China... 

Colombia 

Costa  Rica 

Cuba.... 

Czechoslovakia 

Dominican  Republic. 

Ecuador 

Egypt 

El  Salvador 

Ethiopia 

France --- 

Greece 

Guatemala 

Haiti 

Honduras... 

Iceland 

India 

Iran -. 

Iraq -. 

Ireland 


Final 
Act 


X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 


Interim 
Agree- 
ment 


X 
X 

4/9/45 

X 
5/29/45 

X 

X 

X 
5/24/46 
3/10/45 
4/20/45 
4/18/45 

X 

X 

X 

5/9/45 
3/22/45 

X 

X 
1/30/45 

X 

X 

X 

X 

X 

X 

X 


Conven- 
tion 


X 
X 

4/9/45 
X 
5/29/45 
X 
X 
X 


3/10/45 
4/20/46 
4/18/45 

X 

X 

X 

5/9/45 


X 

X 
1/30/45 
X 
X 
X 
X 
X 
X 
X 


Transit 
Agree- 
ment 
(Two 
Free- 
doms) 


X  indicates  signatures  under  date  of  Dec.  7,  1944. 


X 

7/4/45 
4/9/45 
X 


2/10/45 
X 


3/10/46 
4/20/45 
4/18/46 


X 
X 

6/9/46 
3/22/46 
X 
X 


Trans- 
port 
Agree- 
ment 
(Five 
Free- 
doms) 


3/10/45 
4/20/45 


X 

X 


5/9/45 
3/22/45 


1/30/45 

1/30/45 

X 

X 

X 

X 

4/4/46 

4/4/45 

X 

X 

8/13/46 

X 

Country 


Lebanon 

Liberia... 

Luxembourg 

Mexico 

Netherlands. 

New  Zealand 

Nicaragua 

Norway 

Panama 

Paraguay 

Peru 

Philippines 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Syria 

Turkey 

Union  of  S.  Africa.. 
United  Kingdom... 

United  States 

Uruguay 

Venezuela 

Yugoslavia 

Danish  Minister... 
Thai  Minister 


Final 

Act 


X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 
X 


Interim 
Agree- 
ment 


X 

X 

7/9/45 

X 

X 

X 

X 
1/30/45 
5/14/46 
7/27/45 

X 

X 

X 

X 

X 

X 

X 

X 

X 

6/4/45 

X 

X 

X 

X(6) 


X 
X 


Conven- 
tion 


X 
X 

7/9/45 
X 
X 
X 

X 

1/30/45 


7/27/45 
X 
X 
X 
X 
X 
X 

7/6/45 
X 
X 

6/4/45 
X 
X 
X 


X 
X 


Transit 
Agree- 
ment 
(Two 
Free- 
doms) 


X 
X 

7/9/45 
X 
X 
X 
X 
1/30/45 


7/27/45 
X 
X 
X 


X 
X 

7/6/45 

7/6/45 

X 

6/4/45 

X(5) 

X 

X 

X(6) 


I 


X 
X 


Trans- 
port 
Agree- 
ment 
(Five 
Free- 
doms) 


X  (1) 
X 


X 
X  (2) 


7/27/45 
X 


7/6/45  (3) 
X  (4) 


X 
X 
X 


X 
X 


The  following  reservations  accompany  the 
signatures : 

(1)  "Ad  referendum  concerning  the  fifth  free- 
dom enumerated  in  Art.  I  Section  1." 

(2)  "In  accordance  with  the  provisions  of  Art. 
IV  Section  1  of  this  agreement  the  Netherlands 
Delegation  hereby  accept  only  the  first  four  privi- 
leges in  Art.  I  Section  1." 

(Reservation  relinquished  by  the  Netherlands 
Sept.  21,  1945.) 

(3)  "In  accordance  with  Art.  IV  section  1  of 
this  agreement,  Syria  accepts  only  the  first  four 
privileges  in  Art.  I  section  1." 

(4)  "In  accordance  with  the  provisions  of  Art. 
rV  section  1  of  this  agreement  the  Turkish  dele- 


gation hereby  accept  only  the  first  four  privileges 
in  Art.  I  sect.  1  and  leave  the  acceptance  of  the 
fifth  privilege  to  the  discretion  of  their  govern- 
ment." 

(5)  "I  declare  that,  failing  later  notification  of 
inclusion,  my  signature  to  this  Agreement  does  not 
cover  Newfoundland." 

(Reservation  withdrawn  by  United  Kingdom 
Feb.  7,  1945.) 

(6)  "La  Delegacion  de  Venezuela  firma  ad 
referendum  y  deja  constancia  de  que  la  aprobacion 
de  este  documento  por  su  Gobierno  esta  sujeta  a 
las  disposiciones  constitucionales  de  los  Estados 
Unidos  de  Venezuela." 

(Interim,  transit,  and  transport  agreements  ac- 
cepted by  Venezuela  Mar.  28, 1946.) 


688 


■yCTOBER  13,  1946 
'subsequent  Action  Taken 


Country 

Interim 
Agreement 
(Date  of 
Accept- 
ance) 

Conven- 
tion (Date 
of  Deposit 
of  Ratifi- 
cation or 
AdherenceJ 

Transit 
Agreement 

(Date  of 
Receipt  of 

Note  of 

.A.ccept- 
ance) 

Transport 
.Agreement 
(Date  of 
Receipt  of 
Note  of 
Accept- 
ance) 

Afghanistan 

5/16/45 
6/4/46 
6/19/45 
4/17/45 
5/17/46 
5/29/45 
12/30/44 
6/4/45 
6/6/45 
6/6/46 

6/17/45 

6/4/46 

8/28/46 

7/19/45 

5/17/45 

Argentina 

6/4/46  A 

Australia 

Belgium 

Bolivia 

Brazil. 

7/8/46 
2/13/46 

Canada.- 

2/10/45 

Chile.... 

China 

2/20/46 

6/6/46  (1) 

Costa  Rica 

Cuba 

Czechoslovakia 

4/18/45 

11/13/45 

1/25/46 

4/18/45 

Denmark 

Dominican  Republic... 

1/25/46 

1/25/46 

Ecuador 

Egypt 

4/26/45 
5/31/45 
3/22/45 
6/5/46 
9/21/45 

El  .Salvador 

6/1/46 
3/22/46 

6/1/45 
3/22/45 

Ethiopia 

France 

Greece 

9/21/45 

2/28/46  (2) 

Guatemala.    

Haiti 

6/2/45 

11/13/45 

6/4/45 

5/1/45  (3) 

Honduras 

11/13/45 

11/13/45 

Iceland. 

fndia.,. 

5/2/45  (3) 

[ran 

Iraq   

6/4/45 
4/27/45 

6/4/45 
3/17/45 

7/9/45 

5/22/45 

1/11/45 

4/18/45  (5) 

12/28/45 

1/30/45 

6/16/45 

Ireland 

Lebanon 

Liberia 

3/19/45 

3/19/46 

Luxembourg 

Mexico . 

6/25/46 

6/25/46 

1/12/45 

4/19/45  (5) 

12/28/45 

1/30/45 

Netherlands.. 

1/12/46  (4) 

Mew  Zealand 

Vicarnfnia 

12/28/45 

12/28/45 

SJorway 

Panama 

Paraguay 

7/27/45 
5/4/45 

3/22/46 
4/6/45 

5/29/45 

7/30/45 
7/9/45 
7/6/45 
7/6/45 
6/6/45 
11/.30/45 
5/31/45  (8) 
2/8/45 

1/21/46 
4/8/46 

7/27/45 

7/27/45 

Pern... 

Philippines 

3/22/46  (6) 
4/6/46 

Poland 

4/6/45 

Portugal 

jpain 

7/30/45 

11/19/46 

7/6/46 

Sweden 

11/19/46 

Switzerland 

iyria 

Turkey 

Jnion  of  S.  Africa. 

12/20/45 

6/6/45 

11/30/45 

6/31/45  (8) 

2/8/45  (9) 

6/6/46  (7) 

Jnited  Kingdom 

Jnited  States 

8/9/46 

2/8/46  (9) 

Jruguay 

Venezuela 

3/28/46 

3/28/46 

3/28/46 

fugoslavia 

?hai  Minister.. 

1.  indicates  adherence. 
Elected  to  first  Interim 
•  Elected  to  first  Interii 

The    following 
ceptances : 
(1)  "Theaccep 
mding  that  th( 
)n  3  of  the  Inte 

Council. 
n  Council  by 

'    reserv 

tances  a 
3  provisi 
rnationa 

First  Intent 

ations 

re  given 
ons  of  J 
d  Air  T] 

n  Assembly 

accompa 

with  the 
'Article  " 
^ansport 

rune  6, 1946. 

ny    the 

under- 

:V  Sec- 

Agxee- 

689 

ment  shall  become  operative  in  so  far  as  the  Gov- 
ernment of  China  is  concerned  at  such  time  as  the 
Convention  on  International  Civil  Aviation  .  .  . 
shall  be  ratified  by  the  Government  of  China." 
(Chinese  instrument  of  ratification  of  the  Con- 
vention on  International  Civil  Aviation  deposited 
Feb.  20,  1946.) 

(2)  "In  accepting  this  Agreement  [transport]  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  Agree- 
ment, which,  under  Article  IV,  Section  1,  Greece 
does  not  wish,  for  the  time  being  to  grant  or 
receive." 

(3)  "In  signifying  their  acceptance  of  these 
agreements,  [interim  and  transit]  the  Government 
of  India  ...  do  not  regard  Denmark  or 
Thailand  as  being  parties  thereto  .  .  .".  (Res- 
ervation respecting  Denmark  on  interim  agreement 
withdrawn  by  India  July  18,  1946.) 

(4)  ".  .  .  the  signatures  .  .  .  affixed  to 
the  .  .  .  International  Air  Transport  Agree- 
ment (with  reservation  set  forth  in  Article  IV 
Section  1)  constitute  an  acceptance  ...  by 
the  Netherlands  Government  and  an  obligation 
binding  upon  it."  (Reservation  relinquished  by 
the  Netherlands  Sept.  21,  1945.) 

(5)  ".  .  .  the  New  Zealand  Government 
does  not  regard  Denmark  or  Thailand  as  being 
parties  to  the  Agreements  mentioned  [interim  and 
transit]  .  .  .".  (Reservation  respecting  Den- 
mark on  interim  agreement  withdrawn  by  New 
Zealand  Apr.  29, 1946.) 

(6)  "The  above  acceptance  is  based  on  the  un- 
derstanding .  .  .  that  the  provisions  of  Arti- 
cle II,  Section  2  of  the  International  Air  Services 
Transit  Agreement  shall  become  operative  as  to 
the  Commonwealth  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." 

(7)  "...  the  reservation  made  by  the 
Turkish  Delegation  on  the  fifth  freedom  of  the 
air  contained  in  the  International  Air  Transport 
Agreement  is  explained  in  the  following  article 
of  the  law  by  which  the  aforementioned  instru- 
ments have  been  ratified: 

'The  Turkish  Government,  when  concluding 
bilateral  agreements,  shall  have  the  authority 
to  accept  and  apply  for  temporary  periods  the 
provision  regarding  the  fifth  freedom  of  the 


690 

air  contained  in  the  International  Air  Trans- 
port Agreement.' " 

(8)  "In  signifying  their  acceptance  of  the  said 
Agreement,  [interim  and  transit]  the  Government 
of  the  United  Kingdom  .  .  •  neither  regard 
the  Governments  of  Denmark  and  Siam  as  being 
parties  thereto  .  .  •"  (Reservation  respecting 
Denmark  on  interim  agreement  withdrawn  by 
United  Kingdom  Mar.  30, 1946.) 

(9)  "These  acceptances  by  the  Government  of 
the  United  States  of  America  are  given  with  the 
understanding  that  the  provisions  of  Article  II, 
Section  2,  of  the  International  Air  Services  Transit 
Agreement  and  the  provisions  of  Article  IV,  Sec- 
tion 3,  of  the  International  Air  Transport  Agree- 
ment shall  become  operative  as  to  the  United  States 
of  America  at  such  time  as  the  Convention  on 
International  Civil  Aviation  .  .  •  shall  be 
ratified  by  the  United  States  of  America".  (The 
United  States  of  America  denounced  the  Inter- 
national Air  Transport  Agreement  July  25, 1946 ; 
effective  July  25,  1947.  The  United  States  of 
America  deposited  instrument  of  ratification  of 
Convention  on  International  Civil  Aviation 
Aug.  9,  1946.) 

American  IVlinister  to  Yemen 
Presents  Credentials 

[Released  to  the  press  October  4] 

J.  Rives  Childs,  first  U.S.  Minister  to  Yemen, 
informed  the  Department  of  State  on  October  4 
that  he  presented  his  credentials  to  the  Imam 
Yahya  at  San'a,  capital  of  Yemen,  on  the  morning 
of  September  30.  Minister  Childs,  who  is  also 
U.S.  Minister  to  Saudi  Arabia,  was  accompanied 
by  Harlan  B.  Clark,  Second  Secretary  of  the  U.S. 
Legation  at  Jidda. 

Minister  Childs  and  his  party  were  welcomed  by 
Qadhi  Abdul  Karim  Mutahhar,  Acting  Foreign 
Minister,  and  escorted  to  the  throne  room  where 
Minister  Childs  presented  his  letter  of  credence 
from  President  Truman  and  was  warmly  received 
by  the  Imam. 

The  Imam  expressed  a  desire  for  American 
assistance  in  improving  medical  conditions  in  Ye- 
men and  has  requested  that  the  United  States  send 
a  medical  mission  to  San'a.  The  Government  of 
Yemen  is  also  interested  in  American  assistance  in 
developing  transportation,  irrigation,  and  agricul- 
ture. 

Minister  Childs  and  his  party  will  leave  San  a 


DEPARTMENT  OF  STATE  BULLETIN 

on  October  4  for  a  tour  of  the  more  important 
cities  of  southern  Yemen  en  route  to  Aden  and 
then  to  Jidda,  where  Minister  Childs  is  perma- 
nently stationed. 

Request  to  Brazil  for  Coffee  Imports 

[Released  to  the  press  September  30] 

The  Department  of  State  announced  on  Sep- 
tember 30  that  a  note  had  been  presented  to  the 
Brazilian  Embassy  requesting  that  the  Govern- 
ment of  Brazil  place  500,000  bags  of  coffee  on  the 
market  for  United  States  importers  to  purchase 
during  the  month  of  October  1946. 

The  request  was  made  in  accordance  with  para- 
graph (4)  of  the  "Memorandum  of  Understanding 
reached  between  the  Governments  of  Brazil  and 
the  United  States  of  America  concerning  coffee 
prices  and  supplies"  dated  August  14, 1946.  This 
paragi-aph  reads  as  follows : 

"Should  such  action  be  necessary  to  assure  an 
adequate  flow  of  coffee  under  this  arrangement, 
the  Government  of  Brazil,  upon  the  request  of  the 
Government  of  the  United  States,  will  place  coffee 
on  the  market  at  the  prices  provided  for  in  this 
arrangement  up  to  a  total  of  3,000,000  bags.  Thf 
Government  of  Brazil  may  be  called  upon  to  sup- 
ply up  to  500,000  bags  of  such  coffee  per  month. 
The  grades  of  this  coffee  will  range  from  Santos' 
2s  to  Santos  5s,  inclusive,  the  percentage  of  eacl- 
grade  to  approximate  the  proportion  of  sue! 
grades  exported  to  the  United  States  during  194] 
and  the  cup  quality  of  the  coffee  to  be  soft  oi 
better."  j 

The  note  was  presented  to  the  Brazilian  Embassji 
at  the  request  of  the  Department  of  Agriculturi 
and  the  Office  of  Price  Administration,  whicl 
agencies  are  responsible  for  supplies  and  prices 
of  coffee  in  this  country. 

German  War  Documents  j 

[Released  to  the  press  October  3} 

A  program  for  the  publishing  of  an  authorita 
tive  collection  of  German  Foreign  Office  docu 
ments  and  other  official  papers  is  being  under 
taken  by  the  Department  of  State.  Dr.  Raymom 
J.  Sontag  of  the  University  of  California  is  di 
rector  of  the  project,  which  was  approved  by  CoBi 
gress  last  spring  in  the  State  Department's  ap 
propriation  act. 

The  objective  of  the  Department  is  the  pubh 
cation  of  the  complete  and  accurate  documentar 


OCTOBER  IS,  1946 

record  of  German  foreign  policy  preceding  and 
during  World  War  II.  It  is  believed  that  20  or 
more  volumes  will  be  required  for  this  task. 

In  order  to  guarantee  tlie  objectivity  of  the 
undertaking,  the  Department  is  calling  in  outside 
scholars  of  the  highest  reputation.  There  are 
hundreds  of  tons  of  papers  of  the  German  For- 
eign Office  and  other  governmental  ministries 
which  will  have  to  be  scanned  by  the  staff  of  edi- 
tors who  will  be  sent  to  Germany  for  this  work. 
It  is  believed  that  three  years  or  more  will  be 
required  for  the  task. 

A  photographic  project  is  currently  reducing 
the  tons  of  written  material  to  microfilm.  The 
films  are  being  flown  from  Germany  to  the  State 
Department.  They  began  arriving  several  months 
ago  and  are  now  in  the  process  of  being  cata- 
loged and  translated. 

During  the  past  six  months  the  Department  has 
publislied  in  the  Department  of  State  Bulletin 
and  in  pamphlet  form  selected  German  documents 
from  the  large  collection  of  these  materials  which 
has  been  brought  over  in  microfilm.  It  will  con- 
tinue to  do  this  from  time  to  time.  These  and 
future  documents  published  in  the  Bulletin  will 
be  included  in  the  projected  full  documentary  rec- 
ord. 

Treaty  Obligations  and  Philippine 
Independence 

REPLY  OF  DOMINICAN  GOVERNMENT 
TO  U.  S.  NOTE' 

Octoler  7, 1946 
VIr.  Secretaet: 

I  have  the  honor  to  refer  to  Your  Excellency's 
lote  of  the  4th  of  May  of  the  present  year,  and  to 
nform  Your  Excellency,  in  conformity  with  in- 
structions that  I  have  received  to  that  effect,  that 
he  Dominican  Government  agrees  that  the  provi- 
ions  of  the  Agreement  between  the  United  States 
nd  the  Dominican  Republic,  effected  by  an  ex- 
hange  of  notes  signed  the  25th  of  September 
924,  shall  not  be  understood  to  imply  the  exten- 
lon  to  the  Dominican  Eepublic  of  the  advantages 
jccorded  by  the  United  States  to  the  Philippines. 

Accept,  [etc.]  Emilio  G.  Godot 

lis  Excellency 

Dean  Acheson, 

Acting  Secretary  of  State 

'  U.S.  note  is  similar  to  note  sent  to  Bolivian  Govern- 
ent  as  printed  in  Bttixetin  of  June  IG,  194G,  p.  1049. 


691 

Plans  for  Philippine 
Rehabilitation 

On  October  5  a  discussion  on  tlie  plans  for  Philip- 
pine reliabilitation  was  broadcast  over  the  NBC  net- 
work. The  participants  in  the  broadcast  were  John 
Carter  A^ncent,  Director  of  the  Office  of  Far  Eastern 
Affairs,  and  Frank  P.  Lockhart,  Chief  of  the  Division 
of  Philippine  Affairs,  both  of  the  Department  of 
State,  and  Narcisco  Ramos,  Charg<5  d'Affaires  of  the 
Embassy  of  the  Eepublic  of  the  Philippines.  This 
program  was  one  in  a  series  entitled  "Our  Foreign 
Policy,"  presented  by  the  NBC  University  of  the  Air 
For  a  complete  text  of  the  radio  program  see  Depart- 
ment of  State  press  release  700  of  October  4. 


Departmental  Regulations 


116.1 


Office  of  the  Legal  Adviser  (Le):     (Effective 
9-6-^6) 

I        Functions.     Those  functions  of  Le  pertaining  to 
economic  affairs  and  to  treaties  shall  include : 

A        Economic  Affairs,  Le/E. 

1  Providing  legal  services  for  the  Under  Secretary 
for  Economic  Affairs,  the  Assistant  Secretary  for  Eco- 
nomic Affairs  and  for  the  offices  (other  than  the  Office 
of  Foreign  Liquidation)  under  the  direction  of  the 
Assistant  Secretary  for  Economic  Affairs,  and  economic 
matters  otherwise  arising  in  the  Department. 

B         Treaties    and    Other   International   Agreements 
Le/T. 

1  Collecting,  compiling,  and  maintaining  informa- 
tion pertaining  to  treaties  and  other  international  agree- 
ments. 

2  Performing  research  and  furnishing  information 
and  advice  with  respect  to  the  provisions  of  such  existing 
or  proposed  instruments. 

3  Procedural  matters  including  the  preparation  of 
full  powers,  ratifications,  proclamations  and  protocols. 

4  Matters  related  to  the  signing  of  ratifications, 
proclamations  and  registration  of  treaties  and  other  in- 
ternational agreements. 

5  Custody  of  the  original  text  of  treaties  and  other 
international  agreements. 

6  Typing  and  binding  of  the  official  (ribbon)  copies 
of  treaties,  agreements,  and  so  forth  prepared  in  the 
Department  of  State. 

II        Organization 

A        Assistant  Legal  Adviser  for  Economical  Affairs 
Le/E. 

Erratum 

In  the  Bulletin  of  September  29,  1946,  page  574,  second 
column,  second  paragraph,  between  the  second  and  third 
lines  read :  "agreement  reached  last  May  for  its  associa- 
tion with  the  United  Nations.     Under  the  terms  of  this". 

U.  S.  eoVERHMENT  PRINTCNS   OFFICE,  194t 


\r)ontenl^ 


General  Policy  Page 

U.  S.  Aims  and  Policies  in  Europe.     By 

the  Secretary  of  State 665 

Statement     by     the     President     on     the 

Palestine  Situation 669 

U.    S.    Policy   in    Korea.      Statement   by 

Acting  Secretary  Acheson 670 

A    New    Instrument    of    U.    S.    Foreign 

Policy.        By      Assistant     Secretary 

Benton 671 

Further    Protest   to    Yugoslavia    Against 

Disregard       for       Allied       Military 

Regulations  in  Zone  A 676 

Lettersof  Credence:  Minister  of  Rumania.        657 
American    Minister    to    Yemen    Presents 

Credentials 690 

Plans  for  Philippine  Rehabilitation  .    .    .        691 

The  Paris  Peace  Conference 

General  Principles  for  a  Free  International 
Danube.  Remarks     by     Senator 

Vandenberg 656 

The  United  Nations 
International     Traffic     on     the     Danube 
River: 
Draft  Resolution  Submitted  to  Econo- 
mic   and    Social    Council   by    U.    S. 

Delegation 658 

Assistance  to  FAO  on  Longer-Term  Inter- 
national Machinery  for  Dealing  With 
Food  Problems: 
Resolution  To  Be  Proposed   by   U.    S. 

Delegation 658 

Committee  on  the  Terms  of  Reference  of 
the  Subcommissions  of  the  Economic 
and  Employment  Commission:  Pro- 
posal by  U.  S.  Delegation 659 

Summary  Statement  by  the  Secretary- 
General  on  Matters  of  Which  the 
Security  Council  is  Seized  and  of  the 
Stage  Reached  in  Their  Considera- 
tion         660 

Occupation  Matters 

U.    S.    Policy   in    Korea.      Statement   by 

Acting  Secretary  Acheson 670 

Peace:  A  Challenge  to  American  Leader- 
ship.     By    Assistant  Secretary  Hill- 

dring 679 

Economic  Affairs 

The  Polish  Nationalization  Law.  Article 
by  Leon  Goldenberg  and  Laure 
Metzger 651 


Economic  Affairs — Continued  Page 

Nationalization  of  Pohsh  Industries  ...        654 
U.  S.  Demonstrations  of  Radio  Aids  to  Air 

Navigation 662 

Conference  on  Tin 663 

U.  S.  Delegation  to  First  Meeting  of  Pre- 
paratory Committee  for  International 
Conference  on  Trade  and  Employ- 
ment     ■        664 

Discussion  of  Double   Taxation   Treaties 

With  Belgium  and  Luxembourg .    .    .        677 
Request  to  Brazil  for  Coffee  Imports ...        690 
International  Information 
A  New  Instrument  of  U.  S.  Foreign  Policy. 

By  Assistant  Secretary  Benton  ...        671 
Treaty  Information 
Soviet   Position    Concerning   Revision   of 

Montreux  Convention 655 

Discussion  of   Double  Taxation   Treaties 

With  Belgium  and  Luxembourg  .    .        677 
Conclusion   of    Agreement    Providing   for 
Operation  of  Ocean  Weather  Stations 

in  North  Atlantic 678 

U.     S.-Argentine     Negotiations    on     Air 

Transport  Agreement  Suspended  .    .        682 
Tax  Treaty  With  the  Netherlands.    .    .    .        687 
Status     of     Civil     Aviation     Documents 
Formulated  at  Chicago,  December  7, 

1944 688 

Request  to  Brazil  for  Coffee  Imports    .    .        690 
Treaty  Obligations  and  Philippine  Inde- 
pendence.       Reply     of     Dominican 
Government  to  U.  S.  Note      ....        691 

International  Organizations  and 
Conferences 

Calendar  of  Meetings 661 

Educational,  Scientific,  and  Cultural 
Cooperation 

Second     Pan    American     Conference    on 

Leprosy 664 

Visit  of  Argentine  Psychologist 682 

U.    S.    National   Commission   for   United 
Nations    Educational,    Scientific  and 
Cultural  Organization: 
Transmittal  of  Final  Report  by  Assist- 
ant Secretary  Benton  to  the  Secretary 

of  State 683 

Report  of  U.  S.  National  Commission  to 

the  Secretary  of  State 684 

The  Department 

Publications:  German  War  Documents    .        690 

Deiiartraental  Regulations 691 


JAe/  ^eha^twieni/  .(w  t/taie^ 


S.  INTEREST  IN  CIVIL  LIBERTIES  IN  YUGOSLAVIA.     State- 
ment  by  Acting  Secretary  Acheson 725 

WORLD  FUND  AND  BANK:  FIRST  ANNUAL  MEETING  OF  BOARDS 
OF  GOVERNORS '^04 

A  NATIONAL  RUBBER  PROGRAM.     Article  by  Harlan  P.  Bramble . .  700 

GERMAN  DOCUMENTS:  CONFERENCES  WITH  AXIS  LEADERS, 

1944 695 


Oaober  20,  1946 


For  complete  contents  see  back  cover 


^ 


I'^all 


Me  Qje/ic^^ent ^/ ^'tale    bllllGtilll 


Vol.  XV,  No.  381    •    Publication  265( 
Oaoher  20,  1946 


For  sale  by  the  Superintendent  of  Documents 

U.  S.  Qovernnient  Printing  Office 

Washington  25,  D.  C. 

Subscription: 
62  Issues,  $3.50;  single  copy,  10  cents 

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

Published  with  the  approval  of  the 
Director  of  the  Bureau  of  the  Budget 


The  Department  of  State  BULLETIN 
a  weekly  publication  compiled  ana 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  o) 
the  Government  with  information  on 
developments  in  the  field  of  foreign 
relations  and  on  the  work  of  the  De- 
partment of  State  and  the  Foreign  | 
Service.  The  BULLETIN  includeil 
press  releases  on  foreign  policy  issued 
by  the  White  House  and  the  Depart- 
ment, 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  phrases  of  inter- 
national 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,  ci 
mulative  lists  of  which  are  published 
at  the  end  of  each  quarter,  as  well  aa\ 
legislative  material  in  the  field  of  inter- 
national relations,  are  listed  currently. 


German  Documents:  Conferences  With  Axis  Leaders,  1944 


The  Fiihrer  and  the  Duce,  with  their  diplomatic  and  mili- 
tary advisers,  meet  in  the  first  of  a  series  of  conferences  held 
near  Salzburg  in  April  19U-  The  Duce  as  head  of  the  Re- 
publican Fascist  regime  analyzes  frankly  the  difficulties  of 
his  position.  He  recounts  the  contributions  of  his  new  gov- 
ernment to  the  Axis  war  effort  and  those  present  discuss 
the  difficulties  arising  in  warfare  against  the  Partisan 
m,ovement. 


Memorandum  of  the  conversation  between  the 
■ijhrer  and  the  Duce  at  Schloss  Klessheim,  April  22, 
.944, 11  A.M.  to  1  P.M.  Also  present  the  Reich  For- 
ign  Minister,  Field  Marshal  Keitel,  Ambassador 
tahn,  SS-ObergruppenfUhrer  Wolff,  General  Tous- 
aint,  Lt.  Colonel  Jandl,  SS-Standartenfiihrer  Doll- 
nann.  Marshal  Graziani,  Under  Secretary  of  State 
Iflazzolini,  Ambassador  Anfuso,  and  the  Italian 
Military  Attache  in  Berlin,  Colonel  Morera 

'uhrer's  Memorandum  18/44 
Itate  Secret 

The  Fiihrer  opened  the  discussion  by  stating 
hat  Minister  Schmidt  had  had  an  automobile  ac- 
:ident  and  that  Colonel  General  Hube,  the  com- 
nander  of  the  First  Panzer  Army,  had  been  the 
'ictim  of  an  airplane  accident.  The  Fiihrer  said 
hat  because  of  that  he  had  decided  he  would 
lever  make  the  Duce  a  present  of  an  airplane. 

The  Duce  then  took  up  the  discussion  with  a 
general  description  of  the  situation.  When  he  had 
aken  over  the  administration  seven  months  pre- 
'iously  he  had  encountered  absolute  chaos;  for 
s-hen  his  regime  had  collapsed  a  real  catastrophe 
lad  ensued.  This  state  of  disorganization  had  as- 
umed  proportions  which  he  had  no  conception  of 
a  the  period  immediately  after  his  liberation. 

On  September  23, 1943  he  had  formed  a  govern- 
lent,  the  first  meeting  had  taken  place  on  Sep- 
amber  27,  and  thereafter  hard  work  had  begun, 
lis  task  was  beset  by  various  difficulties.    First 


of  all  in  this  connection  he  would  discuss  the  mat- 
ter of  the  internment  of  the  Italian  troops.  This 
measure  had  at  the  time  been  entirely  advisable 
and  thoroughly  necessary,  for  the  majority  of  the 
Italian  troops  following  the  catastrophe  had  been 
misled  as  a  result  of  enemy  propaganda.  He 
would  have  to  state,  however,  that  some  six  or 
seven  million  Italians  were  interested  in  the  fate 
of  the  Italian  military  internees,  that  is  to  say,  all 
of  their  relatives  and  dependents,  and  that  the 
morale  of  the  Italian  people  would  be  appreciably 
heightened  if  an  improvement  in  the  situation  of 
the  military  internees  could  be  brought  about. 

The  measures  taken  in  the  Alpine  foreland  and 
in  the  Adriatic  coastal  area  constituted  a  further 
difficulty.  These  measures  were  necessary  at  the 
time  and  were  also  beneficial,  for  the  coastal  area 
was  inhabited  by  Slavs  who  were  hostile  to  the 
Italians  and  the  Germans.  However,  while  they 
feared  the  Germans,  they  had  considerable  disre- 
gard for  the  Italians. 

The  Italian  population  was  composed  of  three 
groups  politically : 

1.  A  minority  who  were  favorably  inclined  to 


These  are  translations  of  documents  on  German-Italian 
conversations,  secured  from  German  Government  files, 
and  are  among  the  German  official  papers  which  the 
Bdixetin  is  currently  publishing. 


695 


696 

the  Republican-Fascist  regime.    This  group,  how- 
ever, was  actually  a  minority. 

2.  The  great  majority  of  the  population,  who 
stood  between  skepticism  and  pessimism.  Only 
the  Republican-Fascist  Party,  which  had  adopted 
a  favorable  attitude  with  respect  to  the  Germans, 
represented  a  source  of  strength  among  these 
numerous  skeptics.  It  would  therefore  be  well  if, 
on  the  German  side,  a  declaration  of  solidarity 
with  the  Republican-Fascist  Party  could  be  issued. 
He  (the  Duce)  believed  that  it  was  a  mistake  to 
make  only  a  small  minority,  or  on  the  other  hand, 
a  far  too  large  number,  into  Party  members.  The 
right  figure  would  be  one  million  and  the  number 
of  party  members  would  be  set  at  this  figure. 
IS'aturally  in  taking  in  new  members  one  must  be 
very  careful,  for  all  of  the  Party  members  ought  to 
be  soldiers  who  would  believe,  obey,  and  fight. 

[3.]  The  third  group  among  the  Italian  people 
included  those  who  were  hostile.  The  monarchy 
had  been  eliminated  both  as  a  personality  and  as  an 
institution.  The  republic  was  already  a  very  wide- 
spread concept.  Only  a  few  plutocratic  aristo- 
crats were  against  it.  It  was  important  that  by 
means  of  truly  social  measures  the  whole  popula- 
tion should  be  won  over  for  the  republic.  Measures 
on  a  large  scale  would  have  to  be  undertaken  in  the 
field  of  social  legislation  for  the  structure  of  Italy 
had  not  yet  been  changed.  No  disturbance  in  pro- 
duction would  result  if  these  changes  were  car- 
ried out  at  the  present  time.  Strikes  were  entirely 
under  control.  Only  200,000  workers  out  of  many 
million  had  gone  on  strike  for  periods  ranging 
from  ten  minutes  to  eight  days.  The  duration  of 
eight  days  had  only  been  attained  because  free 
play  had  been  allowed  to  strikes,  in  order  to  be 
able  to  carry  out  radical  measures. 

The  enemies  of  the  present  regime  were  divided 
into  six  parties.  Beside  the  Monarchists  they  were 
mainly  Communists  and  Liberals.  In  South  Italy 
the  number  of  parties  had  risen  to  20.  There  was 
the  enemy  who  was  to  be  taken  most  seriously,  the 
friend  of  Stalin,  Togliatti,  who,  as  Minister  with- 
out Portfolio,  had  joined  Croce,  Sforza,  and  the 
unimportant  Rodino.  Togliatti  sought  to  achieve 
conciliation  among  the  various  classes  of  the  popu- 
lation. He  would  not  be  successful  in  this  due  to 
the  contrasts  existing  in  South  Italy.  It  could 
already  be  stated  that  the  measures  of  Badoglio 


DEPARTMENT  OP  STATE  BULLETIN 

to  obtain  troops  were  a  failure.  The  Duce  here 
mentioned  that  in  North  Italy  there  were  living 
32  million  Italians  while  for  the  efforts  of  Badoglio 
in  South  Italy  there  were  only  6  million  available. 
The  attitude  of  the  Church  was  hesitant.  The 
Pope,  it  was  true,  was  neutral ;  the  clergy,  however, 
had  adopted  a  reserved  or  even  a  hostile  attitude. 
The  food  problem  presented  a  great  difficulty. 
Ambassador  Rahn  had  developed  a  very  useful 
activity  in  that  connection.  The  Po  Valley  in 
itself  was  the  granary  of  Italy.  The  difficulties 
lay  principally  in  the  transport  problem.  If  only 
1,000  motor  trucks  could  be  made  available  a 
(Satisfactory  provisioning  of  the  whole  Italian 
people  would  be  possible.  The  situation  in  Rome 
was  the  worst.  There  the  population  had  been 
increased  to  between  two  and  three  million  by  the 
influx  of  refugees  from  South  Italy. 

Badoglio's  declaration  of  Rome  to  be  an  open 
city  had  been  a  mistake,  for  Rome  was  not  a  col- 
lection of  buildings  and  palaces,  but  it  was  an  idea. 
It  would  have  been  endurable  if  the  newly  con- 
structed portions  of  Rome  had  been  destroyed  and 
if  the  center  from  the  Colosseum  to  the  Forum 
perhaps  had  been  spared.  Up  to  now,  however, 
Rome  had  already  suffered  thirty  attacks  in  spite 
of  the  declaration  that  it  was  an  open  city.  Roose- 
velt stated  today  that  the  question  of  the  destruc- 
tion of  Rome  depended  on  the  Germans.  The 
Germans  were  now  stationed  only  around  the  edges 
of  the  city  while  the  enemies  of  Italy  could  per- 
petrate their  misdeeds  on  the  center.  The  English 
and  the  Americans  were  making  the  provision- 
ing of  the  city  more  difficult  through  their  bom- 
bardment of  the  approaches.  The  population  was 
thus  receiving  only  100  grams  of  bread  per  day 
and  for  some  months  now  no  fat  at  all.  Prices 
had  risen  to  astronomical  levels  and  only  the  mil- 
lionaires were  able  to  buy  on  the  black  market. 
From  that  arose  the  danger  that  Communist  or- 
ganizations and  the  National  Committee  of  Liber- 
ation which  was  in  existence  in  Rome  also  would 
make  use  of  the  discontent  and  that  chaos  would 
ensue  in  Rome.  The  police  were  not  entirely  re- 
liable. The  principal  contingent  of  police  was 
composed  of  the  P.A.I.  (Italian  African  Police), 
whose  attitude  could  best  be  described  by  their 
somewhat  humorous  designation  as  the  "Italian 
Anti-Fascist  Police".     In  this  police  contingent 


OCTOBER  SO,  1946 

the  400  officers  served  as  privates.  They  were  well 
armed.  In  addition  there  were  the  papal  police 
wlio  were  for  the  Pope  and  therefore  against  the 
Duce.  Only  the  civil  police  could  be  characterized 
as  good.  That  was  the  way  things  stood  in  Rome, 
while  the  front  was  only  thirteen  kilometers  dis- 
tant from  the  city. 

The  Duce  emphasized  the  necessity  of  defending 
Rome,  for  from  the  loss  of  Rome  would  ensue  not 
only  military,  but  particularly  political  conse- 
quences, since  Rome  was  the  spiritual  center  of 
Italy.  Also  the  establishment  of  a  new  front  line, 
which  would  have  to  run  along  the  Apennines 
from  Savona  to  the  Abruzzi.  would  present  diffi- 
culties, for  such  a  front  would  be  too  long. 

It  had  been  demonstrated  that  the  English  were 
good  soldiers,  but  that  the  Americans  were  not, 
since  they  had  lived  too  well  and  did  not  want  to 
die.  If  Kesselring  had  had  sufficient  forces  Monte 
Cassino  ought  to  have  been  made  into  a  new  Pass 
of  Thermopylae. 

The  strengthening  of  the  Italian  Republic  was 
in  the  interest  of  Germany.  For  that  reason  a 
recognition  of  the  efforts  which  Italy  had  made 
3ince  September  8th  of  the  previous  year  seemed 
important  to  the  Duce.  Sauckel  had  requested 
one  million  workers.  Goring  for  his  flak  activities 
had  asked  for  200,000  Italians,  Kesselring  for 
32,000,  the  German  Navy  27,000  and,  finally,  8,000 
[talians  had  been  required  for  smoke-defense  units. 
Besides,  Kesselring  had  asked  for  16  additional 
Dattalions  for  coast  defense.  This  made  a  total  of 
1.3  millions.  He  (the  Duce)  was  prepared  to  sup- 
ply these.  In  order  to  do  so  he  would  call  up  the 
•lasses  of  1919  to  1922. 

These  results  had  been  and  would  be  achieved 
n  spite  of  German  transport  difficulties  in  Italy, 
sspecially  around  Rome,  and  in  spite  of  the 
lumerous  headquarters  of  the  Government,  which 
vere  scattered  over  all  of  North  Italy.  Great 
•esults  were  being  demanded  from  the  Italian 
)eopIe.  For  that  reason,  they  must  also  be  given 
he  impression  that  the  new  Italian  Government 
■ad  an  independent  position  and  that  there  were 
ertnin  fields  in  which  it  had  complete  control, 
von  though  there  were  others  in  which  it  operated 
liiitly  with  Germany.  The  catchword  of  the 
nemy  propaganda  to  the  effect  that  the  Italians 
ere  only  held  down  by  German  bayonets  would 
ave  to  be  destroyed.     Only  then  could  the  Ital- 


697 

ians  be  required  to  make  further  sacrifices.  Italy 
had  lost  400,000  dead,  and  100,000  civilians  had 
fallen  victim  to  bombings.  Many  had  lost  all  their 
possessions,  cities  had  been  destroyed  and,  what 
was  especially  hard  to  bear,  irreparable  losses  had 
been  suffered  in  the  artistic  field.  These  works 
of  art  could  not  be  recreated  in  concrete  as  the 
Americans  had  said. 

Italy  was  prepared  to  lose  all  but  one  thing, 
her  honor.  The  Germans  must  have  complete 
confidence  that  the  new  Italy  had  burned  her  ships 
behind  her  and  was  determined  to  march  along- 
side the  Germans  to  the  end.  That  was  the  pledge 
made  by  the  new  Italy.  He  (the  Duce)  believed 
that  the  Americans  and  English  had  already  lost 
the  war.  There  were,  however,  not  only  military 
but  also  political  possibilities.  It  might  be  that 
Stalin  would  follow  Lenin  and  defend  only  his  own 
boundaries,  since  Lenin  had  said  that  the  prole- 
tariat of  the  different  countries  should  each  make 
its  own  revolution  with  only  the  moral  assistance 
of  Russia.  It  was  true  that  one  could  not  state 
this  as  a  certainty  because  Stalin  had  now  become 
an  army  chieftain  and  had  made  himself  Marshal, 
but  the  sacrifices  of  Russia  were  so  great  that  Sta- 
lin would  perhaps  be  satisfied.  That  was  what  the 
Italian  people  believed,  who  saw  in  England  their 
enemy  Number  One.  If  England  were  defeated 
the  war  would  be  won  and  England  also  would  be 
plundered. 

The  Duce  then  requested  the  Fiihrer  to  listen  to 
a  statement  by  Graziani,  who  would  report  on  what 
Italy  had  accomplished  in  the  interest  of  the  joint 
conduct  of  the  war.  The  Italians  had  done  their 
best.  The  Communists  sought  to  frighten  the 
Italians  by  terrorism.  Fascists  in  uniform  were 
shot  down  on  the  streets  and  only  the  most  severe 
counter-terrorism  could  produce  a  change  in  this 
situation.  The  Duce  believed  in  the  possibility  of 
bringing  about  a  complete  rehabilitation  of  the 
Italian  people. 

Marshal  Graziani  first  reported  that  when  he 
had  taken  over  his  command  in  September  of  the 
previous  year  absolutely  nothing  had  been  avail- 
able for  the  reorganization  of  the  Italian  armed 
forces.  The  first  months  had  been  very  difficult. 
Thus,  for  example,  he  had  had  no  telephone  or 
telegraph  service  which,  of  course,  were  being  used 
exclusively  in  the  service  of  the  German  Wehr- 
macht,  and  he  had  had  to  transmit  all  of  his 


«98 


DEPARTMENT  OF  STATE  BULLETIN 


messages  by  radio.  Of  the  seven  months  he  had 
been  able  really  to  work  only  during  the  last  three 
months.  The  officer  corps  had  even  in  the  most 
favorable  circumstances  adopted  a  passive  attitude. 
First  of  all  it  had  had  to  be  made  clear  to  the  officers 
that  their  oath  to  the  King  had  become  of  no  effect. 
Those  who  had  been  prepared  to  cooperate  had 
often  undertaken  to  do  so  only  for  reasons  of 
opportunism.  Therefore  commissions  of  officers 
had  been  set  up,  under  the  supervision  of  generals 
and  manned  by  reliable  Fascist  officers,  to  sort  out 
the  Freemasons  and  Jews.  This  activity  had  been 
aided  materially  by  the  discovery  of  a  list  dating 
from  the  years  1926-27  which  showed  the  member- 
ship of  Italian  officers  in  the  Freemasons.  An  ad- 
ditional problem  had  been  the  relationship  of  sal- 
aries to  those  of  the  Germans.  The  differential  in 
the  payment  of  the  members  of  the  German  and 
the  Italian  armed  forces  had  previously  continu- 
ally caused  bad  feeling.  The  improvement  in  the 
position  of  the  Italian  officers  had,  however, 
attracted  a  new  wave  of  opportunists  into  the  new 
army.  Graziani  had,  however,  adopted  a  very 
rigid  attitude.  All  of  the  officers  were  examined 
with  regard  to  their  attitudes  and  an  attempt  was 
also  made  to  carry  out  a  process  of  rejuvenation 
in  the  armed  forces.  Since  October  of  the  previ- 
ous year  a  new  law  modeled  on  the  one  framed 
by  Von  Blomberg  had  been  in  effect.  The  Royal 
Army  had  been  dissolved ;  the  new  army  was  built 
up  on  a  volunteer  basis.  Although  all  of  the  offi- 
cers had  to  be  loyal  Fascists,  they  were  forbidden 
to  engage  in  any  sort  of  political  activity  during 
their  period  of  service. 

At  this  point  the  Duce  interjected  that  while  it 
was  true  that  these  officers  were  and  remained 
members  of  the  Party,  their  activity  was  in  abey- 
ance. 

Graziani  stated  that  everything  would  be  done 
to  meet  the  requests  of  Kesselring  for  the  defense 
of  Rome  (flak,  defense  of  the  lines  of  communica- 
tion, coastal  defense).  Unfortunately,  however, 
even  with  the  best  of  will,  this  was  not  always 
possible. 

The  classes  of  1924  and  1925  were  now  being 
called  up.  Therewith  a  new  difficulty  had  ap- 
peared, to  wit,  that  there  was  not  a  sufficient  num- 
ber of  police  available  actually  to  compel  those 
who  had  been  called  up  to  comply  with  the  orders 
to  report  for  induction.     Although  over  100,000 


men  had  come  in,  there  were  still  many  slackers. 
For  that  reason  the  death  penalty  had  had  to  be 
introduced,  not  only  for  deserters,  but  also  for 
those  who  sought  to  avoid  service,  although  ac- 
cording to  Italian  military  law  previously  such 
persons  could  be  punished  at  most  by  20  years  in 
prison.  The  consequence  of  this  measure  was  that 
60,000  to  70,000  men  had  reported.  Now  enemy 
propaganda  was  again  being  spread  to  the  effect 
that  the  Italians  should  not  only  individually 
avoid  their  duties  to  report  for  service,  but  even 
that  whole  troop  units  should  abandon  their  bar- 
racks, as  neither  the  Germans  nor  the  Italians 
would  dare  to  shoot  four  or  five  hundred  deserters. 
Propaganda  to  the  effect  that  Germany  had  al- 
ready lost  the  war  and  the  activity  of  the  Partisans 
operated  in  the  same  direction.  Graziani  and  his 
Chief  of  Staff,  General  Mischi,  were  combating 
these  movements  with  relentless  energy. 

The  operations  against  the  rebels  were  also  of 
great  importance.  Obergruppenfiihrer  Wolff  was 
doing  everything  that  could  be  done.  The  strug- 
gle against  the  rebels  was  also  of  importance  for 
the  increase  of  the  prestige  and  authority  of  the 
Italian  Government.  Ten  to  twelve  battalions 
were  already  being  employed  against  the  rebels. 
The  rebels  were  well  armed  and  were  equipped 
with  everything  and  the  English  were  supplying 
them  by  dropping  arms,  radio  sets,  and  even  uni- 
forms. In  comparison  the  Italians  were  poorly 
armed  and,  most  important  of  all,  had  no  motor 
trucks.  It  was  only  with  difficulty  that  they  could 
properly  fulfill  their  mission  of  defending  the 
Apennine  passes.  Graziani  asked  to  be  allowed  to 
speak  with  complete  frankness  about  one  point. 
Since  September  8,  1943  the  Italian  warehouses 
had  been  emptied.  Now  for  the  newly  inducted 
troops  there  were  no  longer  uniforms  on  hand. 
The  classes  of  1924-25  and  1922-23  had  beeii 
called  up.  Often  there  were  no  uniforms  avail- 
able for  the  recruits.  The  Italian  people  were 
saying  that  the  contents  of  the  storehouses  had 
been  taken  to  Germany,  but  on  the  German  side  it 
was  answered  that  there  had  been  nothing  there. 
Doubtless  a  great  deal  had  been  stolen  and  had 
been  transferred  to  the  black  market.  Graziani 
made  the  proposal  that  General  Leyers,  who  was 
in  control  of  industry,  should  put  several  estab- 
lishments at  the  disposal  of  the  Italians  in  which 
they  could  manufacture  their  own  requirements. 
The  Germans  should  exercise  supervision.    Grazi- 


OCTOBER  20,  191,6 

ani  asked  for  that  expressly.  Otherwise  there 
would  be  nothing  other  than  to  buy  on  the  black 
market,  which  was  left  wide  open  to  inflation.  He 
did  not  need  to  state  that  there  were  also  no  arms 
on  hand.  In  that  respect  also  some  improvement 
could  be  realized  since  the  factory  at  Gardone-Val 
Trompia,  which  was  now  producing  1,.500  rifles 
per  day,  was  increasing  its  output  to  3,000.  At 
this  point  the  Fiihrer  expressed  a  doubt  that  the 
factory  was  actually  producing  that  many  rifles. 
Graziani  stated,  however,  that  the  figure  he  had 
mentioned  was  correct. 

Graziani  stated  further  that  he  was  no  pessimist 
and  that  he  had  spoken  only  the  truth  with  the 
greatest  loyalty.  He  wished  in  conclusion  to  give 
a  picture  of  the  situation  with  respect  to  what  Italy 
had  already  supplied  toward  the  joint  conduct  of 
the  war.  Approximately  70,000  Italians,  or  70 
battalions,  had  joined  Marshal  Kesselring. 
Riclitliofen,  for  his  sphere  of  activity,  had  been 
furnished  51,000  men.  There  had  already  gone  to 
Germany  for  the  setting  up  of  two  divisions  22,000 
men.  The  rest  would  arrive  in  the  course  of  the 
month  of  May,  so  that  four  divisions  could  be  set 
up  in  Germany.  Additionally  Marshal  Kesselring 
had  secured  40,000  men  in  work  battalions  or- 
ganized along  military  lines ;  30,000  men  were  at 
their  stations  available  for  his  own  needs ;  150,000 
were  included  in  the  new  Italian  police,  the 
Quardia  Eepublicana.  With  several  other  con- 
tingents, that  made  a  total  figure  of  400,000  men 
who  were  in  service  in  Italy  on  the  German  side. 
Grraziani  concluded  his  remarks  with  a  request  for 
:he  support  of  his  efforts  not  only  for  the  setting 
jp,  arming,  and  clothing  of  his  units,  but  also 
igainst  the  enemy  propaganda. 

The  Duce  then  took  up  the  discussion  with  fur- 
her  remarks  on  the  subject  of  the  Partisan  move- 
nent.  He  estimated  their  numbers  at  60,000,  or 
lomewhat  more,  made  up  of  refugees,  escaped  in- 
ernees  and  prisoners  of  war,  and  lastly  some  6,000 
scaped  convicts.  Naturally  the  Partisans  had 
Iso  drawn  some  strength  from  the  anti-Fascist 
lements.  The  bases  of  the  movement  were  various, 
n  Piedmont,  for  instance,  the  Partisans  claimed 
o  be  patriotic  and  to  be  willing  to  fight  against 
he  English  also.  The  most  dangerous  were  the 
■rganized  Communist  bands,  whose  leaders  were 
jilavs.  Recently  a  Russian  leader  of  a  Partisan 
'and  had  been  captured  and  shot.  Obergruppen- 
iihrer  Wolff  stated  that  the  struggle  was  being 

718098—46 2 


699 

carried  on  sternly  and  relentlessly  and  that  the 
Partisan  movement  was  cracking  \x-p{abbrdckele]. 
The  Duce  said  that  the  Partisans  were  being  out- 
fitted with  English  and  also  with  Italian  weapons. 
By  night  the  Partisans  built  fires  so  that  the  Eng- 
lish would  know  where  to  drop  particular  articles 
for  them.  Most  of  them  had  no  uniforms,  but  such 
of  them  as  were  Communists  wore  a  red  star. 
They  were  not  courageous ;  only  the  leaders  of  the 
bands  defended  themselves  to  the  last.  The 
principal  Partisan  area  was  Piedmont,  yet  even 
there  in  the  recent  period  they  had  suffered  heavy 
losses. 

Wolff  remarked  here  that  in  the  valleys  infested 
by  the  Partisans  good  results  had  been  achieved 
by  deporting  the  entire  male  population.  The 
Duce  said  that  the  Partisan  movement  was  the 
most  dangerous  in  the  Apennines,  where  only  four 
highways  led  from  north  to  south.  An  operation 
which  was  now  being  carried  on  against  the  Par- 
tisans in  Romagna  and  Tuscany  had  produced 
good  results.  For  the  combating  of  the  Partisans 
the  police  were  principally  employed.  The  Re- 
publican Guard  still  included  some  40,000  Cara- 
binieri,  who  in  their  hearts  were  still  loyal  to  the 
King  and  were  therefore  unreliable.  Those  who 
had  been  born  before  1900  had  now  been  discharged 
and  replaced  by  new  recruits.  At  the  present  time 
there  was  being  created  at  Parma  a  corps  of  Ap- 
ennine  riflemen.  Among  them  were  3,000  men 
from  the  Party  and  9,000  from  the  army.  This 
corps  of  12,000  men  was  intended  to  be  employed 
against  the  Partisans.  In  that  connection  it  was 
to  be  noted  that  the  Partisans,  some  of  whom  were 
of  an  anarchistic  trend  and  distributed  the  prop- 
erty of  the  rich  among  the  poor,  in  certain  areas 
enjoyed  the  sympathies  of  the  population.  Ober- 
gruppenfiihrer  Wolff  remarked  that  he  would  take 
care  of  the  arming  of  the  12,000  Apennine  rifle- 
men, but  that  he  had  no  motor  trucks  available. 

Marshal  Graziani  noted  in  conclusion  that  the 
supply  routes  in  the  direction  of  Rome  were  now 
being  kept  open  by  eight  battalions  (Germans  and 
Italians). 

The  Fiihrer  interrupted  the  discussion  at  this 
point  because  he  had  an  important  conference  and 
it  was  agreed  to  resume  the  conversation  along  the 
same  lines  at  4  p.m. 

SONNLErPHNER 

Berghof,  April  23,  194i 


A  NATIONAL  RUBBER  PROGRAM 


hy  Harlan  P.  Bramhle 


Because  of  the  dynamic  character  of  the  rubber  situation, 
the  Inter-Agency  Policy  Committee  on  Rubber  is  giving 
attention  to  a  detailed  frogram,  for  the  transition  from  gov- 
ernment to  private  enterprise  and  is  planning  to  establish 
some  form  of  national  robber  supervision.  In  addition,  the 
CoTnmittee  has  proposed  to  deal  with  research  and  develop- 
ment and  with  the  administrative  method  by  lohich  a  mini- 
mum use  of  the  general-purpose  synthetic  rubber  can  best 
be  assured. 


In  the  highly  complex  modern  American  econ- 
omy rubber  has  occupied  a  key  position  because 
it  is  an  indispensable  part  of  our  transportation 
system  and  also  because  its  peculiar  qualities  are 
needed  in  a  long  list  of  strategic  items.  The  prob- 
lems created  by  the  loss  of  access  to  Far  Eastern 
rubber-producing  areas  during  the  war  affected 
the  operations  of  a  number  of  the  departments 
and  agencies  of  the  Government.  The  prospect 
of  the  ending  of  the  war  did  not  remove  the  per- 
plexities but  added  prospective  post-war  difficul- 
ties to  their  operations.  The  Department  of  State, 
in  a  letter  dated  June  28,  1945  addressed  to  the 
Office  of  "War  Mobilization  and  Keconversion,  took 
the  initiative  in  suggesting  the  formation  of  an 
interdepartmental  committee  to  formulate  policy 
regarding  post-war  rubber  affairs. 

Recognizing  the  importance  of  the  question, 
John  W.  Snyder,  then  Director  of  War  Mobiliza- 
tion and  Reconversion,  formulated  the  Inter- 
Agency  Policy  Committee  on  Rubber,  under  the 
chairmanship  of  William  L.  Batt,  in  September 
of  1945.  It  was  directed  to  survey  plans  and  pro- 
grams of  the  agencies  for — 

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 
development ; 

5.  The  establishment  of  a  strategic  stockpile  of 
rubber : 


1  See  W.   T.   Phillips,   "Rubber   and  World   Economy", 
BuiXETiN  of  June  2,  1946,  p.  932. 


6.  The  development  of  wild  and  cultivated  nat- 
ural rubber  in  South  America ; 

7.  The  establishment  and  maintenance  of  a  mu- 
tually advantageous  program  for  importing  nat- 
ural rubber  from  the  Far  East. 

The  Committee  was  also  to  submit  to  the  Di- 
rector of  the  Office  of  War  Mobilization  and 
Reconversion  recommendations  on  matters  requir- 
ing action  by  the  President,  the  Congress,  or  the 
Director. 

In  March  of  1946,  a  first  report,  as  submitted 
to  the  President  and  the  Congress,  was  made  pub- 
lic.^ It  contained  a  set  of  short-run  and  long-run 
recommendations.  However,  the  dynamic  charac- 
ter of  the  rubber  situation  and  the  recognition 
that  some  of  the  problems  involved  required  more 
study  led  the  Committee  to  postpone  the  final 
recommendations  pending  the  issuance  of  a  second 
report. 

Of  the  short-run  recommendations,  two  required 
further  development : 

1.  Except  for  facilities  producing  specialty 
rubbers  (neoprene,  butyl,  perbunan,  etc.) ,  styrene, 
and  certain  chemicals  (which  may  be  disposed  of 
forthwith),  a  detailed  program  for  the  transition 
from  Government  to  private  enterprise  would 
be  contained  in  a  subsequent  report. 

2.  Some  form  of  national  rubber  supervision 
should  be  established. 

In  addition  the  Committee  proposed  to  deal 
more  fully  with  the  following  topics : 

1.  Research  and  development. 

2.  The  administrative  method  by  which  a  mini- 


700 


iCTOBER  20,  1946 


701 


aum  use  of  general-purpose  synthetic  rubber  could 
lest  be  assured. 

The  Committee  faced  tlie  problem  of  what  may 
e  called  the  price-quality  differential  between 
vnthetic  and  natural  rubber.  At  the  present  time 
atural  rubber  is  admittedly  superior  to  syntlietic 
libbers  in  many  fields  of  use  including  that  of  tire 
isings,  whicli  accounts  for  about  65-75  percent  of 
libber  consumed.  This  superiority  flows  from  a 
umber  of  characteristics — less  heat  build-up  and 
reater  resistance  to  heat  break-down,  ease  of 
orking  with  consequent  lower  rates  of  rejects, 
jility  to  self-adhere,  and  others.  In  a  number  of 
)ecialty  uses,  such  as  those  which  require  resist- 
ice  to  oil  and  grease,  resistance  to  aging  from 
inlight,  or  impermeability  to  air,  some  synthetic 
ibbers  are  more  desdrable  than  natural  rubber  is. 
f  course,  the  preference  on  the  part  of  consumers 
)r  natural  or  synthetic  rubbers  depends  upon  the 
'lative  price  at  which  each  one  sells,  compared 
ith  the  qualities  desired  in  the  product  to  be  con- 
imed.  This  price-quality  preference  will  vary 
aite  widely  between  different  kinds  of  rubbers 
;cording  to  the  end  products  in  which  they  are 
■led. 

The  first  report  had  distinguished  between  so- 
illed  "special  purpose"  rubbers  (neoprene,  butyl, 
c),  which  could  be  expected  to  find  a  substan- 
al  market  unaided,  and  a  "general  purpose"  rub- 
^r.  By  the  latter  was  meant  the  type  of  synthetic 
ibber  which  is  presently  called  GE-S  (a  buta- 
ene,  styrene  copolymer).^  A  general-purpose 
ibber  should  be  usable  in  a  wide  variety  of  prod- 
Is,  and  its  production  must  be  capable  of  rapid 
jipansion.  However,  the  use  in  which  this  rubber 
as  most  important  was  tire  casings.  It  was 
lis  type  of  rubber,  or  one  which  would  serve  its 
irpose,  which  under  the  conditions  foreseen  at 
e  time  of  the  first  report  was  to  be  maintained 
sufficient  volume  to  meet  at  least  one  third  of 
ir  rubber  requirements  in  that  general-purpose 
Id. 

A  very  good  passenger-car  tire  can  be  made 
om  GR-S  with  only  a  few  ounces  of  natural 
bber.  It  will  even  outwear  pre-war  natural- 
bber  tires  and  compares  favorably  with  pre-war 
■es  in  safety  at  reasonable  speeds.  It  is  recog- 
zed  that  superior  tires  could  be  made  with  lar- 
r  percentages  of  natural  rubber,  and  in  the  ab- 
ace  of  a  substantial  price  differential  in  favor 


of  GR-S  the  natural  materials  would  be  pre- 
ferred. Nevertheless,  passenger-car  tire  needs 
could  be  adequately  met  with  known  domestically 
produced  rubbers. 

The  case  is  otherwise  with  truck  tires.  The 
heat  built  up  by  rapid  flexing  in  large  synthetic 
truck  tires  causes  them  to  break  down  more  fre- 
quently than  is  safe  in  modern  truck  transporta- 
tion systems.  The  largest  sizes  of  truck  and  bus 
tires  must  contain  natural  rubber  ahnost  exclu- 
sively. These  are  the  types  in  which  production 
must  be  expanded  in  an  emergency.  National 
security  in  this  sense  will  require  a  stockpile  of 
natural  rubber,  from  which  big  truck  and  airplane 
tires  may  be  built.  There  are  other  strategic  uses 
in  which  synthetics  cannot  substitute  for  natural 
rubber  but  the  big  tires  are  by  far  the  most  im- 
portant. 

Although  the  quality  deficiencies  of  GR-S  are 
relative  to  the  price  in  the  case  of  passenger  tires, 
its  inferiority  is  more  nearly  absolute  in  the  case 
of  truck  and  bus  casings.  Safety  and  mileage  are 
so  important  in  heavy  motor  transport  that  even 
substantial  discounts  are  not  likely  to  persuade 
consumers  to  change  over  from  natural  rubber. 

In  the  course  of  the  Committee's  investigation 
it  became  apparent  that  the  concept  of  a  general- 
pur^Dose  rubber,  while  valid  during  the  war  period 
when  synthetic-rubber  production  was  channelized 
into  a  few  types,  would  probably  not  be  pertinent 
in  a  future  peacetime  economy.  GR-S  is  a  term 
applied  to  a  family  of  rubbers,  all  more  or  less 
similar,  each  of  which  has  special  properties  of 
its  own.  Rubber  itself  is  a  part  of  the  wide  field 
of  plastics,  and  the  dividing  line  between  rubbers 
and  non-rubbers  becomes  steadily  vaguer  as  re- 
search progresses.  It  is  quite  probable  that  in  the 
future  there  will  be  no  general-purpose  rubber 
but  instead  a  wide  variety  of  speciality  rubbers, 
each  designed  to  fit  peculiar  requirements.  The 
tendency  in  synthetic-rubber  production  will 
probably  be  toward  "tailor  made"  types  to  fit  each 
manufacturer's  special  si^ecifications.  The  trouble- 
some large-tire  problem  will  most  likely  be  solved 
in  this  manner. 

The  question  of  the  way  in  which  natural  rub- 
ber from  Western  Hemisphere  sources  fits  into  the 


'  Buna  S  is  a  term  generally  applied  to  the  synthetic 
rubbers  which  are  copolymers  of  styreue  and  butadiene. 
GR-S  is  the  government  designation  given  to  Buna  S  -  type 
rubbers. 


702 

national  rubber  plan  has  been  only  partially  an- 
swered. The  first  report  approved  the  continua- 
tion of  experiments  by  the  Department  of  Agri- 
culture in  cultivation  and  processing  of  guayule 
and  Russian  dandelion.  The  second  report  re- 
emphasized  this  position.  It  was  also  recom- 
mended that  the  developmental  work  on  botanic 
rubber  in  tropical  America  be  maintained  by  the 
Department  of  Agriculture.  At  present  this  pro- 
gram consists  of  experiment  stations  operated  by 
the  Department  of  Agriculture  which  aim  to  hn- 
prove  and  distribute  high-yielding,  disease-resist- 
ant stock  together  with  technical  advice  on  cul- 
tivation. The  consideration  of  plans  to  make  use 
of  natural-rubber  supplies  in  the  other  American 
republics,  as  well  as  arrangements  to  meet  the  re- 
quirements of  the  Americas  in  time  of  emergency, 
has  been  left  to  the  future. 

With  respect  to  synthetic  rubber,  the  problem 
before  the   Committee  was  two-fold.     First,  it 
wished  to  insure  the  continuance  of  a  basic  mini- 
mum production  of  synthetic  rubber  which  could 
be  expanded  in  time  of  emergency.    Secondly,  it 
wished  to  insure  this  basic  minimum  under  condi- 
tions which  would  promote  rather  than  hinder  the 
development  of  new  synthetic  plastics  which  could 
replace  natural  rubber  in  those  products  in  which 
that  was  not  now  possible.   Within  the  framework 
of  these  two  national  security  requirements,  the 
Committee  wished  to  see  established  an  industry 
which  could  stand  on  its  own  feet  without  Govern- 
ment protection,  not  only  to  save  the  public  the 
expense  and  lower  living  standards  resulting  from 
supporting  uneconomic  industry,  but  also  to  co- 
ordinate national  rubber  policy  with  national  for- 
eign trade  policy  as  set  forth  in  the  suggested 
charter  for  an  International  Trade  Organization. 
The  Committee  recommended  that  the  industry 
be  placed  in  private  hands  as  soon  as  practicable. 
The  major  reason  for  this  step  was  the  effect  it 
was  expected  to  have  on  research  and  development. 
Without  prejudice  to  the  fine  job  done  under  pub- 
lic ownership  and  exchange  of  patents  and  tech- 
nical information  during  the  war,  it  was  consid- 
ered likely  that  faster  progi-ess  would  be  made 
toward  the  goal  of  improved  domestic  rubbers 
under  the  stimulus  of  profit  to  private  enterprise. 
For  war  purposes  the  main  objective  was  mass 
production  in  a  short  time  of  a  type  of  rubber  that 
was  adequate  for  most  uses.    Such  improvements 


DEPARTMENT  OF  STATE  BULLETIN 

as  could  he  made  without  interfering  with  opti- 
mum production  were  undertaken.  For  the  future, 
the  program  needs  investigation  of  a  wide  variety 
of  possible  substitute  rubbers.  The  Committee 
considered  the  prospect  of  private  gain  would  lead 
to  the  widest  participation  in  the  research  by  in- 
dustries in  both  the  rubber  and  general  chemical ' 
fields.  The  development  of  better  domestic  rub- 
bers was  thought  to  be  so  important  for  national 
security  as  to  outweigh  possible  objections  to  pri- 
vate ownership. 

Basic  plants,  which  can  produce  and  use  buta- 
diene at  a  low  cost,  should  not  be  sold  before  al 
bids  are  received,  and  it  is  determined  that  i 
nuclear  gi-oup  of  at  least  250,000  tons  capacity  cai 
be  sold  to  private  owners  simultaneously.     Thi 
sale  should  be  subject  to  two  conditions:  (1)  sucl 
plants  to  continue  to  produce  GR-S  during  the 
shortage  period;  and   (2)    the  plants  not  to  b( 
altered,  without  the  Government's  consent,  to  sucl 
an  extent  that  they  are  not  reconvertible  in  a  rea 
sonable  period  of  time  to  the  production  of  syn 
thetic  rubber.    In  a  sense  this  would  put  the  wholi 
synthetic  rubber  industry  on  a  "stand  by"  basis 
Conceivably  all  the  privately  owned  plants  couk 
be  modified  to  produce  material  other  than  syn 
thetic  rubber.    The  actual  production  and  use  o 
GR-S  would  come  not  by  Government  decree  bu 
from  self-interest  or,  failing  that,  some  form  o 
public  incentive.    This  feature  of  the  disposal  pro 
gram  would  also  allow  the  industry  to  utilize  par 
of  its  capacity  for  rubber  and  the  rest  of  it  fo 
related  plastics  which  would  help  carry  the  over 
head  if  that  should  prove  desirable.     High-cos 
units  including  alcohol  butadiene  plants  could  b 
disposed  of  unconditionally  when  declared  sur 
plus  to  the  present  program,  except  one  alcoho 
plant  which  was  to  be  subject  to  the  stand-b; 
condition  of  reasonable  reconvertibility.    Any  un 
sold  capacity  would  be  held  by  the  Government  i) 
stand-by  condition  for  future  sale  on  the  sam 
terms  if  that  should  prove  possible. 

The  existing  compulsory  agreements  for  tb 
exchange  of  patents  and  technical  information  ii 
the  styrene,  butadiene,  and  copolymer  field  shouL 
be  renegotiated  with  a  view  to  termination  at  th 
time  of  disposal  of  the  nuclear  group  of  plant! 
The  same  reasons  advanced  for  private  ownershil 
namely  advancement  of  research  and  developmen' 
dictated  this  recommendation.  Purchasers  o 
plants  will,  of  course,  have  access  to  all  the  patent 


OCTOBER  20,  19J,6 

and  information  in  the  pool  up  to  the  cut-off  dates. 
Also  the  Government  should  assist  purchasers,  to 
the  extent  it  can  do  so,  to  obtain  licenses  under 
American-held  foreign  patents  which  may  be 
needed  in  develoj^ing  foreign  markets. 

The  Congress  should  establish  a  national  rub- 
Der-supervisory  body  to  supervise  and  coordinate 
dl  activities  relating  to  national  rubber  policy. 
That  body,  consisting  of  an  independent  chair- 
nan  and  a  high  ranking  officer  of  each  Govern- 
nent  department  or  agency  having  a  substantial 
nterest  in  rubber,  is  intended  to  provide  a  means 
)f  keeping  the  over-all  rubber  situation  under 
ontinuous  review  and  assuring  action  by  report 
o  Congress  and  the  President  in  advance  of  any 
mergency. 

The  report  does  not  recommend  legislative  ac- 
ion  to  protect  the  market  for  domestic  rubber  at 
his  time.  It  does  ask  Congress  to  declare  by 
•esolution  tliat  the  maintenance  of  a  synthetic- 
ubber  industry  whose  production  will  be  con- 
inuously  used  is  essential  to  the  national  security 
if  the  United  States.  It  is  expected  that  for  the 
est  of  194G  and  all  of  1947  more  than  the  mini- 
num  needed  production  of  GR-S  will  be  forth- 
oming  because  of  the  shortage  of  natural  rub- 
ier. After  that  time  there  is  a  good  possibility 
hat  the  results  of  research  now  under  way  to- 
:ether  with  the  competitive  self-interest  of  rub- 
er, petroleum,  and  chemical  industries  will  have 
stablished  an  industry  which  can  exist  without 
upport. 

Nevertheless,  the  lesson  of  the  war  must  not  be 
orgotten,  and  if  domestically  produced  rubber 
annot  stand  on  its  own  feet  in  world  competition 
hen  a  minimum  capacity  must  be  preserved  by 
ome  means.  It  is  in  the  province  of  the  Congress 
3  determine  what  that  form  of  support  should  be 
f  it  is  ever  necessary.  The  Congress  can  best  de- 
3rmine  the  proper  action  in  view  of  conditions 
nd  international  commitments  then  existing.  The 
'"iiimittee  offered  tlie  results  of  its  deliberations 
'1-  consideration  by  the  Congress,  if  and  when 
u'lc  is  need  for  protective  action. 
These  may  be  summarized  as  follows : 
Tariffs  or  quotas  were  regarded  as  unsatisfactory 
)r  several  reasons:  either  would  violate  definite 
)mmitments  in  existing  trade  agreements;  both 
e  clumsy  methods  of  gaining  the  desired  ends. 
hey  are  inflexible,  and  to  be  certain  of  effective- 


703 

ness  they  must  be  so  restrictive  that  they  run  the 
risk  of  overprotecting  the  industry,  thus  making  it 
complacent  and  unprogressive.  In  addition,  tariffs 
and  quotas  raise  the  cost  of  raw  material  and  make 
the  cost  to  the  public  higher  than  necessary.  The 
internal  excise  on  products  containing  natural  rub- 
ber suffers  from  the  same  shortcomings  as  the 
tariff. 

A  Government  import  monopoly  would  not  only 
be  contrary  to  our  general  Government  policy  of 
promoting  private  business  but  would  influence 
foreign  governments  to  retaliate  with  the  same 
type  of  organization  in  the  same  or  other  com- 
modities. Other  possible  methods  of  intervention 
were  examined  and  disapproved  for  sufficient 
reason. 

Two  types  of  possible  governmental  support  ap- 
peared to  the  Committee  to  deserve  special  con- 
sideration, if  and  when  intervention  were  deemed 
necessary.  Subsidies,  especially  end-product  sub- 
sidies, and  product  specifications  were  found  to  be 
the  least  undesirable  forms  of  public  aid.  The  ad- 
vantage of  the  subsidy  is  that  the  cost  of  Govern- 
ment support  would  be  met  by  the  Nation  as  a 
whole  out  of  taxes.  By  avoiding  artificial  raising 
of  rubber  prices,  the  burden  to  the  public  would 
be  lower  and  total  rubber  usage  would  not  be  re- 
stricted. 

End-product  subsidies  and  product  specifications 
have  the  great  advantage  that,  operating  on  the 
end  product  rather  than  on  the  raw  material,  they 
could  encourage  the  development  of  a  wide  variety 
of  different  materials  which  might  substitute  for 
natural  rubber,  without  discriminating  against 
any  branch  of  industry  that  wished  to  develop  its 
own  type  of  product.    The  end-product  subsidy 
could  offer  a  strong  profit  motive  to  develop  a  suc- 
cessful material  for  use  in  large  tires.     Product 
specifications  afford  a  means  of  controlling  closely 
the  quantity  of  domestic  rubber  to  be  used.    The 
minimum  production  of  domestic  rubber  could 
thus  be  assured,  but  no  more  than  the  desired 
amount  need  be  protected.     Subsidies  and  speci- 
fications have  other  advantages  by  comparison 
with  alternative  methods,  but  these  are  the  most 
important.    The  Inter-Agency  Committee  tended 
to  favor  a  combination  of  subsidies  and  product 
specifications  as  a  means  of  assuring,  if  necessary 
at  that  time,  security  interests  at  minimum  costs 
and  with  the  least  harm  to  international  trade. 


WORLD  FUND  AND  BANK 


First  Annual  Meeting  of  tlie  Boards  of  Governors 


An  article  prepared  by  the 
Fund  and  Bank 


With  the  convening  of  the  first  annual  joint  7neeting  of  the 
Boards  of  Governors  of  the  World  Fund  and  Bank,  those 
international  bodies  emerge  from  the  preparatory  stage  to 
become  operating  agencies  in  their  respective  fields.  The 
article  presented  here  reviews  the  actions  taken  at  that  joint 
meeting  on  matters  relating  to  admission  of  neio  members, 
revision  of  the  quotas  of  certain  governments,  interpretations 
of  the  Articles  of  Agreement,  monetary  uses  of  silver,  and 
organization  procedures. 


The  International  Monetary  Fund  and  the  In- 
ternationa] Bank  for  Reconstruction  and  Develop- 
ment, jointly  fashioned  at  Bretton  Woods  in  July 
1944  and  jointly  inaugurated  at  Savannah  last 
March,  convened  the  first  annual  meeting  of  their 
Boards  of  Governors  at  Washington  on  Friday, 
September  27.  The  business  of  the  meeting  was 
consummated  with  dispatch  over  the  next  six  days. 
Matters  brought  before  the  governors  included: 
(1)  requests  from  four  governments  for  admis- 
sion to  membership ;  (2)  requests  from  three  other 
governments  for  an  upward  revision  of  their 
quotas  in  the  Fund;  (3)  a  request  from  Denmark 
that  it  be  accorded  voting  representation  on  the 
Executive  Boards;  (4)  interpretations  of  the 
Articles  of  Agreement  requested  of  the  Executive 
Directors  of  the  Fund;  (5)  a  resolution  on  silver 
proposed  by  Mexico;   (6)   propo.sed  amendments 


704 


to  the  bylaws  adopted  at  Savannah;  (7)  the  rules 
of  procedure  developed  by  the  Executive  Direc- 
tors; (8)  the  procedure  for  external  audit  of  ac- 
counts; (9)  the  selection  of  an  Advisory  Council 
for  the  Bank;  (10)  the  election  of  officers  and 
selection  of  a  place  for  the  next  annual  meeting. 
At  the  conclusion  of  the  final  joint  session  on  Octo- 
ber 3,  two  days  earlier  than  originally  planned, 
these  matters  and  others  had  been  disposed  of  to 
the  apparently  wide-spread  satisfaction  of  the 
governors. 

The  meeting  was  attended  by  representatives  of 
the  38  countries  holding  membership  in  the  Bank 
and,  in  tlie  case  of  the  Fund,  by  representatives  of 
its  additional  member,  Colombia.  One  of  the  early 
acts  of  the  meeting  was  to  send  invitations  to  non- 
member  countries  represented  at  the  Bretton 
Woods  conference  and  to  international  organiza- 


OCTOBER  20,  19J,6 


705 


tions  which  had  stated  that  they  were  prepared  to 
send  observers.  Representatives  of  Colombia  at- 
tended sessions  of  the  Bank  in  an  observer  capac- 
ity. In  addition,  observers  were  present  from 
Australia,  Haiti,  Liberia,  and  Venezuela,  and  from 
the  following  international  organizations:  Eco- 
nomic and  Social  Council  of  the  United  Nations; 
Food  and  Agriculture  Organization  of  the  United 
Nations;  United  Natioiis  Relief  and  Rehabilita- 
tion Administration ;  International  Labor  Organi- 
zation; and  Provisional  International  Civil  Avia- 
tion Organization. 

The  progress  of  the  meeting  was  guided  by  John 
W.  Snyder,  Secretary  of  the  Treasury,  in  his 
capacity  as  governor  for  the  United  States  and 
Chairman  of  the  two  Boards.  Following  the  read- 
ing of  a  message  of  welcome  from  the  President  of 
the  United  States  by  Under  Secretary  Clayton,  al- 
ternate governor  for  the  United  States,  at  the  first 
session,  the  Chairman  addressed  the  governors  on 
the  subject  of  the  tasks  confronting  the  two  or- 
ganizations. With  the  convening  of  this  meeting 
;hey  had  emerged  from  the  preparatory  stage  to 
aecome  operating  agencies  in  their  respective 
3elds.  The  expectations  that  the  magnitude  of 
post-war  international  economic  and  financial 
problems  would  more  than  tax  the  individual 
•apacities  of  nations  have  been  realized.  As  im- 
plements essential  to  achieving  the  United  Nations 
,foals  of  productive  employment  on  a  wider  basis 
md  better  living  standards,  the  Fund  and  Bank 
TCre  designed  to  help  meet  both  the  immediate 
lost -war  and  longer-term  monetary  and  financial 
leeds  of  the  world.  The  United  States  Congress 
n  increasing  the  lending  power  of  the  Export- 
import  Bank  in  1945  from  $700,000,000  to  $3,500,- 
)00,000  did  so  in  the  expectation  that  the  Interna- 
ional  Bank  would  soon  be  in  operation.  A  large 
lart  of  the  responsibility  for  reconstruction  loans 
0  countries  otherwise  unable  to  borrow  on  reason- 
fble  terms  now  rests  with  the  Internabional  Bank, 
i  companion  task,  that  of  insuring  that  the  re- 
trictive  and  discriminatory  trade  and  currency 
in> -tices  forced  on  many  countries  prior  to  and 
uring  the  war  do  not  become  permanent  fixtures 
f  international  commerce,  falls  to  the  Fund.  The 
''uiid  can  provide  vital  aid  to  countries  in  sus- 
liiiing  imports  while  their  export  industries  and 
oieign  markets  are  in  the  process  of  restoration. 
Lt  the  present  time,  the  Fund  is  consulting  with 
uch  member  country  to  determine  the  par  value  of 


its  currency.  By  such  cooperative  action  a  pat- 
tern of  rates  should  be  established  which  will  be 
consistent  with  the  maintenance  of  international 
equilibrium  and  the  stability  of  mternational  cur- 
rency values.  The  Fund  and  the  Bank  should  suc- 
ceed ;  their  charters  are  drawn  broadly  enough  to 
encompass  various  types  of  economic  and  trad- 
ing systems  and  to  permit  the  handling  of  prob- 
lems as  they  arise. 

A  joint  Procedure  Committee,  constituted  at  the 
Savannah  Inaugural  Meeting,  steered  the  work  of 
the  meeting  and  served  as  an  over-all  coordinat- 
ing body.  The  first  sessions  of  the  Board,  held 
jointly,  gave  way  to  separate  meetings  of  the  Fund 
and  Bank  for  the  purpose  of  considering  the  an- 
nual reports  of  each  organization  and  hearing  the 
remarks  of  Camille  Gutt,  Managing  Director  and 
Chairman  of  the  Executive  Board  of  the  Fund, 
and  Eugene  Meyer,  President  and  Chairman  of 
the  Executive  Directors  of  the  Bank. 

Working  committees,  separately  constituted, 
took  under  consideration  the  various  items  of  the 
agenda  and  reported  back  their  recommendations 
to  plenary  sessions  of  the  respective  Boards. 
Chairmanship  of  these  committees  was  as  follows : 
"Rules  and  Regulations",  J.  H.  Halloway,  tem- 
porary alternate  governor  for  the  Union  of  South 
Africa  for  the  Fund,  and  James  L.  Ilsley,  gov- 
ernor for  Canada,  for  the  Bank;  "Quota  Revi- 
sions" (Fund),  Gunnar  Jahn,  governor  for  Nor- 
way; "Subscription  Revisions"  (Bank),  Joaquin 
E.  Meyer,  governor  for  Cuba;  "Membership", 
Xenophon  Zolotas,  governor  for  Greece,  for  the 
Fund,  and  Rene  Ballivian  Calderon,  governor  for 
Bolivia,  for  the  Bank ;  "Finance",  Francisco  Alves 
dos  Santos-Filho,  governor  for  Brazil,  for  the 
Fund,  and  Alois  Krai,  governor  for  Czechoslo- 
vakia, for  the  Bank;  "Advisory  Council"  (Bank), 
Carl  Valdemar  Bramsnaes,  governor  for 
Denmai'k. 

The  applications  for  membership  received  from 
Syria,  Lebanon,  Italy,  and  Turkey  constituted 
items  of  first  importance  on  the  agendas  of  the 
Fund  and  Bank.  The  only  instance  of  an  other 
than  unanimous  decision  during  the  formal  pro- 
ceedings of  the  meeting  occurred  when  Italy's  ap- 
I^lication  came  up  for  consideration.  Yugoslavia 
questioned  the  policy  of  admitting  an  ex-enemy 
country  into  membership  prior  to  the  conclusion 
of  a  peace  treaty  and  in  advance  of  even  neutral 
countries,  at  a  time  when  it  was  contended  that  the 


706 


DEPARTMENT  OF  STATE  BULLETIN 


intent  of  the  country  to  meet  its  obligations  with 
respect  to  the  United  Nations  which  suffered  from 
its  aggression  was  not  clear  and  when  its  economic 
and  financial  position  was  such  that  fulfillment  of 
the  responsibilities  of  membership  might  prove 
impossible. 

The  United  States,  supported  by  the  United 
Kingdom,  stated  that  it  found  no  obstacle  in  in- 
ternational law  to  the  admittance  of  an  ex-enemy 
country  prior  to  the  signing  of  a  peace  treaty.  The 
United  States  observed  that  the  status  of  co-bel- 
ligerent was  granted  to  Italy  by  the  Allies  as  early 
as  October,  1943;  that  all  but  two  of  the  United 
Nations  had  already  extended  recognition  to  the 
Italian  Government  in  one  form  or  another ;  that, 
in  view  of  Italy's  contribution  to  the  war  against 
Germany  and  the  status  of  the  new  government, 
the  Allies  had  undertaken  to  relax  the  armistice 
terms  previously  imposed;  that  steps  toward  re- 
turning Italy  to  the  international  economic  com- 
munity had  already  been  taken  with  her  readmit- 
tance  to  membership  in  the  International  Labor 
Office  in  1945  and  with  the  concluding  of  trade  and 
other  agreements  between  Italy  and  the  United 
States  and  other  powers ;  that,  finally,  the  further 
restoration  of  Italy  to  the  world  economic  com- 
munity through  membership  in  the  Fund  and 
Bank  was  in  the  best  interest,  not  only  of  Italy, 
but  also  of  the  world  community  and  of  the  two 
organizations  themselves.  Yugoslavia,  emphasiz- 
ing that  her  request  for  postponement  was  not  di- 
rected against  the  Italian  people,  urged  that  a 
unanimous  and  unhurried  decision  was  desirable, 
especially  in  as  much  as  a  peace  treaty  might  be 
signed  in  the  near  future.  The  United  States  and 
the  United  Kingdom  pointed  out  that,  in  view  of 
the  special  circumstances  sunounding  the  Italian 
case,  Italy's  admission  should  not  constitute  a 
precedent  for  the  admission  of  any  other  former 
enemy  country.  Yugoslavia  failed  to  find  exten- 
sive support  for  her  position  in  the  ballot,  and 
Italy  was  voted  eligible  for  membership  in  the 
Fund  and  Bank  by  a  large  majority.  The  mem- 
bership of  Turkey,  Italy,  Syria,  and  Lebanon  will 
become  effective  with  the  consummation  of  certain 
formal  acts  of  acceptance  of  the  Articles  of  Agree- 
ment of  the  Fund  and  Bank. 

Bequests  for  increased  quotas  in  the  Fund  for 
France,  Paraguay,  and  Iran  were  considered. 
The  requests  of  France  and  Paragiiay  were  given 


first  attention.  Increases  from  $450,000,000  to 
$525,000,000  and  from  $2,000,000  to  $3,500,000  for 
France  and  Paraguay,  respectively,  were  ap- 
proved, the  increase  for  Paraguay  to  become  ef- 
fective upon  application  by  Paraguay  for  a  pro- 
portionate increase  in  her  subscription  in  the 
Bank.  An  application  from  France  for  propor- 
tionate increase  in  her  subscription  in  the  Bank 
had  already  been  received  and  was  approved,  and 
an  increase  for  Panama  was  authorized  at  such 
time  as  it  was  ap^^lied  for.  The  request  from  Iran, 
received  during  the  progress  of  the  meeting,  was 
referred  by  the  Board  of  Governors  to  the  Execu- 
tive Directors  for  study  and  recommendation  at 
a  later  date. 

Owing  to  the  fact  that  Denmark  had  not  ac- 
quired membership  in  the  Fund  and  Bank  at  the 
time  of  the  Savannah  meeting,  that  country  did 
not  participate  in  the  election  of  the  Executive 
Directors  of  the  two  organizations.  Had  Den- 
mark enjoyed  membership  at  that  time,  the  votes 
to  whicli  her  quota  now  entitles  her  would  find 
expression  in  the  voting  strength  of  a  director  on 
each  Board.  In  an  effort  to  correct  this  deficiency, 
Denmark  petitioned  the  Board  of  Governors  to 
devise  a  procedure  whereby  the  governor  for  Den- 
mark might  cast  a  vote  in  favor  of  one  of  the  Ex- 
ecutive Directors  now  in  office.  The  Board  deter- 
mined that,  in  as  much  as  the  proposal  raised  ques- 
tions of  interpretation  of  the  Articles  of  Agree- 
ment, this  also  should  be  referred  to  the  Executive 
Directors  for  study  and  later  recommendation. 

Two  interpretations  of  the  Articles  of  Agree- 
ment, referred  to  the  Executive  Directors  of  the 
Fund  following  the  inaugural  meeting,  were  re- 
ported back  at  this  first  amiual  meeting.  The 
United  Kingdom  had  asked  whether  steps  "neces- 
sary to  protect  a  member  from  unemployment  of 
a  chronic  or  persistent  character,  arising  from 
pressure  on  its  balance  of  payments",  would  be 
measures  "necessary  to  correct  fundamental  dis- 
equilibrium". The  Executive  Directors  reported 
that  it  considered  such  steps  "among  the  measures 
necessary  to  correct  a  fundamental  disequili- 
brium" and  that  "in  each  instance  in  which  a 
member  proposes  a  change  in  the  par  value  of  its 
currency  to  correct  a  fundamental  disequilibrium 
the  Fund  will  be  required  to  determine,  in  the  light- 
of  all  relevant  circumstances,  whether  in  its  opin- 
ion the  proposed  change  is  necessary  to  correct 
the  fundamental  disequilibrium." 


i 


OCTOBER  20,  19J,6 


707 


Similarly,  the  United  States  had  asked  "whether 
the  authority  of  the  Fund  to  use  its  resources  ex- 
ends  beyond  current  monetary  stabilization  op- 
;rations  to  afford  temporary  assistance  to  members 
in  connection  with  seasonal,  cyclical,  and  emer- 
gency fluctuations  in  the  balance  of  payments 
)f  any  member  for  current  transactions,  and 
vhether  the  Fund  has  authority  to  use  its  re- 
;ources  to  provide  facilities  for  relief,  reconstruc- 
ion,  or  armaments,  or  to  meet  a  large  or  sustained 
lutflow  of  capital  on  the  part  of  any  member". 
The  Executive  Directors  reported  that  they  inter- 
)reted  the  Ai'ticles  of  Agreement  "to  mean  that 
uthority  to  use  the  resources  of  the  Fund  is  lim- 
ted  to  use  in  accordance  with  its  purposes  to  give 
emporary  assistance  in  financing  balance  of  pay- 
aents  deficits  on  current  account  for  monetary 
tabilization  operations". 

At  the  initiative  of  Mexico,  the  Board  of  Gov- 
rnors  of  the  Fund  gave  consideration  to  the  mon- 
itary  uses  of  silver  and  the  assistance  which  the 
^''und's  research  activities  might  contribute  to- 
ward a  resolution  of  problems  connected  with  its 
Lse.  The  Board  determined  that  it  would  gather 
whatever  material,  statistical  or  otherwise,  is  avail- 
,ble  on  the  monetary  uses  of  silver  and  which 
rould  be  useful  in  facilitating  discussions  on  the 
ubject  in  an  international  conference  among  in- 
erested  members. 

The  two  Boards  devoted  some  time  to  questions 
if  their  own  organizational  procedures  and  those 
i  the  Executive  Directors.  The  bylaws  adopted 
t  Savannah  were  amended  to  improve  the  sec- 
ions  governing  meetings  of  the  Boards  of  Gov- 
rnors.  Each  Board  of  Governors  reviewing  the 
ules  of  operating  procedure  adopted  by  its  Ex- 
cutive  Directors  found  them  satisfactory  without 


change.  The  Board  of  Governors  of  the  Fund, 
when  convened  at  Savamiah,  had  considered  the 
question  of  the  external  audit  of  the  Fund's  ac- 
counts without  arriving  at  any  final  conclusion  as 
to  the  procedure  to  be  employed.  Resuming  its 
consideration  of  the  question  the  Board  deter- 
mined that,  as  a  provisional  measure,  the  accounts 
should  be  audited  by  a  small  group  of  persons, 
three  or  four  in  number,  chosen  from  a  similar 
number  of  Treasurers  of  member  governments, 
and  that  the  Executive  Directors  should  continue 
their  study  of  alternative  solutions.  The  accounts 
of  the  Bank  have  been  audited  by  a  private  firm  of 
accountants. 

To  complete  its  organization,  the  Board  of 
Governors  of  the  Bank  decided  upon  the  compo- 
sition of  an  Advisory  Council.  It  was  determined 
that  the  Council  should  have  a  membership  of 
nine,  with  banking,  commercial,  industrial,  labor, 
and  agricultural  interests  represented  by  one  mem- 
ber each.  Of  the  remaining  four  members,  one, 
the  Cliairman,  is  to  be  a  jjereonality  of  general 
eminence;  a  second  is  to  be  a  scientist  with  special- 
ized knowledge  in  the  field  of  engineering;  and 
two  are  to  be  members  not  representing  any  par- 
ticular field  of  interest,  one  of  whom  shall  be  an 
economist.  The  Council  is  to  be  elected  at  the 
next  annual  meeting  from  a  panel  submitted  by  the 
Executive  Directors  of  the  Bank. 

The  formal  proceedings  of  the  meetings  came  to 
a  close  with  the  election  of  officers  and  the  selec- 
tion of  a  site  for  the  next  meeting.  The  chairman- 
ship went  to  the  United  Kingdom,  and  the  offices 
of  vice  chairman  to  the  United  States,  China, 
France,  and  India,  by  unanimous  consent.  Lon- 
don was  chosen  as  the  site  of  the  next  annual  meet- 
ing to  be  held  in  September  1947. 


BANK  AND  FUND  PUBLICATIONS 

The  following  publications  are  available : 

First  Annual  Meeting  of  the  Board  of  Governors  of  the  Inter- 
national Bank  for  Eeconst ruction  and  Development:  First  An- 
nual Eeport  by  the  Executive  Directors.  Washington,  D.C. 
September  27, 1946. 

Selected  Documents:  Board  of  Governors  Inaugural  Meeting, 
Savannah,  Ga.,  March  8  to  18,  1946.  International  Monetary 
Fund,  Washington,  D.C,  April  1946. 


THE  PARIS  PEACE  CONFERENCE 


The  Problem  of  Trieste  and  the  Italian-Yugoslav  Frontier 


REMARKS  BY  SENATOR  CONNALLY  > 


A  just  solution  to  tlie  problem  of  Trieste  and  the 
frontier  between  Italy  and  Yugoslavia  is  the  key- 
stone of  a  peace  settlement  with  Italy.  The  recom- 
mendations which  the  political  and  territorial 
commission  for  Italy  has  forwarded  to  the  plenary 
conference  in  this  respect  are  among  the  most  im- 
portant upon  which  the  conference  must  express  its 
views  if  it  is  to  fulfill  the  task  to  make  recom- 
mendations to  the  Council  of  Foreign  Ministers. 

Not  only  does  the  problem  of  Trieste  constitute 
an  essential  element  in  a  real  and  lasting  peace  in 
this  area,  but  it  is  one  of  the  most  vexing  with 
which  the  Conference  has  to  deal.  I  need  not  re- 
call the  background  of  the  Ministers'  decision  last 
July  nor  the  long  discussions  which  have  taken 
place  both  in  the  Italian  Commission  and  in  its 
subcommission.  The  United  States  Delegation  has 
repeatedly  made  it  clear  that  the  decision  of  the 
Ministers  with  regard  to  the  frontier  and  the  estab- 
lislunent  of  the  free  territory  is  one  decision  and 
one  agreement  and  that  no  one  part  of  it  can  be 
separated  from  the  entire  comprehensive  whole. 
Furthermore,  unless  a  satisfactory  statute  assur- 
ing the  independence  and  integrity  of  the  free  ter- 
ritory and  fully  protecting  the  human  rights  and 
fundamental  freedoms  of  its  inhabitants  is  gen- 
erally accepted  and  becomes  operative,  the  obliga- 
tions assumed  by  the  powers  signatory  to  the  treaty 
toward  the  people  of  this  area  and  for  the  main- 
tenance of  peace  cannot  be  successfully  discharged. 

Wlien  the  decision  of  the  Ministers  was  made, 
full  account  was  taken  of  the  fact  that  in  this  dis- 
turbed area  circumstances  would  call  for  excep- 


*  Made  for  the  American  Delegation  on  tlie  treaty  of 
peace  with  Italy  at  the  plenary  session  of  the  Paris  Peace 
Conference  on  Oct.  7,  and  released  to  the  press  on  the 
same  date.  Senator  Connally  is  a  member  of  the  Ameri- 
can Delegation  to  the  Conference. 


tional  measures.  It  was  for  this  reason  that  the 
Ministers  determined  that  the  Security  Council  of 
the  United  Nations  organization  in  the  fulfillment 
of  its  primary  responsibility  for  the  maintenance 
of  international  peace  and  security  must  undertake 
this  assurance.  Not  only  must  the  Conference 
strive  to  create  a  territory  founded  on  democratic 
principles  and  in  wliich  the  people  shall  have  the 
fullest  possible  freedom  and  voice  in  their  own 
affairs  through  institutions  oj^erating  under  demo- 
cratic prmciples,  but  it  must  also  undertake  to 
assure  that  this  territory  can  have  a  life  of  its  own 
free  from  domination  by  any  outside  influence ;  it 
must  be  free  and  independent. 

Any  statute  providing  for  the  establisliment  of 
the  free  territory  must  assure  adequate  and  satis- 
factory guarantees  that  its  international  character 
will  be  maintained,  that  its  integi'ity  and  inde- 
pendence will  be  assured,  and  that  the  rights  and 
freedoms  of  its  inhabitants  will  be  fully  protected. 
To  achieve  these  ends  it  is  not  sufficient  merely 
for  us  to  agi-ee  to  words  in  a  document  which  can 
and  will  be  interi:)reted  in  diverse  ways,  but  we 
must  provide  the  minimum  machinery  to  secure 
the  implementation  of  these  assurances  which  at 
the  same  time  will  leave  the  greatest  possible  op- 
portunity to  the  people  to  liandle  their  internal 
affairs. 

In  our  conception  the  Governor  is  the  agent  of 
the  Security  Council  in  the  free  territory.  He  can 
in  no  sense,  as  has  been  suggested,  be  regarded  as 
a  dictator  or  as  the  agent  for  any  one  foreign 
groujj  of  powers  striving  to  use  Trieste  for  their 
own  ends;  he  will  not  be  sent  to  the  territory  to 
impose  his  will  or  the  will  of  others  on  the  people. 
The  people  of  Trieste,  moreover,  will  have  ample 
opportunity  to  take  their  case  to  the  Security 
Council  should  they  consider  any  action  of  the 
Governor  unjustified.     He  is  the  instrument  of 


708 


OCTOBER  20,  19^6 


709 


the  international  organization  charged  with  the 
maintenance  of  peace  and  security.  He  can  and 
must  have  no  other  role.  He  must  have  sufficient 
powers  to  fulfill  his  responsibilities.  Lack  of  con- 
fidence in  the  Governor  in  connection  with  this 
limited  but  essential  function  in  fact  implies  a  lack 
of  confidence  in  the  organization  which  he  repre- 
sents and  which  we  have  entrusted  with  the  great- 
est role  in  international  affairs,  namely,  to  see  that 
peace  is  maintained.  Moreover,  the  Security 
Council  must  at  all  times  act  in  accordance  with 
the  principles  and  purposes  of  the  Charter  of  the 
United  Nations.  The  Security  Council  cannot 
preserve  the  integrity  and  independence  of  the 
free  territory  by  a  mere  pronouncement  or  resolu- 
tion. It  must  have  an  instrumentality  in  the  form 
of  the  Governor  to  execute  its  functions. 

In  insisting  that  the  free  territory  shall  not  be 
bound  by  exclusive  ties  to  any  one  state,  which 
would  be  incompatible  with  its  status  as  a  free 
territory,  the  United  States  considers  that  every 
!  opportunity  for  the  development  of  a  free  and 
prosperous  existence  for  the  territory  should  be 
given.  We  expect  all  others  to  do  the  same.  The 
history  of  Trieste  shows  that  its  prosperity  de- 
pends upon  its  utilization  as  a  port  by  the  states 
of  Central  Europe.  Its  hinterland  is  composed  of 
a  number  of  states  which  should  be  assured  free 
access  to  and  from  their  natural  outlet  without 
discrimination.  If  the  action  of  any  one  of  them 
prevents  or  hinders  the  Trieste  development  it 
must  be  regarded  as  a  political  action  determined 
by  the  interests  of  one  country  contrary  to  the 
\  interests  of  all.  There  are  no  economic  or  physical 
obstacles  to  an  independent  Trieste  becoming  a 
prosperous  free  port  for  all  of  Central  Europe. 

Our  proposal  is  that  the  territory  shall  be  and 
shall  remain  demilitarized,  and  that  no  military, 
naval,  or  air  forces,  installations  or  equipment  will 
be  maintained,  built,  or  manufactured  in  the  free 
territory.  These  provisions  become  effective  as 
soon  as  the  permanent  statute  goes  into  force. 
Any  exception  to  this  principle  could  only  be  made 
by  order  of  the  Security  Council  in  the  fulfillment 
of  its  responsibilities  under  the  Statute  and  under 
the  Charter  of  the  United  Nations.  It  is,  of  course, 
pure  sophistry  to  assimae  that  the  Security  Council 
of  the  United  Nations  would  lend  itself  to  the 
military  interests  of  any  one  power  or  group  of 


powers  or  that  any  one  power  or  group  could  pos- 
sibly establish  a  military  base. 

Today  when  that  small  area  is  not  free  from 
tension  and  fear  engendered  by  pressures  of  the 
conflicting  interests  of  different  national  groups, 
it  becomes  evident  that  the  first  days  of  its  exist- 
ence as  a  new  territory  are  of  the  utmost  impor- 
tance for  its  future  independence  and  future  well- 
being.  The  Security  Council  should  immediately 
be  entrusted  with  the  organization  of  its  pro- 
visional government. 

Mr.  President,  the  Italian  Commission  has  la- 
bored long  over  this  problem.  It  has  placed  before 
us  certain  recommendations.  These  recommenda- 
tions are  endorsed  by  two  thirds  of  the  members 
of  the  Commission.  In  some  respects  they  do  not 
go  as  far  as  the  United  States  would  have  wished. 
They  leave  much  to  further  discussion  by  the  Min- 
isters. Nevertheless,  they  do  outline  the  main 
principles  without  which  we  feel  no  settlement  is 
possible.  For  these  reasons  the  United  States 
Delegation  accepted  the  recommendations  put  for- 
ward by  the  French  Delegation  in  their  Commis- 
sion and  which  the  Commission  in  turn  adopted  as 
its  own  recommendation  to  the  Conference.  The 
recommendations  propose  the  establishment  of  a 
thoroughly  democratic  government — the  Governor 
under  the  direction  of  the  Security  Council  is  to 
preserve  the  territory's  integrity  and  independence 
and  to  preserve  public  order  and  the  rights  and 
freedoms  of  the  inhabitants;  his  powers  are  de- 
limited. A  legislative  assembly  elected  by  the  peo- 
ple through  universal  suffrage  without  discrimina- 
tion is  to  be  established.  It  has  wide  powers.  It 
elects  the  Council  of  Government  and  enjoys  legis- 
lative authority.  It  may  file  protests  with  the 
Security  Council  against  any  act  of  the  Governor. 

A  system  of  independent  courts  is  set  up  to  ad- 
minister justice  according  to  law.  The  French 
proposal  sets  up  a  plan  which  assures  the  people 
a  free  and  independent  governmental  system  under 
which  Trieste  and  its  people  will  be  able  to  prosper 
and  progress  and  develop. 

The  United  States  Delegation  urges  that  the 
plenary  conference  adopt  and  forward  to  the 
Council  of  Foreign  Ministers  the  proposals  of  the 
commission  as  an  expression  of  its  own  judgment 
and  as  a  guide  to  the  future  work  of  the  Ministers 
and  the  final  drafting  of  the  treaty  of  peace  with 
Italy. 


Economic  Clauses  in  tlie  Italian  Peace  Treaty 


STATEMENT  BY  WILLARD  L.  THORP' 


The  economic  clauses  in  the  draft  peace  treaty 
with  Italy  set  forth  a  general  system  of  settlements 
of  claims  and  counterclaims  arising  from  the  war. 
The  justifiable  claims  against  Italy  are  tremen- 
dous, and  Italy  must  undertake  to  make  payment 
to  the  limit  permitted  by  the  character  and  capac- 
ity of  her  economy.  The  United  States  Delega- 
tion believes  that  the  proposals  which  have  re- 
ceived majority  support  in  the  Economic  Commis- 
sion for  Italy  represent  that  limit.  Additional 
burdens  placed  on  Italy  might  destroy  the  practi- 
cal fulfilment  of  the  treaty  provisions. 

As  to  reparation  (art.  64)  the  damages  and  war 
costs  which  the  various  United  Nations  can  j^rop- 
erly  assert  against  Italy  reach  staggering  totals. 
No  reparation  settlement  can  be  much  more  than 
a  token  payment  when  measured  against  the 
figures  of  claims.  Had  the  United  States  pressed 
its  potential  claim  of  $20,000,000,000,  the  percent- 
age of  recovery  through  reparation  would  have 
been  even  more  infinitesimal.  However,  although 
the  reparation  provisions  in  their  present  form 
do  not  correspond  exactly  to  the  proposals  made 
by  the  United  States,  we  are  prepared  to  support 
them. 

We  feel  that  the  Albanian  claim  is  met  to  such 
a  degree  through  Italian  assets  within  her  juris- 
diction that  the  limited  amount  available  from 
other  sources  should  not  be  reduced  to  the  major 
claimants  by  giving  a  share  to  Albania. 

As  to  the  relative  treatment  of  Greece  and  Yugo- 
slavia, our  studies  lead  to  the  conclusion  that  they 
should  have  approximately  equal  treatment  as 
the  treaty  now  provides. 

As  to  the  general  formula,  we  believe  that  in  the 
light  of  the  nature  and  present  condition  of  the 
Italian  economy  the  formula  represents  the  only 
possible  approach  under  which  Italy  can  make 
payment.  Finally,  we  believe  that  the  amount 
of  $325,000,000  is  the  limit  of  the  Italian  capacity 

'  Made  at  plenary  session  of  Paris  Peace  Conference  on 
Oct.  8  and  released  to  the  press  on  the  same  date.  Mr. 
Thorp  is  Deputy  to  the  Assistant  Secretary  for  economic 
affairs  in  the  Department  of  State  and  is  a  member  of 
the  American  Delegation  to  the  Conference. 


710 


to  pay.    We  shall  therefore  support  the  proposed 
reparation  provisions. 

As  to  restitution  (art.  65)  it  is  obvious  that 
identifiable  items  taken  by  force  and  duress  should 
be  returned.  However,  many  of  the  suggested 
amendments  went  beyond  this  simple  formula 
requiring  replacement  when  the  looted  objects 
could  not  be  found.  In  the  recommendation  con- 
cerning objects  of  historical  and  artistic  signifi- 
cance, the  Conomission  proposes  a  form  of  limited 
replacement  which  the  United  States  supports. 
However,  in  general  we  believe  that  such  provi- 
sions should  be  rejected.  They  represent  a  form 
of  concealed  reparation,  and  such  claims  should 
be  met  in  the  reparation  settlement  itself.  Under 
specific  replacement  provisions  the  various  claim- 
ant countries  would  recover  from  Italy  according 
to  the  extent  to  which  they  held  this  or  that  form 
of  special  claim  rather  than  on  the  more  equitable 
basis  of  all  their  claims.  We  have  consistently 
opposed  special  replacement  provisions. 

As  to  compensation  for  damages  done  to  prop- 
erty of  United  Nations  nationals  in  Italy  (art.  68) 
we  have  argued  for  25  percent  as  the  proper  level 
for  the  payment  to  be  made  in  local  currency.  We 
believe  that  payment  in  local  currency  involves 
economic  considerations  of  an  entirely  different 
order  than  does  an  external  transfer  and  that  the 
fact  that  the  compensation  payments  will  largely 
be  used  for  reconstruction  within  Italy  makes  it 
much  less  burdensome  than  the  disappearance  of 
commodities  across  the  boundary  on  reparation 
account.  Nevertheless,  in  the  light  of  all  the  ob- 
ligations which  are  imposed  upon  Italy  by  the 
treaty,  we  would  be  content  with  25  percent  com- 
pensation. 

We  are  very  clear  that  the  arrangement  for 
such  compensation  must  not  distinguish  between 
United  Nations  nationals  who  held  property  di- 
rectly in  Italy  and  those  who  held  it  through  the 
medium  of  corporations  organized  under  Italian 
law.  This  is  adequately  dealt  with  in  the  present 
draft  treaty,  and  it  would  be  a  gross  miscarriage 
of  justice  if  the  particular  provision  dealing  with 
this  matter  were  rejected. 


i 


OCTOBER  20,  10.1,6 

As  to  miscellaneous  claims  not  covered  in  the 
above  list  (art.  G9)  they  are  to  be  met  from  Italian 
assets  within  the  various  jurisdictions.  The  bal- 
ance of  Italian  assets  after  such  claims  are  met  is 
to  be  returned  to  Italian  ownership.  The  pro- 
visions of  article  69  have  been  criticized  because 
they  provide  no  machinery  for  policing  the  be- 
havior of  the  Allied  and  associated  powers,  but  like 
other  articles  in  the  treaty  this  must  depend  upon 
the  good  faith  of  the  countries  involved. 

So  far  as  the  United  States  is  concerned  our  po- 
sition on  the  matter  is  clear.  We  would  expect 
to  lunit  the  use  of  these  assets  to  the  satisfaction 
of  certain  private  claims  which  are  not  provided 
for  in  the  treaty  or  under  our  domestic  legislation. 

The  total  of  such  claims  will  be  small,  and  we 
hope  to  negotiate  an  agreement  with  the  Italian 
Government  with  regard  to  them.  In  fact,  subject 
to  this  one  special  arrangement  and  to  cases  of 


711 

war  criminals  and  the  like,  we  see  no  reason  why 
all  the  $60,000,000  of  Italian  assets  in  the  United 
States  should  not  be  returned  to  Italian  ownership 
although  the  necessary  legislation  had  not  yet  been 
enacted. 

In  addition  to  the  provisions  regarding  claims 
arising  out  of  the  war  the  treaty  provides  a  general 
basis  for  clarifying  and  reestablishing  economic 
relations  between  Italy  and  the  United  Nations. 

In  total  we  wish  to  give  our  general  support  to 
the  economic  clauses  of  the  Italian  Peace  Treaty  as 
endorsed  by  the  majority  of  the  Commission  as 
representing  the  maximum  requirements  which 
should  be  ijnposed  upon  Italy.  The  problems  are 
exceedingly  difficult  ones,  and  there  is  wide  room 
for  real  differences  in  judgment.  However,  we 
believe  the  answers  which  have  been  found  are 
within  the  limits  of  fairness,  equity,  and  realism. 


Economic  Clauses  in  Rumanian  Peace  Treaty 

REMARKS  BY  SENATOR  VANDENBERG 


The  economic  clauses  of  the  treaty  with  Rumania 
raise  vital  issues  involving  the  ability  of  Rumania 
and  of  other  countries  whose  commerce  must  pass 
through  Rumania  to  trade  freely  in  the  markets 
of  the  world  and  the  ability  of  other  countries 
to  trade  with  Rumania.  These  questions  go  di- 
rectly to  the  degree  of  progress  and  of  peace  which 
this  Conference  shall  encourage.  I  speak  briefly 
on  this  i^hase  of  the  pending  treaty. 

First,  the  United  States  Delegation  desires  to 
bring  article  34  in  the  Rumanian  treaty  to  the 
urgent  attention  of  the  Conference  because  it  be- 
lieves a  free  Danube  is  indispensable  to  the  econo- 
mic health  and,  therefore,  to  the  peace  of  central 
Europe.  The  United  States  has  no  direct  com- 
mercial interest  of  its  own  in  the  Danube.  There- 
fore it  believes  it  can  deal  objectively  with  this 
problem.  It  has  a  heavy  temporary  responsibility 
because  so  long  as  it  is  in  military  occupation  it 
must  act  as  an  economic  trustee  for  parts  of  Ger- 
many and  Austria,  and  it  is  completely  convinced 
that  a  free  Danube  under  unified  control  is  as  in- 
dispensable to  their  welfare  and  progress  as  is  the 
economic  unity  required  by  the  Potsdam  Agree- 
ment for  Germany  as  a  whole.  But  the  larger 
problem  of  the  general  peace  is  our  greater  con- 
cern and  we  again  assert  the  conviction  that  this 


peace,  which  is  the  responsibility  of  every  nation 
in  this  Conference,  is  substantially  related  to  the 
avoidance  of  international  trade  barriers  which 
invite  discrimination  and  dangerous  frictions. 

The  Danube,  the  longest  navigable  waterway 
in  Europe  west  of  the  Soviet  Union,  is  the  perfect 
example  of  these  necessities.  It  is  historically 
clear  that  Danubian  commerce  cannot  prosper  if 
it  is  at  the  mercy  of  various  uncoordinated,  restric- 
tive, and  discriminatory  administrations  which 
respond  to  the  local  judgments  of  the  eight  na- 
tional jurisdictions  through  which  the  Danube 
flows.  Some  of  the  current  trouble — some  prob- 
lems on  the  Danube — are  the  result  of  thus  divid- 
ing the  Danube  into  unrelated  watertight  com- 
partments in  contempt  of  the  lessons  of  history 
and  experience. 

Article  34  proposes  to  restore  the  wisdom  of 
history  and  experience.  It  reasserts  the  general 
principle  that  navigation  on  the  Danube  shall  be 
free  and  open,  on  terms  of  equality  to  all  states 
without  discrimination.     It  then  remits  to  the 


^  Made  at  the  opening  plenar.v  session  on  the  Rumanian 
treaty  at  the  Paris  Peace  Conference  on  Oct.  10  and  re- 
leased to  the  press  on  the  same  date.  Senator  Vanden- 
berg  is  a  member  of  the  American  Delegation  to  the 
Conference. 


712 


DEPARTMENT  OP  STATE  BULLETIN 


riparian  states  themselves,  in  consultation  with 
the  four  powers,  the  establishment  of  an  operating 
regime  during  the  next  six  months.  One  of  these 
four  powers,  Russia,  is  also  riparian.  Another, 
America,  is  riparian  by  proxy  so  long  as  it  is  in 
German  and  Austrian  occupation.  Therefore,  ri- 
parian states  will  be  in  complete  control  of  the 
establishment  of  this  new  unified  regime.  Thus,  a 
maximum  of  "home  rule"  is  preserved  while,  at 
the  same  time,  this  Conference  exercises  its  right 
and  duty  to  require  the  application  of  general 
principles  which  it  deems  essential  to  the  peace 
for  which  we  all  made  our  common  sacrifice. 

I  emphasize  and  underline  the  vitally  significant 
fact  that  this  is  no  new  concept.  These  are  old 
truths,  as  persistent  as  the  Danube  itself,  which  I 
re^Deat  today.  They  have  been  recognized  by  the 
maintenance  of  international  administration  of  the 
Danube  since  1856  and  even  back  of  that  in  Napo- 
leonic days.  For  example,  the  Treaty  of  Versailles 
internationalized  the  Danube  from  the  head  of 
navigation  to  the  sea  and  established  free  naviga- 
tion throughout  the  River's  length  with  a  control 
commission  including  other  than  riparian  states 
as  a  recognition  of  the  breadth  of  interest  involved. 

It  is  needless  to  trace  the  fluctuating  fortunes  of 
the  various  Danubian  commissions  since  1856.  The 
important  point  in  the  American  view  is  that  this 
relative  freedom  of  navigation  on  the  Danube  has 
been  accepted  in  one  form  or  another  as  essential 
for  90  years.  I  venture  to  say  that  the  general 
principles  reasserted  in  article  34  have  been  in- 
herent in  the  Danubian  regime  throughout  these 
90  years.  They  have  been  acknowledged  as  the 
essential  formula  for  peace  and  progress,  no  matter 
how  illy  implemented,  for  almost  a  century.  They 
are  more  essential  than  ever  today. 

It  seems  to  the  United  States  Delegation  that  it 
would  be  a  tragic  and  reactionary  mistake  for  this 
Conference  to  turn  its  back  upon  all  this  history 
and  experience,  reinforced  as  they  are  by  the  ob- 
vious need  for  non-discriminatory  unity  as  dis- 
closed by  the  limping,  stagnant  economy  of  the 
Danube  today.  Worse,  our  silence  on  this  subject 
would  be  an  actual  retreat— an  abandonment  of 
freedoms  long  established  before  we  all  fought 
World  War  II  for  greater  freedoms.  It  seems  to 
us  that  the  world  is  entitled  to  know  that  its  peace- 
makers are  at  least  "holding  their  own"  and  not 
slipping  back  into  darker  ages. 


Article  34  was  approved  by  the  Balkan  Economic 
Commission  by  a  vote  of  eight  to  five,  with  one 
abstention.  The  United  States  Delegation  is  urg- 
ing an  even  more  convincing  plenary  vote  through- 
out the  debate  in  the  Commission.  I  did  not  hear 
one  word  of  argument  against  the  advisability  of 
restoring  a  free  Danube  to  non-discriminatory  use. 
I  heard  chiefly  the  reiterated  demand  only  that 
this  Conference  must  leave  the  problem  to  the  ex- 
clusive jurisdiction  of  the  riparian  states,  some  of 
which  are  not  here  represented,  and  that  we  must 
not  invade  their  sovereignty. 

I  reply:  (1)  that  the  practice  of  nearly  a  cen- 
tury has,  with  the  consent  of  riparian  states,  recog- 
nized this  wider  right  of  consultation  in  respect  to 
the  fate  of  the  Danube;  (2)  that  riparian  states 
will  control  the  proposed  meeting  to  set  up  the 
regime,  six  to  three,  exclusive  of  Germany  and 
Austria,  for  which  the  United  States  has  at  least 
a  clear,  temporary  riparian  right  to  speak.  Count- 
ing this  dual  proxy  as  one,  riparian  states  will 
control  seven  to  two. 

Then  I  want  to  make  this  further  reply.  We  do 
not  invade  the  sovereignty  of  Rumania  any  more 
than  does  every  other  obligation  imposed  perfectly 
legitimately  upon  this  ex-enemy  state  if  we  have 
any  interest  in  a  free  Danube  and  unless  we  pro- 
pose to  repudiate  history,  experience,  and  reality 
in  this  connection.  There  is  a  very  specific  reason 
for  article  34  in  this  Rumanian  Treaty,  because  it 
was  Rumania  which  upset  the  fairly  satisfactory 
international  regime  on  the  Danube  in  1938  by  de- 
manding a  rendition  to  herself  of  the  substantive 
powers  of  the  then  existing  Danube  Commission. 

In  the  debate  in  the  Commission  someone  asked 
why  we  do  not  similarly  internationalize  the  St. 
Lawrence  River.  Of  course  there  is  no  remote 
analogy  between  a  river  between  two  countries 
which  have  been  at  peace  for  125  years  and  a  river 
that  is  shared  by  eight  countries  emerging  from 
war,  as  is  the  Danube.  But  if  any  parallel  is 
sought,  I  am  glad  to  say  that  the  water  traffic 
of  all  nations  is  welcome  to  a  free  St.  Lawrence  in 
its  international  traffic  on  a  total  equality  with 
the  vessels  of  the  United  States  and  Canada. 

In  a  word,  Mr.  President,  it  seems  to  the  Ameri- 
can Delegation  that,  if  we  intend  that  the  Danube 
shall  resume  the  freedoms  heretofore  established 
and  shall  develop  in  peace  and  progress,  this  Con- 
ference must  say  so  now.  It  is  our  only  chance. 
We  shall  not  collide  with  any  Danubian  aspirations 


OCTOBER  20,  1946 

unless  these  aspirations  collide  with  these  free- 
ioms.  In  such  an  event  it  is  doubly  necessary  that 
tve  should  anticipate  the  protective  contract  now. 

For  these  reasons  the  United  States  Delegation, 
for  the  sake  of  present  urgent  necessities  in  the 
:ones  of  military  occupation  and  then  for  the 
arger  cause  of  permanent  peace  and  progress, 
iarnestly  urges  the  Conference  to  convincingly 
ipprove  article  34  in  this  Kumanian  treaty. 

We  urge  also  that  the  Conference  adopt  those 
)rovisions  of  article  30  of  the  treaty,  dealing  with 
:eneral  economic  relations.  The  Commission  has 
ecommended  that  for  a  limited  period  after  the 
reaty  comes  into  force  Rumania  should  be  re- 
uired  to  extend  non-discriminatory  treatment  to 
be  trade  and  business  activities  of  those  United 
rations  which  reciprocally  extend  similar  treat- 
lent  to  Rumania.  This  undertaking  should  pro- 
ide  tlie  basis  for  the  resumption  of  economic  re- 
itions  between  Rumania  and  the  United  Nations, 
ending  the  conclusion  of  new  commercial  trea- 
es  and  agi-eements,  to  the  mutual  advantage  of 
Rumania  and  the  United  Nations  and  in  promo- 
on  of  progress  and  peace. 

One  clause  relates  to  exceptions  customarily 
lade  from  most-favored-nation  treatment.  The 
nguage  proposed  by  the  majority  of  the  Com- 
lission  would  permit  these  exceptions,  which  were 
istomarily  included  in  Rumania's  pre-war  com- 
ercial  treaties,  but  would  not  allow  the  intro- 
iction  of  new  exceptions  or  preferences  during 
le  18-month  period  when  this  article  will  apply, 
n  alternative  provision  supported  by  a  minority' 
i"  the  Commission  would  permit  new  wide  pref- 
.■ences  to  neighboring  countries. 
,  Various  arguments  have  been  brought  forward 
j  the  Commission  in  support  of  the  minority  pro- 
;)sal.  Most  of  them  have  sought  to  justify  this 
!W  preference  for  neighboring  states  on  the  basis 

preferences  which  have  previously  been  es- 
blished  in  special  situations,  many  of  which,  like 
ose  involving  the  United  States,  are  in  the 
ocess  of  being  reduced  and  eliminated. 
It  has  also  been  argued  that  for  some  reason 
lich  is  not  clear  to  the  American  Delegation 
ighboring  states  must  be  free  to  grant  prefer- 
ces  to  each  other  in  the  interest  of  their  economic 
construction.  It  seems  to  us  obvious  that  in 
3  very  nature  of  things  neighboring  states  enjoy 
referential  position  in  each  other's  trade  as  a 
iult  of  their  geographical  propinquity  and  the 


713 

advantages  it  confers  with  regard  to  cheapness  of 
transport  costs,  speed  of  communications  and 
other  similar  factors.  "We  fail  to  see  why  it  is 
necessary  to  add  to  these  natural  advantages  by 
providing  for  new  discriminatory  barriers  against 
other  countries  which  have  carried  the  burden  of 
this  war  and  to  whom  the  recovery  of  international 
trade  is  important.  In  the  reconstruction  of  their 
economies  all  of  the  governments  here  represented 
are  committed  to  an  endeavor  to  expand  interna- 
tional trade  on  a  non-discriminatory  basis  to  the 
mutual  benefit  of  the  peoples  we  represent.  We 
feel  that  it  would  be  singularly  inappropriate  and 
untimely  for  this  Conference  to  go  on  record  as 
favoring  new  preferences,  new  hurdles,  and  new 
barriers.  We  call  on  the  Conference  to  endorse 
the  economic  provisions  of  the  Atlantic  Charter, 
to  which  we  have  all  subscribed,  and  to  seek  the 
adherence  of  Rumania  to  the  principles  through 
the  treaty  provisions. 

Finally,  the  Conference  is  called  to  pass  upon 
provisions  regarding  civil  aviation.     The  proposal 
of  the  majority  of  the  Commission  would  except 
civil  aviation  from  the  treaty  provisions  requiring 
national  treatment  and  would  commit  Rumania, 
during  the  18  months  article  30  will  remain  in 
effect,  to  follow  the  rule  of  non-discrimination  in 
the  bilateral  civil-aviation  agreements.     It  is  dif- 
ficult for  us  to  see  how  there  can  be  objection 
to  such  simple  and  fair  provisions.     An  additional 
provision  proposed  by  the  majority  of  the  Com- 
mission would  require  Rumania  to  extend  the  so- 
called  first  two  freedoms,  those  of  transit  and 
technical    or   non-commercial    landings,   to    any 
United  Nation  which  grants  these  freedoms  to 
Rumania.     This    proposal,    which    incorporates 
principles  generally  accepted  by  most  countries 
interested  in  international  civil  aviation,  is  sup- 
ported by  the  United  States. 

In  sum,  Mr.  President,  the  proposals  with  which 
we  are  confronted  relating  to  the  Danube  and 
to  economic  relations  involve  the  question  of 
whether  we  are  to  take  a  backward  step  by  agree- 
ing that  Rumania,  after  emerging  from  her  war 
of  aggression,  is  to  be  free  to  discriminate  against 
the  United  Nations  or  whether  we  will  call  upon 
her  to  deal  with  the  United  Nations  on  a  basis  of 
fair  play  and  non-discrimination. 

The  United  States  feels  that  no  delegation  in 
this  Conference  should  have  difBculty  in  makino- 
this  choice. 


714 


DEPARTMENT  OF  STATE  BULLETIN 


Special  Considerations  Involved 
in  Drafting  Bulgarian  Treaty 

REMARKS  BY  JEFFERSON  CAFFERY  > 

The  draft  treaty  with  Bulgaria,  while  similar 
in  many  respects  to  the  treaties  with  Kimiania  and 
Hungary,  deals  with  three  subjects  at  least  to 
which  the  Conference  in  plenary  session  will  desire 
to  give  particular  attention. 

One  of  these  is  the  provision  for  reparation 
which,  unlike  the  arrangements  for  Rumania  and 
Hungary,  had  not  been  worked  out  in  detail  under 
the  terms  of  the  armistice.  We  have  before  us  the 
recommendations  of  the  Economic  Commission, 
and  the  U.S.  Delegation  supports  the  conclusion 
reached  by  the  majority  as  to  the  amount  and  dis- 
tribution of  Bulgarian  reparation  based  on  a 
comparative  analysis  of  equality  of  burden,  taking 
for  example  the  amounts  set  for  Rumania  as  de- 
termined yesterday.  Bulgaria's  obligation  would 
be  put  at  roughly  one  third  of  Rumania's  obliga- 
tion. Two  factors,  however,  justify  a  reparation 
by  Bulgaria  at  an  amount  somewhat  above  the 
one-third  figure,  the  limited  amount  of  war  dam- 
age in  Bulgaria  and  the  addition  to  Bulgaria  of  a 
substantial  area  of  annexed  territory.  Conse- 
quently, the  total  figure  of  $125,000,000  is  consid- 
ered sound  and  reasonable. 

As  to  the  division  of  reparation  between  Greece 
and  Yugoslavia,  their  claims  are  essentially  of  the 
same  character  in  large  part  against  an  army  of 
occupation.  If  only  the  claims  for  actual  damages 
are  considered,  they  are  approximately  equal  in 
the  light  of  all  the  factors  concerned.  The  U.S. 
Delegation  believes  that  the  fairest  solution  would 
be  to  divide  the  total  equally  between  Greece  and 
Yugoslavia. 

A  very  important  subject  in  discussion  before 
this  Conference  has  been  the  matter  of  provision 
in  the  treaty  for  the  security  requirements  of 
Greece.  This  noble  ally,  whose  steadfast  and 
heroic  conduct  in  the  war  from  the  earliest  hours 
of  the  conflict  won  the  world's  admiration  and  to 
whose  splendid  contribution  to  the  final  victory  we 
all  pay  tribute,  must  find  the  safety  and  peace  to 
enable  her  people  to  carry  through  the  arduous 
tasks  of  reconstruction. 


'  Made  at  the  plenary  session  on  the  Bulgarian  Treaty 
at  the  Paris  Peace  Conference  on  Oct.  11  and  released 
to  the  press  on  the  same  date.  Mr.  Caffery  is  American 
Ambassador  to  France. 


One  important  measure  to  this  end  is  an  amend- 
ment prohibiting  the  construction  of  certain  per- 
manent fortifications  north  of  the  Greco-Bul- 
garian frontier.  Greece  has  suffered  from  unpro- 
voked aggression  by  Bulgaria  three  times  in  one 
generation,  and  her  own  frontier  fortifications 
were  destroyed  during  the  last  Bulgarian  occupa- 
tion. Greek  territory  east  of  Salonika  is  long  and 
narrow  and  its  lateral  communications  are  in  some 
places  within  artillery  range  of  the  Bulgarian 
frontier.  Therefore,  a  prohibition  against  per- 
manent mountings  for  weapons  capable  of  firing 
into  Greek  territory  will  certainly  contribute  to 
Greek  security. 

As  i-egards  the  strength  of  the  Bulgarian  armed 
forces,  the  U.  S.  Delegation  has  felt  it  necessary 
to  take  note  of  a  law  establishing  a  frontier  militia 
introduced  in  Bulgaria  since  the  Paris  Conference 
started  its  work.  The  U.  S.  Delegation  has  placed 
on  record  its  position  that  if  this  frontier  militia 
is  not  included  in  the  total  armed  strength  permis- 
sible under  the  treaty,  then  under  article  XI  it 
will  be  illegal  for  Bulgaria  to  have  such  a  force 
with  military  training. 

These  military  provisions  are  closely  related, 
of  course,  to  the  larger  question  raised  by  artick 
I  of  the  treaty  defining  the  frontiers  of  Bulgaria 
before  adopting  this  article.  The  Political  and 
Territorial  Commission  and  also  the  Military 
Commission  took  under  consideration  an  amend- 
ment and  a  resolution  proposed  by  the  Greet 
Delegation  for  a  rectification  of  the  frontiei 
between  Greece  and  Bulgaria. 

With  full  acknowledgment  of  the  paramount 
importance  of  the  future  security  of  Greece,  th( 
U.  S.  Delegation  has  given  long  and  earnest 
reflection  to  this  proposal  and  to  alternative  plans 
to  this  end. 

It  seemed  to  the  U.  S.  Delegation  that  the 
firmest  security  for  Greece  on  her  northern  fron 
tier  would  be  found  not  so  much  in  territoria 
changes  as  in  the  broad  powers  of  the  Unitec 
Nations.  We  have  a  profound  belief  in  the  effi 
cacy  of  the  measures  which  the  United  Nation; 
are  taking  for  the  maintenance  of  general  interna 
tional  security,  and  the  U.  S.  Delegation  can  givi 
the  full  assurance  that  the  United  States  can  b' 
counted  on  to  act  in  accordance  with  its  solem 
undertaking  under  the  United  Nations  if  Greece' 
security  should  be  endangered  by  the  acts  of  a; 


aggressor  nation. 


THE  UNITED  NATIONS 
Summary  of  Third  Session  of  Economic  and  Social  Council 


[Released  to  the  press  by  the  United  Nations  October  3] 

The  third  session  of  the  Economic  and  Social 
I!oiincil  came  to  an  end  shortly  before  midnight 
)n  October  2,  after  an  all-day  debate  lasting  over 
2  hours. 

Described  in  a  closing  speech  by  Secretary- 
ireneral  Trygve  Lie,  as  having  achieved  the  "most 
uccessful  results  in  the  history  of  the  United 
Nations",  this  third  session  completed  the  organi- 
ational  phase  of  the  Council's  work  and  saw 
assed  the  first  practical  measures  aimed  at  carry- 
ig  out  the  Council's  mandate  to  establish  eco- 
omic  stability  and  social  security. 

The  previous  sessions  were  held  from  25 
anuary  to  16  February,  in  London,  and  from  25 
lay  to  21  June  at  Hunter  College,  the  Bronx, 
'ew  York.  The  present  third  session,  held  at  the 
ew  United  Nations  Headquarters  at  Lake  Suc- 
?ss,  Long  Island,  lasted  from  11  September  to 
October.  Thus,  in  little  more  than  60  working 
ays,  the  Economic  and  Social  Council  has  set  up 
le  most  important  international  machinery  ever 
)nceived  to  coordinate  activities  in  the  economic 
id  social  fields  for  advancing  the  well-being  of 
:.ankind. 

Tliere  were  two  main  problems  before  the  Coun- 
«I  at  the  opening  of  its  third  session :  the  problem 
<■  refugees  and  of  the  economic  reconstruction  of 
<'vastated  areas. 

Refugees 

As  a  result  of  almost  continuous  daily  discus- 
i  )ns  in  the  Plenary  Council,  the  Committee  of  the 
'  hole  and  two  ad  hoc  subcommittees,  the  Council 
^ill  transmit  to  the  General  Assembly  a  revised 
<aft  for  the  constitution  of  the  IRO,  a  revised 
f  -(  year  budget,  and  recommendations  for  interim 
:  Misures  which  may  become  necessary  in  case  the 
.  :0  should  not  yet  be  in  a  position  to  operate  when 
1 VRRA  winds  up  its  refugee  activities  at  the  end 
c  June  next. 

Regarding  scales  of  contribution  to  the  IRO  ex- 
I  uses,  the  Council  framed  no  specific  recommen- 
c  til  ins,  but  will  advise  the  General  Assembly  to 
cisider  them  in   the  light  of   the  conclusions 


reached  by  the  Committee  on  contributions  to 
the  United  Nations. 

A)  Draft  Constitution 

Comments  and  amendments  to  the  draft  consti- 
tution approved  at  the  last  Council  session  had  been 
submitted  by  member  governments  of  the  United 
Nations.  The  new  text  was  evolved  in  the  light 
of  these  comments  and  amendments.  It  is  still  ad 
referendum  pending  final  endorsement  by  the  Gen- 
eral Assembly. 

B)  Budget 

Starting  from  a  provisional  first-year  budget  of 
$258,754,000  drawn  up  by  the  committee  on  the 
finances  for  the  IRO  in  London  this  spring,  an 
ad  hoc  subcommittee  revised  the  figures  and  cut 
down  the  total  by  two  fifths  in  an  effort  to  bridge 
the  gap  between  the  cost  of  planned  operations  and 
resources  likely  to  be  available.  The  subcommittee 
also  made  estimates  of  the  cost  of  first-year  oper- 
ations, and  the  repatriation  of  overseas  Chinese, 
on  the  basis  of  information  submitted  to  it  by  the 
Chinese  Delegation. 

The  first-year  budget,  which  now  totals  $160,- 
851,000,  was  approved  by  the  Council  and  it,  too, 
will  be  transmitted  to  the  General  Assembly  for 
final  endorsement. 

C)  Interim  Measures 

A  U.S.  proposal  for  the  creation  of  a  Prepara- 
tory Commission  for  the  IRO  will  be  transmitted 
to  the  General  Asseinbly.  The  Pi-eparatory  Com- 
mission is  to  come  into  being  when  the  agreement 
is  signed  by  eight  representatives  of  governments 
who  are  also  signatories  of  the  IRO  constitution. 
Meanwhile,  according  to  the  U.S.  resolution,  the 
Secretary-General  is  requested  to  "take  such  fur- 
ther steps  as  may  be  appropriate  to  plan,  in  con- 
sultation with  UNRRA  and  the  IGC,  the  initia- 
tion of  the  work  of  the  IRO." 

According  to  the  resolution,  the  Preparatory 
Commission  may,  in  addition  to  planning  first- 
year  operations  for  the  IRO  and  preparing  its 
organization,  also  "at  its  discretion  and  after 
agreement  with  existing  organizations  .  .  .  take 


715 


716 


DEPARTMENT  OF  STATE  BULLETIN 


over  any  functions,  activities,  assets  and  personnel 
of  such  organizations." 

The  expenses  of  the  commission  may  be  met  by 
advances  from  members  of  the  IRO  and  from  such 
funds  as  way  be  transferred  from  existing  or- 
ganizations. 

Devastated  Areas 

The  problem  presented  by  the  war-devastated 
areas  could  only  be  dealt  with  in  part  during  this 
session.  Owing  to  lack  of  time  it  had  not  been 
possible  for  the  temporary  subcommission,  during 
the  last  Council  session,  to  make  a  complete  survey 
and  report  on  the  situation  in  the  Far  East  and 
Asia.  As  a  result  a  report  was  presented  which 
dealt  only  with  the  problem  in  Europe. 

In  line  with  its  recommendation  to  establish  the 
IRO,  the  Council  endorsed  the  resolution  of  the 
UNRRA  Council  calling  on  the  General  Assembly 
to  "establish  forthwith"  an  agency  to  take  over 
UNRRA  relief  in  those  fields  not  concerned 
with  refugees  and  displaced  persons.  It  also  ap- 
proved a  Chinese  proposal  that  the  working  group 
for  Asia  and  the  Far  East  of  the  temporary  Sub- 
commission  on  Devastated  Areas  should  make  its 
survey  and  complete  a  report,  if  possible  in  time 
for  the  next  session  of  the  Council.  A  further 
mandate  for  the  Subcommission  to  continue  its 
work  in  Europe  was  also  unanimously  agreed  on. 

The  Council  ran  into  difficulties,  however,  over 
the  question  of  the  establishment  of  an  economic 
commission  for  Europe. 

Wlien  this  proposal  sponsored  by  the  U.K., 
U.S.A.,  and  Poland  came  up  for  discussion,  there 
was  such  a  divergency  of  views  that  Dr.  Andrija 
Stampar,  Acting  President  of  the  Council  and 
Chairman  of  the  Devastated  Areas  Drafting  Com- 
mittee, suggested  that  the  Delegates  of  the  U.S., 
the  U.K.,  the  U.S.S.R.,  and  China  should  consti- 
tute a  working  group  and  seek  to  find  a  com- 
promise agreement  among  themselves. 

Tliis  group  held  conversations  for  several  days 
and  produced  a  series  of  proposed  resolutions,  but 
finally,  owing  to  opposition  from  the  U.S.S.R., 
suggested  that  the  proposed  economic  commissions 
for  Europe  be  considered  at  the  next  session  of 
the  Council. 

The  recommendations  finally  agreed  upon, 
based  on  the  findings  of  the  subcommission  report, 
laid  stress  on  the  immediate  needs  for  reconstruc- 
tion and  on  tlie  part  that  would  have  to  be  played 


by  specialized  agencies  in  providing  all  neces^i-y 
help.  Specific  mention  was  made  of  the  need  for 
short-  and  long-term  financing,  on  favorable  con- 
ditions, of  urgent  reconstruction  requirements. 

In  this  connection  the  Secretary-General  was 
asked  to  undertake  special  studies  as  to  the  part 
which  both  intergovermnental  loans  and  credits 
and  private  and  commercial  credits  could  play,  in 
addition  to  the  help  which  should  be  forthcoming 
from  the  International  Bank  for  Reconstruction 
and  Development  and  the  International  Monetary 
Fund.  Recommendations  were  also  made  that  spe- 
cial attention  should  be  paid  to  the  need  for  in- 
creased coal  production,  increased  agricultural 
production,  the  rehabilitation  of  transport,  inter- 
national cooperation  in  the  utilization  and  training 
of  manpower,  new  machinery,  agricultural  equip- 
ment and  spare  parts,  the  desirability  of  exchang- 
ing infoi-mation  and  experience  on  urgent  housing 
problems,  and  the  need  for  increased  production  of 
electric  power. 

Danube  Vessels 

A  new  development  of  great  interest  has  been 
the  submission  to  the  Council  of  two  disputes  in- 
volving economic  considerations.  Czechoslovakia 
and  Yugoslavia  have  invoked  the  Council's  aid 
to  regain  possession  of  a  number  of  Danubian  ves- 
sels which  are  the  property  of  their  respective 
countries  and  which  are  now  in  the  United  States 
occupied  zones  of  Germany  and  Austria. 

The  Council's  competence  to  deal  with  this  mat- 
ter was  questioned  by  a  Peruvian  resolution,  but 
the  Council  decided  by  an  ll-to-6  vote  that  it  was 
fully  competent. 

The  wider  economic  issues  involved  in  the  ques- 
tion of  reopening  Danube  traffic  to  the  fullest  pos- 
sible extent  were  discussed  in  the  light  of  a  U.S. 
proposal  to  deal  with  the  Yugoslav  and  Czecho- 
slovak requests  within  the  framework  of  an  inter- 
national conference  on  Danube  traffic. 

The  Council  endorsed  this  view  by  rejecting  the 
Yugoslav  and  Czechoslovak  resolutions  and  adopt 
ing  the  U.S.  resolution.  The  Secretary-Genera 
is  requested  by  the  resolution  to  consult  with  th( 
interested  states — that  is,  the  riparian  states  anc 
states  in  military  occupation  of  riparian  zones- 
and  any  state  whose  nationals  can  demonstrat 
clear  title  to  Danube  vessels — with  a  view  to  call 
ing  such  a  conference  in  Vienna  before  Novembe: 
1st. 


OCTOBER  20,  191,6 

Decision  on  a  Greek  resolution  requesting  the 
restitution  of  Greek  vessels  now  in  Soviet  hands 
Was  postponed  because  members  of  the  Council  felt 
they  had  insufficient  information. 

Among  the  other  main  subjects  covered  by 
Council  resolutions  were : 

World  Health  Organization 
A  resolution  requesting  the  General  Assembly 
to  approve  a  United  Nations  loan  or  grant  of 
$300,000  to  be  put  at  the  disposal  of  the  Interim 
Commission  to  cover  its  expenses  for  the  current 
year,  and  in  addition  a  loan  or  grant  of  $1,000,000 
for  financing  during  tlie  year  1947  the  activities 
of  the  Interim  Commission  or  the  World  Health 
Organization.  In  addition  the  Council  recom- 
mended to  the  General  Assembly  to  take  measures 
insuring  the  earliest  possible  entry  into  force  of 
the  World  Health  Organization. 

Narcotics 

In  order  to  permit  the  transfer  of  the  League 
of  Nations  control  system  of  narcotic  drugs  to  the 
United  Nations,  the  Council  decided  on  a  protocol 
amending  the  International  Conventions  on  Nar- 
cotic Drugs. 

A  provision  was  made  excluding  Spain  from  all 
participation  in  the  United  Nations  narcotics  con- 
trols. All  resolutions  adopted  on  that  subject  will 
be  referred  to  the  General  Assembly  for  approval. 

United  Nations  Kesearch  Laboratories 
A  proposal  of  the  French  Delegation  that  the 
Secretariat,  in  consultation  with  UNESCO,  should 
submit  a  report  on  the  possibility  of  establishing 
United  Nations  research  laboratories. 

Specialized  Agencies 

The  Council  adopted  the  draft  agi-eement 
reached  between  the  Committee  for  Negotiation 
witli  Specialized  Agencies  and  the  Provisional  In- 
ternational Civil  Aviation  Organization  after  a 
debate  had  taken  place  on  the  participation  of 
Bpam  in  the  activities  of  PICAO. 

The  draft  agi-eement  is  subject  to  ratification  by 
he  General  Assembly  of  the  United  Nations  and 
)y  PICAO. 


717 


Non-Governmental  Organizations 


An  agi-eement  on  practical  cooperation  was 
reached  between  the  Standing  Committee  for  Con- 
sultation with  Non-governmental  Organizations 
and  the  World  Federation  of  Trade  Unions.  This 
agreement  was  approved  by  the  Council. 

The  International  Chamber  of  Commerce  was 
granted  consultative  status.  Decision  on  granting 
consultative  status  to  other  non-governmental  or- 
ganizations was  deferred  until  the  next  session  of 
the  Council. 

World  Food  Council 

A  French  proposal  requesting  the  Secretary- 
General  to  appoint  a  representative  to  take  part  in 
the  deliberations  of  the  Preparatory  Commission 
for  the  World  Food  Council,  which  is  to  meet  in 
Washington  before  November  1,  and  inviting  the 
Chairman  of  the  Economic  and  Employment  Com- 
mission to  take  part  in  these  deliberations. 

Passports  and  Frontier  Formalities 

A  United  Kingdom  resolution  requesting  the 
Secretary-General  to  convene  a  meeting  of  experts 
to  prepare  for  a  world  conference  on  passports  and 
frontier  formalities. 

Permanent  Commissions 
At  this  session  the  Council  elected  the  countries 
to  be  members  of  eight  permanent  commissions. 
Two  of  these  commissions  were  newly  created  by 
decision  of  this  session— a  Population  Commission 
and  a  Fiscal  Commission.  A  ninth,  the  Narcotics 
Commission,  was  already  fully  constituted  during 
the  first  session  of  the  Council  in  London. 

The  Council  also  decided  to  recommend  to  the 
General  Assembly  the  establishment  of  a  sub- 
commission  on  employment  and  economic  stability 
and  a  subcommission  on  economic  development, 
each  to  lie  composed  of  seven  persons  to  be  elected 
by  the  Economic  and  Employment  Commission 
in  consultation  with  the  Secretary-General  and 
subject  to  the  consent  of  the  governments  of  the 
countries  of  which  the  persons  are  nationals. 


718 

Commissions  of  tlie  Economic 
and  Social  Council^ 

Economic  and  Employment  Commission 
{15  members) 
Belgium,  France,  Brazil,  United  King- 
dom, Poland 
Canada,    China,   India,   Czechoslovakia, 

Norway 
Cuba,  U.  S.  A.,  U.  S.  S.  R.,  Australia, 
Byelorussia 

Transport  and  C ommunications  Commis- 
sion {15  members) 

India,  Netherlands,  United  Kingdom, 
Poland,  Brazil 

Chile,  China,  France,  Norway,  South 
Africa 

U.  S.  A.,  Egypt,  U.  S.  S.  R.,  Czecho- 
slovakia, Yugoslavia 

Statistical  Commission  {12  members) 
Netherlands,  U.  S.  A.,  U.  S.  S.  R.,  China 
India,  Canada,  Mexico,  Ukraine 
France,     Norway,     United     Kingdom, 
Turkey 

Human  Rights  Commission  {18  members) 

United  Kingdom,  China,  Uruguay,  Le- 
banon, Panama,  Byelorussia 

France,  Egypt,  India,  U.  S.  S.  R., 
Ukraine,  Iran 

Belgium,  Chile,  Australia,  U.  S.  A., 
Philippines,  Yugoslavia 

Social  Commission  {18  members) 

France,  U.  S.  A.,  Czechoslovakia,  South 
Africa,  Greece,  U.  S.  S.  R. 


2  yrs. 

3  yrs. 

4  yrs. 


2  yrs. 

3  yrs. 

4  yrs. 


2  yrs. 

3  yrs. 

4  yrs. 


2  yrs. 

3  yrs. 

4  yrs. 

2  yrs. 


'  Following  elections  on  October  2  of  "nominating  states" 
to  the  Economic  and  Social  Commissions,  the  period  of 
service  on  each  Commission  of  the  elected  states  was 
decided  by  drawing  the  names. 

Service  on  the  Commissions  is  for  two,  three,  and  four 
years,  any  member  nation  being  eligible  for  reelection  on 
the  expiration  of  its  term  of  oflBce. 

The  countries  which  have  been  elected  members  have 
now  to  submit  the  names  of  their  proposed  nominees  to 
serve  on  the  Commissions  to  the  Secretary-General,  Who 
may  make  suggestions  to  the  member  states  as  to  the 
special  qualifications  required  of  their  nominees  to  insure 
a  well-balanced  team  on  each  Commission. 

The  Economic  and  Social  Council  will  hold  a  plenary 
meeting,  probably  during  the  General  Assembly,  in  order 
formally  to  approve  the  nominees. 


DEPARTMENT  OF  STATE  BULLETIN 

Netherlands,  New  Zealand,  Peru,  Colom- 
bia, United  Kingdom,  Yugoslavia        3  yrs. 

Canada,  China,  Denmark,  Ecuador,  Po- 
land, Iraq  4  yrs. 
Status  of  Women  Commission  {15  members) 

India,    Australia,     China,    Byelorussia, 

Guatemala  2  yrs. 

United  Kingdom,  U.  S.  S.  R.,  U.  S.  A., 

Syria,  Mexico  3  yrs. 

Denmark,  France,  "Venezuela,  Costa  Rica, 

Turkey  4yrs. 

Fiscal  Commission  {15  members) 

U.  S.  A.,  Belgium,  Czechoslovakia,  India, 

New  Zealand  2  yrs. 

Colombia,  U.  S.  S.  R..  Cuba,  Lebanon, 

Poland  3  yrs. 

China,  France,  United  Kingdom,  South 

Africa,  Ukraine  4  yrs. 

Population  Commission  {12  members) 
U.  S.  A.,  U.  S.  S.  R.,  China,  United  King- 
dom 2  yrs. 
France,  Australia,  Canada,  Ukraine  3  yrs. 
Peru,  Brazil,  Netherlands,  Yugoslavia      4  yrs. 

Additional  Items  for 
General  Assembly  Agenda 

PROPOSALS  FROM  THE  U.  S.  S.  R., 
FRANCE,  AND  CUBA 

The  Secretary-General  of  the  United  Nations 
advised  the  51  members  of  the  United  Nations 
on  October  5  of  additional  items  which  have  been 
submitted  for  inclusion  on  the  supplementary 
agenda  list  for  the  meeting  of  the  General  As- 
sembly in  New  York  on  October  23.  ' 

Additional  items  have  been  proposed  by  the 
Governments  of  the  Soviet  Union,  France,  and 
Cuba.  j 

The  Soviet  request  is  contained  in  the  following^ 
telegram  sent  on  October  3  by  Andrei  A.  Gromyko, 
representative  of  the  U.  S.  S.  R.  to  the  United 
Nations : 

"His  Excellency  Trygve  Lie,  Secretary-General 
of  United  Nations,  Lake  Success: 

"Under  instruction  of  the  Soviet  GovermnentI 
I  request  you  in  accordance  with  Article  11  of  th« 
Charter  of  the  United  Nations  Organization  to  in- 
clude in  the  agenda  for  the  Second  Part  of  the 


OCTOBER  20,  19.',6 

First  Session  of  the  General  Assembly  the  question 
about  the  presence  of  forces  of  states  members  of 
the  United  Nations  on  the  territories  of  the  non- 
enemy  countries."  ^ 

The  item  proposed  by  France  is  a  draft  resolu- 
tion on  the  relations  between  the  United  Nations 
and  the  specialized  agencies.  It  was  communi- 
cated to  the  Secretary-General  by  Alexandre 
Parodi,  French  representative  to  the  United  Na- 
tions. 

It  proposes  that  the  present  draft  agreements 
between  the  United  Nations  and  the  specialized 
agencies  (FAO,  UNESCO,  ILO,  and  PICAO) 
should  be  accepted  for  one  year  without  debate. 

They  should  then  be  placed  on  the  agenda  of  the 
1947  General  Assembly  for  full  discussion.  In  the 
light  of  this  discussion,  the  Economic  and  Social 
Council,  at  its  next  session  following  the  1947 
General  Assembly,  should  amend  the  agreements 
where  considered  advisable. 

Any  such  amendments  would  be  brought  for 
Snal  approval  before  the  1948  Assembly  of  the 
United  Nations. 

The  item  proposed  by  the  Cuban  Government 
md  communicated  by  Ambassador  Guillermo  Belt 
;o  the  Secretary-General  suggests  preparation  for 
;he  convocation,  under  article  109  of  the  Charter, 
)f  a  general  conference  of  United  Nations  mem- 
)ers  to  review  the  present  Charter. 

Article  109  states : 

"1.  A  General  Conference  of  the  Members  of  the 
Jnited  Nations  for  the  purpose  of  reviewing  the 
)resent  Charter  may  be  held  at  a  date  and  place 
o  be  fixed  by  a  two-thirds  vote  of  the  jnembers  of 
he  General  Assembly  and  by  a  vote  of  any  seven 
nembers  of  the  Security  Council.  Each  Member 
•f  the  United  Nations  shall  have  one  vote  in  the 
onference. 

"2.  Any  alteration  of  the  present  Charter  recom- 
lended  by  a  two-thirds  vote  of  the  conference 
hall  take  effect  when  ratified  in  accordance  with 
heir  respective  constitutional  processes  by  two 
birds  of  the  Members  of  the  United  Nations  in- 
hiding  all  the  permanent  members  of  the  Security 
louncil. 

"3.  If  such  a  conference  has  not  been  held  be- 
3re  the  tenth  annual  session  of  the  General  As- 
■mbly  following  the  coming  into  force  of  the 
resent  Charter,  the  proposal  to  call  such  a  con- 
srence  shall  be  placed  on  the  agenda  of  that  ses- 


719 

sion  of  the  General  Assembly,  and  the  conference 
shall  be  held  if  so  decided  by  a  majority  vote  of 
the  members  of  the  General  Assembly  and  by  a 
vote  of  any  seven  members  of  the  Securitv  Coun- 
cil." = 

In  his  telegram  to  the  member  nations  advising 
them  of  the  additional  items  received  from  the 
Soviet  Union,  France,  and  Cuba,  Trygve  Lie,  Sec- 
retary-General, has  also  informed  them  that  he 
proposes  an  item  regarding  an  amendment  to  the 
rules  of  procedure  concerning  the  date  of  the  regu- 
lar sessions  of  the  General  Assembly. 

Rule  1  of  the  provisional  rules  of  procedure  for 
the  General  Assembly  states  that  "the  General 
Assembly  shall  meet  every  year  in  regular  session 
commencing  on  the  first  Tuesday  after  2  Sep- 
tember." 

Mr.  Lie  is  proposing  to  make  the  opening  date 
for  regular  sessions  of  the  Assembly  nearer  the 
middle  of  Octobei-.^ 


1  When  the  question  of  forces  of  member  states  on  the 
territories  of  non-enemy  countries  was  raised  by  Mr. 
Gromyko  in  the  fifty-seventh  meeting  of  the  Security 
Council  on  Aug.  29,  1946,  he  listed  the  following  questions 
on  which  information  should  be  supplied  by  member  na- 
tions : 

"In  what  places  on  the  territory  of  the  United  Nations 
or  other  states,  not  including  ex-enemy  territories,  and  in 
what  numbers  the  armed  forces  of  other  United  Nations 
are  situated. 

"At  what  places  in  the  above-mentioned  territories,  air 
or  sea  bases  are  established  and  what  is  the  size  of  the 
garrison  of  these  bases  belonging  to  the  armed  forces  of 
other  states  members  of  the  United  Nations." 

At  the  seventy -second  meeting  of  the  Security  Council  on 
Sept.  24,  1946,  the  Council  voted  by  seven  votes  to  two, 
with  two  abstentions,  not  to  include  the  Soviet  statement 
on  its  agenda.  Poland  and  the  U.  S.  S.  R.  supported  its 
inclusion  on  the  agenda.  Australia,  Brazil,  China, 
Mexico,  the  Netherlands,  the  United  Kingdom,  and  the 
United  States  opposed  it.     Egypt  and  France  abstained. 

'  The  new  proposal  from  the  Cuban  Government  for  the 
Assembly  agenda  appears  to  be  couched  in  more  general 
terms  than  the  request  Cuba  submitted  on  August  2, 
1946,  for  the  agenda  which  requested  the  convocation  of 
the  members  of  the  United  Nations  in  accordance  with 
article  109  of  the  Charter,  ".  .  .  in  order  to  modify 
Paragraph  Three  of  Article  27  of  the  Charter  to  eliminate 
the  so-called  veto  privilege." 

'  The  Secretary-General's  authority  to  place  items  on  the 
agenda  derives  from  rule  12  of  the  provisional  rules  of 
procedure,  which  says: 

"The  provisional  agenda  of  a  regular  session  shall  in- 
clude : 

".  .  .  (G)  All  items  which  the  Secretary-General 
deems  it  necessary  to  put  before  the  General  Assembly." 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings 


IN  SESSION  AS  OF  OCTOBER  13,  1946 

Far  Eastern  Commission 

United  Nations: 

Security  Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

UNRRA  Planning  Commission  for  International  Refugee  Organ- 
ization 
Paris  Peace  Conference 
German  External  Property  Negotiations  with  Portugal  (Safehaven) 

PICAO: 

Interim  Council 
Regional 

Middle  East  Regional  Air  Navigation  Meetmg 

Divisional 

U.S.  Demonstrations  of  Radio  Aids  to  Air  Navigation 

Five  Power  Preliminary  Telecommunications  Meeting 

Second  Pan  American  Congress  of  Mining  Engineering  and  Geology 
Second  Pan  American  Congress  of  Physical  Education 
SCHEDULED 

Preparatory  Commission  of  the  International  Conference  on  Trade 
and  Employment:   First  Meeting 

Second  Pan  American  Conference  on  Leprosy 

International  Committee  on  Weights  and  Measures 

Permanent  Committee  of  the  International  Health  Office 

United  Nations: 

General  Assembly  (Second  Part  of  First  Session) 
Economic  and  Social  Council: 
Statistical  Commission 
Commission  on  Narcotic  Drugs 

Informal  Four  Power  Broadcasting  Conference 

United  Maritime  Consultative  Council:  Second  Meeting 

PICAO: 

Regional  ,,    ,.^ 

Air     Traffic     Control     Committee,     European-Mediterranean 

Region 
Divisional 

Meteorological  Division 

Special  Radio  Technical  Division 

Communications  Division 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division 


Washington 

February  26 

Lake  Success 
Lake  Success 
Lake  Success 
Washington 

March  25 
March  25 
June  14 
July  24 

Paris 

July  29 

Lisbon 

September  3 

Montreal 

September  4 

Cairo 

October  1-15 

New    York-Indianap- 
olis 

October  7-26 

Moscow 

September    28-October 
21 

Rio  de  Janeiro 

October  1-15 

Mexico  City 

October  1-15 

London 

October  15 

Rio  de  Janeiro 

October  19-31 

Paris 

October  22 

Paris 

October  23 

Flushing  Meadows 

October  23 

Lake  Success 
Lake  Success 

November  6  (tentative) 
November  18 

Paris 

October  24-26 

Washington 

October  24-30 

1      Paris 

October  28 

Montreal 
Montreal 
Montreal 
Montreal 
Montreal 

October  29 

October  30- November  8 
November  19 
November  26 
1   December  3 

720 


OCTOBER  20,  191,6 

Calendar  of  Meetings— Confenwerf 


721 


FAO:  Preparatory  Commission  to  study  World  Food  Board  Pro- 
posals 

International  Commission  for  Air  Navigation  (CINA):  Twenty- 
ninth  Session 

UNESCO: 

"Month"  Exhibition 


Preparatory  Commission 
General  Conference 

lARA:   Meetings  on  Conflicting  Custodial  Claims 

World  Health  Organization:  Interim  Commission 

International  Technical  Committee  of  Aerial  Legal  Experts  (CITEJA) 

International  Wool  Meeting 

[LO: 

Industrial  Committee  on  Textiles 

Industrial  Committee  on  Building,  Engineering  and  Public  Works 

Second  Inter-American  Congress  of  E,adiology 

Council  of  Foreign  Ministers 

Inter- American  Commission  of  Women:    Fifth  Annual  Assembly 

Intergovernmental  Committee  on  Refugees  (IGCR):    Sixth  Plenary 

Session 


Washington 
Dublin 

Paris 

Paris 
Paris 

Brussels 
Geneva 
Cairo 
London 

Brussels 
Brussels 

Habana 

New  York 

Washington 

London 


October  28 
October  28-31 


November  -  December 
(exact  dates  undeter- 
mined) 

November  14r-15 

November  19  (tenta- 
tive) 

November  6 

November  4 

November  6 

November  11-16 

November  14 
November  25 

November  17-22 

November  4 

December  2-12 

December  11 


Calendar  prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


\ctivities  and  Developments  » 


NTER-AMERICAN  COPYRIGHT  REPORT' 

Tlie  Proceedings  of  the  Inter- American  Confer- 
ncc  of  Experts  on  Copyright,  which  met  at  the 
^111  American  Union  in  "Washington,  June  1-22, 
04C,  are  now  available. 

Into  this  one  volume  has  been  gathered  every 
igniticant  document  relating  to  the  organization 
f  t!ie  Conference  and  the  debates  which  took 
laic  in  arriving  at  the  final  text  of  the  convention 
-  it  was  signed.  Perhaps  the  most  distinctive 
>ction,  since  it  is  not  to  be  found  in  any  other 
nblication,  is  that  devoted  to  a  report  of  the  dis- 
issions  which  took  place  in  the  subcommittees. 
hese  discussions  later  formed  the  basis  of  the 
'tides  voted  upon  and  adopted  by  the  Committee 

the  Wliole  and  are  essential  for  the  proper  in- 


terpretation of  the  convention  itself.  Since  there 
were  about  36  meetings  of  the  several  committees, 
covering  a  period  of  three  weeks,  the  plan  of  re- 
porting chronologically  or  by  committees  was  re- 
jected in  favor  of  a  report  by  articles.  In  this 
way  all  discussions  were  coordinated  for  a  better 
understanding  and  easier  reference. 

Besides  the  committee  proceedings,  the  volume 
contains  the  structure  of  the  Conference,  a  list  of 
the  delegates,  the  speeches  and  remarks  of  the 
delegates  at  the  opening  and  closing  sessions,  the 
final  act  (containing  15  resolutions),  the  texts  of 
drafts  submitted  by  the  Pan  American  Union  and 
various  countries,  and  the  definitive  text  of  the 
convention. 

The  convention  and  the  final  act  are  each  pub- 
lished separately,  in  the  four  languages  of  the 
Union — English,  Spanish,  Portuguese,  and 
French.  All  are  now  available  at  the  Pan  Ameri- 
can Union  upon  request. 

'  Released  to  the  press  by  the  Pan  American  Union. 


THE  RECORD  OF  THE  WEEK 


United  States  Position  on  tlie  Regime  of  the  Straits 


[Released  to  the  press  October  11) 

Text  of  note  delivered  hy  W.  Bedell  Smith,  U.  S. 
Ambassador  to  the  U.  S.  S.  R.,  to  the  Soviet  For- 
eign Oflice  on  Octoier  9,  1946.  Copies  of  this 
note  were  distributed  on  October  10,  191fi  to  the 
representatives  in  Washington  of  the  following 
signatories  to  the  Montreux  Convention:  France, 
Greece,  Rum,ania,  Turkey,  the  Union  of  Soviet 
Socialist  Republics,  the  Undted  Kingdom,  aixd 
Yugoslavia. 

I  liave  the  honor  to  inform  Your  Excellency  that 
my  Government  has  studied  carefully  the  contents 
of  the  note  of  the  Soviet  Union  to  Turkey  of  Sep- 
tember 24  relating  to  the  regime  of  the  Straits. 

In  pursuance  of  its  policy  of  making  clear  to  all 
interested  parties  its  views  on  matters  relating  to 
the  Straits,  my  Government  has  instructed  me  to 
inform  you  that  after  examining  the  note  referred 
to  above  it  continues  to  adhere  to  the  position  out- 
lined in  its  note  of  August  19,  1946  to  the  Soviet 
Government. 

It  will  be  recalled  that  in  the  Protocol  of  the 
proceedings  of  the  Potsdam  Conference,  signed  by 
the  U.S.S.R.,  Great  Britain  and  the  United  States, 
the  three  Governments  recognized  that  the  Con- 
vention on  the  Straits  concluded  at  Montreux 
should  be  revised  as  failing  to  meet  present-day 
conditions.  It  was  further  agreed  in  the  Protocol 
that  as  the  next  step  the  matter  should  be  the  sub- 
ject of  direct  conversations  between  each  of  the 
three  Governments  and  the  Turkish  Government. 

It  has  been  the  understanding  of  my  Govern- 
ment that  the  three  Governments,  in  agreeing  with 
one  another  that  the  regime  of  the  Straits  should 
be  brought  into  accord  with  present-day  conditions 
by  means  of  a  revision  of  the  Montreux  Conven- 
tion, mutually  recognized  that  all  three  signatories 
of  the  Protocol  have  an  interest  in  the  regime  of 


the  Straits  and  in  any  changes  which  might  be 
made  in  that  regime.  My  Government  further- 
more informed  the  Soviet  Government  in  its  note 
of  August  19,  that  in  its  view  the  regime  of  the 
Straits  is  a  matter  of  concern  not  only  to  the  Black 
Sea  powers  but  also  to  other  powers,  including  the 
United  States.  The  Soviet  Government,  neverthe- 
less, in  its  note  of  September  24,  apparently  con- 
tinues to  take  the  position  set  forth  in  its  note  of 
August  7  to  Turkey  that  "the  establishment  of  a 
regime  of  the  Straits  .  .  .  should  come  under 
the  competence  of  Turkey  and  the  other  Black  Sea 
powers".  My  Government  does  not  consider  that 
it  was  contemplated  at  the  Potsdam  Conference 
that  the  direct  conversations  which  might  take 
place  between  any  one  of  the  three  signatory  gov- 
ernments and  the  Turkish  Government  with  re- 
gard to  the  regime  of  the  Convention  of  the  Straits 
concluded  at  Montreux  should  have  the  effect  of 
prejudicing  the  participation  of  the  other  two 
signatory  jjowers  in  the  revision  of  the  regime  of 
the  Straits.  On  the  contrary,  my  Government  con- 
siders that  the  Potsdam  Agreement  definitely  con- 
templated only  an  exchange  of  views  with  the 
Turkish  Government  as  a  useful  preliminary  to  a 
conference  of  all  of  the  interested  powers,  includ- 
ing the  United  States,  to  consider  the  revision  of 
the  Montreux  Convention.  As  stated  in  its  note 
of  August  19,  my  Government  stands  ready  to 
participate  in  such  a  conference.  i 

My  Government  also  feels  that  it  would  be  | 
lacking  in  frankness  if  it  should  fail  to  point  out 
again  at  this  time,  in  the  most  friendly  spirit,  that 
in  its  opinion  the  Government  of  Turkey  should 
continue  to  be  primarily  responsible  for  the  de- 
fense of  the  Straits  and  that  should  the  Straits  be- 
come the  object  of  attack  or  threat  of  attack  by 
an  aggi'essor,  the  resulting  situation  would  be  a 
matter  for  action  on  the  part  of  the  Security  Coun- 
cil of  the  United  Nations. 


722 


J 


Situation  Between  Kuomintang  Government  and  Communist  Party 

JOINT  STATEMENT  BY  GENERAL  MARSHALL  AND  AMBASSADOR  STUART  > 


On  the  morning  of  October  1  General  Marshall 
received  through  the  hands  of  Wang  Ping  Nan, 
the  Communist  representative,  a  memorandum 
dated  September  30  from  General  Chou  En  Lai 
in  Shanghai  relating  tlie  activities  of  the  Kuomin- 
tang Party  to  which  objection  was  taken  and  con- 
cluding with  the  following  paragraph : 

"Now  I  am  duly  instructed  to  serve  the  follow- 
ing notice,  which  I  request  you  would  kindly 
transmit  to  the  government :  If  the  Kuomintang 
Government  does  not  instantly  cease  its  military 
operations  against  Kalgan  and  the  vicinity  areas, 
the  Chinese  Communist  Party  feels  itself  forced  to 
presume  that  the  government  is  thereby  giving 
public  announcement  of  a  total  national  split,  and 
that  it  has  ultimately  abandoned  its  pronounced 
policy  of  peaceful  settlement.  When  reaching 
such  a  stage,  the  responsibility  of  all  the  serious 
3onsequences  should  as  a  matter  of  course  solely 
rest  with  the  government  side." 

In  accordance  with  the  request  of  General  Chou 
:he  foregoing  memorandum  was  transmitted  to 
;he  Generalissimo,  and  on  October  2  he  replied  in 
i  memorandum  to  General  Marshall  relating  cer- 
;ain  hostile  acts  of  troops  of  the  Communist  Par- 
y.  In  this  memorandum  the  Generalissimo  pro- 
posed, with  a  view  to  saving  time  and  as  indicat- 
ng  the  sincerity  of  the  Government,  the  follow- 
ng  as  the  maximum  concessions  the  Government 
Fould  make  in  the  solution  of  the  present  prob- 
em: 

"One.  The  Chinese  Communist  Party  has  been 
nc(>ssantly  urging  the  reorganization  of  the  na- 
ional  government.  This  hinges  on  the  distribu- 
ion  of  the  membership  of  the  State  Council.  The 
overnment  originally  agreed  that  the  Chinese 
Communist  Party  be  allocated  eight  seats  and  the 
)oniocratic  League,  four,  with  a  total  of  twelve, 
'he  Chinese  Communist  Party,  on  the  other  hand, 
jquested  ten   for  themselves  and   four  for  the 

'  Made  in  Nanking  and  released  there  to  the  press  on 
■t.  8;  released  to  the  press  in  the  United  States  on 
n.  10.  Gen.  George  C.  Marshall  is  the  President's  Spe- 
ll Envoy  to  China.  John  Leighton  Stuart  is  American 
iiliassador  to  China. 


Democratic  League  with  a  total  of  fourteen.  Now 
the  government  makes  a  fresh  concession  by  tak- 
ing the  mean  and  offering  one  seat  for  the  inde- 
pendents to  be  recommended  by  the  Chinese  Com- 
munist Party  and  agreed  upon  by  the  government, 
so  that,  added  to  the  original  twelve,  it  makes  a 
total  of  thirteen  seats.  But  the  Communist  Party 
should  without  delay  produce  the  list  of  their  can- 
didates for  the  State  Council  as  well  as  the  list  of 
their  delegates  to  the  National  Assembly.  This 
reassignment  of  seats  should  be  decided  by  the 
proposed  group  of  five  to  be  confirmed  by  the 
steering  committee  of  PCC. 

"Two.    For  immediate  implementation  of  the 
program  for  reorganization  of  the  Army,  the  lo- 
cation of  the  18  Communist  divisions  should  be 
immediately    determined    and    the    Communist 
troops  should  enter  those  assigned  places  accord- 
ing to  agreed  dates.    The  above  should  be  decided 
by  the  Committee  of  Three  and  carried  out  under 
the  supervision  of  the  Executive  Headquarters." 
This   communication   was   immediately   trans- 
mitted to  the  Communist  representatives  and  they, 
later  on  in  the  week,  called  on  the  American  media- 
tors with  a  request  for  information  as  to  whether 
the  memorandum  of  the  Generalissimo  of  October 
2  was  a  reply  to  General  Chou's  memorandum  of 
September  30,  as  no  mention  of  Kalgan  was  made. 
There  followed  a  series  of  discussions  between 
the  Generalissimo  and  General  Marshall  and  Am- 
bassador Stuart  which  finally  resulted  in  the  ac- 
quiescence of  the  Generalissimo  that  he  halt  the 
advance  on  Kalgan  for  a  period  of  ten  days  during 
which  the  five-man  group  and  the  Committee  of 
Three  would  meet  in  order  to  consider  the  two 
I^roposals  of  the  Generalissimo  in  his  communica- 
tion of  October  2.     The  Generalissimo  further 
agreed  that  during  the  period  of  this  truce  Execu- 
tive Headquarters  would  check  on  its  observance 
with  teams  at  all  critical  points  and  that  Govern- 
ment representatives  would  not  accompany  teams 
within  the  Communist  lines  while  the  Communist 
representatives  would  not  accompany  teams  within 
the  Government  lines.    Also  that  between  the  two 
forces,  teams  will  be  located  with  representatives 


723 


724 


DEPARTMENT  OF  STATE  BULLETIN 


from  both  sides.  Further,  that  the  American  mem- 
ber would  have  the  authority  to  determine  where 
and  when  the  teams  would  go  and  would  himself 
report  on  any  actions  which  would,  in  eflfect,  be 
considered  violations  of  the  truce. 

The  Generalissimo  further  [ffarbled]  the  ar- 
rangement that  the  public  announcement  of  the 
truce  would  be  made  by  the  American  mediators 
and  that  the  Government  and  the  Communists 
were  to  refrain  from  any  announcement. 

This  information  was  transmitted  immediately 
at  1 :  30  on  October  6  to  the  Communist  representa- 
tive, Wang  Ping  Nan,  for  transmittal  by  him  to 
General  Chou  En  Lai  in  Shanghai. 

On  Tuesday,  October  8,  Wang  Ping  Nan  deliv- 
ered verbally  the  reply  from  Yenan  through  Gen- 
eral Chou  En  Lai,  the  substance  of  which  was  as 
follows : 

"One.  The  truce  should  be  without  a  time  limit 
because,  based  on  previous  experience,  it  would 
otherwise  be  unsatisfactory.  The  proposal  would 
seem  to  be  a  strategy  unless  the  government  troops 
were  withdrawn  to  their  original  positions,  thus 
demonstrating  the  sincerity  of  the  government. 

"Two.  The  Communist  Party  wishes  to  have 
the  three  and  five-man  committees  to  meet,  but  the 
discussion  should  not  be  limited  to  the  two  para- 
graphs of  the  October  2  communication  of  the 
Generalissimo.  These  topics  dealt  with  under 
truce  conditions  may  be  regarded  as  under  military 
coercion. 

"Three.  No  reply  had  been  sent  to  the  communi- 
cation of  October  2  because  the  Communist  Party 
had  been  hoping  to  have  some  word  from  General 
Marshall  and  Dr.  Stuart  clarifying  the  situation 
for  peace.  The  latest  proposal  implies  that  the 
situation  has  not  clianged  much.  General  Chou  is 
therefore  preparing  to  send  a  formal  written  reply 
and  sees  no  need  for  his  returning  to  Nanking." 

Ambassador  Stuart  Urges 
United  China 

[Released  to  the  press  October  10] 

Text  of  a  statement  hy  John  Leighton  Stuart  on 
the  occasion  of  the  thirty-fifth  anniversary  of 
Double  Tenth  Day  {Chinese  national  holiday), 
October  10, 19^6 
It  happened  that  I  was  living  in  Nanking  at  the 

time  of  the  revolution  which  led  to  the  establish- 


ment of  the  Republic  of  China  and  had  the  privi- 
lege of  becoming  acquainted  with  the  great  leader 
of  that  movement  as  well  as  with  many  others 
closely  associated  with  him.  I  sympathized  heart- 
ily then  with  the  aims  and  ideals  of  that  gi-oup 
of  devotedly  patriotic  followers  of  Dr.  Sun,  and 
have  never  lost  my  enthusiastic  confidence  in  the 
ultimate  achievement  of  what  they  had  so  hero- 
ically undertaken.  The  struggle  has  been  con- 
tinued against  selfish  or  reactionary  forces  within 
the  country  and  against  ruthlessly  determined  for- 
eign aggression,  but  the  spirit  which  won  against 
the  Manchu  Dynasty  is  still  actively  at  work. 
This  was  notably  aj^parent  among  the  students 
during  the  period  of  their  anti-Japanese  activities 
which  contributed  so  largely  to  the  whole  peoples' 
war  of  resistance. 

Because  of  this  experience  of  mine  as  to  the 
splendid  potentialities  in  Chinese  patriotic  efforts, 
I  eagerly  hope  that  there  may  now  be  another 
internal  revolution,  under  the  leadership  of  the 
present  thoroughly  worthy  successor  of  Dr.  Sun, 
gathering  together  the  liberal,  forward-looking, 
genuinely  patriotic  elements  of  all  political  parties 
or  of  none,  against  the  present  enemies  of  China 
which  are  the  narrowly  partisan,  or  selfishly  un- 
scrupulous, or  ignorantly  reactionary  forces  among 
her  own  people  who  are  now  obstructing  the  prog- 
ress toward  a  united,  peaceful,  constitutional  de- 
mocracy as  advocated  by  those  who  made  possible 
the  anniversary  we  are  now  celebrating. 

American  Ambassador  to  Poland  to 
Return  to  U.  S.  for  Consultation 

[Released  to  the  press  October  10] 

The  American  Ambassador  to  Poland,  Arthur 
Bliss  Lane,  is  expected  shortly  to  return  to  the 
United  States  on  leave  and  for  a  brief  period  of 
consultation  in  the  State  Department.  This  will 
be  the  Ambassador's  first  visit  to  the  United  States 
since  he  arrived  in  Warsaw  in  July  1945  to  reopen 
the  American  Embassy. 

While  the  Ambassador  is  in  the  United  States 
he  will  discuss  with  officials  a  number  of  questions 
which  have  arisen  in  our  relations  with  Poland. 


OCTOBER  ZO,  191,6 


725 


U.S.  Interest  in  Civil 
Liberties  in  Yugoslavia 


STATEMENT  BY 
ACTING  SECRETARY  ACHESON < 


I  have  been  asked  if  I  would  be  willing  to  make 
some  comment  or  statement  about  the  trial  and 
conviction  of  Archbishop  Stepinac,  and  I  shall. 
It  necessarily  cannot  be  siDecific.  What  I  should 
like  to  say  is  that  we  have  for  a  long  time  been 
concerned  about  civil  liberties  in  Yugoslavia.  You 
will  recall  at  the  time  we  recognized  the  Govern- 
ment of  Yugoslavia,  we  drew  their  attention  to 
what  we  thought  was  the  undesirable  situation  in 
that  field  and  reminded  them  of  their  undertakings 
under  the  United  Nations  Charter  in  which  all 
of  these  matters  are  specifically  dealt  with  and 
urged  that  the  matter  be  rectified  as  soon  as  pos- 
sible. We  have  since  recognition  unhappily  had 
to  take  up  a  very  considerable  number  of  cases  with 
the  Yugoslav  Government  where  we  have  felt  that 
trials  of  our  own  citizens  were  unfairly  conducted. 
It  is  this  aspect  of  the  Archbishop's  trial  which  I 
am  able  to  say  now  concerns  us.  We  do  not  have, 
of  course,  a  record  of  the  trial,  nor  have  we  had  a 
specific  report  from  our  Embassy  in  regard  to  it. 
Therefore,  our  information  about  it  is  the  same  as 
that  you  have,  which  is  that  which  has  been  con- 
veyed through  the  press. 

It  is  the  civil  liberties  aspect  of  the  thing  which 
causes  us  concern :  aspects  which  raise  questions  as 
to  whether  the  trial  has  any  implications  looking 
toward  the  impairment  of  freedom  of  religion  and 
of  worship;  the  aspects  of  it  which  indicate  at 
least  to  the  reporters  who  reported  it  from  the  spot 
that  the  actual  conduct  of  the  trial  left  a  great  deal 
to  be  desired. 

You  will  recall  that  under  the  Constitution  and 
law  of  the  United  States  fairness  of  trial  is  guar- 
anteed under  the  14th  amendment,  and  the  Su- 
preme Court  of  the  United  States  has  set  aside  as 
not  being  legal  procedure  at  all  trials  in  which  the 
courtroom  has  been  dominated  by  feelings  adverse 
to  the  defendant  by  demonstrations  of  prejudice. 
That  is  deeply  inherent  in  the  American  system, 
that  the  very  essence  of  due  process  of  law  is  that 


'  Made  at  the  Acting  Secretary's  press  and  radio  news 
conference  on  Oct.  11  and  released  to  the  press  on  the 
same  date. 


in  trials  we  shall  lean  over  backwards  in  being 
fair  to  the  defendant,  in  the  atmosphere  in  the 
courtroom,  in  forbidding  demonstrations  of  spec- 
tators, in  opportunity  of  facing  and  cross-examin- 
ing witnesses — all  these  matters  seem  to  us  to  be 
absolutely  inherent  in  the  matter  of  a  fair  trial. 
It  is  that  aspect  of  the  thing,  on  which  one  can  have 
no  final  evidence  until  a  record  and  detailed  re- 
ports are  available,  which  causes  us  concern  and 
deep  worry. 

Yugoslavia  Asked  To  Reconsider 
Compensation  for  Loss  of  Aircraft 

[Released  to  the  press  October  9] 

Upon  instructions  from  the  Department  of 
State,  the  American  Ambassador  to  Yugoslavia  on 
October  8  delivered  a  note  to  the  Yugoslav  Gov- 
ernment acknowledging  the  receipt  of  $150,000  as 
indemnity  for  the  lives  of  the  five  American  avia- 
tors who  were  killed  when  their  unarmed  transport 
plane  was  shot  down  over  Yugoslavia  on  August 
19.  The  note  further  stated  that,  in  compliance 
with  the  request  of  the  Yugoslav  Government,  the 
United  States  Government  would  distribute  this 
sum  in  five  equal  payments  of  $30,000  each  to  the 
families  of  the  deceased.  The  note  added,  how- 
ever, that  the  United  States  Government  could  not 
accept  the  Yugoslav  contention  that  the  Yugoslav 
Government  has  no  responsibility  for  the  loss  of 
the  unarmed  transports  shot  down  on  August  9 
and  19,  that  these  planes  did  not  fly  over  Yugo- 
slavia illegally  but  for  reasons  beyond  their  con- 
trol resulting  from  adverse  weather  conditions 
and  that  therefore  the  United  States  Government 
must  ask  the  Yugoslav  Government  to  reconsider 
its  refusal  to  make  compensation  for  the  loss  of 
the  two  aircraft. 

Publications 

The  Department  of  State  issued  on  October  14, 
1946  a  npw  publication  entitled,  "United  States  Im- 
port Duties,  June  1946".  This  publication  brings 
together  all  existing  rates  of  duty  on  imports  into 
the  United  States.  It  was  prepared  by  the  United 
States  Tariff  Commission  at  the  request  of  the  De- 
partment of  State  specially  for  use  in  connection 
with  negotiations  under  the  authority  of  the  Trade 
Agreements  Act  of  1934. 


726 


DEPARTMENT  OF  STATE  BULLETIN 


Mission  to  Germany  on 
Export- Import  Problems 

A  group  of  Government  officials  is  going  to  Ger- 
many on  October  8  to  discuss  with  Generals  Mc- 
Nai-ney  and  Clay  the  implementation  necessary  in 
this  country  for  the  import-export  program  of  the 
American  zone  in  Germany.  The  group  is  headed 
by  Howard  C.  Petersen,  Assistant  Secretary  of 
War,  and  George  E.  Allen,  Director  of  the  Recon- 
struction Finance  Corporation.  Included  in  the 
party  are:  Jolm  D.  Goodloe,  General  Counsel, 
RFC;  DeWitt  C.  Schieck,  President,  U.S.  Com- 
mercial Company ;  as  representatives  of  the  Com- 
merce Department,  Arthur  Paul,  Director  of  For- 
eign Commerce,  and  Murray  H.  Marker,  Deputy 
Director;  State  Department,  Charles  C.  Hilliard, 
assistant  to  Assistant  Secretary  of  State  for  oc- 
cupied areas;  Treasury  Department,  Harold  G. 
Glasser,  Assistant  Director,  Division  of  Monetary 
Research ;  War  Department,  Col.  Charles  W.  Mc- 
Carthy, Executive  Officer  to  the  Assistant  Secre- 
tary of  War,  Col.  James  McConnack,  Jr.,  Plans 
and  Operations  Division,  Lt.  Col.  Roland  F. 
Hartman,  Civil  Affairs  Division,  and  Capt.  Hugh 
F.  Boyd. 

One  of  the  objectives  of  our  occupation  policy 
in  Germany  is  to  assist  in  the  revival  of  German 
economy  to  the  extent  that  Germany  may  be  able 
to  export  goods  in  amounts  sufficient  to  pay  for 
her  essential  imports.  At  the  present  time,  the 
United  States  Government  is  spending  for  essential 
imi^orts  into  Germany,  such  as  food,  very  large 
sums  of  money.  It  will  be  necessary  to  continue 
to  do  this  until  German  export  trade  very  substan- 
tially increases.  The  purpose  of  this  mission  to 
Germany  is  to  examine  all  facets  of  the  German 
export-import  program. 


^  Not  printed. 

'  The  U.S.  note  is  similar  to  the  note  of  May  4  sent  to  the 
Bolivian  Government,  which  together  with  the  Bolivian 
reply  is  printed  in  the  Bulletin  of  June  16,  1946,  p.  1049. 
For  replies  of  other  governments  to  similar  U.S.  notes,  see 
(Norway)  Buixetin  of  July  7,  1946,  p.  38;  (Belgium) 
Bulletin  of  July  14,  p.  79;  (Spain)  Bulletin  of  July  28, 
1946,  p.  174;  (Ethiopia)  Bulletin  of  Aug.  4,  1946,  p.  235; 
(Egypt)  Bulletin  of  Sept.  1,  1946,  p.  431;  (Portugal) 
Bulletin  of  Sept.  8,  1946,  p.  463;  (Denmark)  Bulletin 
of  Sept.  29,  1946,  p.  596;  (Dominican  Republic)  Bulle- 
tin of  Oct.  13, 1946,  p.  691. 


Investigation  of  Incident  Relating 
to  Arrival  of  Soviet  Ambassador 

STATEIV3ENT  BY 
ACTING  SECRETARY  ACHESON 

[Beleased  to  the  press  October  11] 

The  Department  of  State  has  acknowledged  the 
receipt  of  the  note  from  the  Soviet  Embassy  con- 
cerning the  difficulties  which  the  Soviet  Ambassa- 
dor states  he  encountered  upon  arrival  in  New 
York  on  October  4  and  has  informed  the  Embassy 
that  an  investigation  is  being  made.  The  Depart- 
ment had  no  advance  notice  of  the  Ambassador's 
arrival  and  therefore  had  no  opportunity  to  re- 
quest the  appropriate  United  States  authorities  to 
make  special  arrangements  for  his  clearance. 
Nevertheless,  it  is  the  practice  of  this  Government 
to  accord,  regardless  of  advance  notification,  all 
the  usual  diplomatic  courtesies  to  Chiefs  of  Mis- 
sion uijon  arrival,  and  the  Department  is  fully  in- 
vestigating the  incident  described  in  the  Soviet 
note." 


Treaty  Obligations  and  Philippine 
independence 

REPLY  OF  YUGOSLAV  GOVERNMENT 
TO  U.  S.  NOTE* 

Embassy  of  the  Federal 

People's  Republic  of  Yugoslavia 

Sir: 

I  have  the  honor  to  inform  you  that  the  Govern- 
ment of  the  Federal  People's  Republic  of  Yugo- 
slavia has  accepted  the  proposal  of  the  Govern- 
ment of  the  United  States  of  America  that  the 
most-favored-nation  provisions  of  the  Treaty  for 
Facilitating  and  Developing  Commercial  Relations 
between  the  United  States  and  Yugoslavia  signed 
October  2/14,  1881,  shall  not  be  understood  to  re- 
quire the  extension  to  Yugoslavia  of  advantages 
accorded  by  the  United  States  to  the  Philippines. 

Accept  [etc.] 

S.  N.  Kosanovic 
Ambassador  of  Yugoslavia 

Washington,  October  3, 191fi 


OCTOBER  20,  191,6 


727 


Military  Aviation  Mission  Agreement 
With  Peru 

[Released  to  the  press  October  7] 

In  conformity  with  the  request  of  the  Govern- 
ment of  the  Republic  of  Peru  there  was  signed  on 
Monday,  October  7,  1946,  at  3  p.m.,  by  Acting 
Secretary  Acheson  and  Jorge  Prado,  Ambassador 
Extraordinary  and  Plenipotentiary  of  Peru  to 
the  United  States,  an  agreement  providing  for  a 
United  States  Army  Air  Forces  mission  to  Peru 
for  the  purpose  of  instruction  of  the  personnel  of 
the  Peruvian  Air  Corps. 

The  agreement  is  to  continue  in  force  for  four 
years  from  the  date  of  signature  and  may  be  ex- 
tended beyond  that  period  at  the  request  of  the 
Government  of  Peru. 

The  provisions  of  the  agreement  are  similar  to 
those  in  agreements  between  the  United  States  and 
other  American  republics  providing  for  the  detail 
of  officers  and  enlisted  men  of  the  United  States 
Army,  Navy,  or  Marine  Corps  to  advise  the  armed 
forces  of  those  countries.  The  provisions  relate 
to  the  duties,  rank,  and  precedence  of  the  personnel 
of  the  mission,  the  travel  accommodations  to  be 
provided  for  the  members  of  the  mission  and  their 
families,  the  provision  of  suitable  medical  at- 
tention for  the  members  of  the  mission  and  their 
families,  and  other  related  matters. 


Letters  of  Credence 

AMBASSADOR  OF   HAITI 

The  newly  appointed  Ambassador  of  Haiti, 
Joseph  D.  Charles,  presented  his  credentials  to  the 
President  on  October  8.  For  texts  of  the  Am- 
bassador's remarks  and  the  President's  reply,  see 
Department  of  State  press  release  709. 

AMBASSADOR  OF  EGYPT 

The  newly  appointed  Ambassador  of  Egypt, 
Mahmoud  Hassan,  presented  his  credentials  to  the 
President  on  October  10.  For  texts  of  the  Am- 
bassador's remarks  and  the  President's  reply,  see 
Department  of  State  press  release  713. 


Rank  of  Embassy  for  Diplomatic 
Missions  in  Cairo  and  Washington 

[Released  to  the  press  September  19] 

The  Governments  of  the  United  States  and 
Egypt  have  agreed  to  an  exchange  of  ambassadors 
and  to  the  raising  of  their  respective  diplomatic 
missions  in  Cairo  and  Washington  to  the  rank  of 
embassy. 

The  President  in  a  recess  appointment  is  naming 
S.  Pinkney  Tuck,  present  American  Minister  to 
Egypt,  as  the  first  United  States  Ambassador  to 
that  country.  The  President  has  also  signified  his 
approval  of  the  Egyptian  Government's  proposal 
to  accredit  Mahmoud  Hassan  as  Ambassador  to 
the  United  States. 

The  United  States  has  maintained  diplomatic 
representatives  in  Egypt  for  the  past  70  years,  an 
Agent  and  Consul  General  having  been  appointed 
in  1876.  The  status  of  the  mission  was  raised  to 
the  rank  of  legation  in  1922,  and  since  that  time 
there  have  been  six  American  Ministers  Pleni- 
potentiary at  the  Egyptian  capital. 

Ml'.  Tuck  began  his  diplomatic  career  in  Egypt, 
having  been  appointed  Deputy  Consul  at  Alexan- 
dria in  1913.  After  serving  at  posts  in  Turkey, 
Russia,  Switzerland,  Czechoslovakia,  Hungary, 
France,  Belgium,  and  Argentina,  he  returned  to 
Egypt  in  1944  as  Minister. 

Mahmoud  Hassan  Pasha  was  appointed  Min- 
ister to  the  United  States  in  1938  after  a  dis- 
tinguished career  in  law  and  diplomacy.  In 
addition  to  having  served  as  master  of  ceremonies 
at  the  Royal  Palace,  Cairo,  and  assistant  "Pro- 
cureur  General",  he  was  a  judge  of  the  Mixed 
Courts  in  Egypt  from  1930  to  1936  after  having 
held  diplomatic  posts  in  France,  Belgium,  and 
Czechoslovakia.  From  1936  to  1938  he  was  Min- 
ister to  Sweden. 


Publication  of  the  Pan  American  Union 

The  United  States  and  Latin  America,  a  Survey 
of  Recent  Changes  in  the  Relations  Between  the 
United  States  and  the  Other  American  Republics, 
hy  William  Manger,  Counselor  of  the  Pan  American 
Union,  1SM6,  32  pp.  C<ipies  may  be  secured  from 
the  Chief  Clerk,  Pan  American  Union,  Washington, 
D.  C.     Price  15^. 


728 


DEPARTMENT  OF  STATE  BULLETIN 


THE  DEPARTMENT 
Appointment  of  Officers 

Herbert  S.  Marks  as  Special  Assistant,  Office  of  the 
Under  Secretary,  effective  September  27,  1946. 

George  C.  McGhee  as  Special  Assistant,  Office  of  the 
Under  Secretary  for  Economic  Affairs,  effective  Septem- 
ber 27,  1946. 

Edward  T.  Cummins  as  Executive  Secretary,  Policy 
Committee  on  Arms  and  Armament,  Office  of  Assistant 
Secretary  for  Occupied  Areas,  effective  May  20,  1946 ;  also, 
Chief  of  Munitions  Division,  effective  September  16,  1946. 

Paul  H.  Nitze  as  Deputy  Director,  Office  of  Interna- 
tional Trade  Policy,  effective  September  15,  1946. 

Dwight  S.  Mallon  as  Special  Assistant  for  Public  Rela- 
tions (United  Nations),  Office  of  Special  Political  Affairs, 
effective  August  11,  1946. 

Charles  A.  Thomson  as  Adviser,  Office  of  International 
Information  and  Cultural  Affairs,  effective  October  3, 
1946. 

Hamilton  MacFadden  as  Associate  Chief,  International 
Motion  Pictures  Division,  effective  September  25,  1946. 

J.  Robert  Paxton  as  Special  Assistant  to  Associate 
Chief,  International  Motion  Pictures  Division,  effective 
September  25,  1946. 

Samuel  W.  Boggs  as  Special  Adviser  on  Geography, 
Office  of  Special  Assistant  for  Research  and  Intelligence, 
effective  October  3,  1946. 

Arthur  R.  Ringwalt  as  Chief,  Division  of  Chinese  Af- 
fairs, Office  of  Far  Eastern  Affairs,  effective  September 
9,  1»46. 

Edward  G.  Trueblood  as  Deputy  Director,  Office  of 
American  Republic  Affairs,  effective  September  16,  1946. 

William  W.  Chapman,  Jr.,  as  Executive  Assistant, 
Office  of  Assistant  Secretary  for  Administration,  effec- 
tive March  18,  1946. 

Edward  E.  Hunt  as  Associate  Chief,  Special  Projects 
Division,  Office  of  Controls,  effective  July  28,  1946. 

Francis  H.  Russell  as  Director,  Office  of  Public  Affairs, 
effective  October  9,  1946. 

Kenneth  D.  Fry  as  Chief,  International  Broadcasting 
Division,  effective  August  26,  1946. 

Richard  H.  Heindel  as  Chief,  Division  of  Libraries  and 
Institutes,  effective  May  28,  1946. 

James  R.  Johnstone  as  Special  Assistant,  Division  of 
Central  Services,  Office  of  Departmental  Administration, 
effective  July  28,  1946. 

Charles  Henry  Lee  as  Special  Assistant  to  Director, 
Office  of  American  Republic  Affairs,  effective  July  15,  1946. 

Departmental  Regulations 

132.20        Office   of   Public  Affairs    (PA):     (Effective   9- 
16-46) 

I        Respcn'sibilitt.     pa   shall    be   responsible   for   the 


'  The  Division  of  Historical  Policy  Research  and  the 
Division  of  Publications  replace  the  Division  of  Research 
and  I'ublication  as  described  in  Bulletin  Supplement  of 
Dec.  17,  1944,  p.  793. 


formulation  and  coordination  of  policy  and  action  con- 
cerning the  United  States  public  aspects  of  foreign  rela- 
tions. 

II  Functions.  The  Office  of  the  Director  shall  direct 
and  coordinate  the  activities  of  the  Divisions ;  review  and 
integrate  policies  formulated  in  the  Divisions ;  and  estab- 
lish and  maintain  adequate  liaison  at  the  Office  level  and 
above  within  the  Department,  and  with  otlier  Govern- 
ment agencies.  Through  the  Executive  Officer,  it  shall 
plan,  recommend,  and  install  methods  and  procedures 
designed  to  improve  the  effectiveness  of  PA ;  examine 
into  the  administrative  feasibility  of  proposed  programs ; 
represent  PA  on  all  management  and  administrative 
service  matters ;  and  provide  administrative  services  for 
PA.  It  shall  also  provide  such  special  writing  services 
on  domestic  informational  aspects  of  foreign  relations 
as  may  be  required  in  PA  and  other  Offices  of  the  De- 
partment. 

III  Organization.  PA  shall  be  headed  by  a  Director 
who  shall  report  and  be  responsible  to  the  Assistant  Sec- 
retary for  Public  Affairs,  and  it  shall  consist  of  the  follow- 
ing organization  units: 

A  Office  of  the  Director  which  shall  consist  of  a 
Director,  a  Deputy  Director,  an  Executive  Officer,  and 
such  other  assistants  and  advisers  as  may  be  necessary. 

B        Division  of  Public  Liaison   (PL). 

C        Division  of  Public  Studies  (PS). 

D         Division  of  Historical  Policy  Research  (RE).' 

E        Division  of  Pulilications  (PB). 

132.21  Division  of  Public  Liaison  (PL):  (Effective 
9^16-46) 

I  Functions.  PL  of  the  Office  of  Public  Affairs  (PA) 
shall ; 
A  Maintain  liaison  with  the  following  listed  informa- 
tional media  for  the  purpose  of  maljing  available,  upon 
request,  information  concerning  United  States  foreign 
policy,  except  for  news  items  released  to  the  press  by  the 
Special  Assistant  to  the  Secretary  for  Press  Relations : 

1  Editors  and  writers  of  magazine  and  news-fea- 
ture services  and  syndicates. 

2  Authors  and  publishers  of  books  and  pamphlets. 

3  Radio  commentators  and  radio  networks ;  arrang- 
ing in  some  ca.ses,  upon  request,  for  participation  of  the 
Secretary  of  State,  the  Under  Secretaries,  and  other 
ranking  officers  in  broadcasts. 

4  Motion  picture  producers. 

B  Maintain  liaison  between  the  Department  and 
non-Governmental  organizations  and  groups  such  as  vet- 
erans organizations,  women's  groups,  educational  groups, 
and  so  forth ;  and  assist  them  in  presenting  American 
foreign-policy  issues  to  their  memberships. 

C  Make  available  to  Congress  and  other  agencies  of 
the  Government,  background  information  regarding 
foreign  relations. 

D  Arrange  speaking  engagements  for  Departmental 
officers  in  response  to  requests  received  from  organiza- 
tions and  groups. 

E  Prepare  replies  to  public-comment  mail  concerning 
American  foreign  policy  addressed  to  the  President,  the 
Secretary  of  State,  and  other  Departmental  officers. 


OCTOBER  20.  19J,6 


729 


II  Organization.     PL  shall  be  composed  of  the  fol- 
lowing organization  units : 
A        Olllce  of  the  Chief. 
B        Group  Relations  Branch. 
C        Visual  Media  Branch. 
D        Periodicals  and  Feature  Press  Branch. 
B        Radio  Branch. 

132.22  Division    of    Public    Studies    (PS):     (Effective 
9-16-46) 

I  Functions.  PS  of  the  Office  of  Public  Affairs  (PA) 
shall : 

A  Analyze  every  available  type  of  public  expression, 
including  comment  from  press,  radio,  and  magazines,  as 
well  as  statements  by  outstanding  public  leaders,  views  of 
organized  groups,  various  public  opinion  surveys,  and  cor- 
respondence received  by  the  President  and  the  Secretary  of 
State  commenting  on  foreign  relations. 

B  Prepare  for  the  policy  officers,  daily,  weekly,  fort- 
nightly, and  special  reports  on  public  attitudes  and  opinion 
developments  on  all  important  phases  of  foreign  relations. 

C  Advise  policy  officers  of  the  Department  regarding 
the  attitudes,  opinions,  and  areas  of  lack  of  information 
on  the  part  of  the  American  public  concerning  American 
foreign  policy. 

D  Make  recommendations,  based  upon  its  analyses, 
for  development  of  information  policy  that  will  achieve 
maximum  public  understanding  of  foreign  policy  questions. 

II  Ohoanization.  PS  shall  be  composed  of  the  follow- 
ing organization   units : 

A         Office  of  the  Chief. 

B        Analysis  Branch. 

C        Special   Activities  Branch. 

132.23  Division  of  Historical  Policy  Research   (RE): 

(Effective  a-16-46) 

I  Fdnctions.  re  of  the  Office  of  Public  Affairs  (PA) 
(in  cooperation  with  the  Office  of  Intelligence  Coordination 
and  Liaison  (OCL)  in  the  execution  of  closely  related 
projects)  shall  he  responsible  for  the  formulation  and 
execution  of  iwlicy  with  respect  to  Departmental  research 
in  the  field  of  American  foreign  policy,  historically  consid- 
ered ;  including  specifically  the  following  functions : 

A  Prepare  the  basic  documentary  record  of  the 
foreign  policy  of  the  United  States  for  publication  in  the 
Papers  Relating  to  the  Foreign  Relations  of  the  United 
States,  and  other  comparable  collections  of  diplomatic 
papers. 

B  Prepare  the  ba.sic  analytical  and  interpretative 
record  of  American  foreign  policy  in  the  form  of  confi- 
dential background  research  studies  relating  to  United 
States  policy  with  reference  to  specific  areas  and  to  specific 
problems,  for  the  use  of  the  Secretary,  Under  Secretaries, 
and  other  policy  officers. 

C  Cooperate  with  OCL  by  providing  reports  in  the 
field  of  RE'S  exclusive  responsibility  for  background  studies 
in  American  foreign  iwlicy  and  diplomatic  relations. 

D  Provide  an  advisory  service  on  matters  of  his- 
torical American  foreign  policy  to  the  policy  officers  of  the 
Department. 


E  Maintain  liaison  for  the  Department  with  the 
National  Archives,  and  formulate  and  execute  Department 
policy  with  respect  to  the  retirement  of  its  records  to  the 
National  Archives,  including  servicing  of  Government  offi- 
cials and  qualified  scholars  desirous  of  consulting  the 
Department's  records  and  the  formulation  and  execution 
of  policy  with  respect  thereto. 

F  Prepare  and  annotate  the  permanent  official  record 
of  the  Treaties  of  the  United  States  (Treaties  and  Other 
International  Acts  of  the  United  States  of  America). 

G  Prepare  and  annotate  the  Territorial  Papers  of 
the  United  States. 

H        Maintain  the  Department's  Library. 

I  Discharge  the  Department's  responsibilities  with 
regard  to  amendments  to  the  Constitution,  and  ascertain 
the  electors  for  President  and  Vice  President. 

J  Conduct  research  on  behalf  of  the  Interdivisional 
Publication  Committee,  in  connection  with  the  clearance  of 
manuscripts  prepared  by  employees  of  the  Department 
and  by  employees  of  the  Foreign  Service,  their  wives,  and 
immediate  families. 

K  Prepare  correspondence  involving  research  in  his- 
torical American  foreign  policy,  and  maintain  an  informa- 
tion service  on  these  and  related  matters. 

L  Undertake  from  time  to  time,  special  research 
projects  intimately  related  to  historical  American  foreign 
policy,  such  as  the  preparation  for  publication  and  publi- 
cation of  captured  Axis  foreign  office  material,  and  other 
documentation. 

II  Oeoanization.  re  shall  be  composed  of  the  fol- 
lowing organization  units : 

A  Office  of  the  Chief  which  will  include  the  Editor 
of  the  Treaties ;  tJie  Editor  of  Territorial  Papers ;  and  such 
assistants,  consultants,  and  appurtenant  staff  as  may  be 
deemed  necessary. 

B        Foreign   Policy   Studies  Branch. 

C        Foreign  Relations  Branch. 

D        Library  Branch. 

132.24  Division  of  Publications  (PB):  (Effective 
9-16-46) 

I  Functions  of  the  Division.  PB  of  the  Office  of 
Public  Affairs  (PA)  shall  be  responsible  for  the  initiation 
and  coordination  of  the  publication  policy  of  the  Depart- 
ment, and  for  the  execution  of  the  Department's  publish- 
ing program,  including  the  following  functions : 

A  Maintain  a  continuing  survey  of  relevant  develop- 
ments and  information  concerninfr  American  foreign  re- 
lations as  a  basis  for  appraising  Departmental  publishing 
needs  and  initiating  appropriate  programs. 

B  Plan,  formulate,  and  execute,  with  the  cooperat- 
ing and  other  affected  Divisions  throughout  the  Depart- 
ment, a  continuing  program  of  publications,  including 
major  books  and  pamphlets,  in  the  field  of  American 
foreign  relations,  for : 

1  Use  of  Government  officials. 

2  Widespread  public  dissemination. 

O        Prepare   and   publish    the   Department   of   State 


730 


DEPARTMENT  OF  STATE  BULLETIN 


Bulletin,  the  Register  of  the  Department  of  State,  and 
other  books  and  pamphlets  as  required. 

D  Compile  and  publish  the  United  States  Statutes 
at  Large,  and  publish  the  laws  originally  in  slip  form. 

E  Edit  all  other  official  material  published  by  the 
Department. 

F  Administer  the  Department's  Printing  and  Bind- 
ing appropriation,  and  prepare  the  Department's  printing 

budget. 

G  Maintain  the  Department's  liaison  with  the  Gov- 
ernment Printing  Office,  and  with  the  National  Archives 
in  respect  to  the  Federal  Register  and  the  Code  of  Federal 
Regulatiovs. 

H  Plan  and  execute  domestic  distribution  of  De- 
partment publications,  and  administer  the  Department's 
mailing  lists  therefor. 

II  Okg.\nization.  PB  shall  be  composed  of  the  follow- 
ing organization  units: 

A  •  Office  of  the  Chief  which  will  include  the  Editor 

of  the  Bulletin  and  such  appurtenant  staff  as  may  be 
necessary. 

B  General  Editing  Branch. 

C  Foreign  Relations  Editing  Branch. 

D  Operations  Branch. 

E  Laws  Branch. 

123.7        Munitions  Division  (MD):  (Effective  10-1-46) 

I  Functions.  MD,  Office  of  Controls  (CON),  under 
the  general  administrative  direction  of  the  Director  of 
CON  will  be  responsible  for : 

A  Administering  legislation  and  agreements  per- 
taining to  the  control  of  international  traffic  in  arms, 
ammunition,  and  implements  of  war,  so  far  as  such  admin- 
istration is  vested  in  the  Department  of  State. 

B  Administering  the  duties  with  which  the  Depart- 
ment may  be  concerned  in  sections  (1)  and  (2)  of  Title  1 
of  the  Espionage  Act,  dated  June  15,  1917,  relating  to  the 
exportation  of  articles  involving  military  secrets  and  the 
control  of  the  dissemination  of  military  information. 

C  Performing  the  duties  with  which  the  Department 
may  be  concerned  in  connection  with  the  administration 
of  the  Tin  Plate  Scrap  Act  of  February  15,  1936,  and  the 
Helium  Act  of  September  1,  1937. 

D  Registering  manufacturers,  exporters,  and  im- 
porters of  arms,  ammunition,  and  implements  of  war. 

E  Licensing  exports  and  imports  of  arms,  ammuni- 
tion, implements  of  war,  and  of  the  exportation  of  helium 
gas  and  tin-plate  scrap. 

F  Assembling  and  maintaining  information  and  rec- 
ords pertaining  to  persons  and  firms  engaged  in  arms 
traffic,  and  rendering  assistance  to  the  Department  of  Jus- 
tice and  other  departments  and  agencies  of  the  Govern- 
ment in  the  investigation  and  prosecution  of  offenses  with- 
in the  scope  of  the  duties  of  the  Division. 

G  Preparing  reports  on  the  registration  of  manufac- 
turers, exporters,  and  importers  of  arms,  ammunition,  and 


'The  Division  of  Caribbean  and  Central  American  Af- 
fairs was  abolished  as  of  Sept.  25, 1946. 


implements  of  war;  on  licenses  issued  authorizing  the  ex- 
portation and  importation,  and  on  actual  exports  and  im- 
ports of  such  articles ;  and  on  the  exportation  of  helium 
gas  and  tin-plate  scrap. 

H  Clearing  with  the  National  Inventors  Council  of 
the  Department  of  Commerce,  inventions  referred  to  the 
Department  of  State  for  evaluation  as  to  their  military 
significance. 

I  Assisting  the  Secretary  of  State  in  the  perform- 
ance of  his  duties  as  Chairman  and  Executive  Officer  of 
the  National  Munitions  Control  Board. 

J  Maintaining  liaison  with  the  War  and  Navy  De- 
partments, and  with  other  Departments  and  agencies  of 
the  Government  regarding  matters  within  the  jurisdiction 
of  the  Division. 

K  Assisting  and  collaborating  with  the  Policy  Com- 
mittee on  Arms  and  Armaments  on : 

1  Policy  and  action  of  the  Department  on  prob- 
lems arising  from  international  traffic  in  arms,  ammu- 
nition, and  implements  of  war  and  other  munitions  of 
war  and  the  relation  of  controls  over  such  articles  to 
the  national  defense  of  the  United  States. 

2  Other  matters  within  the  jurisdiction  of  that 
Committee. 

L  Collaborating  with  other  Divisions  and  Offices 
which  may  be  concerned  in  performing  the  above  func- 
tions. 

142.11  Division  of  Central  America  and  Panama  Af- 
fairs (CPA): '  (Effective  9-25-46) 

I  Functions,  Under  the  general  direction  of  the  Di- 
rector of  the  Office  of  American  Republic  Affairs  (ARA), 
CPA  shall  be  responsible  for  the  formulation  and  coordi- 
nation of  over-all  United  States  policy  and  action  in  re- 
gard to  all  aspects  of  the  relation  of  the  United  States 
with  countries  in  the  area  of  responsibility ;  and,  as  to 
these  countries,  the  coordination  of  the  programs  and  ac- 
tivities of  other  Divisions  and  Offices  of  the  Department 
and  of  other  Governmental  agencies  with  over-all  United 
States  foreign  policy. 

II  Area  of  Responsibilitt.  The  area  of  responsibility 
of  CPA  shall  be  as  follows :  Guatemala,  El  Salvador,  Hon- 
duras, Nicaragua,  Costa  Rica,  and  Panama.  Jurisdiction 
with  respect  to  the  non-United  States  colonial  possession 
(British  Honduras)  is  shared  with  the  appropriate  Di- 
vision of  the  Office  of  European  Affairs  (EUR). 

142.12  Division  of  Caribbean  Affairs  (CAB):  (Effec- 
tive 0-2.5-16) 

I  Functions.  Under  the  general  direction  of  the  Di- 
rector of  the  Office  of  American  Republic  Affairs  (ARA), 
CAB  shall  be  responsible  for  the  formulation  and  coordi- 
nation of  over-all  United  States  policy  and  action  in  re- 
gard to  all  aspects  of  the  relations  of  the  United  States 
with  countries  in  the  area  of  responsibility ;  and,  as  to 
these  countries,  the  coordination  of  the  programs  and  ac- 
tivities of  other  Divisions  and  Offices  of  the  Department 
and  of  other  Governmental  agencies  with  over-all  United 
States  foreign  policy. 


OCTOBER  20,  1946 

II  Abea  of  RESi-oNSiniUTT.  The  area  of  responsibility 
of  CAB  shall  be  as  follows:  Cuba,  Haiti,  Dominican  Re- 
public, the  Guianas,  and  the  colonial  ishinds  in  the  Carib- 
bean area.  These  colonial  islands  include  Puerto  Rico 
.  and  the  Virgin  Islands  which  are  administered  under  the 
United  States  Department  of  the  Interior,  and  island 
possessions  of  the  British,  French,  and  Dutch  Govern- 
ments. Jurisdiction  with  respect  to  the  non-United 
States  colonial  possessions  is  shared  with  the  appropri- 
ate Divisions  of  the  Office  of  European  Affairs  (EUR). 

193.1  Liquidation  of  Activities  in  Connection  With  the 
Terminated  Office  of  Inter-American  Affairs  (OIAA), 
Inter-American  Navigation  Corporation  (lANC),  Pren- 
cinradio,  Inc.  (PCR),  and  Institute  of  Inter-American 
Transportation  (IIAT).  (Effective  &-2()-46) 
I  Executive  Order  9710  of  April  10,  1946,  effective  as 
of  the  opening  of  business,  May  20,  1946,  terminated  the 
Office  of  Inter-American  Affairs  (OIAA)  and  all  of  its 
functions,  except  the  duty  of  winding  up  any  affairs  re- 
lating to  the  Office  and  its  functions  which  remained  un- 
liquidated on  the  effective  date,  and  the  functions  of  the 
Director  of  the  Office  with  respect  to  the  corporations 
named  below.'  The  duty  of  winding  up  the  affairs  of  the 
Office  and  the  functions  of  the  Director  with  respect  to 
the  corporations,  together  with  the  records,  property,  funds 
and  the  personnel  of  the  Office  remaining  on  the  effective 
date,  were  transferred  to  the  Secretary  of  State. 

II        The  liquidation   of  the  affairs  of  the  terminated 
Office  will  be  carried  on  to  completion,  under  the  general 
supervision  and  control  of  the  Secretary  of  State,  repre- 
sented by  a  committee  composed  of  Messrs.  Charles  H.  Lee, 
Joseph  I'anuch,  George  C.  McGhee,  and  Kenneth  Holland  of 
the    Department.     By    delegation    of    authority    effective 
June  30,  1946,  the  Secretary  designated  certain  individuals 
(who    are    officers    of    the    Institute    of    Inter-American 
Affairs)  familiar  with  the  transactions  involved  as  Acting 
Officer  in  Charge  of  the  liquidation  and  as  Fiscal  Officer 
for  Liquidation.     Subject  to  the  policy  control  of  the  com- 
mittee, the  responsibility  of  these  officers  includes  deter- 
minations for  the  conduct  of  administrative  matters,  the 
execution  and  modification  of  contracts,  and  grants-in-aid, 
the  disposition  of  records  and  files,  and  the  necessary  fiscal 
functions,    including    certification    of    vouchers    payable 
against  the  funds  transferred  to  the  Secretary  of  State, 
maintenance  of  necessary  accounting  records,  rendition  of 
required  accounting  and  other  fiscal   reports  and  state- 
ments, requisition  of  disbursing  funds,  and  obtaining  and 
processing  fiscal  and  performance  reports  under  contracts 
and    grants-in-aid.     Whenever    consolidated    reports    or 
other  information  is  required  by  the  Treasury  Depart- 
ment,  Budget  Bureau,  General  Accounting  Office,  other 
Government  agencies  or  the  Congress,  relating  to  the  ap- 
propriations involved,  the  reports  and  information  will  be 
furnished  or  cleared   through   the  Office  of  Budget  and 
Finance  (OBF)  of  the  Department. 

Ill  The  Secretary  of  State  succeeded  to  the  functions 
of  the  Director  of  OIAA  with  respect  to  the  following 
named  corporations : 


731 

A  Corporatiom  Continuing  in  Active  Operations 
The  Institute  of  Inter-American  Affairs  (IIAA)  and  the 
Inter-American  Educational  Foundation,  Inc.,  (lAEF)  will 
continue  to  carry  out  existing  programs.  Their  functions, 
organization,  management  and  relationship  to  the  De- 
partment are  described  generally  in  Departmental  Regu- 
lations 193.2  and  193.3. 

B        Corporations  in  Liquidation. 
1        General  Description 

a  The  Inter-American  Navigation  Corporation 
(lANC).  This  stock  corporation  carried  on  a  pro- 
gram for  supplementing  existing  shipping  facilities 
in  the  Latin  American  trades.  It  has  been  dissolved 
and  its  three-year  liquidation  period  ends  in  February 
1947. 

6  Prencinradio,  Inc.  (PCR).  This  membership 
corporation  carried  out  certain  radio  and  motion  pic- 
ture projects  in  the  other  American  republics.  It  has 
been  dissolved  and  its  three-year  liquidation  period 
will  end  in  May  1949. 

c  The  Institute  of  Inter-American  Transporta- 
tion (IIAT).  This  stock  corporation  carried  out  the 
terms  of  a  cooperative  agreement  with  the  Republic 
of  Mexico  to  rehabilitate  and  improve  the  operating 
efficiency  of  certain  key  sections  of  the  National  Rail- 
ways of  Mexico,  and  is  in  the  process  of  being  dissolved. 
After  dissolution,  it  will  be  in  liquidation  for  a  period 
of  three  years. 

2        Management,   Administration   and  Clearance 

a  ITie  Boards  of  Directors  of  these  three  cor- 
porations are  composed  of  a  representative  from  the 
offices  of  the  Assistant  Secretaries  of  State  for  Amer- 
ican Republic  Affairs,  Economic  Affairs,  Public  Affairs, 
and  Administration,  and  one  or  more  officials  from 
each  corporation,  and  have  full  powers,  control,  and 
management  of  the  corporations,  including  authority 
to  wind  up  their  affairs  and  effect  their  final  dis- 
solution and  liquidation.  The  officers  of  each  cor- 
poration are  elected  by  the  Board  of  Directors  and 
carry  out  the  operations  of  these  entities  in  accordance 
with  the  directives,  orders,  and  resolutions  of  their 
Boards. 

6  Each  of  the  corporations  operates  as  an  inde- 
pendent entity  with  its  administrative  services  (per- 
sonnel, legal,  fiscal,  budget,  and  so  forth)  and  other 
general  services  being  performed  in  the  United  States 
and  in  the  other  American  republics  through  the  facili- 
ties of  IIAA. 

c  All  formal  policy  communications  between  the 
Department  and  each  corporation  will  clear  through 
the  office  of  the  Assistant  Secretary  for  American  Re- 
public Affairs;  otherwise,  existing  liaison  relation- 
ships and  communication  channels  between  each  cor- 
poration and  offices  of  the  Department  concerned  with 
its  operations  remain  unchanged. 


'BuiiETiN  of  Apr.  21,  1946,  p.  685. 


II.  S     GOVERNMENT  PRINTING    OFFICE      1940 


m 


General  Policy  Page 

United  States  Position  on  Regime  of  the 

Straits 722 

Situation  Between  Kuomintang  Govern- 
ment and  Communist  Party.  Joint 
Statement  by  General  Marshall  and 
Ambassador  Stuart 723 

Ambassador  Stuart  Urges  United  China   .        724 

American  Ambassador  to  Poland  To  Re- 
turn to  U.S.  for  Consultation   .    .    .        724 

U.S.  Interest  in  Civil  Liberties  in  Yugo- 
slavia. Statement  by  Acting  Secre- 
tary Acheson 725 

Yugoslavia  Asked  To  Reconsider  Com- 
pensation for  Loss  of  Aircraft  .    .    .        725 

Investigation  of  Incident  Relating  to  Ar- 
rival of  Soviet  Ambassador.  Statement 
by  Acting  Secretary  Acheson  ....        726 

Letters    of     Credence:      Ambassador    of 

Haiti;  Ambassador  of  Egypt  ....        727 

The  Paris  Peace  Conference 

The  Problem  of  Trieste  and  the  Italian- 
Yugoslav  Frontier.  Remarks  by 
Senator  Connally 708 

Economic  Clauses  in  the  Italian  Peace 
Treaty.  Statement  by  Willard  L. 
Thorp 710 

Economic  Clauses  in  Rumanian  Peace 
Treaty.  Remarks  by  Senator  Van- 
denberg 711 

Special  Considerations  Involved  in  Draft- 
ing Bulgarian  Treaty.  Remarks  by 
Jefferson  Caffery 714 

The  United  Nations 

Summary  of  Third   Session  of  Economic 

and  Social  Council 715 

Commissions  of  the  Economic  and  Social 

Council 718 


The  United  Nations — Continued  page 

Additional  Items  for  General  Assembly 
Agenda:  Proposals  From  the  U.S.S.R., 
France,  and  Cuba 718 

Economic  Affairs 

A  National  Rubber  Program.     Article  by 

Harlan  P.  Bramble 700 

First   Annual    Meeting  of   the   Boards  of 

Governors  of  World  Fund  and  Bank. 

An  Article 704 

Inter-American  Copyright  Report  .  .  .  721 
Mission    to    Germany   on    Export-Import 

Problems 726 

German  Documents 

German  Documents:    Conferences     With 

Axis  Leaders,  1944 695 

Occupation  Matters 

Mission   to    Germany   on   Export-Import 

Problems 726 

Treaty  Information 

Treaty  Obligations  and  Philippine  Inde- 
pendence: Reply  of  Yugoslav  Govern- 
ment to  U.S.  Note 726 

Military     Aviation     Mission     Agreement 

With  Peru 727 

Internationa!  Organizations  and 
Conferences 

Calendar  of  Meetings 720 

The  Foreign  Service 

Rank  of  Embassy  for  Diplomatic  Mis- 
sions in  Cairo  and  Washington  ....        727 

The  Department 

Appointment  of  Officers 728 

Departmental  Regulations 728 

Publications 

Department  of  State 725 

Pan  American  Union 727 


^mvtymwtc/yA 


The  German  documents  in  this  issue  virere  selected  and  trans- 
lated by  J.  S.  Beddie,  an  Officer  in  the  Division  of  Historical 
Policy  Research,  Office  of  Public  Affairs,  Department  of  State. 

Harlan  P.  Bramble,  author  of  "A  National  Rubber  Program", 
is  Commodity  Specialist,  Division  of  International  Resources, 
Office  of  International  Trade  Policy,  Department  of  State. 


^rie/  ^eha^i^meni/  .(w  t/tate/ 


REPORT  BY  SECRETARY  OF  STATE  ON  PARIS  PEACE  CON- 
FERENCE            739 

SUMMARY  OF  REPORT  OF  THE  EDUOVTION   MISSION  TO 
GERMANY 764 

PROSECUTION  OF  NAZI  WAR  CRIMINALS   .   Final  report  by 

Justice  Jackson 771 

THE  CARIBBEAN  PLANS  FOR  TOURISTS   .  Article  by  Frances 

R.  P.  McRevnoUs 735 


for  complete  contents  see  hack  cover 


Vol.  XV,  No.  382 
October  27,  1946 


.ENT 


-tTES 


NOV  20 194S 


<^/ie  ^e/iwylm^eTU  x)^ t/tate 


bulletin 

Vol.  XV,  No.  382     •     Publication  2667 
Oa<i)er  27.  1946 


^{mJmitd(yy6, 


The  new  cover,  internal  arrangement,  and  format  of  the 
BuLLB^^-,  introduced  with  the  issue  of  October  6,  were  planned 
and  designed  by  Mrs.  Ruth  Robbins  Schein,  Senior  Designer  in 
the  Presentation  Division,  Office  of  Departmental  Administra- 
tion, Department  of  State. 

Frances  R.  P.  McReynolds,  author  of  the  article  on  the 
Caribbean  tourist  conference,  is  Cliief  of  the  Research  Unit, 
United  States  Section,  Caribbean  Commission. 

H.  Van  Zile  Hyde,  author  of  the  article  on  the  meetings  of  the 
International  Health  Organization,  is  Assistant  Chief,  Health 
Kranch,  Division  of  International  Labor,  Social  and  Health 
Affairs,  Office  of  International  Trade  Policy,  Department  of 
State. 


For  sale  by  the  Superintendent  of  Documents 

U.   S.   Governmeut   Printing   Office 

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(renewable  only  on  yearly  basis) 

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The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides 
the  public  and  interested  agencies  of 
the  Government  with  information  on 
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partment of  State  and  the  Foreign 
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mulative lists  of  which  are  published 
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THE  CARIBBEAN  PLANS  FOR  TOURISTS 


hy  Frances  R.  P.  McReynolds 


A  vigorous  international  ejfort  to  bring  toimsts  to  the 
Caribbean  area  was  recommended  recently  hy  a  conference 
of  15  Cariibean  countries  and  territories.  The  ''^Caribbean 
Tourist  Development  Association",  comprised  of  the  official 
tourist  bureaus  of  each  government,  will  be  an  area-wide  pro- 
motional, coordinating,  and  liaison  body.  Developing  and 
publicizing  the  Caribbean  as  a  region  will  bring  an  estimated 
600,000  visitors  a  year,  and  these  vacationists  will  spend  ap- 
proximately $60,000,000  annually  in  the  area. 


Articles  of  incorporation  establishing  a  regional 
Caribbean  Tourist  Development  Association  were 
agreed  upon  by  15  governments  of  the  Caribbean 
area  at  a  conference  held  in  New  York  in  October 
under  the  auspices  of  the  Caribbean  Commission. 
Formi^l  ratification  by  the  governments  concerned 
is  now  required  in  order  to  bring  the  organization 
into  being. 

Formed  as  a  non-profit  organization,  it  will  be 
composed  of  the  official  tourist  bureaus  of  the  vari- 
ous Caribbean  governments.  Although  the  con- 
ference was  sponsored  by  the  Caribbean  Commis- 
sion, whose  membership  comprises  France,  the 
Netherlands,  the  United  Kingdom,  and  the  United 
States,  none  of  the  four  metropolitan  countries 
will  be  members  of  the  new  organization. 

The  Association  is  designed  to  encourage  and 
assist  in  the  development  of  tourist  industries  on  a 
region-wide  basis.  It  will  provide  the  instrument 
through  which  close  collaboration  among  the  terri- 
tories and  countries  and  liaison  with  private  capi- 
tal can  be  maintained.  It  will  help  in  procuring 
transpoi-tation  services  to  and  tourist  amenities 
within  the  region.  Further,  it  will  furnish  expert 
advisory  services  on  such  matters  as  hotel  construc- 
tion and  operation  and  will  assist  members  in  ob- 
taining necessary  materials  and  supplies  for  tourist 
development  programs.  Advertising  and  public- 
ity measures  will  be  coordinated  to  focus  the  atten- 
tion of  the  traveling  public  upon  the  West  Indies 


as  one  of  the  world's  outstanding  vacation  spots. 
For  the  benefit  of  all  members  the  central  organi- 
zation will  carry  out  statistical  and  research  work 
relating  to  travel  trends  and  tourist  development. 

A  principle  laid  down  by  the  Association  is  that 
the  facilities  of  the  Caribbean  will  be  freely  ac- 
cessible to  all  visitors  without  distinction  of  race, 
color,  or  creed. 

In  addition  to  the  active  members,  consisting  of 
the  official  governmental  organization  for  the  pro- 
motion of  tourism  in  each  country,  the  articles  of 
agreement  made  provision  for  two  other  classes  of 
members,  allied  and  associate,  which  will  include 
persons  or  firms  domiciled  respectively  within  or 
without  the  Caribbean  area. 

As  a  preliminary  financial  measure,  the  Asso- 
ciation will  have  an  annual  budget  of  not  less  than 
$200,000  a  year,  including  funds  for  advertising 
and  public-relations  activities.  Contributions  to 
the  fund  will  be  assessed  from  the  Caribbean  coun- 
tries and  territories  on  an  agreed  pro  rata  basis. 
When  50  percent  of  the  total  annual  budget  has 
been  subscribed,  the  Association  will  be  incorpo- 
rated. An  interim  committee,  composed  of  rep- 
resentatives of  Cuba,  Haiti,  the  Dominican  Repub- 
lic, and  the  four  national  sections  of  the  Carib- 
bean Commission,  will  function  until  the  Asso- 
ciation has  been  formally  created. 

The  management  of  the  business  and  property 

735 


736 


DEPARTMENT  OF  STATE  BULLETIN 


of  the  Association  is  to  be  vested  in  tlie  active 
members  with  the  administrative  details  handled 
by  an  Executive  Vice-President-Manager.  The 
presidency  will  be  an  honorary  position.  Pro- 
vision was  made  for  an  Advisory  Council,  rep- 
resentative of  all  national  groups  involved,  to  as- 
sist in  the  management. 

One  delegate  with  advisers  attended  from  each 
of  the  independent  republics  of  Cuba,  Haiti,  and 
the  Dominican  Republic,  and  from  the  following 
Caribbean  territories :  France — M  artinique, 
Guadeloupe,  French  Guiana;  Netherlands — Cu- 
rasao, Surinam;  United  Kingdom — British  Gui- 
ana, Jamaica,  Leeward  Islands,  Trinidad,  Wind- 
ward Islands;  United  States — Puerto  Rico,  the 
Virgin  Islands. 

The  conference  was  typical  of  the  purposes  of 
the  Caribbean  Commission  in  encouraging  the 
overseas  territories  of  the  member  nations  to  co- 
operate among  themselves  and  to  consider  ques- 
tions from  the  regional  rather  than  from  the  local 
aspect.  A  wide-scale  development  of  the  tourist 
industry  will  bring  economic  benefits  to  the  entire 
area.  It  is  significant  that  the  three  independent 
republics  in  the  Caribbean  Sea  sent  delegates  to 
the  conference  and  are  cooperating  with  the  ter- 
ritorial governments  in  this  regional  program. 

The  conference  was  unusual  among  interna- 
•tional  gatherings.    Here,  3  independent  countries 


and  12  overseas  territories  under  the  flags  of  4 
nations  met  in  an  inspiring  spirit  of  cooperation. 
Their  successful  and  definitive  results  demon- 
strated their  desire  to  work  together  on  common 
and  regional  objectives  which  transcend  political 
boundaries.  Even  the  procedure  adopted  was 
miusual.  After  the  opening  ceremonies,  the  con- 
ference resolved  itself  into  a  committee  of  the 
whole  and  proceeded  to  work  as  a  conference  in 
committee.  This  arrangement,  for  a  small  tech- 
nical conference  devoted  to  a  specific  subject, 
proved  highly  successful.  It  facilitated  inter- 
change of  ideas,  expedited  discussions,  and  served 
to  weld  the  conferees  into  a  unit  where  questions 
of  national  representation  among  the  seven  na- 
tionalities were  avoided. 

The  conference  is  another  milestone  in  the  prog- 
ress of  the  Caribbean  Commission  in  assisting  and 
encouraging  the  regional  approach  to  common 
problems  in  the  area.  In  the  four  and  one-half 
years  of  its  existence,  it  has  shown  to  the  peoples 
of  the  Caribbean  that  a  coordinated  attack  on  their 
problems  is  the  most  effective  approach.  Exam- 
ples of  such  action  are  evident  in  the  fields  of  ship- 
ping, public  health  and  quarantine,  research,  agri- 
cultural diversification,  and  joint  surveys  in  ex- 
ploiting fishing  possibilities.  The  tourist  asso- 
ciation will  be  another  such  joint  program  for  the 
benefit  of  all  peoples  of  the  area. 


CERTIFICATE  OF  INCORPORATION  OF  CAR9BBEAN  TOURIST  DEVELOPMENT  ASSOCIATION' 


We,  the  undersigned,  in  order  to  form  a  Corporation 
for  the  purpose  hereinafter  stated,  under  and  pursuant 
to  the  provisions  of  the  General  Corporation  Law  of  the 
State  of  Delaware,  do  agree  to  become  the  original  mem- 
bers of  the  Corporation  as  herein  set  forth,  and  do  hereby 
certify  as  follows : 

FiEST:  The  name  of  the  CorpoTation  is  Caribbean 
Tourist  Development  Association. 

Second:  The  principal  office  of  the  Corporation  (herein- 
after called  the  "Association")  is  to  be  located  in  the 
City  of  Dover,  County  of  Kent,  in  the  State  of  Delaware. 
The  name  of  its  resident  agent  is  United  States  Corpora- 
tion Company,  whose  address  is  19-21  Dover  Green,  in  said 
city  of  Dover. 

Third:  The  objects  or  purposes  to  be  transacted,  pro- 
moted, or  carried  on  by  the  Association  are  as  follows : 

1.  To  encourage  and  assist  in  the  development  of  the 
tourist  industries  throughout  the  Caribbean  area  by : 


'  Appendix  III  of  Report  of  the  Committee  on  the  Carib- 
bean Tourist  Conference  (Doc.  23,  G/23). 


(o)  Providing  an  instrument  for  close  collaboration 
among  the  various  territories  and  countries  concerned. 

(6)  Augmenting  and  assisting  local  promotional  and 
development  efforts  of  the  members  of  the  Association  and 
acting  as  liaison  between  the  members  and  sources  of 
capital  for  development  projects. 

(c)  Providing  a  liaison  between  the  tourist  and  travel 
industry  and  the  members. 

(d)  Carrying  out  advertising  and  publicity  measures 
calculated  to  focus  the  attention  of  the  travelling  public 
upon  the  Caribbean  as  one  of  the  world's  outstanding 
vacation  areas. 

(e)  Encouraging  the  promotion  of  adequate  passenger 
transportation  services  to  and  within  the  Caribbean  area, 
and  undertaking  negotiations  to  procure  or  assist  in  the 
establishment  of  such  additional  services. 

(f)  Providing  expert  advisory  services  on  matters  relat- 
ing to  hotel  construction  and  operation,  the  provision  of 
tourist  amenities  and  all  other  aspects  of  the  tourist 
industry  in  the  Caribbean  area  including  assistance  to  the 
Active  Members  in  obtaining  the  necessary  materials  and 


OCTOBER  27,  1946 


737 


supplies  for  the  development  of  hotels  and  other  tourist 
facilities. 

(ff)  Carrying  out  statistical  and  research  work  relating 
to  travel  trends  and  tourist  development  for  the  benefit 
of  the  members. 

2.  lu  the  accomplishment  of  the  foregoing  objects  and 
pm-poses,  to  accept  as  a  principle  of  the  Association  that 
the  opportunity  for  enjoyment  of  the  facilities  of  the 
Caribbean  area  be  as  fully  accessible  to  the  Caribbean 
peoples  themselves  as  to  visitors  without  distinction  of 
race,  colour  or  creed. 

3.  So  far  as  may  be  necessary  or  incidental  to  the  carry- 
ing out  of  the  foregoing  objects  and  purposes,  to  re- 
ceive, acquire,  hold,  own,  mortgage,  pledge  and  dispose 
of  moneys,  securities  and  any  other  property,  real,  per- 
sonal or  mixed,  including  the  taking  and  holding  thereof 
by  governmental  appropriation,  gift,  bequest,  devise,  pur- 
chase, lease  or  otherwise  and  without  limit  as  to  amount 
or  value  except  such  as  is  now  or  may  hereafter  be 
prescribed  by  law. 

4.  To  enter  into,  make,  perform  and  carry  out  contracts 
of  every  kind  for  any  of  the  objects  and  purposes  herein- 
before set  forth,  without  limit  as  to  amount,  with  any 
country,  territory  or  other  governmental  unit  or  with 
any  agency  thereof  or  with  any  person,  firm,  association, 
corporation  or  other  entity  of  any  country,  territory  or 
other  governmental  unit;  to  have  one  or  more  offices  in 
any  part  of  the  world. 

5.  To  do  all  and  everything  necessary,  suitable  and 
proper  for  the  accomplishment  of  any  of  the  purposes  or 
the  attainment  of  any  of  the  objects  or  the  furtberaucc  of 
any  of  the  powers  hereinbefore  set  forth,  and  to  do  every 
other  act  or  acts,  thing  or  things  incidental  or  appurtenant 
to  or  growing  out  of  or  connected  with  the  aforesaid  ob- 
jects or  purposes  or  any  part  or  parts  thereof,  provided 
the  same  be  not  inconsistent  with  the  laws  under  which 
the  Association  is  organized. 

The  Association  is  to  be  conducted  and  operated  not  for 
profit  and  the  foregoing  objects,  purposes  and  powers  are 
each  and  all  subject  to  the  limitation  that  no  part  of  the 
net  earnings  of  the  Association,  if  any,  shall  inure  to  or 
be  payable  to  or  for  the  benefit  of  any  member  thereof 
or  to  any  individual. 

Fourth  :  The  Association  shall  have  no  authority  to 
issue  Capital   Stock. 

Fifth  :  The  names  and  places  of  residence  of  each  of 
the  incorporators,  who  shall  be  the  original  members  of 
the  Association  are  as  follows : 

Name  Address 

(Note :  Any  number  of  persons,  not  less  than  three,  may 
act  as  incorporators  of  the  Association.  Nominees  not 
connected  with  the  Association  may  be  incorporators  and 
their  connection  with  the  Association  will  terminate  on 
the  completion  of  the  Incorporation  (see  last  sentence  of 
Article  Eighth,  paragraph  4)). 

Sixth  :  The  Association  is  to  have  perpetual  existence. 

Seventh  :  The  private  property  of  the  members  and 
officers  of  the  Association  shall  not  be  subject  to  the  pay- 
ment of  the  Association's  debts  to  any  extent  whatever. 

Eighth  :  The  conditions  of  membership  in  the  Asso- 
ciation are  as  follows: 


1.  There    shall    be   three   classes   of   members    of   the 
Association : 

(a)  Active  members  consisting  of: 
( 1 )  The  oflJcial  organization  for  the  promotion  of  tour- 
ism designated  by  the  Government  of  each  of  the  follow- 
ing countries  and  territories  or,  in  lieu  thereof,  the 
appropriate  government  agency  of  such  country  or 
territory : 


Barbados 

British  Guiana 

Cuba 

Curagao 

Dominican  Republic 

French  Guiana 

Guadeloupe 

Haiti 

Jamaica 

Leeward  Islands 


Martinique 

Puerto  Rico 

Surinam 

Trinidad  and  Tobago 

Virgin  Islands  of  the  United 

States 
Windward  Islands   [Grenada, 

St.    Vincent,     St.    Lucia, 

Dominica  ] 


Of  the  foregoing,  the  following  organizations  or  govern- 
ment agencies  have  signfied  their  intention  of  becoming 
active  members  of  the  Association  and  shall  become  such 
upon  the  filing  of  the  Certificate  of  Incorporation  and  pay- 
ment to  the  Association  of  the  contributions  specified  in 
paragraph  5  of  this  Article. 

(Here  list  organizations  or  government  agencies  that  have 
already  joined  indicating  which  Territories  are  represented 
by  the  organizations  named) 

Official  organizations  or  government  agencies  of  each  of 
the  above  countries  or  territories  which  have  not  yet 
specified  their  intention  of  becoming  active  members  of  the 
Association  shall  become  active  members  upon  receipt  by 
the  Association  of  written  application  requesting  member- 
ship and  the  payment  to  the  Association  of  the  contribution 
for  such  active  member  specified  in  paragraph  5  of  this 
Article. 

(2)  The  ofiicial  organization  for  the  promotion  of 
tourism  designated  by  the  government  of  any  other  country 
or  territory,  or  in  lieu  thereof,  the  appropriate  government 
agency  of  such  country  or  territory.  Membership  of  any 
sucli  organization  or  government  agency  shall  be  by  invi- 
tation of  the  Association  and  membership  shall  commence 
upon  the  receipt  by  the  Association  of  the  acceptance  of 
such  invitation  by  the  oflScial  organization  or  government 
agency,  payment  to  the  Association  of  such  contributions 
as  shall  be  assessed  for  such  members  and  the  fulfillment 
of  any  other  conditions  which  may  be  prescribed  by  the 
by-laws. 

(6)  Allied  members,  consisting  of  local  organizations, 
firms  or  individuals  domiciled  within  the  Caribbean  area. 

(c)  Associate  members,  consisting  of  organizations, 
firms  or  individuals  domiciled  without  the  Caribbean  area. 

2.  Allied  or  associate  membership  shall  be  by  invitation 
of  the  Association  or  by  application,  and  shall  commence 
upon  the  receipt  by  the  Association  of  acceptance  of  the 
invitation  or  upon  approval  of  the  application  by  the  Associ- 
ation, payment  to  the  Association  of  such  contributions  aa 
sliall  be  assessed  for  such  members  and  upon  the  fulfillment 
of  any  other  conditions  that  may  be  prescribed  by  the 
by-laws. 


738 


DEPARTMENT  OF  STATE  BULLETIN 


3.  Each  active  member  shall  have  one  vote  at  all  meet- 
ings of  the  Association.  Allied  and  associate  members 
shall  not  be  entitled  to  vote  at,  to  notice  of,  to  participate 
in,  or  attend  any  meeting  of  the  Association  but  may 
attend  such  meetings  upon  such  terms  and  conditions  as 
may  be  prescribed  in  the  by-laves. 

4.  Members  of  the  Association  of  any  classification  may 
withdraw  therefrom  at  any  time  by  giving  one  year's  prior 
written  notice  to  the  Association.  The  membership  of  any 
member  shall  likewise  terminate  upon  failure  to  pay  its 
annual  membership  contribution  six  months  after  the  date 
when  such  contribution  was  due  unless  extended  by  vote 
of  the  Active  Members  provided  written  notice  of  payment 
having  fallen  due  was  given.  The  termination  of  member- 
ship from  any  cause  whatsoever  shall  operate  as  a  release 
and  termination  of  all  right,  title  and  interest  in  the  prop- 
erty and  assets  of  the  Association,  but  members  shall 
continue  to  be  liable  to  the  Association  for  any  indebted- 
ness due  upon  the  termination  of  membership.  The  mem- 
bership of  the  persons  who  subscribed  to  the  Certificate  of 
Incorporation  shall  terminate  at  the  conclusion  of  the 
organization  meeting  of  the  incorporators. 

5.  For  the  purpose  of  establishing  a  joint  fund  for  the 
operation  of  the  Association,  the  active  members,  consist- 
ing of  official  organizations  of  any  of  the  following  coun- 
tries or  territories  or  the  governments  thereof,  shall 
contribute  annually  for  the  first  and  second  complete  fiscal 
years,  the  following  sums,  payable  in  cash  : 

Cuba $25, 000 

Dominican  Republic 25,000 

Jamaica 25, 000 

Puerto  Rico 25,000 

Barbados 20,  000 

Trinidad  &  Tobago 20,  000 

Curagao 10, 000 

Haiti 10,  COO 

Martinique 10,  OOO 

Virgin  Islands  of  U.S.A 10,  000 

British  Guiana 4,000 

French  Guiana 4,000 

Guadeloupe 4, 000 

Leeward  Islands 4,000 

Surinam 4,  000 

Windward  Islands—: 4,000 


$204, 000 


The  foregoing  contributions  shall  remain  in  force  an- 
nually unless  modified  by  vote  of  a  majority  of  the  active 
members  with  the  approval  of  the  active  member  or  mem- 
bers concerned.  Pro  rata  contributions  shall  be  payable 
for  the  period  from  the  beginning  of  member.ship  to  the 
beginning  of  the  next  fiscal  year.  Contributions  shall  be 
payable  in  advance  in  U.S.  dollars  or  as  may  be  specified 
by  a  majority  of  the  active  members.  The  annual  con- 
tributions of  other  active  members  and  of  the  allied  and 
associate  members  shall  be  determined,  prior  to  their  be- 
coming members  of  the  Association,  by  the  active  member.?. 

6.  The  Association  may  establish  and  put  into  effect  such 
further  rules,  regulations  and  orders  governing  admission 
to  membership,  termination  of  membership  and  duties  and 
obligations  of  members  as  the  by-laws  shall  from  time  to 


time  provide,  and  as  shall  not  be  inconsistent  with  Sec- 
tions 1  through  4  of  this  Article. 

Ninth  : 

1.  The  management  of  the  business,  property  and  affairs 
of  the  Association  shall  be  vested  in  the  active  members. 
Each  active  member  shall  have  one  vote.  Each  active 
member  shall  appoint  and  authorize  a  person  who  shall 
represent  such  member  at  all  meetings  of  the  Association 
and  to  whom  all  notices  required  to  be  given  to  members 
may  be  sent.  The  Association  shall  be  entitled  to  recog- 
nize such  person  as  the  representative  of  the  member  until 
notified  in  writing  by  the  member  of  his  removal.  All  no- 
tices to  the  Association  shall  be  sent  to  it  at 

Such  representatives  may  attend  meetings  of  the  active 
members  in  person  or  be  represented  thereat  by  his  duly 
appointed  proxy  or  alternate  who  may  act  and  vote  in 
place  of  such  representative.  Any  Active  Member  may  in 
the  instrument  appointing  its  representative  provide  that 
such  representative  shaU  not  have  power  to  appoint  a  proxy 
or  alternate. 

2.  The  Active  Members  and  officers  shall  be  assisted  in 
the  management  of  the  Association  by  an  Advisory  Coun- 
cil consisting  of  the  President  of  the  Association  and  seven 
persons  designated  annually.  Each  of  the  seven  national 
groups  represented  among  the  active  membership  of  the 
Association  shall  designate  at  the  annual  meeting  of  the 
Association  one  person  to  serve  on  the  Advisory  Council. 
If  additional  active  members  are  elected  representing  na- 
tionalities other  than  those  now  represented  in  the  Active 
Membership,  such  an  additional  national  group  shall  be 
entitled  to  designate  a  member  of  the  Advisory  Council, 
the  number  of  wliich  shall  be  automatically  increased  to 
permit  of  such  addition.  The  duties  of  the  Advisory  Coun- 
cil shall  be  prescribed  in  the  By-Laws. 

Tenth  :  The  Caribbean  Commission  shall  be  invited  to 
participate  in  the  meetings  of  the  Association  and  of  the 
Advisory  Council  without  the  right  to  vote. 

Eleventh  :  In  the  event  of  the  liquidation,  dissolution 
or  winding-up  of  the  Association,  either  voluntary  or  in- 
voluntary, or  by  operation  of  law,  the  active  members  shall 
liave  the  power  to  dispose  of  the  total  assets  of  the  Asso- 
ciation in  such  manner  as  they,  in  the  exercise  of  an  abso- 
lute and  uncontrolled  discretion,  may  by  a  majority  vote 
determine ;  provided,  however,  that  such  distribution  shall 
be  calculated  exclusively  to  carry  out  the  objects  and  pur- 
lioses  for  which  the  Association  is  formed  and  shall  not 
result  in  the  distribution  of  any  part  of  the  net  earnings 
of  the  Association  for  the  benefit  of  any  private  individual. 

Twelfth  :  This  Certificate  of  Incoi-poration  may  be 
amended  upon  (1)  the  adoption  of  a  resolution  of  the 
Advisory  Council  favoring  such  amendment  and  (2)  the 
approval  of  such  amendment  by  vote  of  two-thirds  of  the 
active  members  at  a  meeting  duly  convened  and  held  as 
prescribed  by  the  by-laws,  provided  that  no  such  amend- 
ment shall  permit  the  application  of  any  part  of  the  net 
earnings  of  the  Association  to  any  private  individual. 

If  the  Active  Members  shall  have  approved  such  Amend- 
ment herein  provided  prior  to  action  thereon  by  the  Ad- 
visory Council,  then  the  Advisory  Council  shall  meet  with- 
in 30  days  and  take  the  action  necessary  to  make  such 
amendment  effective. 


THE  PARIS  PEACE  CONFERENCE 


Report  on  the  Paris  Peace  Conference 


ADDRESS  BY  THE  SECRETARYIOF  STATE 


It  is  now  15  months  since  the  decision  was 
reached  at  Potsdam  to  set  iij)  the  Council  of  For- 
eign Ministers  to  start  the  preparatory  work  on 
the  peace  treaties  with  Italy,  Bulgaria,  Kumania, 
Hungary,  and  Finland. 

Those  months  have  been  hard,  difficult  months. 

At  the  Council  of  Foreign  Ministers  and  at  the 
Paris  Peace  Conference  your  representatives  were 
a  united  and  harmonious  delegation  acting  under 
the  guidance  and  instructions  of  the  President  of 
the  United  States.  The  difficult  tasks  were  im- 
measurably lightened  by  the  splendid  work  and 
cooperation  of  my  associates.  Senator  Connally, 
Democratic  chairman  of  the  Foreign  Relations 
Committee,  and  Senator  Vandenberg,  spokesman 
for  the  Republican  Party  in  foreign  affairs.  In 
the  Conference  we  have  represented  no  political 
parties.  We  have  been  united  in  representing  the 
United  States. 

After  every  great  war  the  victorious  allies  have 
found  it  difficult  to  adjust  their  differences  in 
the  making  of  peace.  Even  before  the  fighting 
stopped.  President  Roosevelt  warned  us  that 

"The  nearer  we  came  to  vanquishing  our  ene- 
mies the  more  we  inevitably  became  conscious  of 
differences  among  the  allies." 

That  was  why  President  Roosevelt  was  so  in- 
sistent that  the  United  Nations  should  be  estab- 
lished before  the  peace  settlements  were  made. 

It  was  inevitable  that  in  the  making  of  concrete 
peace  settlements  the  Allies  should  discuss  and 
debate  the  issues  on  which  they  disagree  and  not 
those  on  which  they  agree.    It  was  also  inevitable 


that  such  discussions  should  emphasize  our  differ- 
ences. 

That  is  one  reason  I  have  continuously  pressed 
to  bring  about  agreements  upon  the  peace  settle- 
ments as  rapidly  as  possible. 

Leavmg  unsettled  issues  which  should  be  set- 
tled only  serves  to  increase  tension  among  the  Al- 
lies and  increase  unrest  among  the  peoples  affected. 

We  cannot  tliink  constructively  on  what  will  or 
will  not  contribute  to  the  building  of  lasting  peace 
and  rising  standards  of  life  until  we  liquidate  the 
war  and  give  the  peoples  of  this  world  a  chance 
to  live  again  under  conditions  of  peace. 

It  is  difficult  to  deal  with  the  problems  of  a  con- 
valescing world  until  we  get  the  patient  off  the 
oi:)erating  table. 

These  treaties  are  not  written  as  we  would  write 
them  if  we  had  a  free  hand.  They  are  not  written 
as  other  governments  would  write  them  if  they  had 
a  free  hand.  But  they  are  as  good  as  we  can  hope 
to  get  by  general  agreement  now  or  within  any 
reasonable  length  of  time. 

Our  views  on  reparations  are  different  from  the 
views  of  countries  whose  territories  were  laid  waste 
by  military  operations  and  whose  peoples  were 
brought  under  the  yoke  of  alien  armies  and  alien 
gestapos. 


'  Delivered  by  radio  from  Washington  on  the  occasion 
of  the  return  of  Secretary  Byrnes  from  (lie  Paris  Peace 
Conference,  which  took  place  from  July  29  to  Oct.  15. 
The  address  was  broadcast  over  the  national  network  of 
the  National  Broadcasting  System,  stations  WOL  and 
WOR  of  the  Mutual  Broadcasting  System,  and  stations 
WWDC  and  WINX  of  Washington,  on  Oct.  18  and  released 
to  the  press  on  Oct.  19. 


739 


740 


DEPARTMENT  OF  STATE  BULLETIN 


The  reparation  payments  are  heavy — excessively 
heavy  in  some  cases.  But  their  burdens  should 
not  be  unbearable  if  the  peoples  on  -which  they  are 
laid  are  freed  from  the  burdens  of  sustaining  oc- 
cupying armies  and  are  given  a  chance  to  rebuild 
their  shattered  economic  lives. 

For  Europe  with  her  mingled  national  economies 
there  are  no  ideal  boundary  settlements. 

The  proposed  settlement  for  the  Trieste  area  was 
long  and  warmly  debated.  The  Conference  ap- 
proved the  proposal  of  the  Council  of  Foreign 
Ministers  that  this  area  should  become  a  free  ter- 
ritory under  the  protection  of  the  United  Nations. 
The  Conference  also  by  a  two-thirds  vote  made 
recommendations  for  an  international  statute  de- 
fining the  responsibilities  of  the  United  Nations 
in  relation  to  the  free  territory.  Such  recom- 
mendations ai'e  an  expression  of  world  opinion 
and  cannot  be  arbitrarily  disregarded. 

Those  recommendations  of  the  Conference  pro- 
vide that  the  governor  appointed  by  the  Security 
Council  should  have  sufficient  authority  to  main- 
tain public  order  and  security,  to  preserve  the  in- 
dependence and  integrity  of  the  territory,  and  to 
protect  the  basic  human  rights  and  fundamental 
freedoms  of  all  the  inhabitants. 

The  minority  proposal  which  was  supported  by 
the  Soviet  Union,  Yugoslavia,  and  other  Slav 
countries  would  have  made  a  figurehead  of  the 
United  Nations  governor  and  would  have  given 
Yugoslavia  virtual  control  of  the  customs,  cur- 
rency, and  foreign  affairs  of  the  territory.  Cer- 
tainly we  could  not  agree  to  that.  It  would  make 
the  territory  a  protectorate  of  Yugoslavia  and 
would  leave  the  United  Nations  powerless  to  pre- 
vent it  becoming  a  battleground  between  warring 
groups.  There  must  be  no  seizure  of  power  in 
Trieste  after  this  war  as  there  was  in  Fiume  after 
the  last  war. 

The  Yugoslav  Delegation  advised  the  Confer- 
ence it  would  not  sign  the  treaty  recommended. 
My  hope  however  is  that  after  consideration 
Yugoslavia  will  realize  that  just  as  other  states 
have  made  concessions  she  must  make  concessions 
in  order  to  bring  about  the  peace. 

Although  the  Council  of  Foreign  Ministers  were 
unable  to  agree  to  any  change  in  the  Austrian- 
Italian  frontier,  the  representatives  of  Austria 
and  Italy  at  Paris  were  encouraged  by  the  Amer- 
ican Delegation  to  reach   an   agreement  which 


should  help  to  make  the  South  Tyrol  a  bond  rather 
than  a  barrier  between  the  two  peoples. 

It  is  my  earnest  hope  that  Czechoslovakia  and 
Hungary  and  Rumania  and  Hungary  may  find 
by  common  agreement  somewhat  similar  solutions 
to  their  complicated  nationality  problems  on  the 
basis  of  working  together  as  friends  and  as  neigh- 
bors. We  in  America  know  that  people  of  many 
different  races  and  stocks  can  live  together  in 
peace  in  the  United  States.  They  should  be  able 
to  live  together  in  peace  in  Europe. 

At  Potsdam  in  the  summer  of  1945  President 
Truman  stressed  the  importance  of  providing  for 
free  navigation  of  the  great  international  rivers 
in  Europe  on  terms  of  equality  for  the  commerce 
of  all  states. 

President  Truman  was  not  seeking  any  special 
advantage  for  the  United  States.  He  was  seek- 
ing to  promote  peace.  He  was  seeking  to  ensure 
that  these  great  waterways  should  be  used  to  unite 
and  not  divide  the  peoples  of  Europe. 

The  Delegations  representing  the  Soviet  Re- 
public and  the  Slav  countries  have  vigorously 
opposed  the  proposal. 

The  Paris  Conference  recommended  by  a  two- 
thirds  vote  that  the  treaties  should  ensure  free- 
dom of  commerce  on  the  Danube  on  terms  of 
equality  to  all  states. 

I  hope  that  when  the  Foreign  Ministers  meet 
we  can  agree  upon  the  adoption  of  this  recom- 
mendation. 

In  recent  weeks  much  has  been  said  about  acri- 
monious debates  and  the  divisions  in  the  Paris  Con- 
ference. Back  of  those  debates  and  divisions  were 
real  and  deep  differences  in  interest,  in  ideas,  in 
experience,  and  even  in  prejudices. 

Those  differences  cannot  be  dispelled  or  recon- 
ciled by  a  mere  gloss  of  polite  words.  And  in  a 
democratic  world  those  differences  cannot  and 
should  not  be  kept  from  the  peoples  concerned. 

In  a  democratic  world,  statesmen  must  share 
with  the  people  their  trials  as  well  as  their  tri- 
umphs. 

It  is  better  that  the  world  should  witness  and 
learn  to  appraise  clashes  of  ideas  rather  than 
clashes  of  arms. 

If  this  peace  is  to  be  lasting,  it  must  be  a  people's 
peace;  and  the  peoples  of  this  world  who  long 
for  peace  will  not  be  able  to  make  their  influence 
felt  if  they  do  not  know  the  conflict  in  ideas  and 


OCTOBER  27,  1946 

in  interest  that  give  rise  to  war,  and  if  they  do 
not  know  how  the  statesmen  and  the  peoples  of 
other  countries  view  tliose  conflicts. 

But  it  is  our  hope  that  in  international  democ- 
racy, as  in  national  democracy,  experience  will 
prove  that  appeals  to  reason  and  good  faith  which 
unite  people  count  for  more  in  the  long  run  than 
appeals  to  prejudice  and  passion  which  divide 
])eople. 

In  a  world  where  no  sovereign  state  can  be  com- 
pelled to  sign  or  ratify  a  peace  treaty,  there  is  no 
perfect  peacemaking  machinery.  Wliere  boun- 
daries, colonies,  and  reparations  are  involved,  a 
peace  treaty  cannot  be  made  effective  unless  it  is 
satisfactory  to  the  principal  powers. 

Under  these  circumstances  the  Paris  Confer- 
ence provided  as  adequate  an  opportunity  for  the 
smaller  states  and  the  ex-enemy  states  to  express 
their  views  on  the  proposed  treaties  as  it  was  prac- 
tical to  provide. 

The  thing  whicli  disturbs  me  is  not  the  lettered 
provisions  of  the  treaties  under  discussion  but  the 
continued  if  not  increasing  tension  between  us  iind 
the  Soviet  Union. 

The  day  I  took  office  as  Secretai*y  of  State  I 
stated  that  "the  supreme  task  of  statesmanship  the 
world  over  is  to  help  the  people  of  this  war-rav- 
aged earth  to  understand  that  they  can  have  peace 
and  freedom  only  if  tliey  tolerate  and  respect  the 
rights  of  others  to  opinions,  feelings  and  ways  of 
life  which  they  do  not  and  cannot  share." 

It  is  as  true  now  as  it  was  then  that  the  develop- 
ment of  sympathetic  understanding  between  the 
Soviet  Union  and  the  United  States  is  the  para- 
mount task  of  statesmanship. 

Such  understanding  is  necessary  to  make  the 
United  Nations  a  true  community  of  nations. 

From  the  Potsdam  Conference,  which  took  place 
at  the  beginning  of  his  administration,  President 
Truman  and  I  have  worked  and  we  shall  continue 
to  work  to  bring  about  an  understanding  with  the 
Soviet  Government. 

Two  states  can  quickly  reach  an  understanding 
if  one  is  willing  to  yield  to  all  demands.  The 
United  States  is  unwilling  to  do  that.  It  is  equally 
unwilling  to  ask  it  of  another  state. 

Every  understanding  requires  the  reconciliation 
of  differences  and  not  a  yielding  by  one  state  to 
the  arbitrary  will  of  the  other. 

Until  we  are  able  to  work  out  definite  and  agreed 

719000 — 46 2 


741 

standards  of  conduct  such  as  those  which  govern 
decisions  within  the  competence  of  the  Interna- 
tional Court  of  Justice,  and  such  as  those  which  we 
hope  may  be  agreed  upon  for  the  control  of  atomic 
energy,  international  problems  between  sovereign 
states  must  be  worked  out  by  agreement  between 
sovereign  states. 

But  if  states  are  to  reach  such  agreements  they 
must  act  in  good  faith  and  in  the  spirit  of  concili- 
ation. They  must  not  launch  false  and  misleading 
propaganda  against  one  another. 

They  must  not  arbitrarily  exercise  their  power 
of  veto,  preventing  a  return  to  conditions  of  peace 
and  delaying  economic  reconstruction. 

No  state  should  assume  that  it  has  a  monopoly 
of  virtue  or  of  wisdom.  No  state  should  ignore 
or  veto  the  aggregate  sentiments  of  mankind. 

States  must  not  unilaterally  by  tlireats,  by  pres- 
sures, or  by  force  disturb  the  established  rights  of 
other  nations.  Nor  can  they  arbitrarily  resist  or 
refuse  to  consider  changes  in  the  relationships  be- 
tween states  and  peoples  which  justice,  fair  play, 
and  the  enlightened  sentiments  of  mankind 
demand. 

We  must  cooperate  to  build  a  world  order,  not 
to  sanctify  the  status  quo,  but  to  preserve  peace 
and  freedom  based  upon  justice. 

And  we  must  be  willing  to  cooperate  with  one 
another — veto  or  no  veto — to  defend,  with  force  if 
necessary,  the  principles  and  purposes  of  the 
Charter  of  the  United  Nations. 

Those  are  the  policies  we  have  pureued.  In 
following  those  policies  we  have  been  criticized  at 
times  for  being  too  "soft"  and  at  times  for  being  too 
"tough".  I  dislike  both  words.  Neither  accu- 
rately describes  our  earnest  efforts  to  be  patient 
but  firm. 

We  have  been  criticized  for  being  too  eager  to 
find  new  approaches  after  successive  rebukes  in 
our  efforts  to  effectuate  our  policies.  And  we  have 
likewise  been  criticized  for  not  seeking  new  ap- 
proaches. We  will  not  permit  the  criticism  to 
disturb  us  nor  to  influence  our  action. 

We  will  continue  to  seek  friendship  with  the 
Soviet  Union  and  all  other  states  on  the  basis  of 
justice  and  the  right  of  others,  as  well  as  ourselves, 
to  opinions  and  ways  of  life  which  we  do  not  and 
cannot  share. 

But  we  must  retain  our  perspective. 


742 


DEPARTMENT  OP  STATE  BVLLBTI'S' 


We  must  guard  against  the  belief  that  deep- 
rooted  suspicions  can  be  dispelled  and  far-reach- 
ing differences  can  be  reconciled  by  any  single  act 
of  faith. 

The  temple  of  peace  nnist  be  built  solidly,  stone 
upon  stone.  If  the  stones  are  loosely  laid,  they 
may  top2:)le  down  upon  us. 

We  must  equally  guard  against  the  belief  that 
delays  or  set-backs  in  achieving  our  objective  make 
armed  conflict  inevitable.  It  is  entirely  possible 
that  the  failure  or  inability  of  the  Soviet  leaders 
to  rid  themselves  of  that  belief  lies  at  the  very  root 
of  our  difficulties.  We  will  never  be  able  to  rid  the 
world  of  that  belief  if  we  ourselves  become  victims 
to  it. 

For  centuries  devout  men  and  women  thovight  it 
was  necessary  to  fight  with  one  another  to  preserve 
their  different  religious  beliefs.  But  through  long 
and  bitter  experience  they  learned  that  the  only 
way  to  protect  their  own  religious  beliefs  is  to  re- 
spect and  recognize  the  rights  of  others  to  their 
religious  beliefs. 

War  is  inevitable  only  if  states  fail  to  tolerate 
and  respect  the  rights  of  other  states  to  ways  of 
life  they  cannot  and  do  not  share.  That  is  a  truth 
we  must  all  recognize. 

Because  in  the  immediate  aftermath  of  war  our 
efforts  to  induce  nations  to  think  in  terms  of  peace 
and  tolerance  seem  to  meet  with  rebuff,  we  must 
not  lose  faith.  What  may  be  unrealizable  now 
may  be  realizable  when  the  wounds  of  war  have 
had  a  chance  to  heal. 

We  must  not  lose  faith  nor  cease  to  struggle  to 
realize  our  faith,  because  the  temple  of  peace  can- 
not be  completely  built  in  a  month  or  a  year. 

But  if  the  temple  of  peace  is  to  be  built  the  idea 
of  the  inevitability  of  conflict  must  not  be  allowed 
to  dominate  the  minds  of  men  and  tear  asunder  a 
world  which  God  made  one. 

It  is  that  idea  of  the  inevitability  of  conflict 
that  is  throttling  the  economic  recovery  of  Europe. 
It  is  that  idea  that  is  causing  artificial  tensions 
between  states  and  within  states. 

The  United  States  stands  for  freedom  for  all 
nations  and  for  friendship  among  all  nations.  We 
shall  continue  to  reject  the  idea  of  exclusive 
alliances.  We  shall  refuse  to  gang  up  against 
any  state. 

We  stand  with  all   peace-loving,  law-abiding 


states  in  defense  of  the  principles  of  the  Charter 
of  the  United  Nations. 

Any  nation  that  abides  by  those  principles  can 
count  upon  the  friendship  and  cooperation  of  the 
United  States,  irrespective  of  national  differences 
or  possible  conflict  of  interests. 

No  country  desires  unity  among  the  principal 
poweis  more  than  we  or  has  done  more  to  achieve 
it.  But  it  must  be  unity  founded  on  the  Charter 
and  not  unity  purchased  at  its  expense. 

We  deplore  the  tendency  upon  the  part  of  the 
Soviet  Union  to  i-egard  states  which  are  friendly 
to  us  as  unfriendly  to  the  Soviet  Union  and  to  con- 
sider as  unfriendly  our  efforts  to  maintain  tradi- 
tionally friendly  relations  with  states  bordering 
on  the  Soviet  Union. 

We  deplore  the  talk  of  the  encirclement  of  the 
Soviet  Union.  We  have  it  from  no  less  authority 
than  Generalissimo  Stalin  himself  that  the  Soviet 
Union  is  in  no  danger  of  encirclement. 

During  the  war  the  Baltic  states  were  taken  over 
by  the  U.S.S.R.  The  Polish  frontier  and  the 
Finnish  frontier  have  been  substantially  modified 
in  Russia's  favor.  Konigsberg,  Bessarabia, 
Bukovina,  and  Ruthenia  are  to  be  given  to  her. 
In  the  Pacific,  the  Kuriles.  Port  Arthur,  and 
Sakhalin  have  been  assigned  to  her.  Certainly  the 
Soviet  Union  is  not  a  dispossessed  nation. 

We  know  the  suffering  and  devastation  which 
Nazi  aggression  brought  to  the  Soviet  Union.  The 
American  people  came  to  the  support  of  the  Soviet 
Union  even  before  the  United  States  was  attacked 
and  entered  the  war.  Our  people  were  allies  of 
the  Soviet  people  during  the  war.  And  the  Amei- 
ican  people  in  time  of  peace  desire  to  live  on  terms 
of  friendship,  mutual  helpfulness,  and  equality 
with  the  Soviet  people. 

Before  the  Paris  Peace  Conference  the  United 
States  spai'ed  no  effort  to  reconcile  its  views  on 
the  proposed  treaties  with  the  views  of  the  Soviet 
Union.  Indeed  it  was  the  Soviet  Union  which  in- 
sisted that  our  views  be  reconciled  on  all  questions 
which  the  Soviet  Union  regarded  as  fundamental 
before  they  would  consent  to  the  holding  of  the 
Conference. 

If,  therefore,  in  the  Conference  we  differed  on 
some  questions,  they  were  not  questions  that  were 
fundamental  from  the  Soviet  viewpoint. 

AVhile  there  wei'e  many  issues  which  attracted 


OCTOBER  27,  1H6 


743 


little  public  attention  on  which  the  Soviet  Union 
and  the  United  States  voted  together,  it  was  re- 
grettable tliat  on  many  issues  which  did  conunand 
public  attention  the  Soviet  Union  and  the  newly 
established  governments  in  central  and  south- 
eastern Europe  voted  consistently  together  against 
all  the  other  states. 

Whatever  considerations  caused  this  close  align- 
ment of  the  Soviet  Union  and  her  Slav  neighbors 
on  these  issues,  other  states  were  not  constrained 
to  vote  as  they  did  by  any  caucus  or  bloc  action. 

It  requires  a  very  imaginative  geographic  sense 
to  put  China  or  Ethiopia  into  a  Western  bloc. 
And  it  was  quite  evident  to  discerning  observers 
at  Paris  that  not  only  China  and  Ethiopia,  but 
Norway  and  France  were  particularly  solicitous 
to  avoid  not  only  the  fact,  but  the  suspicion,  of 
alliance  with  any  Western  bloc. 

If  the  voting  cleavage  at  Paris  was  significant, 
its  significance  lies  in  the  fact  that  the  cleavage 
is  not  between  the  United  States  and  the  Soviet 
Union,  oi-  between  a  Western  bloc  and  the  Soviet 
Union.  The  cleavage  is  based  upon  conviction 
and  not  upon  strategy  or  hidden  design. 

I  should  be  less  than  frank  if  I  did  not  confess 
my  bewilderment  at  the  motives  which  the  Soviet 
Delegation  attributed  to  the  United  States  at 
Paris.  Not  once,  but  many  times,  they  charged 
that  the  United  States  had  enriched  itself  during 
the  war,  and,  under  the  guise  of  freedom  for  com- 
merce and  equality  of  opportunity  for  the  trade 
of  all  nations,  was  now  seeking  to  enslave  Eui'ope 
economically. 

Coming  from  any  state  these  charges  would  be 
regrettable  to  us.  They  are  particularly  regret- 
table when  they  are  made  by  the  Soviet  Govern- 
ment to  whom  we  advanced  more  than  10  billion 
dollars  of  lend-lease  during  the  war  and  with 
whom  we  want  to  be  friendly  in  time  of  peace. 

The  United  States  has  never  claimed  the  right 
to  dictate  to  other  countries  how  they  should  man- 
age their  own  trade  and  commerce.  We  have 
simply  urged  in  the  interest  of  all  peoples  that  no 
country  should  make  trade  discriminations  in  its 
relations  with  other  countries. 

On  that  principle  the  United  States  stands.  It 
does  jiot  question  the  right  of  any  country  to  de- 
bate the  economic  advantages  or  disadvantages  of 
that  principle.  It  does  object  to  any  government 
charging  that  the  United  States  enriched  itself 


during  the  war  and  desires  to  make  "hand-outs"  to 
European  governments  in  order  to  enslave  their 
peoples. 

Long  before  we  entered  the  war  President  Roose- 
velt took  the  dollar  sign  out  of  the  war.  He  es- 
tablished lend-lease  as  the  arsenal  of  democracy 
and  opened  that  arsenal  to  all  who  fought  for 
freedom.  Europe  did  not  pay  and  was  not  asked 
to  pay  to  build  or  to  replenish  that  arsenal.  That 
was  done  with  American  labor  and  American  re- 
sources. 

The  lend-lease  settlements  inaugurated  by  Pres- 
ident Roosevelt  have  been  faithfully  and  meticu- 
lously carried  out  by  President  Truman. 

We  want  to  assist  in  European  reconstruction 
because  we  believe  that  European  prosperity  will 
contribute  to  world  prosperity  and  world  peace. 
That  is  not  dollar  democracy.  That  is  not  imper- 
ialism.   That  is  justice  and  fair  play. 

We  in  America  have  learned  that  prosperity 
like  freedom  must  be  shared,  not  on  the  basis  of 
"hand-outs,"  but  on  the  basis  of  the  fair  and  honest 
exchange  of  the  products  of  the  labor  of  free  men 
and  free  women. 

America  stands  for  social  and  economic  de- 
mocracy at  home  and  abroad.  The  principles  em- 
bodied in  the  social  and  economic  reforms  of  re- 
cent years  are  now  a  part  of  the  American  her- 
itage. 

It  would  be  strange  indeed  if  in  this  imper- 
fect world  our  social  and  economic  democracy  were 
perfect,  but  it  might  help  our  Soviet  friends  to 
understand  us  better  if  they  realized  that  today  our 
social  and  economic  democracy  is  further  away 
from  the  devil-take-the-hindmost  philosophy  of 
by-gone  days  than  Soviet  Russia  is  from  Tsarist 
Russia. 

Whatever  political  differences  there  may  be 
among  us,  we  are  finnly  and  irrevocably  committed 
to  the  principle  that  it  is  our  right  and  the  right 
of  every  people  to  organize  their  economic  and 
political  destiny  through  the  freest  possible  ex- 
pression of  their  collective  will.  We  oppose  priv- 
ilege at  home  and  abroad.  We  defend  freedom 
everywhere.  And  in  our  view  human  freedom  and 
human  progress  are  inseparable. 

The  American  people  extend  the  hand  of  friend- 
ship to  the  people  of  the  Soviet  Union  and  to  all 
other  people  in  this  war-weary  world.  May  God 
grant  to  all  of  us  the  wisdom  to  seek  the  paths 
of  peace. 


U.S.  Supports  Bilateral  Negotiations  On  Magyar  Minority  Problem 

REMARKS  BY  AMBASSADOR  SMITH  < 


The  United  States  is  glad  to  support  the  new 
proposal  of  Czechoslovakia  to  be  inserted  after 
article  4  and  providing  for  bilateral  negotiations 
with  Hungary  to  solve  the  minority  problem. 
This  was  substituted  for  the  original  Czechoslovak 
amendment,  which  would  have  authorized  the 
forced  transfer  of  a  maximum  of  200,000  persons 
of  Magyar  ethnic  origin,  as  the  United  States 
Delegation  made  clear  in  the  meetings  of  the  Hun- 
garian Commission.  We  sympathized  with  the 
motives  behind  the  Czechoslovak  desire  to  solve 
this  minority  pioblem  once  and  for  all,  but  for 
humanitarian  reasons  we  could  not  look  with  favor 
on  incorporating  into  a  treaty  of  peace  the  prin- 
ciple of  a  forced  unilateral  transfer  of  population. 
The  United  States  consistently  supported  the  view 
that  the  subject  was  one  for  bilateral  negotiations 
between  the  two  countries  concerned  and  that  any 
solution  of  the  minority  problem  which  was  not 
based  on  a  mutually  satisfactory  agreement  would 
remain  a  source  of  future  friction  between  them 
and  hamper  the  gi-owth  of  friendly  relations  which 


is  so  necessary  for  the  peaceful  development  of 
central  Europe.  We  also  believe  that  the  principle 
of  voluntary  transfer  should  be  stressed  to  the 
utmost  and  that  every  effort  should  be  made — 
through  minor  territorial  adjustments  if  neces- 
sary— to  reduce  to  a  minimum  the  number  of  peo- 
ple to  be  uprooted  from  the  land  on  which  in  many 
cases  they  and  their  ancestors  have  been  living  for 
generations. 

By  not  pressing  for  its  original  amendment,  the 
Czechoslovak  Goverimient  showed  its  desire  to  act 
in  a  conciliatory  spirit.  Certainly  all  members  of 
the  Conference  will  follow  with  the  keenest  interest 
the  course  of  these  negotiations.  Meanwhile,  I 
feel  sure  that  an  atmosphere  of  good-will  will  be 
created  by  use  of  restraint  in  the  treatment  of  those 
who  are  now  eligible  for  exchange  or  who  may  be 
transferred  by  mutual  agreement  in  the  future. 

Sucx?essful  conclusion  of  an  agreement  between 
Czechoslovakia  and  Hungary  would  lead  the 
United  States  to  hope  that  Hungary  and  Rumania 
might  also  seek  through  bilateral  negotiations  to 
solve  some  of  their  outstanding  differences. 


U.S.  Proposes  Reduction  in  Finnish  Reparations 

REMARKS  BY  SENATOR  VANDENBERG 


Mr.  President  : 

I  have  heard  a  jri'eat  deal  from  this  rostrum 
about  justice  and  fair  play  for  small  nations.  It 
is  on  this  account  that  1  raise  my  voice  todaj\  in 
behalf  of  the  United  States  Delegation,  for  one 
of  the  smallest.  I  do  not  speak  emotionally,  al- 
though the  subject  might  lend  itself  to  such  an 
appeal.     I  do  not  speak  with  any  forgetfulness  of 


'Made  at  the  plenary  .session  on  the  Hungarian  treaty 
at  the  Paris  Peace  Conference  on  Oct.  12  and  released  to 
the  press  on  Oct.  14.  Walter  Btxlell  Smith  is  American 
Ambas.sador  to  the  U.S.S.R. 

"  Made  at  the  plenary  session  on  the  Fiimish  treaty 
at  the  Paris  Peace  Conference  on  Oct.  14  and  released  to 
the  press  on  the  same  date.  Senator  Vandenberg  is  a 
member  of  the  American  Delegation  to  the  Conference. 

744 


the  awful  damage  done  to  other  small  nations 
among  our  Allies  as  a  result  of  Axis  aggression, 
nor  with  any  desire  to  take,  from  them  or  from 
any  other  Ally,  one  penny  of  the  pitifully  small 
percentage  of  reparations  which  it  is  wise  for  them 
to  collect.  I  speak  solely  of  relative  mathematics, 
on  the  righteous  theory  that  two  wrongs  do  not 
make  a  right. 

The  United  States  was  not  at  war  with  Finland, 
although  our  diplomatic  relations  were  severed. 
The  ITnited  States  did  not  participate  as  a  draft- 
ing power  in  the  preparation  of  this  peace  treaty 
with  Finland.  With  respect  to  this  treaty,  there- 
fore, we  share  only  a  minimum  responsibility,  only 
a  minimum  right  of  consultation  on  the  same  min- 


OCTOBER  21.  1!>4(1 


745 


imiini  level  with  most  of  the  other  Allied  coun- 
tries sitting  here  today.  I  want  to  make  tliis  over- 
ridinjr  fact  entirely  plain.  We  seek  no  authority 
whicli  does  not  belong  to  us  but  we  maintain  a 
general  right  to  speak  upon  this  subject  because 
of  oui"  participation  with  substantial  military 
force  in  tlie  war  against  the  Axis  throughout 
Europe.  AVe  will  not  be  called  upon  to  sign  this 
treaty.  We  can  only  register  here  and  now  our 
great  concern,  lest  it  shall  transgi-ess  the  equity 
and  justice  which  were  the  dedicated  aims  of  our 
united  arms. 

The  Delegation  of  the  United  States  is  dis- 
turbed, Mr.  President,  by  the  reparations  pro- 
vision in  article  XXII  which  sets  the  reparations 
to  be  paid  by  Finland  at  $300,000,000.  If  we  have 
been  right  in  the  rei^arations  yardstick  which  we 
have  api^lied  to  others,  we  must  be  wrong,  it  seems 
to  us,  in  the  yardstick  wliich  it  is  proi)osed  to 
apply  to  little  Finland.  We  all  agree  that  it  is 
no  advantage  to  the  victor  to  burden  the  van- 
quished in  a  measure  which  defeats  reasonable 
and  legitimate  recuperation.  America  asks  the 
Conference  to  objectively  apph^  these  precepts  to 
article  XXII  in  the  pending  draft. 

Wiien  the  P^innish  Government  submitted  its 
treaty  comments  to  this  Conference  on  August  26, 
it  earnestly  lequested  that  the  amount  of  repara- 
tions be  reduced  from  $300,000,000  to  $200,000,000. 
It  presented  what  to  us  was  a  completely  persua- 
sive argument.  The  fact  that  Finland  has  com- 
menced faithfully  to  pay  at  the  higher  rate  is  no 
exhibit  to  the  contrary.  Finland  has  a  long  and 
honorable  and  unbroken  record  of  scrupulous 
fidelity  to  her  fiscal  obligations.  It  is  the  equities 
with  which  we  must  be  concerned.  By  any  ordi- 
nary tests  of  comparison,  Finland  might  be  ex- 
pected to  pay  about  one  third  as  much  reparations 
as  Rumania  and  perhaps  one  half  that  of  Hun- 
gary. That  she  should  be  required  to  meet  the 
rubber-stamp  figure  of  $300,000,000  seems  to  us  to 
be  unjust  and  ill-advised  on  the  basis  of  the  pre- 
cepts to  which  I  have  previously  referred. 

Indeed  the  reparations  burden  on  Finland  is 
much  greater  than  $300,000,000  in  its  actual  im- 
jxact.  As  in  all  other  cases  except  Italy,  the  repa- 
rations commodities  are  to  be  priced  at  1938  price 
levels  plus  10  percent  or  15  percent,  depending 
upon  the  commodity.     The  Finnish  Government 


has  estimated  that  this  pricing  process  means  a 
total  of  reparations  of  417,000,000  in  194-1  dollars, 
and  at  present  prices  the  estimate  certainly  wovdd 
be  over  $450,000,000. 

Compare  this  with  Finland's  capacity  to  pay. 
We  dare  not  forget  Finland's  reduced  production 
capacity  due  to  cession  of  territory,  property  dam- 
age and  deterioration,  reduced  manpower,  and  a 
pronounced  shortage  of  raw  materials  and  electric 
power.  We  dare  not  forget  tliat  Finland's  na- 
tional income  in  1945  was  about  $500,000,000,  about 
(iO  percent  of  the  pre-war  figure.  Her  first  repa- 
ration year's  total  uncompensated  export  was 
$76,000,000  or  15  percent  of  the  total  national 
income. 

I  repeat,  Mr.  President,  the  fact  that  Finland 
lias  met  her  obligations  is  very  mucli  to  her  credit, 
but  it  should  not  be  taken  as  proof  that  the  obli- 
gations are  just  or  tliat  they  can  be  met  for  the 
entire  reparations  period.  The  Finnish  Govern- 
ment's own  statement  is  perhaps  the  best  possible 
presentation  of  the  case : 

"'Finland  is  prepared  to  do  all  tliat  is  in  her 
power  in  order  to  fulfill  her  obligations  iii  respect 
of  war  reparations.  However,  she  fervently  hopes 
that  the  burden  imposed  on  her  be  reduced  so  that 
the  fulfillment  of  her  obligations  does  not  exceed 
her  economic  capacity  and  destroy  the  economic 
resources  which,  if  they  are  preserved,  can  allow 
her  to  make  her  best  contribution,  not  only  to  the 
reconstruction  of  her  own  recovery  but  also  to  that 
of  the  whole  world." 

In  the  light  of  this  statement  and  in  the  pres- 
ence of  all  these  related  facts,  the  United  States 
Delegation  not  only  is  unable  to  supjjort  article 
XXII  but  feels  obliged  to  vote  against  it,  not  only 
as  a  matter  of  conscience  but  also,  and  particu- 
larly, as  a  matter  of  relative  equity  and  fair  play. 
Tills  adverse  vote  is  not  to  be  construed  as  com- 
plete opposition  to  all  Finnish  reparations.  It  is 
simply  our  only  means  of  registering  our  convic- 
tion that  it  is  unwise  and  unfair  to  put  such  a  big 
burden  on  such  a  small  country.  It  simply  means, 
if  we  could  have  our  way,  that  Finnish  reparations 
will  go  back  to  the  drafting  powers  for  review 
before  a  final  figure  is  set. 

It  may  be  asked  why  we  do  not  raise  the  issue 
more  directly  by  an  amendment  to  reduce  Finnish 
reparations    from    $300,000,000   to   $200,000,000. 


746 


DEPARTMENT  OF  STATE  BULLETIN 


The  answer  is  that  we  tried  to  do  exactly  that  in 
the  Economic  Commission  for  the  Balkans  and 
Finland.  We  offered  precisely  that  amendment, 
but  because  of  procedural  difficulties  and  a  colli- 
sion with  the  Commission's  timetable  our  amend- 
ment was  refused  consideration.  Therefore,  the 
Economic  Commission  had  no  recourse  except  to 
deal  with  the  matter  on  the  same  basis  that  we  pro- 
pose to  deal  with  it  here.  As  a  result  article  XXII 
was  apj)roved  by  the  Commission  only  by  a  vote 
of  nine  to  four  and  for  the  I'easons  which  I  have 
here  briefly  set  out  in  explanation  of  the  Ameri- 
can jjosition. 

It  is  our  hope,  Mr.  President,  that  other  nations 
in  this  full  plenary  session  will  wish  now  finally 
to  write  the  record  in  the  fashion  proposed  by  the 
United  States  Delegation.  We  pi-opose  that 
article  XXII  be  rejected.  This  will  not  mean, 
nor  is  it  intended  to  mean,  the  end  of  all  Finnish 


reparations.  It  will  mean  only  that  the  final 
drafting  powers  are  petitioned  to  review  the  Fin- 
nish reparations  figure  in  the  light  of  these  con- 
siderations. 

In  some  previous  speeches  today  the  motives  of 
the  United  States  in  this  matter  have  been  at- 
tacked in  a  pattern  with  which  the  Conference  is 
entirely  too  familiar.  Mr.  President,  the  United 
States  Delegation  will  leave  its  motives  to  the  ver- 
dict of  history  in  connection  with  the  winning  of 
the  war  and  the  writing  of  a  just  peace. 

We  decline  to  plead  as  defendants  among  Allies 
to  whom  we  have  given  every  ounce  of  cooperation 
in  blood  and  treasure  of  which  a  great  nation  is 
capable. 

But  we  shall  continue,  Mr.  President,  to  speak 
for  the  American  conception  of  justice  and  fair 
pla}^  in  a  better  world  toward  which  we  hope  and 
pray  for  a  rebirth  of  the  sympathetic  unity  which 
made  our  victory  possible. 


U.S.  Proposes  Reduction  in  Hungarian  Reparations 

STATEMENT  BY  WILLARD  L.  THORP  > 


This  meeting  is  for  the  purpose  of  discussing  the 
Hungarian  peace  treaty.  The  United  States  Dele- 
gation does  not  feel  that  this  is  the  appropriate 
time  to  discuss  American  motives  and  policies. 
Rather  we  feel  that  the  limited  time  available  to 
us  calls  for  a  sober,  factual,  and  objective  state- 
ment with  specific  reference  to  the  Hungarian 
peace  treaty. 

The  United  States  feels  that  it  must  call  the  at- 
tention of  this  Conference  to  article  XXI  of  the 
Hungarian  treaty,  which  fixes  reparation  to  be 
paid  by  Hungary  at  $300,000,000.  At  the  Yalta 
Conference  the  Union  of  Soviet  Socialist  Repub- 
lics, United  Kingdom,  and  United  States  of  Amer- 
ica undertook  a  joint  responsibility  to  assist  the 
former  Axis  satellites  to  solve  their  economic  prob- 
lems. The  economic  problems  of  Hungary  have 
not  been  solved. 


'  Made  at  the  plenary  se.ssion  concerning  economic 
clauses  in  the  Hungarian  treaty  at  the  Paris  Peace  Con- 
ference on  Oct.  12  and  released  to  the  press  on  Oct.  14. 
Mr.  Thorp  is  Deputy  to  the  Assistant  Secretary  for  eco- 
nomic affairs  in  the  Department  of  State  and  is  a  mem- 
ber of  the  American  Delegation  to  the  Conference. 


We  had  hoped  to  be  able  to  meet  our  responsibil- 
ity through  concerted  action  with  the  other  two 
great  powers  in  the  direction  of  developing  a  pro- 
gram to  stop  the  economic  disintegration  of  Hun- 
gary and  provide  a  framework  within  which  Hun- 
gary might  reestablish  her  economic  life.  Events 
have  not  taken  this  course  and  now  the  Hmigarian 
Delegation  has  advised  the  Conference  that  its  new 
international  obligations  are  more  than  it  can 
bear. 

The  least  that  we  can  do  is  to  lay  the  problem  on 
the  Conference  table  so  that  the  members  of  the 
Conference  will  consciously  and  explicitly  share 
with  us  the  responsibility  for  passing  judgment 
ui^on  the  treaty  provisions.  Even  without  the  Yal- 
ta obligation  we  would  still  be  greatly  concerned. 

In  his  brilliant  speech  on  Tuesday,  Mr.  Spaak 
used  an  exciting  phrase,  "collective  prosperity". 
We  all  know  that  the  extent  of  prosperity  or  de- 
pression is  world-wide,  that  events  in  any  one 
country  reach  out  and  have  an  impact  on  other 
countries.  Economic  collapse  in  one  area  drags 
down  other  areas,  while  economic  activity  breeds 
economic  activity.     The  new  international  insti- 


OCTOBER  27,  19i6 

tutions  are  based  upon  the  proposition  that  we  all 
have  an  interest  in  promoting  economic  health 
tliroughout  the  world  and  in  jointly  achieving  the 
goal  of  all  economic  operation,  a  rising  standard 
of  living. 

What  is  the  present  economic  situation  in  Hun- 
gary ?  The  Conference  has  received  f I'om  the  Hun- 
garian Government  documents  providing  enough 
facts  and  analyses  to  make  any  further  detailed 
statement  unnecessary.  National  income  estimat- 
ed before  the  war  at  $1,000,000,000  dropped  to 
$.500,000,000  in  the  first  post-armistice  year.  The 
optimistic  estimate  of  the  Hungarian  Government 
for  the  fiscal  year  ending  July  31, 1947  is  $620,000,- 
000.  In  more  s^Decific  terms,  the  level  of  operation 
in  the  first  quarter  of  1946  as  compared  with  1938 
for  the  six  cases  cited  by  the  Hungarian  Delega- 
tion in  their  report  was  as  follows: 

Percent 
of  1938 

Metal  working  and  macliinery     ...     94.  3 

Leather  and  rubber 12.  6 

Wood,  tin,  and  plastic 11.  9 

Textiles 24.3 

Clothing 12.3 

Processed    food 36. 7 

The  one  instance  of  a  respectable  level  of  opera- 
tion is  the  metal-working  and  machinery  indus- 
try, and  that  industry  is  producing  largely  on 
reparation  account :  otherwise  the  figures  indicate 
virtually  complete  collapse. 

Our  estimates  show  that  the  total  absorbed  by 
the  cost  of  occupation,  requisition,  and  reparation 
is  about  35  percent  of  the  national  income.  With 
such  burdens,  the  Government  budget  is  far  out 
of  balance  and  no  signs  of  relief  are  in  sight.  The 
total  picture  is  one  of  exceedingly  heavy  burdens 
placed  on  a  disorganized  economy  where  damage, 
destruction,  and  removals  by  the  Germans  have 
all  contributed  to  reducing  its  potential  capacity 
to  produce. 

In  the  discussion  on  this  matter  in  the  Economic 
Connnission  for  the  Balkans,  several  points  were 
raised  on  which  I  shall  comment  briefly.  As  hap- 
pens whenever  the  reparation  question  is  raised, 
we  heard  again  the  details  of  the  extent  of  the 
damage  suffered  by  each  claimant.  It  is  impor- 
tant for  all  of  us  to  be  reminded  of  the  costs  of  war 
again  and  again.  There  can  be  no  question  but 
that  the  reparation  figure  for  each  ex-enemy  state 


747 

represents  only  a  slight  compensation  for  the 
claims  which  can  properly  be  asserted  against  it. 
The  damage  figures  are  helpful  in  those  cases 
where  allocation  must  be  made  among  several 
claimant  countries,  but,  in  fact,  they  have  very  lit- 
tle bearing  on  establishing  the  total.  The  repara- 
tion should  be  all  that  the  ex-enemy  country  can 
pay,  bearing  in  mind  its  other  obligations  and  its 
capacity.  Because  of  the  wide  difference  between 
the  size  of  the  claims  created  by  total  war  and 
the  limited  capacity  of  partially  destroyed  econ- 
omies to  pay,  it  really  would  not  affect  the  situa- 
tion if  the  damages  could  be  proved  to  be  twice 
the  amount  asserted  or  if  they  were  reduced  one 
half.  There  is  no  need  for  further  demonstra- 
tion of  damage. 

We  were  told  that  the  combination  of  the  armis- 
tice and  various  implementing  agreements  estab- 
lished some  sort  of  bar  to  revision,  but  the  fact 
is  clear  that  neither  the  armistice  nor  any  agree- 
ments established  the  final  right  to  reparation. 
If  this  were  so,  there  would  be  no  need  for  a  repara- 
tion article  in  the  peace  treaty.  At  the  time  of 
the  signing  of  the  armistice,  the  United  States 
clearly  reserved  its  right  to  reopen  the  question  of 
Hungary's  reparation  obligation. 

We  have  heard  that  Hungary's  present  diffi- 
culty is  due  to  the  failure  of  the  United  States 
Government  to  make  restitution  of  Hungarian 
property  in  the  American  occupation  zones  in  Ger- 
many and  Austria.  The  United  States  Govern- 
ment believes  in  restitution,  not  only  to  United  Na- 
tions but  to  ex-enemy  states.  Quadripartite  agree- 
ment through  the  Allied  control  authority  is  re- 
quired befoi-e  there  can  be  a  complete  program  of 
restitution  to  Hungary  from  Germany. 

The  United  States  representative  on  the  Allied 
control  authority  on  June  26,  1946  proposed  to 
the  Coordinating  Conmiittee  in  Berlin  that  cer- 
tain ex-enemy  countries  including  Hungary  be 
made  eligible  for  restitution.  Despite  the  con- 
tinued efforts  of  the  United  Slates  the  necessary 
quadripartite  agi'eement  for  modification  of  the 
April  17  directive  has  not  been  obtained.  The 
United  States  has,  while  awaiting  quadripartite 
agreement  on  restitution  to  Hungary  and  other 
ex-enemy  states,  done  all  that  it  could  to  alleviate 
the  situation.  The  Hungarian  Government  has 
been  invited  to  submit  lists  of  Hungarian  property 
believed  to  be  located  in  the  American  zones  of 


748 


DEPARTMENT  OF  STATE  BULLETIN 


Germany  and  Austria.  Search  for  the  properties 
included  in  these  lists  has  been  undertaken  by  the 
appropriate  authorities  in  the  American  zones. 
Moreover,  Hungarian  restitution  missions  have 
been  authorized  to  enter  the  American  zones  to 
search  for  Hungarian  pi-operty  and  to  plan  for 
its  return  to  Hungary. 

Once  quadripartite  agreement  has  been  obtained 
regarding  restitution  to  Hungary  the  Hungarian 
mission  expressed  full  satisfaction  with  the  facili- 
ties extended  for  making  inventory  of  Hungarian 
property.  [Regarding?]  the  special  situation  of 
the  Hungarian  gold  which  was  surrendered  to 
United  States  forces  operating  in  Austria,  the 
United  States  has  discharged  its  custodianship  by 
returning  the  gold  in  full  ($32,000,000)  to  Hun- 
gary. 

The  United  States  very  much  hopes  that  it  will 
be  possible  in  the  near  future  to  obtain  quadri- 
partite agreement  in  the  Allied  control  authority 
regarding  restitution  to  Hungary  and  other 
ex-enemy  states. 

The  figure  of  $3,000,000,000  of  Hungarian  prop- 
erty eligible  for  restitution  has  been  mentioned, 
but  the  total  wealth  of  Hungary  is  considerably 
less  than  $10,000,000,000  and  most  of  that  is  in 
land  and  buildings.  If  that  one  fact  is  not  enough 
to  discredit  the  $3,000,000,000  figure,  consider  the 
circumstances.  We  are  talking  about  removals 
made  by  Germany  during  a  war  when  transport 
was  congested  and  disorganized,  and  the  sugges- 
tion is  made  that  the  Germans  removed  as  much 
from  Hungary  as  the  total  shipments  made  up 
to  now  by  UNRRA  to  every  country  to  wliich  it 
sent  aid.  The  figure  of  $3,000,000,000  cannot  be 
taken  seriously.  We  would  be  misleading  our- 
selves and  the  Hungarian  Government  if  we 
allowed  them  to  think  or  to  believe  that  even  the 
most  perfect  and  immediate  restitution  program 
would  provide  any  substantial  solution  to  Hun- 
gary's problems. 

Hungary  can  be  assured  that  the  United  States 
Govermnent  will  do  everything  it  can  to  speed 
the  restitution  of  Hungarian  property. 

Finally,  it  has  been  suggested  that  a  modifica- 


tion of  the  reparation  agreement  will  be  exceed- 
ingly disturbing  to  international  good-will  and 
will  encourage  reactionary  elements  to  return  to 
power  i)i  Hungary.  We  do  not  understand  the 
logic  which  leads  to  conclusions  such  as  this. 
Reparation  payments  have  never  been  a  source  of 
international  good-will  and,  if  they  are  excessive, 
the  reverse  must  clearly  be  true.  As  to  political 
stability  within  any  country,  heavy  economic 
burdens  on  its  citizens  have  never  strengthened  it. 
In  fact,  we  would  argue  very  strongly  that  a  modi- 
fication of  tliis  article  should  contribute  to  better 
international  relations  abroad  and  greater  politi- 
cal stability  in  Hungary. 

The  United  States  has  great  difficulty  in  ac- 
cepting the  figure  of  $300,000,000  as  a  standard 
figure  for  reparation.  Already  the  plenary  Con- 
ference has  recognized  a  different  principle  in 
setting  reparation  for  Bulgaria,  but  Rumania, 
Hungary,  and  Finland  all  remain  at  that  mystic 
figure  in  spite  of  their  wide  differences  in  size  of 
poi^ulation,  wealth,  income,  and  degree  of  war 
devastation  and  damage.  We  feel  strongly  that 
Hungarian  reparation  should  be  reviewed  in  the 
light  of  the  character  and  prospects  of  the  Hun- 
garian economy.  If  the  standard  figure  of  $300.- 
000,000  is  fair  and  equitable  for  the  much  richer 
and  less  disorganized  economy  of  Rumania,  then, 
by  every  possible  test  of  comparison,  the  proposed 
reparation  figure  for  Hungary  is  too  high. 

The  United  States  will  not  press  its  amend- 
ment to  reduce  Hungary's  reparation  to  $200,000,- 
000.  However,  it  will  vote  against  article  XXI. 
This  vote  should  not  be  interpreted  as  opposing 
the  principle  of  reparation.  It  represents  rather 
our  unwillingness,  in  the  light  of  our  knowledge 
and  understanding  of  the  Hungarian  situation, 
positively  to  approve  the  article  in  its  present 
fonn.  If  a  number  of  other  countries  share  our 
doubts,  then  this  Conference  will  not  reconmiend 
article  XXI  to  the  Council  of  Foreign  Ministers 
but  will  clearly  indicate  by  their  votes  that  this 
problem  is  one  which  should  be  given  further  con- 
sideration by  the  Council  of  Foreign  Ministers. 


''The  World  Wants  the  Peace  To  Be  the  People's  Peace" 

REMARKS  BY  THE  SECRETARY  OF  STATE  • 


The  Conference  has  about  concluded  its  work. 
In  the  discussion  of  the  last  week  reference  has 
been  made  to  the  fact  that  there  has  been  some 
criticism  of  our  work.  That  is  true.  It  has  been 
said  that  there  has  been  too  much  debate,  too  much 
propagandizing,  and  too  little  harmonizing. 

But  it  must  be  remembered  that  this  Conference 
was  called  to  give  those  nations  which  took  an 
active  part  in  the  fighting  and  which  are  not 
members  of  the  Council  of  Foreign  Ministers  an 
opportunity  to  participate  in  the  jaeace. 

Certainly  the  nations  represented  here  have  had 
a  chance  to  express  their  views  on  the  proposed 
peace  treaties.  Certainly  the  Conference  has  also 
afforded  the  representatives  of  the  ex-enemy 
countries  an  opportunity  to  present  their  views. 

It  was  a  wise  course  for  us  to  grant  the  right  to 
be  heard  to  all  interested  governments. 

The  world  wants  the  peace  to  be  the  people's 
peace  but  there  can  be  no  people's  peace  unless  the 
people  have  a  chance  to  make  their  influence  felt. 
There  can  be  no  people's  peace  unless  the  peoples 
of  different  countries  know  each  other's  problems 
and  difliculties  and  learn  to  know  the  sacrifices 
each  must  make  for  the  common  peace  and  welfare. 

Whenever  I  think  of  the  way  in  which  repre- 
sentatives of  the  smaller  nations  have  worked  at 
this  Conference  in  commissions  and  the  plenary 
sessions  I  realize  how  distressed  the  people  of  those 
countries  would  have  been  had  they  been  denied 
the  opportunity  even  to  express  their  views. 

The  Conference  has  disclosed  that  these  nations 
that  participated  in  fighting  the  war  were  not  only 
vitally  interested  in  the  peace  but  could  make  a 
valuable  contribution  to  the  drafting  of  the 
treaties. 


The  service  they  have  rendered  fully  justifies 
the  position  of  the  United  States  in  urging  since 
September  1945  that  this  Conference  be  held. 

It  will  now  become  the  duty  of  the  Council  to 
try  to  reconcile  our  differences.  Such  reconcilia- 
tion necessarily  means  disappointment  for  some  of 
us  and  probably  for  all  of  us.  But  we  must  exer- 
cise self-restraint  to  maintain  our  common  unity 
and  to  bring  peace  to  a  war-weary  world. 

Before  we  adjourn  I  want  to  assure  you  that  as 
a  member  of  the  Council  of  Foreign  Ministers  I 
will  sympathetically  examine  every  recommenda- 
tion which  has  been  adopted  by  this  Conference. 

No  one  stat©  will  seriously  contend  that  it  won 
the  war.  While  the  fighting  was  on,  we  would 
gladly  have  admitted  that  victory  could  be  won 
only  by  the  combined  efforts  of  all  the  Allied 
states.  The  United  States  now  asserts  that  is  how 
the  victory  was  won.  Just  as  no  one  nation  had 
the  power  to  win  the  war  so  no  one  nation  has  the 
wisdom  to  dictate  the  peace. 

Believing  this,  I  reiterate  the  statement  I  made 
the  first  week  of  the  Conference  -  before  any  votes 
were  taken  that,  as  to  any  recommendation  that 
received  the  vote  of  two  thirds  of  the  states  rep- 
resented here,  as  a  member  of  the  Council  of  For- 
eign Ministers  I  will  do  all  that  I  can  to  secure  the 
incorporation  of  such  recoimnendation  in  the  trea- 
ties regardless  of  how  the  United  States  may  have 
voted  on  that  recommendation  in  this  Conference. 


1  Made  at  the  closing  plenary  session  of  the  Paris  Peace 
Conference  on  Oct.  15  and  released  to  the  press  on  the 
same  date.  The  Secretary  of  State  was  the  American 
Delegate  to  the  Conference. 

'  BuiXETiN  of  Aug.  11,  1946,  p.  251. 

749 


riQooo — 4fi- 


THE  UNITED  NATIONS 


Welcome  to  the  General  Assembly  Representatives 


REMARKS  BY  UNDER  SECRETARY  ACHESON ' 


Today,  as  the  representatives  to  the  General  As- 
sembly of  the  United  Nations  gather  in  New  York, 
I  am  happy  to  extend  a  hearty  welcome  to  all  the 
visiting  delegations. 

The  Government  and  people  of  the  United  States 
are  honored  by  your  presence.  We  hope  that  you 
will  enjoy  your  association  with  us,  and  that  your 
work  here  will  be  outstandingly  successful. 

We  will  spare  no  effort  to  contribute  to  the  full 
success  of  this  work.  We  will  do  our  best  to  place 
adequate  facilities  at  the  disposal  of  the  delega- 
tions and  the  members  of  the  Secretariat  itself. 

We  know  that  our  visitors  from  abroad  will  be 
working  under  some  material  difficulties.  For  the 
most  part,  these  difficulties  are  a  direct  outgrowth 
of  the  war. 

Like  many  other  countries,  we  suffer  from  short- 
ages which  will  probably  cause  our  guests  some 
discomfort  and  inconvenience.  I  would  ask  the 
delegates  to  the  General  Assembly  and  their  staffs 
to  realize  this  fact,  and  I  would  also  ask  the  resi- 
dents of  the  New  York  area  to  continue  to  do  their 
utmost  to  reduce  all  these  difficulties  to  a  minimum. 
The  Government  of  the  United  States  will  do  its 
part. 

The  General  Assembly  session  which  is  about  to 
open  will  be  of  very  great  importance  to  all  the 
United  Nations.  It  will  carry  forward  the  task 
which  was  begun  at  London  last  January  and  Feb- 
ruary. At  that  time  the  General  Assembly  set  up 
the  organization  of  the  United  Nations.  Now  it 
will  go  on  to  put  the  organization  on  a  permanent 
footing. 

In  its  meetings  at  London,  the  Assembly  also 
began  to  grapple  with  important  world  problems. 
We  anticipate  that  here  in  New  York  it  will  deal 
with  a  very  wide  range  of  political,  economic,  and 
social  matters.     Besides  those  which  have  been 


^  Made  on  the  National  Broadcasting  Company's  public 
service  program,  "Welcome  to  United  Nations",  on  Oct.  20 
and  released  to  the  press  on  the  same  date. 

750 


placed  on  its  agenda  by  the  member  states,  the 
Assembly  will  consider  subjects  included  in  the 
reports  submitted  to  it  by  the  Security  Council  and 
the  Economic  and  Social  Council.  In  its  delibera- 
tions, the  views  of  all  the  members,  great  and 
small,  will  be  heard ;  and  its  recommendations, 
where  they  are  made,  will  have  the  weight  of 
acceptance  by  the  new  international  community. 

We  do  not  anticipate  that  this  session  of  the 
General  Assembly  will  be  a  calm  and  cut-and- 
dried  performance.  There  will  be  differences  of 
opinion ;  there  may  be  sharj)  disputes.  Some  peo- 
ple, hearing  discordant  voices  of  delegations,  will 
be  tempted  to  give  way  to  despair  and  to  declare 
that  it  is  impossible  to  compose  the  differences 
separating  nations. 

The  Government  of  tlie  United  States  em- 
phatically repudiates  this  view.  We  regret  that 
differences  of  opinion  exist,  and  that  they  hamper 
the  work  of  world  political  and  economic  recon- 
struction. But,  as  we  see  it,  some  such  differences 
are  inevitable  in  any  community,  national  or  in- 
tei'iiational.  We  feel  that  to  smother  them  be- 
neath the  pleasantries  of  diplomacy  could  be  fatal 
to  world  organization. 

World  organization  is,  of  necessity,  a  complex 
affair  in  this  age.  But  there  is  one  outstanding 
commitment  which  all  the  member  states  have  as- 
sumed in  setting  up  the  United  Nations.  It  is  the 
solemn  obligation  not  to  resort  to  the  threat  or 
use  of  force  in  their  international  relations — and 
to  settle  their  disputes  by  peaceful  means. 

There  is  only  one  way  to  settle  differences  of 
opinion  satisfactorily.  That  is  the  way  of  dis- 
cussion and  persuasion,  of  reasonable  compromise, 
and  by  the  peaceful  means  of  the  ballot. 

That  is  why  we,  like  the  other  members  of  the 
United  Nations,  lay  such  great  stress  on  the  im- 
portance of  the  General  Assembly.  This  Assem- 
bly of  the  United  Nations  symbolizes  the  method 
by  which  disputes  can  be  brought  to  the  attention 
of  the  world,  investigated,  talked  out,  and  resolved 


OCTOBER  27,  191,6 


751 


in  agreement.     Upon  this  method  rests  the  hope 
for  the  organization  of  a  lasting  peace. 

Legally,  the  United  Nations  Charter  has  been 
in  force  for  less  than  one  year.  If  there  are  those 
who  complain  because  in  that  period  the  United 
Nations  has  not  settled  all  the  problems  which 
have  been  brought  before  it,  we  urge  them  to 
have  patience.  The  jDhysical  reconstruction  of  the 
ravages  of  the  war  will  take  not  one  but  many 


years.  Political  and  economic  reconstruction  will 
take  even  longer.  Spiritual  regeneration  is  a  task 
that  continues  without  end. 

The  Government  of  the  United  States  has  based 
its  foreign  policy  on  support  of  the  United  Na- 
tions, and  it  will  not  falter  in  its  support.  It 
looks  forward  confidently  to  a  full  measure  of 
progress  on  the  long  and  difficult  road  that  leads 
to  world  conciliation. 


Short-Wave  Radio  Facilities  Made  Available  for  U.N.  Broadcasts 


[Released  to  the  press  October  18] 

The  United  States  Government  will  make  avail- 
able short-wave  voice  radio  facilities  for  United 
Nations  broadcasts  during  the  forthcoming  Gen- 
eral Assembly  Session  in  New  York.  This  was 
announced  on  October  18  by  William  Benton, 
Assistant  Secretary  of  State  for  public  affairs. 

"The  Department's  International  Broadcasting 
Division  is  happy  to  cooperate  with  the  United 
Nations  in  helping  to  see  that  full  information  on 
its  deliberations  is  disseminated  as  widely  as  pos- 
sible throughout  the  world",  Mr.  Benton  said. 
"This  conforms  to  the  Department's  announced 
position  supporting  adequate  and  unrestricted  dis- 
tribution of  world  news  as  one  of  the  vital  factors 
looking  toward  permanent  peace.  I  also  hope  it 
may  point  up  the  necessity  of  the  United  Nations 
establishing  its  own  world  radio  network  at  the 
earliest  moment,  as  recommended  by  the  U.S. 
Commission  of  UNESCO  and  by  General  Sarnoflf 
of  RCA." 

Mr.  Benton  disclosed  that  the  Office  of  Interna- 
tional Information  and  Cultural  Affairs  of  the 
State  Department  (OIC)  had  provided  11  high- 
powered  transmitters  for  use  by  the  United  Na- 
tions. These  will  be  used  to  broadcast  the  story 
of  the  General  Assembly  meetings  to  Europe,  Latin 
America,  and  the  Far  East.  The  first  broadcast 
will  be  of  the  opening  meeting  on  October  23. 

This  will  mark  the  first  broadcast  in  the  name 
of  the  United  Nations  and  the  first  by  United  Na- 
tions personnel.  Heretofore,  OIC's  "Voice  of 
America"  has  broadcast  the  proceedings  of  all  open 
meetings  of  the  United  Nations  Security  Council. 

The  United  Nations  will  broadcast  the  General 
Assembly  meetings  in  full,  with  running  com- 


mentaries in  English  and  French.  The  programs 
also  will  include  eyewitness  accounts  of  the  meet- 
ings, background  talks  about  the  organization,  and 
interviews  with  delegates  and  members  of  the 
United  Nations  Secretariat. 

These  morning  and  evening  programs  will  be 
beamed  to  Europe  by  four  transmitters  from  the 
east  coast.  In  addition,  the  United  Nations  will 
bi"oadcast  in  the  other  three  official  languages, 
Spanish,  Chinese,  and  Russian.  Four  OIC  trans- 
mitters will  beam  the  Spanish  programs  to  Latin 
America,  from  9:15  to  10: 15  p.  m.,  E.S.T.  The 
Chinese  programs  will  be  carried  on  three  other 
transmitters  between  2 :  45  and  3 :  45  a.m.,  E.S.T. 
For  technical  reasons  the  Russian  broadcasts  will 
be  carried  by  two  Canadian  stations  made  avail- 
able by  the  Canadian  Broadcasting  Company. 

With  the  United  Nations  handling  direct  broad- 
casts of  the  General  Assembly  proceedings,  the 
"Voice  of  America"  will  step  up  its  own  coverage 
of  the  historic  session.  Under  the  direction  of 
Kenneth  D.  Fry,  Chief  of  OIC's  International 
Broadcasting  Division,  all  language  desks  have 
arranged  to  give  increased  air  time  to  the  meetings. 
Throughout  the  session,  the  English  Section  will 
have  a  daily  30-minute  digest  of  proceedings  en- 
titled "United  Nations  Review".  The  program 
will  contain  recorded  excerpts  from  the  Assembly 
meetings,  linked  together  by  a  commentary.  The 
"United  Nations  Review"  will  be  beamed  to  Eu- 
rope at  1:30  p.m.  and  at  5:30  a.m.  E.S.T.,  to 
Latin  America  at  8 :30  p.m.,  and  to  the  Far  East 
at  5 :  30  a.m. 

All  the  other  language  desks  will  have  special 
broadcasts.  There  will  be  full  coverage  of  com- 
mentaries, press  reviews,  addresses,  and  special 


752 


DEPARTMENT  OF  STATE  BULLETIN 


events  to  tell  listeners  around  the  world  of  United 
Nations  activities. 

For  tliese  programs,  the  "Voice  of  America"  will 
have  the  full-time  use  of  the  25  OIC  transmitters 
not  to  be  used  by  the  United  Nations.  It  will  also 
use  the  other  11  transmitters  when  they  are  not 
required  for  the  United  Nations  own  programs. 

The  OIC  transmitters  to  be  used  by  the  United 
Nations,  their  frequencies,  and  their  time  on  the 
air  are  as  follows: 

For  broadcasts  to  Europe— WNBI,  17780  kilo- 
cycles, from  9:30  a.m.  to  1:30  p.m.,  E.S.T.; 
WNRI,  13050  kilocycles  until  6 :  15  p.m.,  E.S.T., 
and  filOO  kilocycles  from  6:30  p.m.  to  9  p.m.; 
■\VNRX,  21610  kilocycles  to  1 :  45  p.m.,  E.S.T.,  and 
9570  kilocycles  from  2  p.m.  to  9  p.m. :  and  WOOC, 


15200  kilocycles  to  4 :  30  p.m.,  E.S.T.,  and  11870 
kilocycles  from  5  p.m.  to  9  p.m. 

For  broadcasts  to  the  Far  East — KNBA,  beamed 
on  China,  9490  kilocycles ;  KNBI,  beamed  on  Ha- 
waii and  Australia,  9490  kilocycles;  and  KRHO, 
Honolulu  relay  beamed  on  China,  9650  kilocycles. 
All  three  stations  are  on  the  air  from  2 :  45  a.m.  to 
3 :  45  a.m.,  E.S.T. 

For  broadcasts  to  Latin  America — WCBX, 
beamed  on  western  South  America,  15270  kilo- 
cycles; WLWO,  beamed  on  eastern  South  Amer- 
ica, 11790  kilocycles;  WLWLf-1,  beamed  on  west- 
ern South  America  and  Central  America,  9750 
kilocycles;  and  WRCA,  beamed  on  eastern  South 
America,  9670  kilocycles.  These  stations  are  on 
the  air  from  9 :  15  p.m.  to  10 :  15  p.m.,  E.S.T. 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 

Calendar  of  (Vleetings 


IN  SESSION  AS  OF  OCTOBER  20,  1946 

Far  Eastern  Commission 

Washington 

February  26 

United  Nations: 
Security  Council 
Military  Staff  Committee 
Commission  on  Atomic  Energy 

LTNRRA — Intergovernmental     Committee     on     Refugees;  Joint 
Planning  Committee 

Lake  Success 
Lake  Success 
Lake  Success 
Washington  and  Lake 
Success 

Marcli  25 
March  25 
June  14 
July  24 

Paris  Peace  Conference 

Paris 

July  29-October  15 

German  External  Property  Negotiations  with  Portugal  (Safehaven) 

Lisbon 

September  3 

PICAO: 

Interim  Council 

Divisional  Demonstrations  of  Radio  Aids  to  Air  Navigation 

Montreal 

New     York-Indianap- 
olis 

September  4 
October  7-26 

International  Emergency  Food  Council:  Second  Council  Meeting 

Washington 

October  14-15 

Preparatory  Commission  of  the  International  Conference  on  Trade 
and  Employment 

London 

October  15 

Emergency  Economic  Committee  for  Europe:  Housing  Committee 

Paris 

October  18-19 

Second  Pan  American  Conference  on  Lejjrosy 

Rio  de  Janeiro 

October  19-31 

SCHEDULED 

International  Committee  on  Weights  and  Measures 

Paris 

October  22 

Permanent  Committee  of  the  International  Health  Office 

Paris 

October  23 

United  Nations:  General  Assembly  (Second  Part  of  First  Session) 

Flushing  Meadows 

October  23 

United  Maritime  Consultative  Council:  Second  Meeting 

Washington 

October  24-30 

PICAO: 

Regional 

Air     Traffic     Control     Committee,     European-Mediterranean 
Region 

Paris 

October  28 

Calendar  prepared  in  the  Division  of  International  Con  ferenees,  Department  of  State. 


OCTOBER  27.  1946 

CALENDAR  OF  MEETINGS— CorUinued 


753 


Scheduled — Continued 

PICAO— Continued 

• 

Divisional 

Meteorological  Division 

Montreal 

October  29 

Special  Radio  Technical  Division 

Montreal 

October  30-November  8 

Communications  Division 

Montreal 

November  19 

Search  and  Rescue  Division 

Montreal 

November  26 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division 

Montreal 

December  3 

Informal  Four  Power  Broadcasting  Conference 

Paris 

October  28-30 

International   Commission   for   Air   Navigation    (CINA):     Twenty- 

Dublin 

October  28-31 

ninth  Session 

FAO:   Preparatory  Commission  to  study   World  Food   Board   Pro- 

Washington 

October  28 

posals 

World  Health  Organization:   Interim  Commission 

Geneva 

November  4-10 

Council  of  Foreign  Ministers 

New  York 

November  4 

International  Telegraph  Consulting  Committee  (CCIT) 

London 

November  4^9 

lARA:   Meetings  on  Conflicting  Custodial  Claims 

Brussels 

November  6 

International  Technical  Committee  of  Aerial  Legal  Experts  (CITEJA) 

Cairo 

November  0 

International  Wool  Meeting 

London 

November  11-16 

ILO: 

Industrial  Committee  on  Textiles 

Brussels 

November  14 

Industrial     Committee     on     Building,     Engineering     and     Public 

Brussels 

November  25 

Works 

Second  Inter-American  Congress  of  Radiology 

Habana 

November  17-22 

United  Nations:  ECOSOC:  Commission  on  Narcotic  Drugs 

Lake  Success 

November  18 

UNESCO: 

"Month"  Exhibition 

Paris 

November 

Preparatory  Commission 

Paris 

November  14-15 

General  Conference 

Paris 

November  19 

Inter-American  Commission  of  Women:   Fifth  Annual  Assembly 

Washington 

December  2-12 

Intergovernmental  Committee  on  Refugees  (IGCR"1:  Sixth  Plenary 

London 

December  11 

Session 

Activities  and  Developments » 


TERMS  OF  REFERENCE  OF  THE  INTER-ALLIED 
TRADE  BOARD  FOR  JAPAN > 

1.  At  the  request  of  the  United  States  Govern- 
ment the  Far  Eastern  Commission  hereby  estab- 
lishes the  Intei'-Allied  Trade  Board  for  Japan. 
The  United  States  Government  will  request  each 
of  the  Governments  represented  on  the  Far  East- 
ern Commission  to  appoint  a  representative  to 


'Unanimously  approved  by  the  Far  Eastern  Commis- 
sion on  Oct.  10.  The  text  of  this  document  has  been  re- 
ceived by  the  Supreme  Conuuandcr  for  the  Allied  Powers, 
and  it  was  released  to  the  press  on  Oct.  15. 


754 


DEPARTMENT  OF  STATE  BULLETIN 


the  Board.    The  Board  will  meet  in  Washington, 
D.C. 

2.  The  purpose  of  the  Board  is  to  provide  easy 
and  rapid  means  of  consultation  between  the 
United  States  Government  as  the  principal  occu- 
pying power  and  the  other  Governments  repre- 
sented on  the  Far  Eastern  Commission  regarding 
the  disposition  of  exports  available  from  Japan 
and  the  furnishing  of  imports  required  for  Japan, 
which  lie  beyond  the  scope  of  the  Supreme  Com- 
mander for  the  Allied  Powers'  own  authority  to 
arrange. 

3.  Within  the  framework  of  the  Potsdam  Decla- 
ration, policies  established  in  accordance  with  the 
Terms  of  Reference  of  the  Far  Eastern  Commis- 
sion, and  the  declared  objectives  of  the  occupation, 
the  functions  of  the  Inter- Allied  Trade  Board  for 
Japan  will  be  to  make  recommendations  to  the 
United  States  Government  on: 

a.  The  disposition  of  commodities  available  for 
export  from  Japan ; 

b.  The  sources  from  which  commodities  shall  be 
imported  into  Japan ; 

0.  The  best  arrangements  for  facilitating 
Japanese  exports  and  imports  generally. 

All  recommendations  of  the  Board  involving 
matters  of  policy  shall  be  subject  to  the  approval 
of  the  Far  Eastern  Commission. 

Exports 

4.  In  the  case  of  commodities  which  are  in  short 
world  supply  the  Inter-Allied  Trade  Board  may 
use  any  statistical  data  and  consult  with  allocating 
authorities  and  other  similar  organizations. 

5.  In  considering  the  disposition  of  other  com- 
modities which  may  be  made  available  for  export 
from  Japan,  the  Board  shall  consider  any  evidence 
or  arguments  which  may  be  presented  to  it  by  its 
members  and  shall  either  recommend  that  the 
commodity  be  disposed  of  at  the  discretion  of  the 
Supreme  Commander  for  the  Allied  Powers  or 
shall  recommend  an  allocation  of  the  commodity 
which  in  its  opinion,  shall  further  the  objectives 
of  the  Allied  Powers  with  respect  to  Japan  as 
stated  in  the  Potsdam  Declaration  and  insure  the 
equitable  distribution  of  the  supply  among  coun- 
tries which  wish  to  purchase  the  commodity. 

6.  It  shall  be  the  responsibility  of  the  Board  to 
make  recommendations  as  to  terms  of  sale  of 
Japanese  exports. 


Imports 

7.  It  shall  be  the  responsibility  of  the  Board  to 
make  recommendations  as  to  the  terms  of  purchase 
of  Japanese  imports  so  as  to  further  the  announced 
objectives  of  the  occupation,  giving  full  weight  to 
the  desirability  of  minimizing  the  cost  of  procure- 
ment. 

8.  In  considering  procurement  of  commodities 
whicli  are  required  by  Japan,  the  Board  shall 
either  (a)  decide  that  the  commodity  can  be  ac- 
quired at  the  discretion  of  the  authorities  making 
the  purchase  or  (&)  shall  recommend  the  source  of 
the  commodity  in  such  manner  as,  in  its  opinion, 
shall  further  the  announced  objectives  of  the  Allied 
Powers  with  respect  to  Japan  and  provide  for  the 
equitable  distribution  of  purchases  among  the 
supplying  countries. 


CHILE,    LEBANON,    NORWAY     ACCEPT    INVITA- 
TION TO  DISCUSS  TRADE  BARRIERS 

[Released  to  the  press  October  14] 

The  Department  of  State  announced  on  October 
14  that  Chile,  Lebanon,  and  Norway  have  accepted 
an  invitation  issued  by  the  United  States  to  par- 
ticipate in  negotiations  for  the  reduction  of  bar- 
riers to  world  trade  as  a  necessary  step  in  the 
preparation  for  a  world  conference  on  trade  and 
employment. 

The  invitations  were  extended  to  Chile,  Leban- 
on, and  Norway  on  August  20,  1946  after  consul- 
tation with  the  governments  of  the  15  countries 
originally  invited  by  the  United  States  to  partici- 
pate, and  following  the  action  of  the  Economic 
and  Social  Council  of  the  United  Nations  in  ap- 
proving a  resolution  for  an  international  confer- 
ence on  trade  and  employment  and  in  naming  a 
preparatory  committee  for  the  international  con- 
ference which  included  the  United  States,  the  15 
nations  originally  invited,  and  Chile,  Lebanon, 
and  Norway. 

The  countries  originally  invited  were :  Australia, 
Belgium,  Brazil,  Canada,  China,  Cuba,  Czecho- 
slovakia, France,  India,  Luxembourg,  the  Nether- 
lands, New  Zealand,  Union  of  South  Africa, 
Union  of  Soviet  Socialist  Republics,  and  the 
United  Kingdom. 

The  Preparatory  Committee  is  holding  its  first 
meeting  in  London  on  October  15,  1946. 

The  first  meeting  on  negotiations  for  the  i-educ- 


OCTOBER  27,  191,6 


755 


tion  of  trade  barriers,  however,  is  not  scheduled  to 
be  held  until  the  spring  of  1947. 


AMERICAN    DELEGATES    TO    INFORMAL    FOUR 
POWER  BROADCASTING    CONFERENCE 

[Released  to  the  press  October  15] 

The  Department  of  State  announced  on  October 
15  the  appointment  of  United  States  representa- 
tives to  attend  an  informal  four-power  interna- 
tional high-frequency-broadcasting  conference  in 
Paris  on  October  24  to  discuss  the  feasibility  of 
creating  a  new  world  broadcasting  organization. 

Francis  Colt  de  Wolf,  Chief  of  the  Telecom- 
munications Division  of  the  Department  of  State, 
was  named  chairman  of  the  American  representa- 
tion. 

Other  representatives  are  as  follows : 

Dr.  J.  H.  Dellinger,  National  Bureau  of  Stand- 
ards 

Forney  A.  Rankin,  Associate  Chief,  International 
Broadcasting  Division,  Department  of  State 

Robert  Burton,  International  Broadcasting  Divi- 
sion, Department  of  State 

Other  countries  to  be  represented  at  the  confer- 
ence are  the  United  Kingdom,  the  Union  of  Soviet 
Socialist  Republics,  and  France. 

It  is  contemplated  that  the  conference  will  in- 
formally discuss  high-frequency  organization 
problems  with  respect  to  broadcasting  only  and 
will  not  be  concerned  with  frequency  allocations  to 
stations.  The  conference  does  not  plan  to  phrase 
any  concrete  proposals  but  will  concentrate  on 
seeking  unanimity  of  potential  proposals  for  a 
projected  world  conference  to  set  up  a  world 
broadcasting  organization. 


MEETING  OF^COUNCIL  OF  FOREIGN  MINISTERS 

[Released  to  the  press  October  17] 

The  Secretary  of  State  announced  on  October  17 
that  the  Council  of  Foreign  Ministers  will  recon- 
vene on  November  4,  1946  at  New  York  to  con- 
tinue its  work  on  the  drafting  of  the  peace  treaties 
with  Italy,  Rumania,  Bulgaria,  Hungary,  and  Fin- 
land. The  headquarters  of  the  Council  for  these 
meetings  will  be  at  the  Waldorf-Astoria  Hotel. 


'  Prepared  by  the  Office  of  International  Information  and 
Culturai  Affairs  in  collaboration  with  the  Division  of 
International  Conferences,  Department  of  State. 


Secretary  of  State  Byrnes  and  the  Ministers  of 
Foreign  Affairs  of  the  United  Kingdom,  the  Union 
of  Soviet  Socialist  Republics,  and  France,  ac- 
companied by  their  respective  deputies  and  ad- 
visers, will  participate  in  the  New  York  meetings. 

Although  the  General  Assembly  of  the  United 
Nations  will  meet  at  New  York  concurrently  with 
the  Council  of  Foreign  Ministers,  the  meetings  of 
the  Council  will  be  conducted  independently  at  its 
own  temporai-y  headquarters. 

UNESCO  MONTH! 

The  first  meeting  of  the  General  Conference  of 
UNESCO,  to  be  held  in  Paris  on  November  19,  will 
be  marked  by  the  celebration  of  UNESCO  Month. 

In  Paris,  exhibits,  film  shows,  lectures,  and  con- 
certs will  emphasize  the  cultural  bonds  among  peo- 
ples. The  United  States  will  participate  in  the 
Paris  program  by  supplying  contributions  to  the 
education,  educational-reconstruction,  scientific, 
and  fine-arts  sections  of  the  exhibition,  including 
a  collection  of  contemporary  American  oils  and 
water  colors  now  on  display  at  the  Metropolitan 
Museum,  the  atomic-energy  exhibit  of  the  Amer- 
ican Chemical  Society,  and  panels  prepared  by  the 
U.  S.  Office  of  Education.  A  wide  range  of  Amer- 
ican entertainment  and  documentary  and  educa- 
tional films  will  be  exhibited.  A  number  of 
distinguished  Americans  have  been  invited  to  par- 
ticipate in  the  lecture  programs. 

UNESCO  Month  will  be  observed  simultaneous- 
ly in  other  countries.  Such  observances,  however, 
will  not  take  the  form  of  formal  large-scale  ex- 
hibits and  programs.  The  Department  of  State 
has  suggested  to  organized  groups  and  educational 
institutions  that  they  find  occasion  during  Novem- 
ber to  emphasize  in  regional  and  local  meetings 
the  purposes  of  UNESCO  and  the  cultural  bonds 
among  peoples. 

AMERICAN  DELEGATION  TO  THE  GENERAL 
CONFERENCE  OF  UNESCO 

[Released  to  the  press  October  141 

The  Acting  Secretary  of  State  announced  on 
October  14  that  the  President  has  designated  the 
following  10  persons  as  delegates  to  the  first  ses- 
sion of  the  General  Conference  of  the  United 
{Continued  on  page  779) 


Interim  Commission  on  International  Healtli 


ARTICLE  BY  H.  VAN  ZILE  HYDE 


International  organization  in  the  field  of  health 
will  be  advanced  by  two  meetings  scheduled  for 
late  October  and  early  November :  the  semi-annual 
meeting  of  the  Permanent  Committee  of  the  In- 
ternational Office  of  Public  Health,  Paris,  October 
23-31,  and  the  second  session  of  the  Interim  Com- 
mission of  the  World  Health  Organization, 
Geneva,  November  4r-10. 

The  Permanent  Committee,  at  which  the  United 
States  will  be  represented  by  Dr.  James  A.  DouU, 
Chief  of  the  Office  of  International  Health  Rela- 
tions, U.S.  Public  Health  Service,  and  Howard  B. 
Calderwood  of  the  same  office,  will  be  concerned 
primarily  with  putting  its  house  in  order  for  the 
early  transfer  of  its  functions  and  assets  to  the 
World  Health  Organization.  Final  absorption  of 
the  Paris  Office  by  the  World  Health  Organiza- 
tion cannot  be  completed  before  the  protocol  pro- 
viding for  its  absorption  is  signed  by  all  signa- 
tories to  the  Rome  agreement  of  1907  providing  for 
the  establishment  of  the  International  Office  of 
Public  Health,'  or  before  those  signatories  have 
denounced  the  agreement  as  provided  in  article  IV 
of  the  protocol.  It  is  contemplated  that  the  Per- 
manent Committee  will  arrange  for  the  transfer 
to  the  World  Health  Organization  Interim  Com- 
mission of  the  functions  of  the  Office  which  are 
related  to  the  international  exchange  of  epidemio- 
logical information  and  the  publication  of  epi- 
demiological statistics.  This  transfer  wiU  con- 
stitute an  important  consolidation,  for  these  func- 
tions are  now  performed  by  the  Paris  Office, 
UNRRA,  and  the  United  Nations  (as  heir  to  the 
League  of  Nations) . 

The  World  Health  Organization  Interim  Com- 
mission, composed  of  representatives  of  18  states, 
will  be  concerned  largely  at  its  November  meet- 
ing with  organizational  matters  and  with  the 
development  of  its  relationships  with  other  inter- 

'  Treaty  Series  511. 

'  For  article  by  Mr.  Persinger  on  the  Fifth  Council  Ses- 
sion of  UNRRA,  see  BuLi.EnN  of  Sept.  22,  1946,  p.  523. 


national  organizations.  The  United  States  will 
be  represented  by  Dr.  Thomas  Parran,  Surgeon 
General  of  the  United  States  Public  Health  Serv- 
ice, and  by  an  advisory  staff  of  three  members. 

It  is  expected  that  the  Commission  will  have 
before  it  for  action  a  draft  agreement  with 
UNRRA  providing  for  the  transfer  of  UNRRA 
health  activities  and  UNRRA  funds  sufficient  for 
the  continuance  of  vital  advisory  health  functions 
until  the  World  Health  Organization  is  function- 
ing. Provision  for  such  transfer  was  made  by 
the  UNRRA  Council  in  a  resolution  (No.  94) 
adopted  at  its  Fifth  Session  in  Geneva,  August, 
1946.2  jt  is  anticipated  that  the  UNRRA  Cen- 
tral Committee  will  act,  prior  to  the  Interim 
Commission  meeting,  on  a  draft  agreement  which 
has  been  developed  by  a  joint  conference  meet- 
ing under  the  chairmanship  of  Fiorello  H.  La 
Guardia.  The  functions  to  be  transferred,  as 
covered  in  the  draft  agreement,  include  technical 
advice  and  assistance  to  the  national  health  serv- 
ices of  states  receiving  UNRRA  aid  and  the 
operation  of  an  international  fellowship  program 
in  the  field  of  health. 

The  Interim  Commission  will  also  consider 
procedures  for: 

1.  Conducting  negotiations  with  the  United 
Nations,  specialized  agencies,  and  other  interna- 
tional organizations; 

2.  Providing  representation  at  meetings  of 
other  agencies ; 

3.  Participating  in  joint  committees  and  com- 
missions ; 

4.  Establishing  expert  committees ;  and 

5.  Conducting  relations  with  non-governmental, 
international,  and  national  organizations  in  the 
field  of  health. 

The  Commission  is  expected  to  consider  the 
appointment,  at  this  session,  of  expert  committees 
on  epidemiology  and  quarantine,  health  in  devas- 
tated areas,  nomenclature  of  disease,  and  narcotics 


756 


Basic  Principles  in  Establishment  of  international  Trade  Organization 

BY  CLAIR  WILCOX  > 


Wlien  a  dog  bites  a  man,  according  to  a  saying 
that  is  common  in  my  country,  the  event  goes  un- 
recorded in  the  press.  But  when  a  man  bites  a 
dog  the  story  is  good  for  a  headline  on  page  one. 
So  it  is  with  the  popular  appraisal  of  the  progress 
that  has  been  made,  since  the  war,  toward  the 
reconstruction  of  a  world  order.  The  difficulties 
that  have  been  encountered  and  the  persisting 
threat  of  failure  are  uppermost  in  every  mind. 
The  solid  successes  that  have  been  achieved  are 
taken  for  granted,  as  if  they  were  a  matter  of 
routine.  This  attitude  is  understandable:  con- 
flict is  exciting ;  agreement  is  dull.  But  it  is  sadly 
lacking  in  perspective :  the  big  news,  the  important 
news,  is  not  that  nations  have  encountered  diffi- 
culties, but  that  they  have  surmounted  them ;  not 
that  their  efforts  are  threatened  with  failure,  but 
that  they  have  been  attended  by  so  large  a  measure 
of  success. 

Tlie  world  has  gone  a  long  way,  in  the  last  few 
years,  toward  binding  itself  together  in  a  network 
of  agencies  for  international  cooperation.  The 
organization  of  the  United  Nations  has  been 
established;  the  General  Assembly,  the  Security 
Council,  and  the  Economic  and  Social  Council, 
with  their  several  commissions  and  subcommis- 
sions,  are  now  going  concerns.  The  United  Na- 
tions Relief  and  Rehabilitation  Administration, 
the  Food  and  Agriculture  Organization,  the  Inter- 
national Monetary  Fund,  the  International  Bank 
for  Reconstruction  and  Development,  the  Civil 
Aviation  Organization,  the  United  Nations  Edu- 
cational, Scientific  and  Cultural  Organization, 
and  the  World  Health  Organization  have  joined 
the  International  Labor  Organization  as  special- 
ized international  agencies.  The  nations  are  de- 
veloping the  programs  and  organizing  the  insti- 
tutions through  which  they  can  work  together, 
side  by  side,  to  reconstruct  a  shattered  world. 
For  so  much  in  the  way  of  concrete  accomplish- 
ment, in  so  short  a  time,  there  is  no  precedent  in 
history. 

Much  has  been  done;  much  remains  to  be  clone. 
The  General  Assembly,  meeting  this  month  in  New 
York,  will  act  upon  the  recommendation  of  the 
Economic  and  Social  Council  for  the  establish- 


ment of  an  international  organization  for  refugees. 
The  United  Maritime  Consultative  Council,  meet- 
ing in  Washington,  will  consider  the  creation  of  a 
world-wide  intergovernmental  organization  for 
maritime  affairs.  A  reconstituted  international 
telecommunications  organization  is  now  under  dis- 
cussion in  Moscow,  and  a  conference  to  plan  for 
such  a  body  may  be  held  in  the  spring  of  1947. 
And  finally,  our  own  committee  has  been  charged 
with  the  responsibility  of  writing  a  constitution 
foi-  an  organization  in  the  field  of  intei'national 
trade. 

Of  the  many  tasks  of  economic  reconstruction 
that  remain,  ours  is  by  all  odds  the  most  important. 
Unless  we  bring  this  work  to  completion,  the  hopes 
of  those  builders  who  preceded  us  can  never  be  ful- 
filled. If  the  peoples  who  now  depend  upon  relief 
are  soon  to  become  self-supporting,  if  those  who 
now  must  borrow  are  eventually  to  repay,  if  cur- 
rencies are  permanently  to  be  stabilized,  if  workers 
on  farms  and  in  factories  are  to  enjoy  the  highest 
possible  levels  of  real  income,  if  standards  of  nu- 
trition and  health  are  to  be  raised,  if  cultural 
interchange  is  to  bear  fruit  in  daily  life,  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  is  to  be  rebuilt,  we 
must  provide,  in  our  world  trade  charter,  the  solid 
foundation  upon  which  the  superstructure  of  in- 
ternational cooperation  is  to  stand. 

From  the  pi-oject  of  establishing  an  interna- 
tional trade  organization,  I  take  it,  there  is  no  dis- 
sent. But  with  regard  to  details  there  will  be 
many  views.  It  would  be  well,  therefore,  at  the 
outset,  to  find  the  fundamental  jDrinciples  on  which 
all  nations  can  agree.  Of  such  principles,  I  should 
like  to  suggest  five;  and,  with  your  permission,  1 
shall  state  them,  dogmatically,  and  comment 
briefly  upon  each. 

The  first  principle  is  that  existing  barriers  to 


^  Made  before  the  Preparatory  Committee  for  an  Inter- 
national Conference  on  Trade  and  Employment  in  Lon- 
don on  Oct.  17,  1946  and  released  to  the  press  on  the  same 
date.  Mr.  Wilcox,  Director  of  the  Office  of  International 
Trade  Policy  of  tlie  Department  of  State,  is  chairman  of 
the  American  Delegation. 


719000 — 46- 


757 


758 


DEPARTMENT  OF  BTATE  BVLLETHf 


international  trade  should  be  substantially  re- 
duced, so  that  the  volume  of  such  trade  may  be 
large — larger,  certainly,  than  it  was  between  the 
two  world  wars.  Readier  access  to  foreign  mar- 
kets is  needed  if  nations  are  to  earii  the  foreign 
exchange  that  will  enable  tliem  to  pay  for  the 
imports  that  they  require.  Increased  trade,  with 
greater  specialization  and  more  active  competi- 
tion, should  enhance  the  productivity  of  labor,  cut 
the  costs  of  production,  enlarge  the  output  of  in- 
dustry, and  add  to  the  richness  and  diversity  of 
daily  living.  More  goods  should  flow  from  less 
effort,  and  levels  of  consumption  should  be  height- 
ened all  around  the  world.  A  renewed  sense  of 
well-ljeing  should  contribute,  in  turn,  to  domestic 
stability  and  to  international  peace.  Abundant 
trade  is  not  an  end  in  itself;  it  is  a  means  to  ends 
that  should  be  held  in  common  by  all  mankind. 

The  second  principle  is  that  international  trade 
should  be  multilateral  rather  than  bilateral.  Par- 
ticular transactions,  of  course,  are  always  bilateral ; 
one  seller  deals  with  one  buyer.  But  under  multi- 
lateralism the  pattern  of  trade  in  general  is  many- 
sided.  Sellers  are  not  compelled  to  confine  their 
sales  to  buyers  who  will  deliver  them  equivalent 
values  in  other  goods.  Buyers  are  not  required  to 
find  sellers  who  will  accept  payment  in  goods  that 
the  buyei's  have  produced.  Traders  sell  where  they 
please,  exchanging  goods  for  money,  and  buy 
where  they  please,  exchanging  money  for  goods. 
Bilateralism,  by  contrast,  is  akin  to  barter.  Under 
this  system,  you  may  sell  for  money,  but  you  can- 
not use  your  money  to  buy  where  you  please.  Your 
customer  insists  that  you  must  buy  from  him  if  he 
is  to  buy  from  you.  Imports  are  directly  tied  to 
exports,  and  each  country  must  balance  its  ac- 
counts, not  only  with  the  world  as  a  whole  but 
separately  with  every  other  country  with  which  it 
deals. 

The  case  against  bilateralism  is  a  familiar  one. 
By  reducing  the  number  and  the  size  of  the  trans- 
actions that  can  be  effected,  it  holds  down  the 
volume  of  world  trade.  By  restricting  the  scope  of 
available  markets  and  sources  of  supply,  it  limits 
the  possible  economies  of  international  specializa- 
tion. By  freezing  trade  into  rigid  patterns,  it 
hinders  accommodation  to  changing  conditions. 
Multilateralism  follows  market  opportunities  in  a 
search  for  purely  economic  advantage;  bilateral- 
ism invites  the  intrusion  of  political  considera- 
tions. It  will  be  agreed,  I  trust,  that  nations  living 
in  the  middle  of  the  twentieth  century  should  not 


be  thrown  back  to  the  primitivism  of  barter,  with 
all  of  the  inconvenience,  all  of  the  costs,  and  all  of 
the  risks  which  such  a  system  entails. 

The  third  principle  is  that  international  trade 
should  be  non-discriminatory.  This  principle 
would  require  that  every  nation  give  equal  treat- 
ment to  the  commerce  of  all  friendly  states.  It 
should  be  evident  that  discrimination  obstructs 
the  flow  of  trade,  that  it  distorts  normal  relation- 
ships and  prevents  the  most  desirable  division  of 
labor,  tliat  it  tends  to  perpetuate  itself  by  canaliz- 
ing trade  and  establishing  vested  interests,  and 
finally  that  it  shifts  the  emphasis  in  commercial 
relations  from  economics  to  politics.  Discrimina- 
tion begets  bilateralism  as  bilateralism  begets  dis- 
crimination. If  we  are  to  rid  ourselves  of  either 
one  of  them,  we  must  rid  ourselves  of  both. 

The  fourth  principle  is  that  prosperity  and  sta- 
bility, both  in  industry  and  agriculture,  are  so 
intimately  related  to  international  trade  that  sta- 
bilization policies  and  trade  policies  must  be  con- 
sistent, each  with  the  other.  It  should  be  recog- 
nized that  the  survival  of  progressive  trade  policies 
will  depend  upon  the  ability  of  nations  to  achieve 
and  maintain  high  and  stable  levels  of  employ- 
ment and  upon  their  willingness  to  protect  the 
producers  of  staple  commodities  against  the  sud- 
den impact  of  violent  change.  It  should  be  recog- 
nized, too,  that  the  advantages  of  abundant  trade 
cannot  be  realized  if  nations  seek  to  solve  their 
own  employment  problems  by  exporting  unem- 
ployment to  their  neighbors,  or  if  they  attempt, 
over  long  periods,  to  hold  the  production  and  prices 
of  staple  commodities  at  levels  that  cannot  be 
sustained  by  world  demand.  Programs  that  are 
directed  toward  the  objectives  of  prosperity  and 
stability,  on  the  one  hand,  and  abundant  trade,  on 
the  other,  will  not  often  be  in  conflict.  But  when 
they  are  they  mvist  be  compromised. 

The  fifth  and  final  principle  is  that  the  rules 
that  govern  international  commerce  should  be  so 
drafted  that  they  will  apply  with  equal  fairness 
and  with  equal  force  to  the  external  trade  of  all 
nations,  regardless  of  whether  their  internal  econ- 
omies are  organized  upon  the  basis  of  individual- 
ism, collectivism,  or  some  combination  of  the  two. 
The  United  States,  among  other  countries,  will 
continue  to  entrust  the  management  of  her  industry 
and  the  conduct  of  her  trade  to  private  enterprise, 
relying  primarily  for  guidance  upon  freely  deter- 
mined market  price.  Some  countries  have  taken 
over  the  entire  operation  of  their  economies,  guid- 


OCTOBER  27,  1946 


759 


ing  production  according  to  the  requirements  of  a 
central  plan.  Others  have  committed  substantial 
segments  of  their  industry  and  trade  to  public 
ownership  under  var3'ing  patterns  of  control. 
There  can  be  no  question  concerning  the  right  of 
every  nation  to  adopt  and  to  maintain,  without 
external  interference,  the  form  of  economic  organ- 
ization that  it  prefers.  But  it  should  be  agreed 
that  this  diversity  of  economic  systems  need  not 
and  cannot  be  permitted  to  split  the  world  into 
exclusive  trading  blocs.  Every  nation  stands  to 
gain  from  the  widest  possible  movement  of  goods 
and  services.  Every  nation  should  recognize  an 
obligation  to  buy  and  sell  abroad,  wherever  mutual 
advantage  is  to  be  obtained.  The  rules  that  apply 
to  diverse  trading  systems  must  differ  in  detail. 
But  they  should  not  differ  in  principle.  That  in- 
ternational trade  should  be  abundant,  that  it 
should  be  multilateral,  that  it  should  be  non-dis- 
criminatory, that  stabilization  policies  and  trade 
policies  should  be  consistent — these  are  proposi- 
tions on  which  all  nations,  whatever  their  forms  of 
economic  organization,  can  agree. 

These  are  the  principles  that  the  United  States 
has  sought  to  embody  in  the  Proposals  for  Expan- 
sion of  World  Trade  and  Employment  that  it 
published  in  December  of  last  year,  and  to  elabo- 
rate in  the  Suggested  Charter  for  an  International 
Trade  Organization  that  it  circulated  to  other 
members  of  this  Conmiittee  during  the  past  sum- 
mer and  published  on  September  twentieth.  The 
latter  draft,  in  accordance  with  the  resolution  of 
the  Economic  and  Social  Council,  has  been  submit- 
ted to  the  Council's  secretariat  for  transmission  to 
this  Committee.  We  hope  that  it  will  be  accepted 
as  a  working  document,  that  it  will  afford  a  useful 
basis  for  discussion,  and  that  it  will  facilitate  the 
process  of  arriving  at  agreement  on  a  final  draft. 

The  importance  which  my  Government  attaches 
to  this  enterprise  is  evidenced  by  the  years  of  la- 
bor it  has  put  into  the  writing  of  the  Proposals  and 
the  Suggested  Charter.  As  they  stand,  these  doc- 
uments give  expression,  in  principle,  to  the  policy 
of  the  United  States.  But  they  are  not  to  be 
taken,  in  detail,  as  presenting  a  formulation  which 
we  regard  as  fixed  or  final.  We  have  sought, 
through  consultation  with  other  governments  and 
through  modification  of  our  earlier  drafts,  to  take 
into  account  the  interests  and  the  needs  of  all  na- 
tions, be  they  large  or  small,  highly  industrialized 
or  relatively  undeveloped,  capitalist,  socialist,  or 
communist.      But  we  do  not  pretend  that  we  have 


said  the  last  word,  dotted  the  final  i,  or  crossed  the 
final  t.  If  we  have  not  succeeded  in  meeting  legiti- 
mate requirements,  we  shall  be  ready  to  consider 
further  modifications.  It  would  not  be  in  our  own 
interest  to  insist  upon  provisions  that  may  be  det- 
rimental to  the  interests  of  other  states.  As  far  as 
we  are  concerned,  however,  our  cards  are  on  the 
table.  The  Suggested  Charter  expresses,  in  gen- 
eral outline,  what  we  want. 

The  present  draft  is  not  a  product  of  pure  altru- 
ism. We  conceive  the  principles  which  it  embodies 
to  be  in  the  interest  of  the  United  States.  We  want 
large  exports.  An  important  part  of  our  agricul- 
tural activity  has  long  been  directed  toward  sales 
abroad.  And  now  our  heavy,  mass-production  in- 
dustries are  also  geared  to  a  level  of  output  which 
exceeds  the  normal,  peacetime  demands  of  our  do- 
mestic market.  We  want  large  imports.  The  war 
has  made  great  inroads  on  our  natural  resources ; 
we  have  become  and  may  increasingly  become  de- 
pendent upon  foi'eign  supplies  of  basic  materials. 
The  quantity  and  the  variety  of  our  demand  for 
consumers'  goods  are  capable  of  indefinite  expan- 
sion. Abundant  trade  is  essential  to  our  industrial 
strengtli,  to  our  economic  health,  to  the  well-bemg 
of  our  people. 

But  surely  it  is  true  that  this  interest  is  one  that 
is  shared,  in  greater  or  lesser  degree,  by  every 
other  nation  in  the  world.  Indeed,  if  the  impor- 
tance of  untrammeled  trade  to  the  United  States  is 
great,  its  importance  to  many  other  nations  must 
be  compelling.  Countries  that  are  small,  populous, 
and  highly  industrialized  must  have  access  to  for- 
eign markets  if  they  are  to  earn  the  exchange  with 
which  to  pay  for  foodstuffs  and  raw  materials. 
Countries  that  specialize  in  the  production  of  a 
small  number  of  staple  commodities  must  have 
access  to  such  markets  if  they  are  to  maintain  the 
basis  of  their  economic  life.  Countries  that  have 
been  devastated  by  the  enemy  must  be  enabled 
to  sell  abroad  if  they  are  to  obtain  materials  for 
their  reconstruction.  Countries  that  are  relatively 
undeveloped  must  be  enabled  to  make  such  sales 
if  they  are  to  acquire  equipment  for  their  indus- 
trialization. Countries  that  have  borrowed  for 
either  of  these  purposes  must  be  permitted  to  earn 
excliange  if  they  are  to  service  their  debts.  If  the 
trade  of  the  world  were  to  be  governed  by  rules 
the  opposite  of  those  contained  in  the  Suggested 
Charter^  the  United  States  would  deeply  regret  it, 
but  it  could  adapt  itself  to  the  resulting  situation; 
its  economy  would  survive  the  strain.    But  other 


760 


DEPARTMENT  OF  STATE  BULLETIN 


nations,  in  this  respect,  are  less  fortunately  en- 
dowed than  are  we.  For  us,  the  strangulation  of 
trade  would  necessitate  a  difficult  readjustment. 
For  others,  it  would  spell  catastrophe. 

It  will  doubtless  be  remarked,  in  the  course  of 
these  proceedings,  that  the  United  States  has  not 
always  practiced  the  gospel  that  it  now  presumes 
to  pi'each.  This  I  admit.  But  the  fact  that  we 
have  sinned  in  the  past  should  not  be  taken  to 
justify  all  of  us  in  sinning  in  the  future,  to  our 
mutual  harm.  Certainly,  it  should  not  be  inferred 
that  the  economic  strength  of  the  United  States 
can  be  attributed  to  the  restrictions  that  we  have 
imposed  on  our  external  trade.  We  have  within 
our  borders  an  area  of  3,000.000  square  miles,  di- 
verse resources,  and  a  market  of  140,000,000 
customers.  And  the  founders  of  our  republic 
wisely  provided  that  this  vast  market  should  not 
be  split  by  customs  barriers.  As  for  our  foreign 
trade,  I  submit  that  our  present  proposals  should 
demonstrate  that  we  can  learn  from  history. 

It  will  probably  be  said,  too,  that  the  provisions 
of  the  Suggested  Charter,  pai'ticularly  those  that 
deal  with  commercial  policies  and  restrictive  busi- 
ness practices,  are  negative  rather  than  affirmative. 
It  is  true  that  the  work  of  reducing  barriers  to 
trade  and  eliminating  discriminatory  practices  is 
negative,  in  the  same  sense  in  which  the  work  of 
a  surgeon  who  removes  a  diseased  appendix  is 
negative.  But  for  proposing  an  operation  that  is 
required  to  restore  the  body  economic  to  full 
health  we  offer  no  apologies.  The  other  chapters 
of  the  Charter,  however,  particularly  those  that 
deal  with  employment  policy,  commodity  arrange- 
ments, and  the  framework  of  an  international 
trade  organization,  are  scarcely  to  be  described  as 
negative.  And  the  Charter  as  a  whole  is  designed 
to  make  affirmative  provision  for  the  expansion  of 
world  trade. 

The  draft  recognizes  that  provision  must  be 
made  to  enable  undeveloped  countries  to  achieve 
a  greater  diversification  of  their  economies.  And, 
in  this  connection,  I  wish  to  make  it  clear  that  the 
United  States  affinnatively  seeks  the  early  indus- 
trialization of  the  less  developed  sections  of  the 
world.  We  know,  from  experience,  that  more 
higlily  industrialized  nations  generate  greater  pur- 
chasing power,  afford  better  markets,  and  attain 
higher  levels  of  living.  We  have  sought  to  pro- 
mote industrialization  by  exporting  plant,  equip- 
ment, and  know-liow ;  by  opening  markets  to  coun- 
tries that  are  in  the  early  stages  of  their  industrial 


development;  by  extending  loans  through  the 
Export-Import  Bank;  by  participating  in  the 
establishment  of  the  International  Bank.  We 
recognize  that  public  assistance  may  be  required, 
in  some  cases,  to  enable  new  industries  to  get  on 
their  feet.  But  we  believe  that  such  aid  should 
be  confined  to  enterprises  that  will  eventually  be 
able  to  stand  alone  and  that  it  should  be  provided 
directly,  by  public  contributions,  rather  than  in- 
directly by  restraints  on  trade.  The  interests  of 
undeveloped  countries  m  sound  industrialization 
cannot  be  served  effectively  by  imposing  arbitrary' 
restrictions  on  the  flow  of  goods  and  services.  We 
believe,  finally,  that  the  Economic  and  Social 
Council  and  some  of  the  specialized  agencies  of 
the  United  Nations,  including  the  proposed  In- 
ternational Trade  Organization,  may  make  af- 
fii-mative  contributions  to  the  process  of  indus- 
trial development,  and  we  stand  ready  to  consider 
all  serious  proposals  that  are  directed  toward  this 
end. 

Every  nation,  of  course,  will  feel  that  its  own 
situation  is  in  some  respect  peculiar;  that  some 
special  provision  is  required  to  meet  its  needs. 
Exceptional  cases  will  call  for  exceptional  rules. 
And  such  rules  must  be  written  into  the  Charter 
where  the  need  for  them  is  real.  But  they  must 
be  i^articularized,  limited  in  extent  and  time,  and 
set  forth  in  terms  of  fixed  criteria.  Mutuality  of 
benefit  and  of  obligation  must  be  preserved.  No 
special  interest,  however  worthy,  can  justify  a 
sweeping  exemption  from  general  principles.  Ex- 
ceptions must  be  made,  but  they  cannot  be  made 
in  terms  so  broad  as  to  emasculate  the  Charter  as 
a  whole.  We  have  been  called  together  to  create 
an  organization  that  will  liberate  world  trade. 
If  our  efforts  are  to  succeed,  it  will  be  by  virtue 
of  the  fact  that  each  of  us  has  come  prepared  to 
make  his  contribution  to  the  common  enterprise. 

In  conclusion,  let  me  repeat  that  my  country 
seeks  a  Charter  and  an  Organization  that  will 
apply  with  equal  fairness  to  the  trade  of  every 
nation  in  the  world.  If  it  should  be  shown  that 
any  one  of  the  detailed  i^rovisions  of  the  present 
draft  is  really  detrimental  to  the  essential  inter- 
ests of  another  state,  we  shall  recommend  that  it 
be  withdrawn  or  modified.  I  remarked,  at  the 
outset,  that  conflict  is  exciting  and  agreement  dull. 
It  is  the  hope  of  my  Delegation  that  tlie  proceed- 
ings of  this  Committee  will  be  dull.  We  shall  do 
everything  in  our  power  to  make  them  so. 


THE  RECORD  OF  THE  WEEK 


U.S.  Condemns  Yugoslav  Use  of  Americans  for  Slave  Labor 


[Released  to  the  press  October  18] 

Text  of  a  note  delivered  to  the  Yv^goxlcm  Foreign 
Office  on  October  18  iy  Richard  C .  Patterson, 
Atnerlcan  Airibassador  at  Belgrade 

My  Government  has  fully  considered  the  views 
expressed  in  the  Embassy's  note  of  August  28, 
1946,  protesting  against  the  treatment  given  to 
Kristian  Hegel  in  respect  to  his  confinement  in 
concentration  camp  since  November  26,  1944  and 
the  hiring  of  him  at  forced  labor  to  private  em- 
ployer. The  view  expressed  in  the  Foreign  Office 
note  of  September  7  to  the  effect  that  "persons 
being  detained  may  be  let  work  in  an  appropriate 
way"  is  in  full  harmony  with  the  laws  and  customs 
of  other  civilized  peoples  has  been  noted. 

The  Government  of  the  United  States  has  re- 
ceived from  other  sources  information  in  which  it 
is  impelled  to  place  confidence  indicating  that  in 
many  other  cases  the  following  practices  have  been 
and  are  being  followed  by  the  Yugoslav  Govern- 
'ment  in  dealing  with  persons  having  a  valid  claim 
under  the  laws  of  the  United  States  to  be  consid- 
ered American  citizens. 

It  appears  that  these  individuals,  who  have  been 
convicted  of  no  crime  whatever,  have  been  con- 
fined in  camps  under  the  administration  of  the 
Yugoslav  Government;  that  some  of  them  have 
died  as  result  of  conditions  and  treatment  in  these 
camps;  and  that  survivors  are  being  hired  out  by 
the  Yugoslav  State  to  private  individuals  for  farm 
labor,  factory  labor  and  other  forms  of  hard  labor 
for  which  they  personally  receive  no  remuneration 
whatever.  It  further  appears  that  sums  of  from 
fifteen  dinars  to  fifty  dinai's  per  day  are  received 
by  the  Yugoslav  Government  from  the  employers 
of  these  persons.  Xo  benefit  therefrom  accrues 
to  the  American  citizen  concerned.  The  unfor- 
tunate victims  of  this  practice  receive  from  their 
employer  only  such  shelter  and  food  as  the  latter 
deems  fit  to  give  them  and  are  compelled  by  him  to 
work  for  as  many  as  twelve  hours  daily. 

The  United  States  Government  states  its  abhor- 
rence and  condemnation  of  the  practices  described 


above.  They  are  violations  of  established  prin- 
ciples of  international  law  governing  the  protec- 
tion of  foreign  subjects,  constituting  involuntary 
or  forced  labor  in  denial  of  the  natural  rights  of 
human  beings  and  possessing  no  features  distin- 
guishable from  slave  labor.  International  tribu- 
nals have  repeatedly  held  that  such  treatment  of  a 
nation's  citizens  abroad  is  in  disregard  of  civilized 
standards  of  justice  and  that  it  engages  the  respon- 
sibility of  the  State  to  the  full  extent  of  the 
damages  suffered  by  the  individuals  concerned. 
Nor  has  the  fact  that  nationals  are  given  the  same 
treatment  ever  been  i-egarded  as  excusing  the  inter- 
national delinquenc}'.  The  United  States  Govern- 
ment rejects  the  protest  of  the  Yugoslav  Foreign 
Office,  in  its  note  of  September  7,  against  the  char- 
acterization of  this  practice  as  slave  labor  and 
denies  that  the  practice  is,  as  stated  by  the  Yugo- 
slav Foreign  Office,  in  full  harmony  with  the  laws 
and  customs  of  civilized  peoples. 

Even  so  far  as  concerns  prisoners  of  war  cap- 
tured in  the  heat  of  battle  between  States,  the 
relevant  international  convention  signed  at  Geneva 
on  July  27,  1929  provided  in  Article  3  for  the  re- 
tention of  individual  civil  rights  and  respect  of 
the  personality  of  the  individual  prisoner  of  war. 
Provision  is  made  in  Section  3  of  that  Convention 
for  forced  labor  but  only  in  terms  consonant  with 
enlightened  labor  practices  involving  the  full  re- 
sponsibility of  the  detaining  Power  for  the  proper 
feeding,  clothing  and  shelter  of  the  jDrisoners  of 
war,  for  their  proper  treatment,  and  for  the  reason- 
able regulation  of  their  working  hours.  Thus  the 
practice  of  the  nations  in  respect  to  the  soldiers 
of  a  belligerent  Power  captured  in  the  heat  of  bat- 
tle while  bearing  arms  is  superior  to  the  practice 
of  the  Yugoslav  Government  with  respect  to  in- 
dividuals claiming  the  nationality  of  a  friendly 
Power  which  contributed  materially  to  the  libera- 
tion of  Yugoslavia  from  enemy  occupation  and 
.subsequently  contributed  in  terms  of  goods  and 
assistance  to  the  reconstruction  of  Yugoslav 
economy. 


761 


762 

The  United  States  Government  deplores  the  at- 
titude of  the  Yugoslav  Government  as  evinced  in 
its  notes  of  September  7  and  August  13  regard- 
ing the  rights  of  American  citizens  who  without 
any  legal  procedure  are  being  deprived  of  their 
natural  rights  as  human  beings  in  the  manner  out- 
lined above  and  expects  that  remedial  measures 
will  promptly  be  taken,  and  that  these  American 
citizens  will  be  released  and  permitted  to  leave 
Yugoslavia  without  delay. 

Text  of  a  note  delivered  to  the  Yugoslav  Foreign 

Office  on  August  28, 1946 

No.  412 

The  American  Embassy  presents  its  compli- 
ments to  the  Ministry  of  Foreign  Affairs  and  has 
the  honor  to  bring  to  the  Ministry's  attention  the 
case  of  Kristian  Hegel,  an  American  citizen,  who 
it  is  noted  had  been  confined  in  a  concentration 
camp  since  November  26, 1944. 

It  has  furthermore  been  brought  to  the  attention 
of  the  Embassy  that  Mr.  Hegel  has  been  sold  out 
at  forced  labor  and  subjected  to  every  type  of 
hardship,  privation  and  persecution  since  his  ar- 
rest and  detention. 

So  far  as  the  Embassy  is  aware,  no  charges  have 
been  preferred  against  Mr.  Hegel.  Mr.  Hegel 
filed  an  application  for  passport  on  August  24, 
1946.  His  application  has  been  approved  and  a 
passport  valid  for  his  immediate  return  to  the 
United  States  prior  to  October  14,  1946  has  been 
issued  to  him  in  accordance  with  standing  in- 
structions. It  is  undei-stood  that  Mr.  Hegel  will 
apply  for  an  exit  visa  within  the  next  few  days. 

The  Embassy  is  completely  at  a  loss  to  under- 
stand on  what  grounds  Mr.  Hegel  has  been  held 
since  November  26,  1944  in  a  concentration  camp 
and  under  what  provisions  of  international  law 
he,  an  American  citizen,  has  been  foixed  to  work 
as  a  slave  laborer. 

The  Embassy  expects  the  Ministry  immediately 
to  inform  the  Embassy  why  Mr.  Hegel  has  been 
held  for  almost  two  years,  why  he  has  been  sold 
out  as  a  slave  laborer,  and  to  issue  the  necessary 
instructions  to  the  appropriate  authorities  to  per- 
mit Mr.  Hegel  to  avail  liimself  of  the  opportunity 
accorded  to  him  by  the  United  States  Government 
of  returning  to  the  United  States  prior  to  Octo- 
ber 14,  1946. 


DEPARTMENT  OF  BTATE  BULLETIN 

It  may  be  added  that  the  American  Govern- 
ment has  been  fully  informed  of  the  facts  and  will 
continue  to  be  informed  of  any  further  persecu- 
tions inflicted  upon  American  citizens  contrary  to 
all  recognized  precepts  of  international  law  and 
in  direct  violation  of  the  treaties  in  force  between 
the  United  States  and  Yugoslavia,  the  validity 
of  which  was  confirmed  by  the  Yugoslav  Govern- 
ment on  April  18,  1946. 

Text  of  reply  dated  September  7,  1946 

The  Ministry  of  Foreign  Affaii-s  of  the  Federa- 
tive People's  Republic  of  Yugoslavia  present  their 
compliments  to  the  American  Embassy  and  with 
reference  to  the  Note  of  the  Embassy  No.  412  of 
August  28,  1946  have  the  honor  to  state  that  de- 
tails of  the  case  of  Kristian  Hegel  have  been  re- 
quested from  the  competent  Authorities,  and  that 
the  Ministry  will  supply  all  useful  information 
in  the  premises  as  soon  as  details  are  available. 

In  the  meantime  the  Ministry  of  Foreign  Affairs 
have  to  protest  most  energetically  against  the  con- 
tents of  the  aforesaid  Note  which  states  that  "Mr. 
Hegel  has  been  sold  out  at  forced  labor  and  sub- 
jected to  every  type  of  hardship,  privation  and 
persecution  since  his  arrest  and  detention"  as  well 
as  that  he  has  been  "forced  to  work  as  a  slave 
laborer". 

For  the  moment  still  missing  the  precise  details 
of  Mr.  Kristian  Hegel's  case  the  Ministry  have  to 
refuse  any  insinuation  that  "slave  labor"  exist  in 
Yugoslavia  and  that  in  this  country  people  were 
being  "sold  out  at  and  forced  to  slave  labor". 

According  to  the  Law  and  in  full  harmony  with 
Laws  and  customs  of  other  cultural  peoples  of  the 
world,  persons  being  detained  may  be  let  work  in 
an  appropriate  way.  This  is  by  no  means  inhuman 
or  humiliating — as  it  is  hinted  in  the  Embassy's 
Note.  On  the  contrary  a  detention  without  any 
occupation  appears  far  more  pressing  and 
demoralizing. 

The  Ministry  of  Foreign  Affairs  have  to  point 
out  that  this  is  not  the  first  time  that  allegations 
in  Embassy  Notes  are  such  that  the  Ministry  must 
reject  them  and  lodge  a  protest  against  such  a  way 
of  making  Notes.  It  is  reminded  hereby  to  the 
Embassy's  Note  No.  381  of  August  10  and  to  the 
Ministry's  reply  No.  9610  of  August  14. 

The  Ministry  have  further  to  reject  as  unneces- 


OCTOBER  27,  1946 


763 


sary  and  being  without  any  i-eason  the  last  state- 
ment of  the  Embassy's  Note  of  August  28  No.  412. 
The  Ministry  do  not  object  to  the  Embassy  exer- 
cising its  rights  to  be  fully  informed  of  American 
citizens. 

In  a  separate  Note  the  Ministry  will  put  forth 
their  view  in  the  matter  of  Yugoslav  citizens  whom 
the  American  Embassy  considers  claimants  to 
American  citizenship. 

Text  of  a  note  delivered  to  the  Yugoslav  Foreign 
Office  on  August  10, 1946 

No.  381 

The  American  Embassy  presents  its  compli- 
ments to  the  Ministry  of  Foreign  Affairs  and  has 
the  honor  to  bring  to  the  Ministry's  attention  the 
case  of  Anton  Klancar,  who,  according  to  infor- 
mation received  from  the  Department  of  State  at 
Washington  has  a  justifiable  claim  to  American 
citizenship  by  virtue  of  birth  at  Cleveland,  Ohio, 
on  November  28,  1919,  and  who,  it  is  reported,  is 
about  to  be  transported  for  enforced  labor  to  the 
Union  of  Soviet  Socialist  Republics. 

The  Ministry  is  requested  to  inform  the  Em- 
bassy immediately  whether  there  is  any  truth  in 
the  report  received  from  the  American  Govern- 
ment and,  if  so,  to  take  immediate  steps  to  prevent 
liis  deportation  to  the  USSR. 

Mr.  Klancar  was  lastly  reported  to  be  residing 
at  Gorenja  Vas  62,  Postasmarjeta  Prinovem  Mes- 
tu,  Slovenia,  with  his  sister,  Mary  Klancar,  who 
also  has  a  justifiable  claim  to  American  citizen- 
ship by  virtue  of  birth  at  Cleveland,  Ohio,  on 
March  28, 1922. 

The  Embassy  avails  itself  of  this  opportunity 
to  renew  to  the  Foreign  Office  the  expression  of 
its  high  consideration. 

Text  of  reply  dated  August  13,  lOlfi 

The  Ministry  for  Foreign  Affairs  of  the  Feder- 
ative People's  Republic  of  Yugoslavia  present 
their  compliments  to  the  Embassy  of  the  United 
States  of  America  and  in  connection  with  the  lat- 
ter's  Note  no.  381  regarding  the  alleged  transpor- 
tation for  enforced  labor  to  the  Union  of  Soviet 
Socialist  Republics,  of  a  certain  Anton  Klancar, 
find  themselves  obliged  to  state  the  following: 

The  Ministry  for  Foreign  Affairs  of  the  Feder- 
ative People's  Republic  of  Yugoslavia  reject 
strongly  the  allegation  brought  forward  in  the 


aforesaid  note  based  on  vague  and  untrue  infor- 
mations regarding  the  transportation  of  Yugo- 
slav citizens  for  enforced  labor  to  the  Union  of 
Soviet  Socialist  Republics,  and  protest  energet- 
ically against  such  a  way  of  acting  of  the  United 
States  Embassy  in  Belgrade. 

The  Ministry  for  Foreign  Affairs  will  look 
through  the  usual  channels  to  establish  the  real 
citizenship  of  the  said  Anton  Klancar,  according 
to  existing  Yugoslav  laws  which  are  the  only 
relevant  in  this  case. 

Text  of  a  note  delivered  to  the  Yugoslav  Foreign 
Office  on  July  26, 1946} 

The  American  Embassy  presents  its  compli- 
ments to  the  Ministry  of  Foreign  Affairs  and  with 
refei-ence  to  its  note  No.  277  of  June  27,  1946,  and 
to  previous  notes  concerning  difficulties  being  en- 
countered by  American  citizens  in  obtaining  exit 
visas,  has  the  honor  to  state  that  it  has  been  in- 
structed to  transmit  to  the  Ministry  the  text  of  the 
following  press  notice  which  was  released  by  the 
Department  of  State  on  July  24,  1946 : 

"The  Department  of  State  understands  that 
claimants  to  American  citizenship  in  Yugoslavia 
are  being  prevented  by  local  authorities  from  pre- 
senting themselves  to  the  American  Embassy  at 
Belgrade  and  that  some  have  been  deprived  of 
their  identifying  documents.  Some  such  persons 
who  were  previously  inmates  of  concentration 
camps  have  been  threatened  with  deportation  to 
an  unknown  destination. 

"To  assist  the  Department  of  State  in  rendering 
protection  to  American  citizens  in  Yugoslavia  it 
is  urgently  requested  that  persons  having  knowl- 
edge of  the  presence  of  such  citizens  in  that  coun- 
try communicate  promptly  with  the  Department 
of  State  by  mail  stating: 

"(a)  Name  of  person  with  alternative  spellings 
if  any  exist. 

"(b)  Place  and  date  of  birth  with  copy  of  birth 
certificate  if  native  American  citizen. 

"(c)  Place  and  date  of  naturalization  with  num- 
ber of  naturalization  certificate  if  naturalized 
American  citizen. 

"(d)  Last  known  address  in  Yugoslavia  and 
date  when  last  heard  from." 


'  No  reply  to  tliis  note  has  been  received. 


764 


DEPARTMENT  OF  STATE  BULLETIN 


A  revised  list  of  American  citizens  awaiting 
exit  visas  is  enclosed.  As  the  Ministry  is  aware, 
many  of  the  persons  listed  have  been  the  subject  of 
previous  communications,  both  written  and  oral. 
One  example  is  Spasia  Chetkovich  who  was  grant- 
ed an  American  passport  on  April  16,  1946,  and 
concerning  whom  the  Embassy  addressed  the  Min- 
istry on  July  6.  The  Embassy  has  received  no  re- 
ply to  its  notes  of  June  18,  July  5,  and  July  25  on 
the  case  of  Lillian  Spengler  who  was  granted  an 
American  passport  on  April  19, 1946.  As  the  Min- 
istry is  also  aware,  conversations  have  been  held  in 
a  vain  attempt  to  arrive  at  an  arrangement  whereby 
claimants  for  American  citizenship  now  in  con- 
centration camps  could  be  permitted  to  come  to  the 
Embassy  to  establish  their  right  to  such  citizen- 
ship. In  view  of  the  fact  that  these  efforts  to  as- 
sist and  protect  American  citizens  have  met  with 
little  success,  the  Department  of  State  had  no  al- 
ternative but  to  issue  the  notice  quoted  above. 

The  Embassy  takes  this  occasion  to  renew  to  the 
Ministry  of  Foreign  Affairs  the  assurances  of  its 
high  consideration. 


Aid  for  Repatriating  American 
Citizens  From  Albania 

[Released  to  the  press  October  18] 

The  Department  of  State  has  been  informed  by 
the  United  States  Mission  at  Tirana,  Albania,  that 
the  Albanian  Government  is  consistently  refusing 
to  issue  exit  permits  for  persons  who  desire  to  go 
to  the  United  States  and  that  banking  regulations 
at  Tirana  make  it  impossible  to  use  funds  which 
have  been  forwarded  for  expenses  incident  to  the 
repatriation  of  persons  from  Albania. 

The  Department  of  State  will  accept  funds  from 
persons  in  the  United  States  to  cover  the  cost  of 
the  repatriation  of  American  citizens  from  Al- 
bania. Fimds  for  this  purpose  should  be  for- 
warded to  the  Department  in  the  form  of  a  bank 
draft,  certified  check,  or  money  order  made  pay- 
able to  the  Secretary  of  State  of  the  United  States, 
provided  it  is  definitely  known  that  the  American 
citizens  in  question  have  actually  obtained 
Albanian    exit   permits. 


Report  of  tlie  Education  Mission  to  Germany  ' 


LETTER  OF  TRANSMITTAL  FROM  GEORGE  F.  ZOOK 
TO  ASSISTANT  SECRETARY  BENTON 


Text  of  letter  sent  by  the  Chairmmi  of  the  Edv- 
cation  Mission  to  Germany  to  Robert  P.  Patterson, 
Secretary  of  War,  William  Benton,  Assistant  Sec- 
retary of  State  for  public  affairs,  and  Lt.  Gen. 
Lucius  D.  Clay,  De/puty  Military  Governor,  Office 
of  Military  Government  for  Germany  [United 
States) : 

I  wish  herewith  to  submit  the  report  of  the  Edu- 
cation Mission  which,  in  response  to  the  invitation 
of  the  Department  of  State  and  the  War  Depart- 
ment, undertook  to  make  a  study  of  the  educational 
program  of  the  United  States  Military  Govern- 
ment in  Germany. 


'The  complete  text  of  the  Report  will  be  printed  as 
Department  of  State  publication  2664. 


The  members  of  the  Mission  were  profoundly 
impressed  with  the  significance  of  the  educational 
problem  in  Germany,  not  only  for  the  Germans 
but  for  all  the  world.  It  is  hoped  that  the  recom- 
mendations contained  in  this  report  may  aid  ma- 
terially in  the  solution  of  these  problems. 

In  its  study  the  members  of  the  Mission  were 
assisted  most  effectively  by  the  staff  of  Military 
Government  at  tlie  central  office  in  Berlin  and  in 
the  three  Lander. 

For  the  members  of  the  Mission  I  wish  herewith 
to  express  to  you  and  to  all  the  personnel  who 
assisted  us  in  this  study  our  very  deep  apprecia- 
tion. 

Very  sincerely  yours, 

George  F.  Zook 

Chairman 


LETTER  OF  TRANSMITTAL  FROM  ASSISTANT  SECRETARY  BENTON 
TO  THE  SECRETARY  OF  STATE 


[Released  to  the  press  October  12] 

October  12, 1946. 
The  Honorable 

James  F.  Byknes, 
Secretaiy  of  State. 
Dear  Mr.  Secretary  : 

With  a  profound  sense  of  the  importance  and 
tlie  complexity  of  tlie  problems  under  review,  I 
transmit  to  you  the  rej^ort  of  the  United  States 
Education  Mission  to  Germany. 

During  the  war  few  Americans  doubted  the  out- 
come of  the  military  struggle.  But  many  had 
grave  misgivings  about  the  struggle  that  would 
follow:  the  effort  to  break  up  the  caste  system 
which  jDervades  the  German  school  system  and  to 
educate  the  German  people  away  from  authori- 
tarianism and  aggression  and  toward  democracy 
and  peace.  That  task  remains  the  hardest  and  the 
longest  of  all  our  responsibilities  in  Germany,  and 
for  the  long  run  the  most  decisive. 

There  are  many  who  still  believe  that  it  will  not 
be  possible,  with  the  means  at  our  disposal,  to 
identify  and  eliminate  those  flaws  in  German  so- 
ciety out  of  which  aggression  has  sprung.  Yet  the 
challenge  and  the  opportimity  to  assist  in  the  de- 
velopment of  a  sound  German  culture  are  so  great 
that  no  promising  step  should  be  left  untaken.  If 
democratic  convictions  and  attitudes  do  not  take 
root  and  gi-ow  in  Germany,  the  peace  of  Europe 
remains  in  jeopardy.  The  scale  of  our  effort  must 
be  measured  against  the  cost  of  attempting  to  con- 
trol by  other  measures  th.e  dangei-s  created  by  an 
uni-egenerate  Reich. 

The  responsibility  for  guiding  the  education  of 
a  highly  developed  but  demoralized  foreign  people 
3000  miles  from  our  shores  is  certainly  one  for 
which  we  have  had  no  experience.  We  are  deeply 
indebted  to  the  ten  busy  and  distinguished  men 
and  women  who  undertook  this  imprecedented 
study.  I  express  the  Department's  gratitude  to 
Dr.  George  F.  Zook,  the  Chairman  of  the  Mission, 
and  to  the  other  nine  members  of  the  group.  It  is 
indeed  remarkable  that  in  three  weeks  of  observa- 
tion and  one  week  of  deliberation  and  writing  they 
were  able  to  gatlier  so  much  important  information 
and  to  formulate  so  many  concrete  suggestions. 

Democracy,  by  its  nature,  cannot  be  imposed. 


The  methods  employed  by  Goebbels,  even  if  we 
were  willing  to  use  them  would  defeat  our  purpose. 
Nevertheless,  so  long  as  the  United  States  has  the 
ultimate  authority  it  has  the  ultimate  responsi- 
bility to  see  that  the  German  people  work  out  their 
own  educational  salvation.  Our  principal  method 
in  guiding  German  education  is  to  advise,  to 
encourage,  to  set  examples;  to  arrange  priorities, 
and  to  provide  such  material  help  as  we  can ;  and 
if  necessary  to  veto  proposed  policies  or  personnel 
that  appear  to  us  regressive  or  dangerous. 

The  Mission  believes  to  be  sound  the  policy 
under  which  the  occupation  authorities  are  pro- 
gressively turning  over  to  Germans  the  administra- 
tion of  the  educational  system.  And  I  am  glad 
to  record  that  the  Mission  approves  in  general  of 
those  educational  policies  now  followed  by  the 
U.S.  occupation  authorities,  except  for  the  tragi- 
cally limited  scope  of  their  application.  It  sees 
elements  of  hope,  as  well  as  acute  problems,  in  the 
total  educational  situation  in  our  zone. 

Acknowledging  the  great  value  of  the  Mission's 
analyses  and  recommendations,  I  believe  the  para- 
mount service  it  has  performed  is  to  dramatize  for 
the  American  people  the  nature  and  depth  of  the 
problem.  I  hope  that  there  will  be  widespread 
public  find  professional  discussion  of  their  report, 
leading  to  further  constructive  pi-oposals  and  to 
public  support  of  action  on  them.  If  the  War 
Department  and  the  Department  of  State  had 
prevailed  on  some  other  ten  educators  to  make  this 
same  trip,  and  prepare  a  report,  it  is  probable,  in- 
deed certain,  that  many  of  the  sections  of  the  re- 
port would  be  very  different.  There  is  no  com- 
mon body  of  educational  thought  within  this  coun- 
try which  can  be  adequately  interpreted  by  any 
ten  individuals,  applied  to  the  present  situation 
in  Germany.  Dr.  Zook  and  his  associates  would 
of  course  be  the  first  to  agree  with  this. 

"Physical  Condition"  of  the  German  School  System 

In  its  survey  of  the  present  plight  of  the  Ger- 
man schools,  the  report  focuses  attention  on  the 
severe  physical  handicaps  under  which  they  are 
attempting  to  operate  today.  In  addition  to  the 
school  buildings  completely  destroyed  in  war, 
and  those  which  cannot  be  repaired  because  of 
lack  of  materials,  more  than  three  hundred  in  the 


765 


766 


DEPARTMENT  OF  STATE  BULLETIN 


U.S.  Zone  have  been  requisitioned  for  other  pur- 
poses. Overcrowding  is  further  aggravated  by  the 
children  among  2,000,000  refugees  and  "expellees" 
(chiefly  from  Hungary  and  Czechoslovakia)  who 
have  been  accepted  in  the  U.S.  Zone.  The  short- 
age of  coal,  and  lack  of  glass  for  shattered  win- 
dows, means  that  many  schools  may  have  to  close 
in  cold  weather. 

There  is  an  almost  complete  dearth  of  the  tools 
of  teaching  at  every  level.  Lack  of  paper  is  the 
most  critical.  The  loss  of  books  has  been  "in- 
calculable"—at  Frankfurt  alone  500.000  books 
were  lost  in  air  raids  or  during  evacuation.  Many 
Nazi  textbooks  had  to  be  eliminated  and  substi- 
tutes cannot  be  printed  in  anything  approaching 
sufficient  quantities  because  of  the  paper  shortage. 

More  than  half  of  all  teachers  were  dismissed  in 
the  initial  de-nazification  screening:  the  average 
ratio  of  pupils  to  teachers  in  Bavai'ia,  largest  of 
the  three  Lander  in  our  Zone,  is  now  83  to  one. 
The  average  age  of  all  teachers  this  fall  in  Greatei' 
Hesse,  another  of  the  Lander,  is  52.  The  average 
number  of  class  hours  per  week  for  each  child  is 
only  15  to  20,  and  in  many  cases  only  two  hours  a 
day. 

Despite  these  difficulties,  nearly  every  child  of 
school  age,  with  the  exception  of  expellees  not  yet 
absorbed,  is  now  in  school  and  the  Mission  believes 
that  the  system  is  operating  with  "a  fair  degree  of 
effectiveness". 

The  Mission  recommends  that  the  system  of  al- 
locations and  priorities  for  coal,  paper  and  other 
essentials  for  education  be  re-examined.  "Final 
alleviation  of  these  difficulties  can  come  only 
through  a  revival  of  the  German  economy,  which 
depends  upon  forces  world  wide  in  scope  and  be- 
yond our  present  competence",  the  report  .states. 
"Immediate  alleviation  of  these  difficulties  within 
the  present  framework  of  scarcity  can  only  be 
minimal,  but  even  this  minimal  alleviation  re- 
quires that  the  importance  of  the  educational  and 
cultural  task  for  the  advancement  of  our  ultimate 
ends  be  fully  recognized". 

Many  Americans  will  have  resei-vations  about 
the  recommendation  of  the  Mission  for  stepping 
up  the  teaching  force  to  nearer  its  normal 
strength :  that  "the  respective  Lander  ministries 
should  be  allowed  to  screen  teachers  whose  dis- 
missal was  never  mandatory  and  to  re-employ  at 
once  on  probationary  status  those  found  to  be  at 
once  least  politically  unfit  and  most  efficient  ped- 


agogically".  A  better  method  may  be  the  one  re- 
cently applied  to  the  clergy:  to  give  priority  to 
teachers  in  hearings  before  the  established  de- 
nazification tribunals.  However,  in  view  of  the 
extent  to  which  Goebbels  had  taken  over  and  re- 
staffed  the  schools,  a  still  better  method  would  be 
to  adopt  the  Mission's  proposals  for  intensifying 
the  training  of  new  teachers.  Dr.  Zook  tells  me 
that  it  was  the  intent  of  the  Mission  that  pro- 
bationary status  should  continue  for  a  jjeriod,  even 
after  the  tribunals  had  cleared  candidates  for 
teaching  positions. 

The  Caste  System  in  German  Education 

To  me  the  most  striking  and  important  of  the 
many  proposals  made  by  the  Mission  is  its  recom- 
mendation for  the  reorganization  of  Germany's 
primary  and  secondary  schools  along  democratic 
lines.  It  will  be  a  surprise  to  Americans  who 
have  not  studied  German  education,  and  who  take 
for  granted  the  ideal  of  equal  educational  oppor- 
tunity, to  learn  the  extent  to  which  caste  distinc- 
tions have  prevailed  in  the  German  educational 
system. 

At  the  end  of  the  foui'th  grade  of  elementary 
school,  or  about  age  10,  the  small  group  that  is 
destined  for  the  universities  and  the  professions 
is  set  apart  in  secondary  schools  which  then  pre- 
pare them  for  advanced  work.  In  practice,  the 
financial  or  social  position  of  the  parents  is,  to 
an  overwhelming  extent,  the  basis  of  selection  for 
these  secondary  schools.  The  overwhelming  ma- 
jority of  pupils,  a  large  proportion  of  whom  de- 
serve university  education  because  of  their  ability, 
finish  elementary  school  and  then  go  on  to  voca- 
tional education,  their  adult  potentialities  frus- 
trated by  the  early  and  undemocratic  division  of 
the  educational  stream.  The  so-called  "vocational 
education"  is  actually  what  we  call  "continuation 
school" — about  five  hours  of  school  work  per  week 
during  apprenticeship.  My  background  in  educa- 
tion makes  me  reluctant  to  apply  the  word  "edu- 
cation" to  such  technical  training. 

"This  system",  the  Mission  says,  "has  cultivated 
attitudes  of  superiority  in  one  small  group  and  of 
inferiority  in  the  majority  of  the  members  of  Ger- 
man society,  making  possible  the  submission  and 
lack  of  self  determination  upon  which  authori- 
tarian leadership  has  thrived". 

Such  caste  distinctions  in  education,  based  on 
money  and  position  rather  than  on  promise  of 


OCTOBERS!.  1946 

achievement,  constitute  a  violation  of  the  funda- 
mental democratic  doctrine  of  equal  opportunity. 
In  justice  I  must  note  that  the  goal  of  equal  edu- 
cational opportunity,  on  a  merit  basis,  is  one  which 
we  are  still  striving  to  achieve  in  the  United 
States ;  but  it  is  our  recognized  goal  and  we  have 
been  making  substantial  strides  toward  it. 

The  Mission  recommends  for  Germany  a  unified 
and  comprehensive  (althougli  not  over-central- 
ized) educational  system  open  to  all  up  to  the  uni- 
versity level ;  with  secondary  schools,  tuition  free, 
following  consecutively  after  the  primary  schools, 
and  embracing  vocational  education;  and  with  a 
greatly  enlarged  system  of  scholarships  at  the 
university  level.  I  concur  wholeheartedly  in  the 
major  points  of  this  important  proposal.  I  do 
not  believe,  however,  that  democratic  practice 
requires  the  integration  of  vocational  education 
with  general  secondary  education  under  the  same 
roof,  as  the  Mission  recommends.  Equal  political 
responsibility  for  all  requires  that  the  opportunity 
for  liberal  education  be  both  universal  and  maxi- 
mal ;  vocational  courses  should  not  overshadow  or 
water  down  the  program  of  liberal  courses. 

It  is  encouraging  to  note  that  responsible  Ger- 
man educational  administrators  in  the  various 
Lander  of  the  United  States  Zone  have  recog- 
nized the  problem  of  overcoming  caste  distinc- 
tions, though  no  substantial  progress  towards  its 
solution  has  yet  been  achieved. 

Student  Exchanges  and  other  Recommendations 

Other  recommendations  of  the  Mission  to  which 
I  would  like  to  call  your  special  attention  include 
the  following: 

1.  The  proposal  that  German  students  and 
teachers  be  permitted  and  aided  to  come  to  this 
country  to  study,  and  to  observe  our  practices.  It 
is  my  belief  that,  if  this  idea  is  valid,  it  should 
be  carried  out  on  a  scale  commensurate  with  the 
potential  reward.  (Obviously  a  few  students,  on 
the  Rhodes  scholarships  model,  will  help  but 
little.)  If  the  United  States  Government  decided 
to  bring  to  this  country,  let  us  say,  two,  three  or 
four  thousand  carefully  selected  German  students 
annually^and  that  such  an  expenditure  would 
prove  more  productive  than  comparable  sums 
spent  on  the  military  establishment  or  on  the  eco- 
nomic rehabilitation  of  Germany — then  we  would 
be  approaching  a  major  disease  with  the  surgeon's 
knife  instead  of  a  scalpel.    There  is  much  to  be 


767 

said  also  for  stimulating  a  flow  to  Germany  of 
lecturers  and  consultants  from  the  United  States 
and  other  democratic  countries. 

2.  Further  encouragement  of  activities  by 
young  people,  including  voluntary  associations 
largely  self-directed. 

3.  Further  encouragement  of  adult  education 
programs,  and  especially  of  those  which  stimu- 
late discussion  of  social  and  economic  problems 
and  of  international  affairs. 

4.  "Doubling"  of  the  present  staff  of  the  Educa- 
tion and  Religious  Affairs  Branch  of  Military  Gov- 
ernment (the  Branch  now  has  an  authorized 
strength  of  71  people  of  officer  level,  with  55 
actually  at  work),  and  reorganization  to  permit 
the  Branch  to  report  directly  to  the  Deputy  Mili- 
tary Governor.  If  this  does  not  suffice,  we  should 
be  prepared  to  go  further. 

Implicit  in  many  of  the  Mission's  recommenda- 
tions, although  not  stressed  as  such,  are  two  fur- 
ther points  that  I  should  like  to  emphasize : 

1.  The  necessity  for  creating  a  better  bridge  be- 
tween our  scholars  and  the  scholars  and  intellec- 
tuals of  Germany,  most  of  whom  have  been  cut  off 
from  contact  with  American  thought  for  more 
than  a  decade. 

2.  The  necessity  for  being  alert  against  a  re- 
surgence of  German  nationalism  in  the  universi- 
ties. I  am  told  that  a  substantial  proportion  of 
the  student  bodies  of  the  German  universities  are 
now  officer  veterans  who  have  spent  years  in  uni- 
form and  who  still  have  to  learn  the  ways  of  peace- 
ful civilian  life. 

One  risk  in  any  problem  of  this  kind,  and  the 
members  of  the  Mission  are  of  course  conscious  of 
this,  is  that  some  of  the  questionable  features  of 
American  education  might  be  connnended  to  Ger- 
man education  through  undiscriminating  attach- 
ment to  U.S.  practices  either  on  the  part  of  Amer- 
ican officials  or  on  the  part  of  the  Germans  them- 
selves. Certainly  it  is  undesirable  to  import  into 
Germany  many  of  the  details  of  the  American 
system,  with  all  its  defects  as  well  as  its  virtues; 
nor  is  this  necessary.  For  example,  in  the  recom- 
mendation of  the  Mission  to  establish  a  pedagogi- 
cal faculty  at  the  German  universities,  comparable 
in  importance  to  the  centuries-old  faculties  of  law, 
medicine  and  theology,  there  is  the  danger  that  the 
training  of  teachers  for  secondary  schools  will  be 
relegated  to  special  faculties  of  no  great  compe- 


768 


DEPARTMENT  OF  STATE  BULLETIN 


tence  instead  of  being  made,  as  it  should  be,  a 
major  responsibility  of  all  faculties  in  all  the 
major  universities. 

Broader  Aspects  of  German  Education 

A  portion  of  the  report  is  devoted  to  education 
in  its  broader  sense — including  the  effect  of  the 
mass  media  of  communication  and  the  effect  of  the 
home,  the  church  and  the  means  of  earning  a  liveli- 
hood. Further,  political  activity  is  in  iti^elf  an 
educational  process.  The  social  and  economic  en- 
vironment also  profoundly  affect  the  possibility  of 
bringing  the  German  people  to  democratic  convic- 
tions and  attitudes. 

The  Mission  points  out,  for  example,  that  food 
available  to  German  school  children  in  the  U.S. 
Zone  averages  1263  calories  daily,  far  less  than 
the  figure  regarded  as  normal.  Again,  of  the  total 
{population  of  our  Zone  above  the  age  of  18,  only 
38%  are  men — most  of  them  older  men.  Produc- 
tion in  our  Zone  is  at  present  only  a  fraction  of 
pi'e-war  capacity.  The  implications  for  educa- 
tion of  imdernourisliment,  broken  homes  and  of 
shortages  of  simple  necessities  are  obvious.  The 
correction  of  such  problems  requires  political  de- 
cisions involving  powers  other  than  the  United 
States — for  example,  jDolicy  with  respect  to  eco- 
nomic unification  of  the  four  zones,  or  with  respect 
to  German  prisoners  of  war. 

A  Policy  Statement  for  German  Ke'-education, 


prepared  by  a  distinguished  group  of  educators  at 
the  request  of  the  State  Department  more  than  a 
year  ago,  pointed  out,  "The  re-education  of  the 
German  people  can  be  effective  only  as  it  is  an 
integral  part  of  a  comprehensive  program  for  their 
rehabilitation.  The  cultural  and  moral  re-edu- 
cation of  the  nation  must,  therefore,  be  related  to 
policies  calculated  to  restore  the  stability  of  a 
peaceful  German  economy  and  to  hold  out  hope 
for  the  ultimate  recovery  of  national  unity  and 
self-i'espect." 

"Nowhere  in  the  world",  the  Mission  says,  "has 
it  been  possible  to  erect  the  structure  of  successful 
democratic  self-government  upon  starvation  or 
economic  disorder". 

It  is  thus  clear  that  the  education  of  the  Ger- 
man people  to  democracy  and  to  the  love  of  peace 
involves  far  more  than  the  educational  system, 
even  though  that  system  is  democratically  inspired 
and  conducted. 

Indispensable  to  the  success  of  our  effoi't  is  a 
political  and  economic  setting  such  as  you  ui'ged  in 
your  Stuttgart  address,  which  will  give  the  Ger- 
man people  the  hope  of  working  their  way  back 
to  a  reasonable  economic  standard  and  to  cultural 
unity,  and  the  hope  that  they  may  ultimately  take 
an  honorable  place  among  the  fre«  and  peace  lov- 
ing nations  of  the  world. 
Sincerely  yours, 

William  Benton 


SUMMARY  OF  RECOMMENDATIONS  OF  THE  EDUCATION   MISSION  TO  GERMANY 


1.  Importance  of  Educational  Program 

The  United  States  should  continue  to  encourage 
and  use  education  in  the  widest  sense  to  attain  its 
major  purpose  in  Germany,  namely  the  develop- 
ment of  a  democratic  and  peaceful  way  of  life. 
The  reeducation  of  the  German  people  is  an  under- 
taking of  the  greatest  magnitude.  It  can  be  suc- 
cessful only  if  the  Germans  draw  upon  their  o^vn 
resources  and  themselves  exercise  initiative.  The 
occupying  powers  should  continue  to  give  them 
guidance,  encouragement,  and  material  aid  in  tliis 
undertaking.  The  Mission  believes  that  the  United 
States  must  regard  this  responsibility  as  a  long- 
term  task  in  view  of  the  conditions  prevailing  in 
Germany. 

The  Mission  recognizes  that  reeducation  can  be 
effective  only  in  an  economy  which  offers  hope  to 


the  Germans  that  the  present  obstacles  to  material 
security  will  be  overcome.  It  recognizes  also  that 
formal  education  is  only  one  aspect  of  the  total 
educational  problem.  In  addition  to  the  school 
the  home,  the  churches,  youth  organizations,  and 
other  institutions  play  an  important  part  in  form- 
ing attitudes  and  promoting  ideals. 

The  program  of  reeducation  is  faced  with  the 
consequences  of  12  years  of  Nazi  rule  and  of  total 
defeat.  The  vagaries  of  war's  destruction  are 
especially  apparent  in  the  physical  condition  of 
the  various  educational  institutions  of  the  United 
States  zone.  Even  where  school  buildings  have 
escaped  fire  and  bomb,  all  too  often  tliey  are  still 
unavailable  for  educational  purposes  because  of 
requisitioning.  The  shortage  of  coal  threatens  the 
very  possibility  of  keeping  educational  institu- 


OCTOBER  27,  191,6 

tions  open  in  really  cold  weather.  The  loss  of  books 
is  incalculable.  Lack  of  paper,  though  perhaps  the 
most  crucial,  is  but  one  example  of  an  almost  com- 
2)Iete  dearth  of  every  possible  teaching  aid  at  every 
level.  Moreover,  the  schools  must  educate  their 
students,  augmented  by  displaced  jiersons,  expel- 
lees, and  a  backlog  of  war  veterans,  with  a  profes- 
sional personnel  inadequate  in  both  quality  and 
quantity. 

2.  Elementary  and  Secondary  Schools 

In  view  of  the  fact  that  class  distinctions  are 
still  emphasized  in  the  very  organization  of  the 
school,  elementary,  secondary,  and  vocational 
schools  should  be  united  to  form  a  comprehensive 
school  system  for  all  children  and  youth  below  the 
university  level.  All  secondary  schools  should  be 
tuition-free  so  that  attendance  will  no  longer  be 
limited  to  the  privileged.  In  both  the  elementary 
and  secondary  schools  there  should  be  a  common 
curriculum,  with  opportunities  for  increasing  spe- 
cialization in  the  upper  grades.  The  most  impor- 
tant change  needed  in  all  German  schools  is  a 
change  in  the  whole  concept  of  the  social  sciences, 
whicli  should  contribute  perhaps  the  major  share 
to  the  develoi^ment  of  democrtitic  citizenship. 
School  life  in  all  its  phases  must  be  so  organized 
as  to  provide  experience  in  democratic  living.  The 
sharp  shift  in  job  opportunities  has  intensified  a 
need  for  vocational  guidance  as  a  regular  service 
of  the  educational  system.  The  usual  school  pro- 
gram should  also  be  extended  to  make  provision  for 
the  needs  of  children  under  six  and  of  older  chil- 
dren during  out-of-school  hours.  School  feeding 
and  rest  pi'ograms  should  also  be  included  as 
needed. 

3.  Teacher  Training 

Since  de-Nazification  in  our  zone  was  carried 
out  with  such  initial  severity  that  more  than  half 
of  all  teachers  were  removed,  former  teachers  who 
are  almost  certain  to  be  exonerated  by  the  de-Nazi- 
fication tribunals  should  be  reemployed  on  proba- 
tionary status.  The  interest  of  women  in  teaching 
should  be  encouraged.  The  vital  place  of 
elementary  teachers  in  the  educational  system  of 
Germany  must  be  recognized  by  higher  salaries 
and  by  the  requirement  of  a  higher  general  stand- 
ard of  education.  German  universities  should 
accept  the  responsibility  for  developing  better 
methods  and  practices  in  both  the  elementary  and 


769 

secondary  schools  and  for  the  professional  training 
of  secondarjr-school  teachers,  research  workers, 
and  administrative  officers.  Special  lecturers  and 
consultants  from  the  United  States  and  other  dem- 
ocratic countries  could  help  to  broaden  the  out- 
look of  prospective  teachers.  Candidates  for 
teaching  should  also  learn  at  first  hand  the  spirit 
and  attitude  of  democracy  by  observation  of  the 
schools  established  for  the  children  of  United 
States  personnel  in  Germany,  and  whenever  pos- 
sible through  study  in  democratic  countries.  A 
comprehensive  national  organization  open  to 
teachers  of  all  levels  and  fields  should  be  created, 
and  eventually  international  affiliations  should  be 
established. 

4.  Universities  and  Higher  Education 

Young  men  and  women  having  the  initiative 
and  energy  to  rebuild  the  universities  and  adapt 
them  more  closely  to  the  needs  of  present-day  life 
in  Germany  should  be  given  positions  of  respon- 
sibility. Students  should  be  drawn  from  all  levels 
of  society ;  financial  assistance  should  be  provided 
for  those  who  have  the  ability  but  lack  the  means 
to  study  at  a  higher  institution.  Broadly  rejire- 
sentative  advisory  bodies  should  be  appointed  to 
advise  concerning  ways  in  which  the  curriculum 
should  be  modified  to  adapt  it  more  closely  to 
changing  social  conditions.  All  universities  and 
higher  schools  should  include  within  each  cur- 
riculum the  essential  elements  of  general  educa- 
tion for  responsible  citizenship  and  for  an  under- 
standing of  the  contemporary  world.  German 
universities  and  higher  schools  should  also  pro- 
vide for  new  types  of  advanced  instruction  re- 
quired by  emerging  vocational  and  professional 
groups.  Extra-curricular  activities  such  as  infor- 
mal discussion  groups  and  student  govermnent 
should  be  inaugurated  to  provide  practical  expe- 
rience with  the  processes  of  democracy. 

5.  Youth  Activities 

The  j'outh-activities  program  which  aims  to 
pi'ovide  for  a  constructive  use  of  leisure  time  and 
training  in  democratic  ways  should  be  expanded. 
Voluntary  associations  of  young  people  should  as- 
sume a  larger  degree  of  self-direction  and  enrich 
their  progi'ams,  which  should  include  political  ed- 
ucation of  a  non-partisan  and  realistic  character. 
There  should  be  provision  for  cooperation  among 
the  various  groups  through  cultural  and  recrea- 


770 


DEPARTMENT  OF  STATE  BULLETIN 


tional  programs  and  in  community -wide  commit- 
tees. Youth  committees  should  stimulate  the  for- 
mation of  new  groups,  secure  all  available  re- 
sources, and  develop  vigorous  progi-ams  of  leader- 
ship training. 

6.  Adult  Education 

Adult-education  programs  should  place  gi-eater 
emjDhasis  upon  current  economic  and  social  prob- 
lems in  national  and  international  affairs,  and  the 
discussion  method  should  be  given  a  much  more 
important  role.  Administrators  should  not  con- 
fine their  work  to  the  people's  colleges,  but  should 
assist  in  developing  the  educational  programs  of 
trade  unions,  youth  gi-oups.  churches,  and  other 
organizations.  University  extension  pi-ograms 
should  also  be  encouraged.  Adult  education 
should  reach  out  into  the  village  and  rural  areas. 
Extensive  use  should  be  made  of  documentary 
films,  especially  those  whicli  demonstrate  the  func- 
tioning of  democratic  institutions,  and  of  radio 
programs  such  as  round-table  discussions  and 
forums. 

7.  Administrative  Controls 

It  is  hoped  that  the  whole  program  for  educa- 
tion will  become  subject  more  and  more  to  inter- 
zonal review  and  consultation.  The  Mission  rec- 
ommends the  policy  of  patience  and  firmness  which 
United  States  authorities  maintain  on  educational 
and  other  cultural  issues.  We  should  continue  to 
admit  no  compromise  in  setting  as  objectives  for 
the  German  people  the  ideals  of  freedom  of  teach- 
ing, freedom  of  private  and  public  expression,  and 
freedom  of  publication.  The  Germans  have  been 
promised  the  ultimate  unity  of  their  nation,  and 
that  includes  the  unity  of  their  cultural  life. 
There  is  no  desire  to  restore  centralized  control  of 
education,  but  it  may  eventually  be  desirable  to 
establish  a  German  central  office  of  education,  not 
for  control  but  for  ready  dissemination  of  infor- 
mation and  for  the  management  of  exchange  of 
foreign  students  and  other  sei-vice  enterprises. 
The  administration  of  education  in  the  United 
States  zone  is  now  and  should  remain  a  function 
of  the  three  Lander.  There  should,  however,  be 
extended  cooperation  among  the  Land  educational 
officials,  perhaps  including  the  establisliment,  with 
United  States  assistance,  of  a  joint  institution  for 
educational  research  and  service. 


The  Education  and  Religious  Affairs  Branch  of 
Military  Government,  in  addition  to  its  advisory 
function,  must  necessarilj'  have  the  right  of  veto 
over  undemocratic  proposals  of  the  Land  educa- 
tion ministries.  The  limited  staff  in  all  phases  of 
the  informational  and  educational  program  have 
done  a  remarkable  job  under  the  most  difficult  cir- 
cumstances. But  if  the  educational  task  is  at  once 
the  hardest  and  most  important  task  facing  Mili- 
tary Government  in  Germany  today,  as  has  been 
said  repeatedly  by  the  most  responsible  officials, 
there  should  be  available  not  only  a  more  adequate 
staff  but  educational  counsel  and  advice  of  the 
highest  character.  The  Educational  and  Re- 
ligious Affaii-s  Branch  should  be  doubled  in  size 
and  civilianized  as  far  as  possible.  It  should 
have  the  status  of  a  division  in  the  Office  of  Mili- 
tary Government,  its  head  reporting  directly  to 
the  Deputy  Military  Governor.  It  is  also  recom- 
mended that  the  Department  of  State  and  the  War 
Department  appoint  a  continuing  advisory  com- 
mittee of  interested  and  competent  persons  with 
wliich  the  two  departments  may  consult  on  matters 
of  major  educational  policy  and  operations. 

8.  American  Aid  to  Germany 

a.  Allocation  of  facilities  a/nd  equipment 

It  is  recommended  that  every  effort  be  made  by 
the  United  States  Army  and  any  other  agencies 
involved  to  make  adequate  space  available  for 
teaching  and  for  living  accommodations  in  univer- 
sity communities.  Policies  with  regard  to  paper 
rationing  should  be  reexamined  with  the  purpose 
of  allocating  a  larger  proportion  to  books  and 
scholarly  journals;  and  restrictions  on  the  impor- 
tation of  books,  paper,  journals,  and  other  instru- 
ments of  culture  should  be  modified.  Materials 
and  equipment  for  the  production  and  distribution 
of  educational  films  should  be  released.  The  pro- 
gram of  Army  Assistance  to  German  Youtli, 
whereby  resources  are  made  available  for  informal 
sports  and  cultural  activities,  should  be  continued. 

&.  Revival  of  cultural  contacts 

The  United  States  has  a  unique  opportunity  to 
influence  the  fundamental  reorientation  of  the 
German  educational  program  in  the  direction  of 
democratic  goals  and  procedures.  The  Govern- 
ment of  the  United  States  .should  continue  its  pres- 


OCTOBER  S7,  1946 

ent  program  of  educational  aid  to  Germany  in  the 
form  of  American  publications  and  documentary 
films,  the  dispatch  of  educational  experts  to  Ger- 
many, and  the  maintenance  of  information  cen- 
ters. The  budget  for  this  program,  which  is  mak- 
ing an  impact  upon  the  cultural  life  of  Germany  in 
ways  that  will  strengthen  the  latent  forces  of  de- 
mocracy, should  remain  at  least  at  its  present  size. 
It  is  recommended  that  this  program  be  supple- 
mented by  the  provision  of  funds  for  bringing 
carefully  selected  German  students,  teachers,  and 
other  cultural  leaders  to  the  United  States  for  a  pe- 
riod of  training.  The  provisions  of  the  Fulbright 
law  relating  to  student  and  teacher  exchanges 
should  be  extended  to  Germany  as  soon  as  possible. 
A  voluntary  body  should  be  set  up  in  Washing- 


771 

ton  to  coordinate  the  work  of  individuals  and 
private  organizations  in  educational  aid  to  Ger- 
many and  to  serve  as  a  liaison  with  the  govern- 
mental agencies  concerned.  This  coordinating 
body  should  serve  as  a  clearing-house  for  informa- 
tion and  should  secure  the  assistance  of  private 
organizations  in  recruiting  personnel  for  teaching 
and  other  cultural  work  in  Germany,  in  maldng  it 
possible  for  Germans  to  study  in  the  United  States, 
and  in  providing  quantities  of  books  and  other  ma- 
terials of  educational  value.  The  private  exchange 
of  publications  and  other  materials  should  also  be 
coordinated  through  a  central  agency.  This 
agency  should  have  authority  to  accept  contribu- 
tions to  a  fund  which  would  enable  Gennans  to 
purchase  cultural  materials  in  the  United  States. 


Prosecution  of  Major  Nazi  War  Criminals 


FINAL  REPORT  TO  THE  PRESIDENT  FROM 
SUPREME  COURT  JUSTICE  ROBERT  H.  JACKSON' 


October  7, 1H6 
The  President, 

The  White  House, 
Washington,  D.C. 
My  Dear  Mr.  President: 

I  have  the  honor  to  report  as  to  the  duties  which 
you  delegated  to  me  on  May  2, 1945  =  in  connection 
with  the  prosecution  of  major  Nazi  war  criminals. 

The  International  Military  Tribunal  sitting  at 
Nui-nberg,  Germany  on  30  September  and  1  Octo- 
ber, 1946  rendered  judgment  in  the  first  interna- 
tional cx'iminal  assizes  in  history.  It  found  19  of 
the  22  defendants  guilty  on  one  or  more  of  the 
counts  of  the  Indictment,  and  acquitted  3.  It 
sentenced  12  to  death  by  hanging,  3  to  imprison- 
ment for  life,  and  the  four  others  to  terms  of  10 
to  20  years  imprisonment. 

The  Tribunal  also  declared  4  Nazi  organizations 
to  have  been  criminal  in  character.  These  are: 
The  Leadership  Corps  of  the  Nazi  Party;  Die 
l^chutzstaffelm.,  known  as  the  SS ;  Die  Sicherheits- 
dienst,  known  as  the  SD ;  and  Die  Gehehnstaats- 
polizie,  known  as  the  Gestapo,  or  Secret  State 
Police.  It  declined  to  make  that  finding  as  to 
Die  Sturrnahteilwngen,  known  as  the  SA ;  the 
Reichscahinet,  and  the  General  Staff  and  High 
Command.     The   latter   was   solely   because   the 


structure  of  the  particular  group  was  considered 
by  the  Tribunal  to  be  too  loose  to  constitute  a 
coherent  "gi-oup"  or  "organization,"  and  was  not 
because  of  any  doubt  of  its  criminality  in  war  plot- 
ting. In  its  judgment  the  Tribunal  condemned 
the  officers  who  performed  General  Staff  and  High 
Command  functions  as  "a  ruthless  military  caste" 
and  said  they  were  "responsible  in  large  measure 
for  the  miseries  and  suffering  that  have  fallen  on 
millions  of  men,  women  and  children.  They  have 
been  a  disgrace  to  the  honorable  profession  of 
arms."  This  finding  should  dispose  of  any  fear 
that  we  were  prosecuting  soldiers  just  because  they 
fought  for  their  country  and  lost,  but  otherwise 
the  failure  to  hold  the  General  Staff  to  be  a  crim- 
inal organization  is  regrettable. 

The  magnitude  of  the  task  which,  with  this 
judgment,  has  been  brought  to  conclusion  may  be 
suggested  statistically :  The  trial  began  on  Novem- 
ber 20,  1945  and  occupied  216  days  of  trial  time. 
33  witnesses  were  called  and  examined  for  the 
prosecution.     61    witnesses    and    19    defendants 


^Justice  Jackson  was  Representative  of  the  United 
States  and  Chief  of  Counsel,  International  Military  Tri- 
bunal, Niirnberg,  Germany.  The  report  was  released  to 
the  press  by  the  White  House  on  Oct.  16. 

'  BuLt.EnTN  of  May  6,  1945,  p.  866. 


772 


DEPARTMENT  OF  STATE  BULLETIN 


testified  for  the  defense :  143  additional  witnesses 
gave  testimony  by  interrogatories  for  the  defense. 
The  proceedings  were  conducted  and  recorded  in 
four  languages — English,  German,  French,  and 
Russian — and  daily  transcripts  in  the  language 
of  his  choice  was  provided  for  each  prosecuting 
staff  and  all  counsel  for  defendants.  The  English 
transcript  of  the  proceedings  covers  over  17,000 
pages.  All  proceedings  were  sound-reported  in 
the  original  language  used. 

In  preparation  for  the  trial  over  100,000  cap- 
tured German  documents  were  screened  or  exam- 
ined and  about  10,000  were  selected  for  intensive 
examination  as  having  probable  evidentiary  value. 
Of  these,  about  4,000  were  translated  into  four  lan- 
guages and  used,  in  whole  or  in  part,  in  the  trial  as 
exhibits.  Millions  of  feet  of  captured  moving 
picture  film  were  examined  and  over  100,000  feet 
brought  to  Nurnberg.  Relevant  sections  were  pre- 
pared and  inti'oduced  as  exhibits.  Over  25,000 
captured  still  photographs  were  brought  to  Nurn- 
berg,  together  with  Hitler's  personal  photographer 
who  took  most  of  them.  More  than  1,800  were 
selected  and  prepared  for  use  as  exhibits.  The 
Tribunal,  in  its  judgment,  states,  ''The  case,  there- 
fore, against  the  defendants  rests  in  large  measure 
on  documents  of  their  own  making,  the  authen- 
ticity of  which  has  not  been  challenged  except  in 
one  or  two  cases."  The  English  translations  of 
most  of  the  documents  are  now  being  p\iblished  by 
the  Departments  of  State  and  War  in  eight  vol- 
umes and  will  be  a  valuable  and  permanent  source 
for  the  war  history.  As  soon  as  funds  are  avail- 
able, additional  volumes  will  be  published  so  that 
the  entire  documentary  aspect  of  the  trial — prose- 
cution and  defense — will  be  readily  available. 

As  authorized  by  your  Executive  Order,  it  was 
my  policy  to  borrow  professional  help  from  Gov- 
ernment Departments  and  agencies  so  far  as  pos- 
sible. Tlie  War  Department  was  the  heaviest  con- 
tributor, but  many  loans  were  also  made  by  the 
State,  Justice,  and  Navy  Departments  and,  early, 
by  the  Office  of  Strategic  Services.  All  have  re- 
sponded generously  to  my  requests  for  assistance. 
The  United  States  staff  directly  engaged  on  the 
case  at  Nurnberg,  including  lawyers,  secretaries, 
interpreters,  translators,  and  clerical  help  num- 
bered at  its  peak  654,  365  being  civilians  and  289 
military  personnel.  British,  Soviet  and  French 
delegations  aggi-egated  approximately  the  same 
number.     Nineteen  adhering  nations  also  sent  rep- 


resentatives, which  added  thirty  to  fifty  persons  to 
those  actively  interested  in  the  case.  The  press 
and  radio  had  a  maximum  of  249  accredited  repre- 
sentatives who  reported  the  proceedings  to  all 
parts  of  the  world.  During  the  trial  over  60,000 
visitors'  permits  were  issued,  but  there  is  a  consid- 
erable and  unknown  amount  of  duplication  as  a 
visitor  was  required  to  have  a  sepaiate  permit  for 
each  session  attended.  Guests  included  leading 
statesmen,  jurists,  and  lawyers,  military  and  naval 
officers,  writers,  and  invited  representative  Ger- 
mans. 

On  the  United  States  fell  the  obligations  of  host 
nation  at  Nurnberg.  The  staffs  of  all  nations,  the 
TJress,  and  visitors  were  provided  for  by  the  United 
States  Army.  It  was  done  in  a  ruined  city  and 
among  an  enemy  population.  Utilities,  com- 
munications, transport,  and  housing  had  been  de- 
stroyed. The  Courthouse  was  untenantable  until 
extensively  repaired.  The  Army  provided  air  and 
I'ail  transportation,  operated  a  motor  pool  for  local 
transportation,  set  up  local  and  long  distance  com- 
munications service  for  all  delegations  and  the 
press,  and  billeted  all  engaged  in  the  work.  It 
operated  messes  and  furnished  food  for  all,  the 
Courthouse  cafeteria,  often  serving  as  many  as 
1.500  lunches  on  Court  days.  The  United  States 
also  provided  security  for  prisoners,  judges,  and 
prosecution,  furnished  administrative  services,  and 
ju'ovided  such  facilities  as  photostat,  mimeograph, 
and  sound  recording.  Over  30,000  photostats, 
about  fifty  million  pages  of  typed  matter,  and  more 
than  4,000  record  discs  were  produced.  The  Army 
also  met  indirect  requirements  such  as  dispensary 
and  hospital,  shipping,  postal,  post  exchange,  and 
other  servicing.  It  was  necessary  to  set  up  for  this 
l^ersonnel  every  facility  not  only  for  working,  but 
for  living  as  well,  for  the  community  itself  af- 
forded nothing.  The  Theatre  Commander  and  his 
staff,  INIilitary  Government  officials,  area  com- 
manders and  their  staffs,  and  troops  were  cordially 
and  tirelessly  cooperative  in  meeting  our  heavy  re- 
quirements under  unusual  difficulties  and  had  the 
conunendation,  not  only  of  the  American  staff,  but 
of  all  others. 

It  is  safe  to  say  that  no  litigation  approaching 
this  in  magnitude  has  ever  been  attempted.  I  trust 
my  pride  will  be  pardonable  in  pointing  out  that 
this  gigantic  trial  was  organized  and  ready  to  start 
the  evidence  on  November  20, 1945 — less  than  seven 
months  after  I  was  appointed  and  after  the  sur- 


OCTOBER  27,  1946 

render  of  Germany.^  It  was  concluded  in  less  time 
than  many  litigations  in  the  regularly  established 
Courts  of  this  country  which  proceed  in  one  lan- 
guage instead  of  four.  If  it  were  not  that  the  com- 
parison might  be  deemed  invidious,  I  could  cite 
many  anti-trust  actions,  rate  cases,  original  cases, 
in  the  United  States  Supreme  Court,  and  other 
large  litigations  that  have  taken  much  longer  to 
try. 

In  this  connection  it  should  be  noted  that  we  de- 
cided to  install  facilities  for  simultaneous  inter- 
pretation of  the  proceedings  into  four  languages. 
This  was  done  against  the  advice  of  professional 
interpreters  of  the  old  school  that  it  "would  not 
work."  It  does  work,  and  without  it  the  trial  could 
not  have  been  accomplished  in  this  time,  if  at  all. 
To  have  had  three  successive  translations  of  each 
question,  and  then  three  of  each  answer,  and  to 
have  had  each  speech  redelivered  three  times  in 
different  languages  after  the  first  delivery  finished, 
would  have  been  an  intolerable  waste  of  time.  The 
system  we  used  makes  one  almost  unaware  of  the 
language  barrier  so  rapidly  is  every  word  made 
available  in  each  language. 

II. 

Although  my  personal  undertaking  is  at  an  end, 
any  report  would  be  incomplete  and  misleading 
which  failed  to  take  account  of  the  general  war 
crimes  work  that  remains  undone  and  the  heavy 
burden  that  falls  to  successors  in  this  work.  A 
very  large  number  of  Germans  who  have  partici- 
pated in  the  crimes  remains  unpunished.  Tliere 
are  many  industrialists,  militarists,  politicians, 
diplomats,  and  police  officials  whose  guilt  does 
not  differ  from  those  who  have  been  convicted  ex- 
cept that  their  parts  were  at  lower  levels  and  have 
been  less  conspicuous. 

Under  your  Executive  Order  of  January  16, 
1946,  the  war  crimes  functions  devolve  upon  Mili- 
tary Government  upon  my  retirement.^  At  the 
time  this  order  was  signed  it  was  agreed  between 
Military  Government  and  myself  that  I  would  at 
once  name  Brigadier  General  Telford  Taylor  as 
deputy  in  charge  of  preparing  subsequent  pro- 
ceedings, and  that  upon  my  retirement  he  would 
be  named  to  take  over  the  war  crimes  prosecution 
on  behalf  of  Military  Government.  He  has  as- 
sembled a  staff  and  prepared  a  program  of  prose- 
cutions against  representatives  of  all  the  impor- 
tant segments  of  the  Third  Eeich  including  a  con- 


773 

siderable  number  of  industrialists  and  financiers, 
leading  cabinet  ministers,  top  SS  and  police  offi- 
cials, and  militarists.  Careful  analysis  is  being 
made  of  the  Tribunal's  decision  to  determine  any 
effects  of  the  acquittal  of  Schacht  and  Von  Papen 
upon  this  plan  of  prosecution  of  industrialists  and 
financiers  who  are  clearly  subject  to  prosecution 
on  such  specific  charges  as  the  use  of  slave  labor. 

The  unsettled  question  is  by  what  method  these 
should  be  tried.  The  most  expeditious  method 
of  trial  and  the  one  that  will  cost  the  United  States 
the  least  in  money  and  in  manpower  is  that  each 
of  the  occupying  powers  assume  responsibility  for 
the  trial  within  its  own  zone  of  the  prisoners  in 
its  own  custody.  Most  of  these  defendants  can  be 
charged  with  single  and  specific  crimes  which  will 
not  involve  a  repetition  of  the  whole  history  of 
the  Nazi  conspiracy.  The  trials  can  be  conducted 
in  two  languages  instead  of  four,  and  since  all  of 
the  judges  in  any  one  trial  would  be  of  a  single 
legal  system  no  time  would  be  lost  adjusting  dif- 
ferent systems  of  procedure. 

A  four-power,  four-language  international  trial 
is  inevitably  the  slowest  and  most  costly  method 
of  procedure.  The  chief  purposes  of  this  extraor- 
dinary and  difficult  method  of  trial  have  been 
largely  accomplished,  as  I  shall  later  point  out. 

There  is  neither  moral  nor  legal  obligation  on 
the  United  States  to  undertake  another  trial  of 
this  character.  Wliile  the  International  Agree- 
ment makes  provision  for  a  second  trial,  minutes 
of  the  negotiations  will  show  that  I  was  at  all  times 
candid  to  the  point  of  being  blunt  in  telling  the 
conference  that  the  United  States  would  expect  one 
trial  of  the  top  criminals  to  suffice  to  document  the 
war  and  to  establish  the  principles  for  which  we 
contended,  and  that  we  would  make  no  commit- 
ment to  engage  in  another. 

It  has  been  suggested  by  some  of  our  Allies  that 
another  international  trial  of  industrialists  be 
held.  The  United  States  proposed  to  try  in  the 
first  trial  not  only  Alfried  Krupp,  but  several 
other  industrialists  and  cartel  officials.  Our  pro- 
posal was  defeated  by  the  unanimous  vote  of  our 
three  Allies.  After  indictment,  when  it  appeared 
that  the  elder  Krupp  was  too  ill  to  be  tried,  the 
United  States  immediately  moved  that  Alfried 
Krupp  be  added  as  a  defendant  and  tried  for  the 

'  Bulletin  of  Nov.  29,  1945,  p.  850. 

'  Executive  Order  9679  (10  Federal  Register),  p.  703. 


774 


DEPARTMENT  OF  STATE  BULLETIN 


crimes  which  he  had  committed  as  chief  owner 
and  president  of  the  Krupp  annament  works.  This 
was  likewise  defeated  by  the  Combined  vote  of  all 
our  Allies.  Later,  the  Soviet  and  French  joined  in 
a  motion  to  include  Krupp,  but  it  was  denied  by 
the  Tribunal.  This  is  not  recited  in  criticism  of 
my  associates;  it  was  their  view  that  the  nimiber 
of  defendants  was  already  suiRciently  large  and 
that  to  add  others  would  delay  or  prolong  the 
trial.  However,  if  they  were  unwilling  to  take  the 
additional  time  necessary  to  try  industrialists  in 
this  case,  it  does  not  create  an  obligation  on  the 
United  States  to  assume  the  burdens  of  a  second 
international  trial. 

The  quickest  and  most  satisfactory  results  will 
be  obtained,  in  my  opinion,  from  immediate  com- 
mencement of  our  own  cases  according  to  plans 
which  General  Taylor  has  worked  out  in  the  event 
that  such  is  your  decision.  Of  course,  appropriate 
notifications  should  be  given  to  the  nations  asso- 
ciated with  us  in  the  first  trial. 

Another  item  of  unfinished  business  concerns  the 
permanent  custody  of  captured  documents.  In  the 
hands  of  the  prosecution  and  of  various  agencies 
there  are  large  numbers  of  documents  in  addition 
to  those  that  have  been  used  which  have  not  been 
examined  or  translated  but  which  probably  con- 
tain much  valuable  information.  These  are  the 
property  of  the  United  States.  They  should  be 
collected,  classified,  and  indexed.  Some  of  them 
may  hold  special  interest  for  particular  agencies; 
all  of  them  should  be  available  ultimately  to  the 
public.  Unless  some  one  qualified  agency,  such  as 
the  Library  of  Congress,  is  made  responsible  for 
this  work  and  authorized  to  take  custody  on  behalf 
of  the  United  States,  there  is  considerable  danger 
that  these  documents  will  become  scattered,  de- 
stroyed, or  buried  in  specialized  archives.  The 
matter  is  of  such  importance  as  to  warrant  calling 
it  to  your  attention. 

in. 

The  vital  question  in  which  you  and  the  country 
are  interested  is  whether  the  results  of  this  trial 
justify  this  heavy  expenditure  of  effort.  While 
the  sentences  imposed  upon  individuals  hold  dra- 
matic interest,  and  while  the  acquittals,  especially 
of  Schacht  and  Von  Papen,  are  regrettable,  the 

'  Bulletin  of  June  10,  1945,  p.  1071. 
=  Bulletin  of  Aug.  12,  1045,  p.  214. 


importance  ©f  this  case  is  not  measurable  in  terms 
of  the  pei-sonal  fate  of  any  of  the  defendants  who 
were  already  broken  and  discredited  men.  We  are 
too  close  to  the  trial  to  appraise  its  long-range  ef- 
fects. The  only  criterion  of  success  presently  ap- 
plicable is  the  short-range  test  as  to  whether  we 
have  done  what  we  set  out  to  do.  This  was  out- 
lined in  my  report  to  you  on  June  7,  1945.^  By 
this  standard  we  have  succeeded. 

The  importance  of  the  trial  lies  in  the  principles 
to  which  the  Four  Powers  became  committed  by 
the  Agreement,  by  their  participation  in  the  prose- 
cution, and  by  the  judgment  rendered  by  the 
Tribunal.^  What  has  been  accomplished  may  be 
summarized  as  follows: 

1.  We  negotiated  and  concluded  an  Agreement 
with  the  four  dominant  powers  of  the  earth,  sigiied 
at  London  on  August  8,  1945,  which  for  the  first 
time  made  explicit  and  unambiguous  what  was 
theretofore,  as  the  Tribunal  has  declared,  implicit 
in  International  Law,  namely,  that  to  prepare, 
incite,  or  wage  a  war  of  aggression,  or  to  conspire 
with  others  to  do  so,  is  a  crime  against  interna- 
tional society,  and  that  to  persecute,  oppress,  or  do 
violence  to  individuals  or  minorities  on  political, 
racial,  or  religious  grounds  in  connection  with 
such  a  war,  or  to  exterminate,  enslave,  or  deport 
civilian  populations,  is  an  international  crime,  and 
that  for  the  commission  of  such  crimes  individuals 
are  responsible.  This  Agreement  also  won  the 
adherence  of  nineteen  additional  nations  and  rep- 
resents the  combined  judgments  of  the  overwhelm- 
ing majority  of  civilized  people.  It  is  a  basic 
charter  in  the  International  Law  of  the  future. 

2.  We  have  also  incorporated  its  principles  into 
a  judicial  precedent.  "The  power  of  the  prece- 
dent," Mr.  Justice  Cardozo  said,  "is  the  power  of 
the  beaten  path."  One  of  the  chief  obstacles  to 
this  trial  was  the  lack  of  a  beaten  path.  A  judg- 
ment such  as  has  been  rendered  shifts  the  power 
of  the  precedent  to  the  support  of  these  rules  of 
law.  No  one  can  hereafter  deny  or  fail  to  know 
that  the  pi-inciples  on  which  the  Nazi  leaders  are 
adjudged  to  forfeit  their  lives  constitute  law — and 
law  with  a  sanction. 

3.  The  Agreement  devised  a  workable  procedure 
for  the  trial  of  crimes  which  reconciled  the  basic 
conflicts  in  Anglo-American,  French,  and  Soviet 
procedures.  In  matters  of  procedure,  legal  sys- 
tems differ  more  than  in  substantive  law.    But  the 


OCTOBER  Zl,  1946 

Qiarter  set  up  a  few  simple  rules  which  assured  all 
of  the  elements  of  fair  and  full  hearing,  including 
counsel  for  the  defense.  Kepresentatives  of  the 
Four  Powers,  both  on  the  Bench  and  at  the  Prose- 
cutors' tables,  have  had  to  carry  out  that  Agree- 
ment in  day-to-day  cooperation  for  more  than  a 
year.  The  law  is  a  contentious  profession  and  a 
litigation  offers  countless  occasions  for  differences 
even  among  lawyers  who  represent  the  same  clients 
and  are  trained  in  a  single  system  of  law.  When 
we  add  the  diversities  of  interests  that  exist  among 
our  four  nations,  and  the  differences  in  tradition, 
viewpoint  and  language,  it  will  be  seen  that  our 
cooperation  was  beset  with  real  difficulties.  My 
colleagues,  representing  the  United  Kingdom, 
France,  and  the  Soviet  Union,  exemplified  the  best 
professional  tradition  of  their  countries  and  have 
earned  our  gratitude  for  the  patience,  generosity, 
good  will  and  professional  ability  which  they 
brought  to  the  task.  It  would  be  idle  to  pretend 
that  we  have  not  had  moments  of  difference  and 
vexation,  but  the  steadfast  purpose  of  all  delega- 
tions that  this  first  international  trial  should  prove 
the  ijossibility  of  successful  international  coopera- 
tion in  use  of  the  litigation  process,  always  over- 
came transient  irritations. 

4.  In  a  world  torn  with  hatreds  and  suspicions 
where  passions  are  stirred  by  the  "frantic  boast  and 
foolish  word,"  the  Four  Powers  have  given  the 
example  of  submitting  their  gi-ievances  against 
these  men  to  a  dispassionate  inquiry  on  legal  evi- 
dence. The  atmosphere  of  the  Tribunal  never 
failed  to  make  a  strong  and  favorable  impression 
on  visitors  from  all  parts  of  the  world  because  of 
its  calmness  and  the  patience  and  attentiveness  of 
every  Member  and  Alternate  on  the  Tribunal.  The 
nations  have  given  the  example  of  leaving  punish- 
ment of  individuals  to  the  determination  of  inde- 
pendent judges,  guided  by  principles  of  law,  after 
hearing  all  of  the  evidence  for  the  defense  as  well 
as  the  prosecution.  It  is  not  too  much  to  hope  that 
this  example  of  full  and  fair  hearing,  and  tranquil 
and  discriminating  judgment  will  do  something 
toward  strengthening  the  processes  of  justice  in 
many  countries. 

5.  We  have  documented  from  German  sources 
the  Nazi  aggressions,  persecutions,  and  atrocities 
with  such  authenticity  and  in  such  detail  that  there 
can  be  no  responsible  denial  of  these  crimes  in  the 
future  and  no  tradition  of  martyrdom  of  the  Nazi 


775 

leaders  can  arise  among  in  formed  people.  No 
history  of  this  era  can  be  entitled  to  authority 
which  fails  to  take  into  account  the  record  of 
Nurnberg.  While  an  effort  was  made  by  Goering 
and  others  to  portray  themselves  as  "glowing  pa- 
triots," their  admitted  crimes  of  violence  and  mean- 
ness, of  greed  and  graft,  leave  no  ground  for  future 
admiration  of  their  characters  and  their  fate  leaves 
no  incentive  to  emulation  of  their  examples. 

6.  It  has  been  well  said  that  this  trial  is  the 
world's  first  post  mortem  examination  of  a  totali- 
tarian regime.     In  this  trial,  the  Nazis  themselves 
with  Machiavellian  shamelessness  exposed  their 
methods  of  subverting  people's  liberties  and  estab- 
lishing their  dictatorship.    The  record  is  a  merci- 
less expose  of  the  cruel  and  sordid  methods  by 
which  a  militant  minority  seized  power,  suppressed 
opposition,  set  up  secret  political  police  and  con- 
centration camps.    They  resorted  to  legal  devices 
such    as    "protective    custody,"    which    Goering 
frankly  said  meant  the  arrest  of  people  not  be- 
cause they  had  committed  any  crime  but  because 
of  acts  it  was  suspected  they  might  commit  if  left 
at  liberty.     They  destroyed  all  judicial  remedies 
for  the  citizen  and  all  protections  against  terror- 
ism.    The  record  discloses  the  early  symptoms  of 
dictatorship  and  shows  that  it  is  only  in  its  in- 
cipient stages  that  it  can  be  brought  under  control. 
And  the  testimony  records  the  German  example 
that  the  destruction  of  opposition  produces  even- 
tual deterioration  in  the  government  that  does  it. 
By  progressive  intolerance  a  dictatorshij)  by  its 
very  nature  becomes  so  arbitrary  that  it  cannot 
tolerate  opposition,  even  when  it  consists  merely 
of  the  correction  of  misinformation  or  the  com- 
munication to  its  highest  officers  of  unwelcome  in- 
telligence.    It  was  really  the  recoil  of  the  Nazi 
blows  at  liberty  that  destroyed  the  Nazi  regime. 
They  struck  down  freedom  of  speech  and  press  and 
other  freedoms  which  pass  as  ordinary  civil  rights 
with  us,  so  thoroughly  that  not  even  its  highest 
officers  dared  to  warn  the  people  or  the  Fuehrer 
that  they  were  taking  the  road  to  destruction. 
The  Nurnberg  trial  has  put  that  handwriting  on 
the  wall  for  the  oppressor  as  well  as  the  oppressed 
to  read. 

Of  course,  it  would  be  extravagant  to  claim  that 
agreements  or  trials  of  this  character  can  make 
aggressive  war  or  persecution  of  minorities  im- 
possible, just  as  it  would  be  extravagant  to  claim 


776 

that  our  federal  laws  make  federal  crime  impos- 
sible. But  we  camiot  doubt  that  they  strengthen 
the  bulwarks  of  peace  and  tolerance.  The  four 
nations  through  their  prosecutors  and  through 
their  representatives  on  the  Tribunal,  have  enun- 
ciated standards  of  conduct  which  bring  new  hope 
to  men  of  good  will  and  from  which  future  states- 
men will  not  lightly  depart.  These  standards  by 
which  the  Germans  have  been  condemned  will  be- 
come the  condemnation  of  any  nation  that  is  faith- 
less to  them. 

By  the  Agreement  and  this  trial  we  have  put 
International  Law  squarely  on  the  side  of  peace  as 
against  aggressive  warfare,  and  on  the  side  of  hu- 
manity as  against  persecution.  In  the  present  de- 
pressing world  outlook  it  is  possible  that  the  Nurn- 
berg  trial  may  constitute  the  most  important  moral 
advance  to  grow  out  of  this  war.  The  trial  and 
decision  by  which  the  four  nations  have  forfeited 
the  lives  of  some  of  the  most  powerful  political 
and  military  leaders  of  Germany  because  they  have 
violated  fundamental  International  Law,  do  more 


DEPARTMENT  OF  STATE  BULLETIN 

than  anything  in  our  time  to  give  to  International 
Law  what  Woodrow  Wilson  described  as  "the 
kind  of  vitality  it  can  only  have  if  it  is  a  real  ex- 
pression of  our  moral  judgment." 

I  hereby  resign  my  commission  as  your  repre- 
sentative and  Chief  of  Comisel  for  the  United 
States.  In  its  execution  I  have  had  the  help  of 
many  able  men  and  women,  too  many  to  mention 
individually,  who  have  made  personal  sacrifice  to 
carry  on  a  work  in  which  they  earnestly  believed. 
I  also  want  to  express  deep  personal  appreciation 
for  this  opportunity  to  do  what  I  believe  to  be  a 
constructive  work  for  the  peace  of  the  world  and 
for  the  better  protection  of  persecuted  peoples.  It 
was,  perhaps,  the  gi-eatest  oppox'tmiity  ever  pre- 
sented to  an  American  lawyer.  In  pursuit  of  it 
many  mistakes  have  been  made  and  many  inade- 
quacies must  be  confessed.  I  am  consoled  by  the 
fact  that  in  proceedings  of  this  novelty,  errors  and 
missteps  may  also  be  instructive  to  the  future. 
Kespectfully  submitted, 

Robert  H.  Jackson 


REPLY  OF  PRESIDENT  TRUMAN  TO  JUSTICE  JACKSON 


[Released  to  the  press  by  the  White  House  October  17] 

The  President  on  October  17  sent  the  following 
letter  to  Supreme  Court  Justice  Robert  H.  Jack- 
son, accepting  his  resignation  as  Representative 
of  the  United  States  and  Chief  of  Counsel,  Inter- 
national Military  Tribunal : 
Dear  Mr.  Justice  Jackson  : 

I  have  read  and  studied  deeply  the  report  which 
you  submitted  under  date  of  October  seventh  last 
concerning  the  prosecution  of  major  Nazi  war 
criminals  at  Nurnberg.  No  litigation  approaching 
this,  the  first  international  criminal  assize  in  his- 
tory, ever  was  attempted. 

For  my  own  part  I  have  no  hesitancy  in  declar- 
ing that  the  historic  precedent  set  at  Nurnberg 
abundantly  justifies  the  expenditure  of  effort,  pro- 
digious though  it  was.  This  precedent  becomes 
basic  in  the  international  law  of  the  future.  The 
principles  established  and  the  results  achieved 
place  International  Law  on  the  side  of  peace  as 
against  aggi'essive  warfare. 

I  am  convinced  that  the  verdict  for  which  you 
worked  wjll  receive  the  accolade  of  civilized  people 
everywhere  and  will  stand  in  history  as  a  beacon 


to  warn  international  brigands  of  the  fate  that 
awaits  them. 

Although  your  own  part  in  the  dispensing  of 
international  justice  is  at  an  end  there  remains,  as 
you  emphasize,  the  task  of  meting  out  justice  to 
the  German  militarists,  industrialists,  politicians, 
diplomatists  and  police  officials  whose  guilt  does 
not  differ  from  the  guilt  of  the  criminals  who  have 
already  been  dealt  with  except  that  these  remain- 
ing malefactors  played  their  miserable  roles  at 
lower  levels.  I  note  what  you  say  concerning  the 
method  through  which  these  remaining  criminals 
are  to  be  brought  to  j  ustice.  The  recommendations 
which  you  make  in  this  regard,  coming  as  they  do 
out  of  your  experience  at  Nurnberg,  will  be  given 
careful  consideration. 

In  accepting,  effective  as  of  this  day,  your  res- 
ignation as  representative  of  the  President,  and 
Chief  of  Counsel  for  the  United  States,  I  can  but 
tender  you  my  heartfelt  thanks  and  the  thanks  of 
the  Nation  for  the  great  service  which  you  have 
rendered. 

Very  sincerely  yours, 

Harry  S.  Truman 


Arbitration  in  Inter- American  Affairs 


BY  ASSISTANT  SECRETARY  BRADEN 


The  American  republics  were  conceived  in  lib- 
erty and  their  peoples  j^ossess  the  "liberal  spirit". 
It  is  natural,  therefore,  that  reason  take  the  place 
of  force,  that  moral  values  be  supported  irrespec- 
tive of  material  considerations  and  that  the  clear 
expression  of  their  obligations,  rights  and  pur- 
poses be  the  gaiideposts  of  these  republics  in  the 
condiict  of  their  international  relations.  In  order 
that  the  most  ample  and  favorable  opportunity 
may  be  afforded  for  the  exercise  of  liberal  princi- 
ples, the  countries  of  this  hemisphere,  in  a  spirit 
of  international  cooperation  and  continental  soli- 
darity, have  adopted  the  procedure  of  consulting 
freely  and  frequently  with  one  another  on  mat- 
ters of  common  interest.  In  this  way  potential 
differences  have  been  caught  at  their  inception,  be- 
fore they  have  become  irritants  and  before  irrevoc- 
able stands  have  been  taken  or  the  stubbornness 
of  human  vanity  has  spread  its  paralyzing  poison. 
Through  frank  interchanges  of  divergent  opinions 
the  heat  and  clamor  of  argument  have  been  dissi- 
pated by  a  true  knowledge  of  the  facts  and  mutu- 
ally satisfactory  accommodations  have  been 
reached. 

To  get  together  in  a  friendly  and  intimate  at- 
mosphere, free  from  the  glare  and  provocative 
light  of  public  scrutiny,  in  order  to  talk  over  dif- 
ferences may  be  highly  effective  under  any  cir- 
cumstances, but  the  most  favorable  results  are 
achieved  when  it  is  done  under  experienced  guid- 
ance. The  Inter- American  and  Canadian-Ameri- 
can Commercial  Arbitration  Commissions  offer 
that  guidance.  Throughout  the  hemisphere,  they 
have  established  in  every  important  center  what 
may  rightly  be  called  clinics  for  preventive  law. 
Their  scientific  approach,  comparable  to  that  of 
preventive  medicine,  under  the  auspices  of  trained 
conciliators,  brings  together  men  who  have  fallen 
out  in  their  business  dealings.  Differences  which 
appear  obscure  and  intangible  from  afar  become 
clear  and  concrete  when  thus  expertly  examined 
near  at  hand.    The  respective  strengths  and  weak- 


nesses of  both  sides  are  i^ut  in  balance.  This  talk- 
ing things  over  with  or  in  the  presence  of  an  im- 
partial third  person  has  a  calming  effect.  Each 
disputant  develops  an  ability  to  put  himself  in  the 
other  fellow's  place  and  to  recognize  that  what  he 
had  thought  was  coal  black  or  pure  white,  in  real- 
ity is  often  gi'ey.  Frequently  some  prejudice  or 
linguistic  or  other  misunderstanding  is  found  to 
have  influenced  one  or  the  other  party  more  than 
the  actual  points  at  issue.  These  influences  once 
discovered  in  discussion  are  often  readily  removed 
and  satisfactory  settlements  are  concluded. 

As  a  result  of  these  mediatory  conversations  90 
percent  of  all  the  claims  referred  to  the  Inter- 
American  Coimnercial  Arbitration  Commission 
are  adjusted  without  even  the  appointment  of  spe- 
cial arbitrators.  That  is  to  say,  fact-finding,  con- 
ciliation, and  mediation  go  hand  in  hand  with 
;i  rbitration. 

The  overwhelming  majority  of  the  remaining 
10  percent,  which  actually  get  to  arbitration,  are 
fairly  and  satisfactorily  settled — and  far  more 
expeditiously  and  inexpensively  settled  than  they 
ever  could  have  been  by  courts  of  law.  In  fact, 
when  the  parties  reside  in  different  countries,  it  is 
extremely  difficult  for  jurisdiction  to  be  estab- 
lished, or  for  execution  thereof  to  be  obtained. 
Hence,  in  international  commercial  dealings,  arbi- 
tration becomes  not  only  the  best  but  well-nigh 
the  only  practical  and  economical  procedure. 
Any  business  dispute  which  crosses  national 
boundaries  and  which  arbitration  does  not  resolve 
may  very  possibly  remain  permanently  unre- 
solved. 

I  vividly  lecall  how  the  boom  and  subsequent 
depression  following  World  War  I  created  count- 
less misunderstandings  among  the  merchants  of 
the  American  republics.  Practically  no  effective 
arbitration  facilities  then  existed  and  most  of  the 
disputes  remained  unadjusted,  were  left  to  fester, 
and  caused   ill-will,  which  seriously  prejudiced 

^  Excerpts  from  an  address  made  before  the  Boston  Con- 
ference on  Distribution  in  Boston,  Mass.,  on  Oct.  14,  and 
released  to  the  press  on  tlie  same  date. 


777 


778 


DEPARTMENT  OF  STATE  BULLETIN 


our  friendly  relations.  It  is  indeed  fortunate  that 
we  now  possess,  in  the  Inter- American  Commer- 
cial Arbitration  Commission,  a  fully  competent 
and  trusted  organization  which  can  and  does  iso- 
late the  disputes,  applies  to  them  preventive  and 
curative  measures,  and  so  averts  a  plague  of  dis- 
agreements which  otherwise  would  undermine  the 
business  health  of  the  hemisphere.  This  Com- 
mission, I  understand,  has  become  the  most  ex- 
tensive and  unified  system  in  the  history  of  arbi- 
tration. It  consists  of  100  members  in  all  of  the 
American  republics.  There  are  18  national  com- 
mittees. These,  the  arbitral  panels,  and  others 
involved  in  the  Commission's  work  total  1,036 
persons.  The  cases  presented  to  it  have  covered 
about  25  different  types  of  disputes.  During  the 
recent  war  the  Commission  has  settled  literally 
hundreds  of  claims  and  controversies.  It  will 
continue  to  do  so  in  peacetime. 

So  desirable  does  the  Department  of  State  con- 
sider the  arbitration  of  business  disputes  between 
its  nationals  and  those  of  other  countries  that 
it  is  incorporating  suitable  provisions  therefor  in 
the  proposals  it  is  now  advancing  for  commercial 
treaties  with  a  number  of  other  governments. 

Certainly  the  inclusion  of  such  stipulations  on 
arbitration  will  create  a  confidence,  which,  im- 
plemented by  the  wide-spread  services  offered  by 
the  Inter-American  Commercial  Arbitration 
Commission,  will  ease  the  way  for,  speed  up,  and 
therefore  increase  the  interchange  and  distribu- 
tion of  goods  tliroughout  the  21  American  repub- 
lics. I  submit  that  here  is  a  highly  valuable 
instrument  of  trade,  whose  employment  merits  the 
full  endorsement  and  support  of  the  Boston  Con- 
ference on  Distribution. 

As  a  disciple  of  the  Jeffersonian  proposition 
that  ideally  that  government  is  best  which  gov- 
erns least,  I  believe  industry  and  commerce  should 
resort  so  infrequently  as  possible  to  government, 
even  in  its  capacity  as  a  dispenser  of  justice,  and 
instead  they  should  provide  for  themselves  the 
maximum  attainable  to  essential  regulation.  This 
the  American  Arbitration  Association  and  the 
Inter-American  and  Canadian-American  Commis- 
sions do  most  competently  by  privately  ironing 
out  misunderstandings  and  disputes.  They  both 
typify  and  augment  the  efficiency  of  private 
enterprise. 


In  this  latter  connection,  I  have  publicly  and 
repeatedly  put  on  the  record — as  I  did  four  weeks 
ago  in  Chicago — my  conviction  "that  private  en- 
terprise is  the  best  and  in  most  circumstances  the 
only  really  sound  means  to  develop  the  known  or 
unknown  resources  of  a  new  country."  I  under- 
score this  point  now  because  if  we  wish  substan- 
tially to  increase  the  distribution  of  our  goods 
in  the  other  republics  and  of  theirs  here,  our  pri- 
vate enterprises  must,  with  their  capital  and 
techniques,  collaborate  with  those  coimtries  to  in- 
crease their  national  wealth  and  to  raise  stand- 
ards of  living.  There  is  one  way  and  only  one 
way  by  which  standards  of  living  and  real  wages 
can  be  raised;  that  is,  by  increasing  per  capita 
productivity  through  the  adoption  of  the  most 
modem  machinery,  tools,  and  methods,  and  by 
efficient  management.  The  job,  at  best,  will  be 
long  and  difficult,  but  it  must  be  done.  In  the 
measure  that  it  is  done  throughout  the  hemi- 
sphere, the  general  level  of  production  will  rise; 
correspondingly  distribution  will  be  wider  and  the 
interchange  of  goods  will  increase.  The  welfare 
of  all  our  peoples  may  be  enhanced  by  higher 
standards  of  living  based  on  higher  real  wages  and 
greater  access  to  the  good  things  of  life. 

This  is  a  challenge  to  private  enterprise  which, 
I  am  confident,  it  will  more  than  meet.  It  is  not  a 
proper  undertaking  in  which  to  use  either  govern- 
ment funds  or  administration.  Government,  with 
certain  strictly  limited  and  manifest  exceptions, 
should  stay  out  of  business.  The  United  States 
fought  and  made  its  decisive  contribution  to  win- 
ning the  war  in  order  to  eliminate  the  danger  of 
totalitarian  ideology  and  stateism.  To  permit 
them  now  to  rear  their  heads  in  our  midst,  in  the 
economic  or  any  other  area,  would  be  a  repudiation 
of  the  liberal  spirit  for  which  we  stand  and  would 
mean  that  we  had  lost  the  peace!  We  of  the 
Americas,  as  has  been  made  abundantly  clear  by 
the  statesman  of  this  hemisphere,  are  irrevocably 
opposed  to  unnecessary  intervention  by  the  state 
in  our  private  affairs. 

In  order  to  assist  in  converting  these  concepts 
I  have  expressed  into  concrete  programs,  the 
Department  of  State  is  anxious  in  every  appropri- 
ate way  to  cooperate  and  counsel  with  private 
enterprise. 

In  this  new  world  we  want  none  of  the  rigidly 


OCTOBER  21,  1946 

regulated  and  static  equilibrium  which  in  the  end 
spells  death.  We  are  opposed  to  the  freezing  of 
our  economic  relationships  in  the  name  of  eco- 
nomic security,  to  the  denial  of  opportunity  and 
the  frustration  of  initiative,  for  this  is  the  pallia- 
tive that  eventually  kills.  Instead,  we  want  mo- 
tion, the  free  play  of  enterprise,  the  dy-namic 
equilibrium  between  economic  security  and  eco- 
nomic opportunity,  the  steady,  vigorous  progress 
of  compelling  competition  under  democratic  cap- 
italism. Of  course,  motion  creates  friction  and 
heat,  which  will  destroy  the  machine  unless  there  is 
an  effective  cooling  and  lubricating  system.  Pre- 
cisely such  a  system — and  a  highly  efficient  one — 
fortunately  exists  in  the  form  of  the  arbitration 
organizations,  which  have  so  signally  honored  me 
on  this  splendid  occasion,  and  which  are  them- 
selves deserving  of  all  honor  from  those  of  us  who 
cherish  the  cause  of  international  peace  and  pros- 
perity. 


UNESCO  Delegation — Continued  from  -page  756 

Nations  Educational,  Scientific  and  Cultural 
Organization,  which  will  convene  in  Paris  on 
November  19  : 

Aigsistant  Secretary  of  State  William  Benton 

Archibald  MacLeish 

Arthur  H.  Compton,  Chancellor,  Washington  University, 
St.  Louis,  Mo. 

Mrs.    Anne   O'Hare   McCormick,    member    of   editorial 
board.  New  York  Times 

George  D.  Stoddard,  President,  University  of  Illinois 

Milton  S.  Eisenhower,  President,  Kansas  State  College, 
Manhattan,  Kans. 

Chester  Bowles 

Charles  Johnson,  Director,   Department  of   Social   Sci- 
ences, Pisk  University,  Nashville,  Tenn. 

Mrs.  Anna  Rosenberg,  member  of  the  advisory  board, 
OflJce  of  War  Mobilization  and  Reconversion 

George  N.  Shuster,  President,  Hunter  College,  New  York 
N.  Y. 

The  first  five  are  voting  delegates.  Assistant 
Secretary  Benton  will  serve  as  chairman  of  the 
delegation,  and  Archibald  MacLeish  as  deputy 
chairman. 

Also  a  part  of  the  delegation  will  be  a  group  of 
idvisers  and  special  consultants  to  be  named 
shortly.  It  is  expected  that  the  delegation  will 
eave  the  United  States  between  November  11  and 
S^ovember  16. 


779 

Wheat  Allotted  to  South 
American  Countries 

[Released  to  the  press  October  17] 

The  United  States  has  arranged  special  allot- 
ments of  wheat  and  wheat  milled  into  flour  for 
Brazil,  Bolivia,  Peru,  and  Uruguay,  the  Depart- 
ment of  State  announced  on  October  17. 

The  allotments  were  authorized  and  handled  by 
the  Department  of  Agriculture  under  the  recently 
announced  world-wide  quarterly  wheat-  and  flour- 
exiDort  program.  They  were  made  through  the 
Department  of  State  at  the  request  of  the  four 
nations,  who  are  in  dire  need  of  wheat. 

The  new  global  quarterly  program  of  allotments 
is  designed  to  replace  the  old  monthly  shipment 
program. 

Covering  the  fourth  quarter  of  1946,  the  allot- 
ments were  arranged  as  follows : 

Brazil— 120,000  long  tons  of  wheat  and  wheat 

milled  into  flom*. 
Peru   and   Bolivia— 17,000   long  tons  each   of 

wheat  and  wheat  milled  into  flour. 
Uruguay— 17,000  long  tons  of  wheat. 

In  addition  to  the  above,  other  amounts  of  wheat 
and  wheat  milled  into  flour,  still  undelivered  be- 
cause of  the  ship  strike,  will  be  shipped  to  the 
South  American  nations  as  follows : 

Brazil — approximately  60,000  long  tons  of 
wheat  and  wheat  milled  into  flour. 

Uruguay — 17,000  long  tons  of  wheat. 

Peru— 10,600  long  tons  of  wheat  milled  into 
flour. 

Bolivia— 10,000  long  tons  of  wheat  milled  into 
flour. 

World  Trade  in  U.  S.  Foreign  Policy 

On  October  19  the  Under  Secretary  of  State  for 
Economic  Affairs,  William  L.  Clayton,  discussed 
with  Sterling  Fisher,  Director  of  tlie  NBC  Uni- 
versity of  the  Air,  the  part  world  trade  plays  in 
foreign  policy.  This  program  was  one  in  a  series 
entitled  "Our  Foreign  Policy",  presented  by 
NBC.  For  a  complete  text  of  the  radio  program 
entitled  "What  Part  Does  World  Trade  Play  in 
Our  Foreign  Policy?"  see  Department  of  State 
press  release  748  of  October  19. 


U.  S.  COVERNHENT  PRINTING   OFFICE-  I94« 


~&onte}ih 


The  Paris  Peace  Conference  Page 

Report  on  Paris  Peace  Conference.  Ad- 
dress by  Secretary  of  State 739 

U.S.  Supports  Bilateral  Negotiations  on 
Magyar  Minority  Problem.  Remarks  by 
Ambassador  Smith 744 

U.S.  Proposes  Reduction  in  Finnish  Rep- 
arations. Remarks  by  Senator  Van- 
denberg 744 

U.S.  Proposes  Reduction  in  Hungarian 
Reparations.  Statement  by  Willard  L. 
Thorp 746 

"The  World  Wants  the  Peace  To  Be  the 
People's  Peace."  Remarks  by  Secre- 
tary of  State 749 

The  United  Nations 

Welcome  to  General  Assembly  Represent- 
atives.    Remarks  by   Under   Secretary 

Acheson 750 

UNESCO  Month 755 

American  Delegation  to  General  Confer- 
ence of  UNESCO 755 

Council  of  Foreign  Ministers     ....       755 

General  Policy 

U.S.  Condemns  Yugoslav  Use  of  Ameri- 
cans for  Slave  Labor 761 

Aid   for   Repatriating   American   Citizens 

From  Albania 764 

Arbitration     in     Inter-American     Affairs. 

By  Assistant  Secretary  Braden  ....       777 

Occupation  Matters 

Terms  of  Reference  of  Inter-Allied  Trade 

Board  for  Japan 753 


Occupation  Matters — Continued  ,^ase 

Report  of  the  Education  Mission  to  Ger- 
many: 

Letters  of  Transmittal 764 

Summary  of  Recommendations  of  Edu- 
cation Mission  to  Germany     ....       768 

Economic  Affairs 

The  Caribbean  Plans  for  Tourists.   Article 

by  Frances  R.  P.  McReynolds    ....        735 

Certificate  of  Incorporation  of  Caribbean 

Tourist  Development  Association  .    .    .        736 

Chile,  Lebanon,  Norway  Accept  Invita- 
tion To  Discuss  Trade  Barriers  ....       754 

American  Delegates  to  Informal  Four- 
Power  Broadcasting  Conference     .    .    .        755 

Interim     Commission     on     International 

Health.     Article  by  H.  Van  Zile  Hyde  .       756 

Basic  Principles  in  Establishment  of  In- 
ternational Trade  Organization.  By 
Clair  Wilcox 757 

Wlieat  Allotted  to  South  American  Coun- 
tries            779 

World  Trade  in  U.S.  Foreign  PoUoy   ...       779 

International  Information 

Short- Wave  Radio  Facilities  Made  Avail- 
able for  U.N.  Broadcasts 751 

Treaty  Information 

Prosecution  of  Major  Nazi  War  Criminals: 

Final  Report  by  Justice  Jackson   .    .    .        771 
Reply  of  President  Truman  to  Justice 

Jackson 776 

international  Organizations  and  Con- 
ferences 

Calendar  of  Meetings 752 


^rie/  ^eha^i^en^  /(w  C/tai& 


PRESIDENT  TRUMAN'S  ADDRESS  TO  THE  GEN- 
ERAL  ASSEMBLY 808 

THE  PROBLEM  OF  THE  TURKISH  STRAITS:  PRIN- 
CIPAL TREATIES  AND  AGREEMENTS  .  Intro- 
duction by  Harry  N.  Hotoard 790 

AMERICAN    WOOL   IMPORT  POLICY     .    Article    by 

James   Gilbert  Evans 783 


For  complete  contents  see  back  cover 


Vol.  XV,  No.  383 
November  3,  1946 


.yA-e^-r  o» 


*^^,wy*.  bulletin 


Vol.  XV,  No.  383    •    Publication  2673 
November  3,  1946 


For  sale  by  the  Superintendent  of  Documents 

U.  S.  Government  Printing  Office 

Washington  25.  D.  C. 

Subscription: 
62  issues,  $3.50;  single  copy,  10  cents 

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

Published  with  the  approval  of  the 
Director  of  the  Bureau  of  the  Budget 


The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
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  De- 
partment of  State  and  the  Foreign 
Service.  The  BULLETIN  includes 
press  releases  on  foreign  policy  issued 
by  the  White  House  and  the  Depart- 
ment, 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  inter- 
national 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  uihich  are  published 
at  the  end  of  each  quarter,  as  well  as 
legislative  material  in  the  field  of  inter- 
national relations,  are  listed  currently. 


y.  s,  suptr;!'' 


'^LriTS 


.M 


AMERICAN  WOOL  IMPORT  POLICY 


by  James  Gilbert  Evans 


An  international  wool  meeting  will  be  held  in  London 
November  11-16,  the  purpose  of  which  is  to  provide  an 
opportmiity  for  joint  revieio  and  discussion  of  the  world 
apparel-wool  situation  by  representatives  of  governments 
principally  interested  in  wool,  whether  conswmers  or  pro- 
ducers. A  brief  summary  of  American  apparel-wool  import 
policy  is  therefore  pertinent  to  an  understanding  of  the 
problems  involved  in  the  formulation  of  national  and  inter- 
national programs. 


The  United  States  is  interested  in  apparel  wool 
both  as  a  producer  and  as  an  importer.  Although 
United  States  dependence  on  foreign  wool  ap- 
peared to  be  declining  before  the  war,  require- 
ments for  the  armed  forces  since  1940  necessitated 
greatly  increased  importation.  Since  the  end  of 
liostilities,  consumption  has  remained  well  above 
the  pre-war  level  and  the  United  States  continues 
its  role  as  a  major  importer  of  apparel  wool.  Do- 
nestic  wools  have  been  supported  at  prices  above 
;he  duty-paid  prices  of  foreign  wools  since  1940. 

World  production  of  apparel  wool  was  main- 
;ained  during  the  war  years,  but  world  consump- 
tion declined  with  the  loss  of  important  markets 
n  Europe  and  Japan.  The  carry-over  stocks 
iccumulated  since  1940  threaten  to  overhang  the 
■vorld  market  for  many  years. 

As  a  major  importer,  United  States  apparel-wool 
3rice-support  and  import  policy  is  of  some  con- 
:ern  to  foreign  wool  growers.  Likewise,  pricing 
md  export  policies  followed  in  the  liquidation  of 
vorld  apparel-wool  stocks  are  of  concern  to  United 
States  wool  growers. 

'he  Inter- War  Period 

mport  Duties 
Wool  growers  in  the  United  States  have  had 

719718 — 46 1 


tariff  protection  since  1816,  except  for  the  periods 
1894-97  and  1913-21,  when  wool  was  on  the  free 
list.  At  the  time  of  the  passage  of  the  Underwood 
act  of  1913  placing  wool  on  the  free  list,  the  import 
duty  was  11  cents  a  pound  grease  basis,  which, 
owing  to  the  higli  yields  of  imported  wools,  was 
equivalent  to  about  20  cents  a  clean  pound.  A 
shai'p  fall  in  prices  in  1921  led  to  the  inclusion  of  a 
wool  duty  of  45  cents  a  scoured  pound  on  most 
imports  under  the  Emergency  Tariff  Act  of  1921. 
This  tariff  was  replaced  by  the  Fordney-McComber 
tariff  act  of  1922,  which  established  the  basic  duty 
on  a  clean  content  basis  at  31  cents  a  pound  for 
wools  finer  than  44's.^  Since  1930,  with  the  enact- 
ment of  the  Smoot-Hawley  tariff  act,  the  duty  on 
the  same  wools  has  been  34  cents.  The  duties  on 
44's  and  coarser  wools  were  substantially  reduced 
in  the  act  of  1930. 

Wools  finer  than  44's  constitute  about  98.5 
percent  of  the  total  domestic-wool  production. 
No  reduction  in  the  duties  on  these  wools  has  been 
made  through  concessions  in  trade  agreements. 
Concessions  were  made  in  the  trade  agreement 
with  Argentina  in  1941  and  later  included  in  the 


'  The   spinning   count   number   denotes    the   degree   of 
fineness  of  wool  fiber. 

783 


trade  agreement  with  Uruguay  with  respect  to 
duties  on  the  coarser  apparel  wools,  which  the 
United  States  produces  only  in  negligible  quan- 
tities. 

The  average  ad  valorem  equivalent  rate  of  duty 
on  wools  finer  than  44's  but  not  finer  than  56's 
was  76.5  percent  of  the  declared  import  value  for 
the  years  1936-39.  On  wools  finer  than  56's  the 
average  was  62  percent.  Since  the  wool  duty  is 
specific,  the  ad  valorem  equivalent  rises  as  the 
price  of  wool  declines. 

The  average  farm  price  for  wool  in  the  years 
1935-39  averaged  102  percent  of  parity  (1909-14 
base).  During  the  same  years,  1935-39,  farm 
prices  for  cotton  averaged  65  percent  of  parity, 
for  corn  84  percent,  and  for  wheat  74  percent. 

Domestic-wool  prices  on  the  Boston  market 
have  fluctuated  widely  under  the  impact  of  wars 
and  depressions.  From  the  inflation  level  of  205 
cents  a  clean  pound  for  fine  territory  staple  in 
March  1920,  prices  fell  to  a  low  point  of  82  cents 
in  the  summer  of  1921.  In  the  years  1922-29 
prices  fluctuated  between  168  and  84  cents  a 
pound.  They  fell  to  36  cents  a  pound  in  July  1932 
at  the  low  point  of  the  depression.  Following  the 
depression,  prices  rose  to  a  high  of  114  cents  early 
in  1937  and  were  74  cents  in  August  1939  at  the 
outbreak  of  the  war  in  Europe.  The  import  duty 
was  24  percent  of  the  average  Boston  price  of 
fine  territory  wools  in  1923,  73  percent  in  1932,  33 
percent  in  1937,  and  41  percent  in  1939. 

Pre-War  Imports 

The  burden  of  adjustment  to  fluctuations  in 
both  production  and  consumption  fell  on  imports. 

During  the  inter-war  period,  domestic  produc- 
tion showed  an  upward  trend  with  moderate  fluc- 
tuations in  output  from  year  to  year  while  con- 
sumption was  affected  by  the  level  of  industrial 
employment.  Domestic  per-capita  consumption, 
however,  for  the  1935-39  period  was  about  the 
same  as  in  1925-29.  In  1932,  the  United  States 
imported  but  13.5  million  pounds  actual  weight  of 
apparel  wool  compared  to  378  million  in  1918, 172 
million  in  1925,  and  150  million  in  1937.  A  com- 
parison of  the  more  prosperous  years  in  each  of  the 
decades  of  the  inter-war  period  shows  a  decline  in 
average  United  States  imports  from  128  million 


pounds  actual  weight  in  1925-29  to  86  million  in 
1935-39.  United  States  imports  constituted  9  per- 
cent of  the  apparel  wool  exported  from  the  surplus- 
producing  countries  in  the  first  period,  and  but  5 
percent  in  the  second. 

United  States  Production,  Imports,  and  Consumption 
{In  million  pounds) 


Produc- 
tion (shorn 
&  pulled) 

Imports 
(actual! 
weight) 

Mill  Con- 
sumption 
(estimated 
shorn  & 
pulled  basis) 

Average: 
1922-29  . 

317 

427 

146 
65 

510 

Import  duty  31^ 
1930-39     .       ---   -   --- 

512 

Import  duty  34^ 

Of  the  dutiable  wools  imported  into  the  United 
States  in  the  years  1937-39,  35  percent  were  Aus- 
tralian, 22  percent  Argentine,  15  percent  Uru- 
guayan, 13  percent  New  Zealand,  and  4  percent 
South  African  (Cape). 

Wartime  Apparel-Wool  Programs 

United  States  wartime  mill  consumption  of  ap- 
parel wool  was  almost  double  the  pre-war  rate, 
averaging  more  than  1  billion  pounds  grease  basis 
for  the  years  1941-45.  Domestic-wool  production 
equalled  approximately  43  percent  of  the  require- 
ments for  the  country's  war  economy. 

During  the  period  of  rearmament  and  in  the 
early  war  years,  it  was  the  policy  of  the  United 
States  to  stockpile  foreign  wools  and  to  encourage 
domestic-wool  production  through  the  payment 
of  price  premiums  because  of  the  possibility  that, 
trade  with  the  exporting  countries  might  be  par- 
tially cut  off. 

Stockpile  Programs 

In  1940,  the  National  Defense  Advisory  Com- 
mission recommended  the  establishment  of  an 
emergency  stockpile  of  foreign  wools  in  the  United 
States  to  provide  for  essential  requirements  in  the 
event  imports  were  curtailed.  At  the  request  of 
the  United  States  Government,  the  United  King- 
dom Government  agreed  in  December  1940  to  store 


784 


Department  of  State  Bulletin 


November  3,  1946 


a  reserve  of  250  million  pounds  actual  weight  of 
Australian  wools,  which  would  be  made  available 
to  domestic  mills  in  an  emergency.^  The  Ministry 
of  Supply  of  the  United  Kingdom  retained  own- 
ership of  the  stockpile.  The  Defense  Supplies 
Corporation,  as  agent  for  the  United  States  Gov- 
ernment, was  obligated  to  pay  transportation  and 
storage  costs. 

In  1942  pursuant  to  a  directive  of  the  Office  of 
Production  Management  authorizing  a  stockpile 
of  1  billion  pounds  of  apparel  wool,  the  Defense 
Supplies  Corporation  purchased  a  total  of  302.5 
million  pounds  actual  weight  of  Australian  wools 
and  34.7  million  pounds  actual  weight  of  Uru- 
guayan wools. 

In  October  1941  the  Defense  Supplies  Corpora- 
tion also  agreed  to  accept  South  African  (Cape) 
wool  for  storage  on  a  consignment  basis  with  the 
understanding  that  it  would  be  available  for 
United  States  consumption  in  an  emergency.  This 
arrangement  was  terminated  on  June  30,  1942,  at 
which  time  122  million  pounds  of  Cape  wool  was 
warehoused  in  the  United  States.  In  April  1942 
the  Defense  Supplies  Corporation  agreed  infor- 
mally to  accept  whatever  quantities  of  Australian, 
New  Zealand,  and  Cape  wools  the  British  Ministry 
of  Supply  would  ship  to  the  United  States  for 
storage  and  transshipment  to  England.  An  agree- 
ment with  the  United  Kingdom,  signed  on  July 
20,  1943,  replacing  existing  storage  agreements 
set  the  upper  limit  on  quantity  which  the  De- 
fense Supplies  Corporation  would  accept  for 
storage  at  900  million  pounds  actual  weight  and 
obligated  the  Ministry  of  Supply  to  keep  a  mini- 
mum of  400  million  pounds  in  this  stockpile. 
These  stocks  were  to  be  available  to  both  countries 
should  they  be  required  to  meet  "strategic  needs". 
Shipments  to  the  United  States  under  this  agree- 
ment were  terminated  in  September  1943.  Trans- 
portation and  storage  charges  were  to  be  shared 
aqually  by  the  Ministry  of  Supply  and  the  Defense 
Supplies  Corporation  until  one  year  following  the 
and  of  hostilities.  The  agreement  also  provided 
that,  upon  the  general  suspension  of  all  hostilities, 
the  stockpile  could  not  be  disposed  of  in  the  United 
States  without  a  further  understanding  between 
the  Governments  of  the  United  States  and  United 
Bangdom  having  first  been  reached.  The  maxi- 
mum quantity  warehoused  in  the  United  States 


under  this  stockpile  program  was  518  million 
pounds  actual  weight,  the  major  portion  of  which 
had  been  reexported  before  the  terminal  date  of 
the  agreement. 

In  December  1943  the  War  Production  Board 
approved  the  release  of  the  stocks  of  foreign  wool 
which  had  been  purchased  by  the  Defense  Sup- 
plies Corporation,  and  they  were  subsequently 
liquidated  through  sales  at  public  auction  and  to 
the  United  Nations  Eelief  and  Rehabilitation  Ad- 
ministration. 

Wool-purchase  agreements  between  the  United 
Kingdom  and  the  Southern  Hemisphere  Domin- 
ions facilitated  the  making  of  arrangements  for 
stockpiling  in  the  United  States.  At  the  outbreak 
of  war,  the  United  Kingdom  entered  into  agree- 
ments with  the  Australian  and  New  Zealand  Gov- 
ernments for  the  purchase  of  their  exportable  sur- 
pluses of  wool  during  the  war  and  one  wool-year 
following  the  end  of  hostilities.  An  agreement  on 
similar  lines  was  entered  into  with  the  Government 
of  the  Union  of  South  Africa  late  in  1940.  The 
purpose  of  these  United  Kingdom-Dominion 
agreements  was  to  insure  supplies  of  wool  needed 
for  military  and  civilian  uses  at  reasonable  prices 
and  to  provide  a  stable  market  for  Dominion 
wools. 

Prwe-Supj>ort  Program, 

When  the  United  States  reannament  program 
was  inaugurated  in  1940,  the  application  of  the 
Buy  American  Act  of  1933  ^  in  the  purchase  of 
wool  textiles  for  the  armed  forces  caused  the  prices 
of  domestic  wools  to  rise  above  the  prices  of  duty- 
paid  foreign  wools.  Although  an  administrative 
order  in  November  1940  permitted  the  use  of 
foreign  wools  in  filling  Government  contracts, 
price  premiums  continued  to  be  paid  for  the  use  of 
domestic  wools  in  filling  some  Government  con- 
tracts. There  was  an  average  spread  of  about 
17  cents  a  clean  pound  between  the  prices  of  do- 
mestic and  imported  wools  existing  at  the  time 
the  Office  of  Price  Administration  established  ceil- 
ing prices  on  wools  effective  February  28, 1942. 

With  the  decline  in  military  requirements  be- 
ginning in  1943  and  a  growing  labor  shortage  in 


•  BtTLLETiN  of  Dec.  15, 1940,  p.  554. 
=  47  Stat.  1520. 


785 


the  textile  mills,  the  demand  for  domestic  wools 
became  uncertain.  Mills  preferred  foreign  wools 
not  only  because  of  their  relatively  lower  price  but 
also  because  less  labor  was  required  in  their  utili- 
zation because  of  superior  preparation  for  market. 
In  order  to  stabilize  returns  to  domestic  growers, 
the  Commodity  Credit  Corporation,  at  the  direc- 
tion of  the  Secretary  of  Agriculture,  annomiced  a 
program  to  purchase  the  1943  clip  at  ceiling  prices. 
This  purchase  program  was  extended  to  each  suc- 
ceeding clip  and  is  currently  scheduled  to  continue 
in  operation  until  April  15,  1947. 

After  a  record  output  of  459  million  pounds 
grease  basis  in  1942,  United  States  wool  produc- 
tion has  fallen  off  each  year  and  was  about  358 
million  in  1946.  The  support  price  at  which  the 
Commodity  Credit  Corporation  amiounced  it 
would  purchase  the  1946  clip  was  123  percent  of 
parity  (1909-14  base)  on  June  15,  1946.  On  the 
same  date,  the  farm  price  for  cotton  was  112  per- 
cent of  parity,  for  wheat  105  percent,  for  corn 
118  percent,  and  for  beef  cattle  (which  compete 
with  sheep  for  range  and  farm  resources) ,  140  jaer- 
cent.  The  import  duty  of  34  cents  was  33  percent 
of  the  average  price  received  by  growers  for  the 
1945  clip,  which  was  approximately  104  cents  a 
clean  pound.  Prices  to  growers  averaged  about 
19  cents  a  pound  scoured  basis  above  the  duty-paid 
import  price  of  foreign  wool.^  The  ad  valorem 
equivalent  of  the  duties  levied  on  wools  finer  than 
44's  actually  imported  in  1939  was  79  percent  of 
their  value  and  65  percent  in  1943. 

Production,  ConsiunpHon,  Imports 

United  States  dependence  upon  imported  wool 
in  the  six  years  1940-45  is  reflected  in  the  follow- 
ing table. 

Million  pounds 
Average  1940-45  grease  basis 

Production       434 

Consumption 963 

Imports  for  consumption 574 

During  this  period  804  million  pounds  were  im- 
poited  on  Government  account  for  stockpiling. 


'Based  on  price  at  Boston  market  of  domestic  flne- 
combing  territory  wools,  compared  with  Australian  64's- 
70's  good  top-making  quality  including  import  duty  and 
reflecting  adjustment  for  difference  In  preparation. 


Stocks  Accwnvlation 

As  mills  turned  to  the  production  of  civilian 
goods  toward  the  end  of  the  war,  use  of  domestic 
wools  dropped  sharply  and  Conunodity  Credit 
Corporation  stocks  of  domestic  wools  increased. 
On  July  1,  1945  the  Corporation  held  327  million 
pounds  grease  basis  and  on  July  1,  1946,  499 
million  pounds. 

In  November  1945  the  Commodity  Credit  Cor- 
poration announced  its  intention  to  make  domestic 
wools  available  to  mills  in  competition  with  duty- 
paid  foreign  wools.  This  action  was  necessary  in 
order  to  avoid  continued  accumulation  of  stocks, 
and,  with  a  further  reduction  in  selling  price  in 
February  1946,  sales  in  the  first  half  of  1946  for 
domestic  fine-combing  territory  wools  were  made 
at  about  19  cents  a  pound  scoured  basis  below  the 
l^urchase  price. 

World  apparel-wool  production  exceeded  con- 
sumption in  the  war  years,  and  consequently  on 
July  1, 1945  world  carry-over  stocks  approximated 
5  billion  pounds,  which  was  about  three  times  the 
average  cai-ry-over  stock  in  pre-war  years.  Of 
these  accmnulated  stocks,  the  United  Kingdom 
Ministry  of  Supply  owned  more  than  two  thirds. 
Carry-over  stocks  held  in  the  five  Southern  Hemi- 
sphere wool-exporting  coimtries  declined  from  an 
estimated  3  billion  i^ounds  gi-ease  basis  on  July  1, 
1945  to  2,700  million  i>ounds  on  July  1, 1946. 

Post-War  Developments 

From  the  point  of  view  of  United  States  wool 
growers,  the  continuation  of  the  wartime  price- 
support  program  is  considered  unsatisfactory: 
first,  because  it  is  on  a  year-to-year  basis  with  no 
legislative  assurance  that  it  will  be  continued 
through  the  reconversion  period;  and  second,  be- 
cause its  successful  operation  involves  losses  to 
the  Commodity  Credit  Corporation  and  will 
therefore  require  annual  appropriations. 

It  is  ordinarily  estimated  that  at  least  a  decade 
may  be  required  for  the  orderly  liquidation  of  the 
surplus  world  stocks.  Unless  the  wool-textile  in- 
dustry in  the  war-torn  areas  can  be  rehabilitated 
and  world  consumption  of  apparel  wool  can  be 
maintained  at  a  level  above  that  of  the  pre-war 
years,  the  liquidation  of  surplus  stocks  will  neces- 
sitate either  an  arbitrary  curtailment  of  produc- 
tion or  the  sale  of  wools  in  the  export  markets  be- 


786 


Department  of  State  Bulletin 


November  3,   1946 


low  tlie  equilibrium  price  which  would  otherwise 
equate  the  world  rate  of  production  with  the  rate 
of  consumption.  Tariffs  or  other  measures  which 
increase  the  cost  of  wool  textiles  in  the  importing 
countries  would  operate  to  discourage  consump- 
tion and  enhance  the  vulnerability  of  wool  in  com- 
petition with  the  synthetic  fibers. 

Wool  is  experiencing  increasing  competition 
from  the  synthetic  fibers.  United  States  produc- 
tion of  synthetic  staple  fiber  increased  from  30 
million  pounds  in  1938  to  approximately  168  mil- 
lion pounds  in  1945.  There  is  a  duty  of  25  per- 
cent ad  valorem  levied  on  imports  of  this  fiber. 
Wliile  duty-paid  imported  fine  wool  of  good  top- 
making  quality  was  available  to  domestic  mills  in 
1945  at  about  109  cents  a  clean  pound,  viscose 
rayon  staple  fiber  was  available  at  25  cents  a  pound 
and  acetate  rayon  staple  fiber  at  38  cents  a  pound. 
It  is  expected  that  nylon  staple  fiber,  when  it  be- 
comes commei-cially  available,  will  also  be  found 
satisfactory  for  blending  with  wool  as  well  as  for 
substituting  for  wool  in  some  uses. 

v. K. -Dominion  Wool  Disposals  Limited 

Since  the  United  Kingdom  and  the  Southern 
Hemisphere  Dominion  Governments  have  primary 
responsibility  for  liquidating  Empire  surplus  wool 
stocks,  a  conference  of  representatives  of  these, 
governments  at  the  official  and  expert  levels  was 
held  in  London  in  April-May  1945  to  review  the 
situation  and  make  reconunendations  for  joint 
action.  The  report  and  recommendations  of  this 
conference  were  accepted  by  the  United  Kingdom 
and  three  Dominion  Governments  in  August  1945. 
The  establishment  of  the  joint  organization  under 
the  name  of  U .K. -Domini on  Wool  Disposals 
Limited,  as  recommended  by  the  conference,  was 
announced  in  July  1946.  Under  this  agreement, 
'he  stock  of  Dominion-grown  wools  owned  by  the 
United  Kingdom  Ministry  of  Supply  is  trans- 
ferred to  the  joint  ownership  of  the  United  King- 
iom  Government  and  the  Dominion  Government 
concerned.  In  September  1946  wool  auctions  were 
'esumed  at  which  current  clips  and  wool  from  the 
jointly  owned  stock  are  offered.  Wool  from  the 
current  clips  will  be  taken  up  by  the  joint  organ - 
zation  if  not  sold  at  prices  equivalent  to  the  auc- 
ion  reserve  prices  which  are  to  be  fixed  by  the 
)rganization  from  time  to  time. 


The  directors  of  tlie  U.K.-Dominion  Wool  Dis- 
ix)sals  Limited  have  announced  that  the  organiza- 
tion will  endeavor  to  maintain  the  current  price 
level  during  the  forthcoming  season  unless  it  be- 
comes "necessary  to  meet  a  definite  trend  in  demand 
which  appears  to  be  of  lasting  character".  Rela- 
tive prices  of  different  types  of  wool  may,  however, 
be  changed. 

As  long  as  the  U.K.-Dominion  Wool  Disposals 
Limited  continues  in  operation,  the  prices  of 
foreign  wools  should  be  characterized  by  much 
greater  stability  than  in  the  inter-war  period,  and 
this  stability  should  be  reflected  in  the  prices  of 
domestic  wools  in  the  Boston  market. 

Other  apparel-wool  producing  and  importing 
countries  have  a  considerable  stake  in  the  stock- 
liquidation  and  pricing  policies  followed  by  the 
joint  organization.  This  interest  of  other  coun- 
tries was  recognized  by  the  organization,  which 
has  issued  the  following  statement  with  respect 
to  procedure  for  establishing  a  consultative  com- 
mittee : 

"The  International  Wool  Textile  Organisation 
will  be  invited  to  nominate  representatives  to  form, 
with  the  addition  of  representatives  from  major 
consuming  countries,  a  Committee  to  act  in  a  con- 
sultative capacity  to  the  Board  of  the  Company 
from  the  point  of  view  of  wool  consumers.  Fur- 
ther, in  order  to  facilitate  and  expand  the  con- 
sumption of  wool  the  Joint  Organisation  will 
maintain  close  contact  with  the  appropriate  bodies 
interested  in  such  matters  as  the  rehabilitation  of 
the  wool  textile  industry  in  consuming  countries." 

United  States  Senate  Committee  Heanngs 

In  order  to  provide  the  various  groups  interested 
in  the  domestic  wool  industry  an  opportunity  to 
offer  their  views,  hearings  were  held  befoi-e  the 
Senate  Special  Committee  to  Investigate  the  Pro- 
duction, Transportation  and  Marketing  of  Wool  in 
November-December  1945. 

Outstanding  among  the  suggestions  advanced 
during  the  hearings  as  features  of  a  long-range 
domestic  wool  program  were:  {a)  an  increase  in 
the  present  rate  of  duty  in  sufficient  amount  to  off- 
set the  difference  in  the  cost  of  producing  foreign 
and  domestic  wool;  (&)  the  establishment  of  quo- 
tas on  the  importation  of  foreign  wool  limiting 


787 


the  amount  that  could  be  imported  in  any  one  year 
to  the  amount  by  which  annual  consumption  ex- 
ceeds annual  production;  (c)  the  purchase  of  all 
wool,  both  foreign  and  domestic,  by  a  Government 
agency  which  would  sell  at  a  price  equivalent  to 
the  average  cost  of  procurement;  and  (d)  the 
maintenance  of  prices  of  domestic  wools  at  pi-esent 
ceiling  levels  or  cost  of  production  plus  a  reason- 
able profit  by  the  sale  of  domestic  wools  by  the 
Commodity  Credit  Corporation  in  line  with  the 
price  of  duty-paid  foreign  wool  at  all  times,  the 
Commodity  Credit  Corporation  being  reimbursed 
with  funds  procured  from  duties  collected  on  for- 
eign wools  imported. 

The  program,  (c)  above,  advanced  by  Dean  J. 
A.  Hill  of  the  University  of  Wyoming  received 
wide-spread  support  including  that  of  wool-grow- 
ers associations,  the  American  Farm  Bureau  Fed- 
eration, and  the  Livestock  Marketing  Association. 
Under  this  plan,  the  Secretary  of  Agriculture 
would  be  authorized  and  directed  to  support, 
through  purchase  operations,  a  price  for  domes- 
tically produced  wool  not  less  than  the  higher  of 
(a)  comparable  prices  as  of  January  15,  1946,  or 
(i)  current  comparable  price.  The  Secretary  of 
Agriculture  would  also  acquire  by  importation  or 
from  foreign-held  stocks  in  the  United  States 
amounts  of  foreign  wool  which  when  added  to  the 
available  domestically  produced  wood  would  be 
necessary  to  meet  the  requirements  of  manufac- 
turers, processors,  and  other  consumers  of  raw  wool 
in  the  United  States,  and  sell  both  domestic  and 
foreign  wool  at  a  price  per  pound  equal  to  the 
average  cost  incurred  in  the  acquisition. 

In  his  testimony  before  the  Senate  Committee, 
William  L.  Clayton,  then  Assistant  Secretary  of 
State,  indicated  that  either  an  increase  in  the  im- 
port duty  on  apparel  wool  or  the  imposition  of 
quota  restrictions  on  imports  would  be  contrary  to 
the  spirit  of  American  economic  foreign  policy, 
which  is  directed  toward  the  reduction  of  world 
trade  barriers  and  the  opening  up  of  channels  of 
international  commerce.  Mr.  Clayton  expressed 
doubt  that  the  American  people  would  favor  resort 
to  state  trading  such  as  was  involved  in  the  Hill 
Plan,  except  in  time  of  war.  For  these  reasons 
he  favored  measures  which  would  enable  domestic 


'  BtJULETiw  of  Mar.  24, 1946,  p.  491. 


wool  to  compete  with  foreign  wool  in  the  domestic 
market  at  the  duty-paid  import  price. 

Proposed  United  States  Program, 

In  a  letter  to  President  Truman  in  January  1946, 
Senator  Joseph  C.  O'Mahoney,^  chairman  of  the 
Special  Committee  to  Investigate  the  Production, 
Transportation  and  Marketing  of  Wool,  urged  co- 
operation with  the  Committee  to  frame  a  long- 
term  government  policy  on  domestic  wool.  He 
stated  (a)  that  the  Commodity  Credit  Corpora- 
tion was  purchasing  the  domestic  clip  at  ceiling 
prices  established  in  1942  only  on  a  year-to-year 
basis  and  without  any  assurance  to  the  growers 
that  the  program  would  be  continued  during  the 
reconversion  period;  (&)  foreign  wool  supplies 
and  prices  would,  during  the  period  of  liquidation 
of  surplus  foreign  wool  stocks,  be  controlled  by  a 
joint  organization  established  by  the  United  King- 
dom Government  and  the  Governments  of  Aus- 
tralia, New  Zealand,  and  South  Africa;  and  (c) 
under  these  circumstances  the  domestic  wool- 
growing  industry  was  declining.  He  expressed 
the  belief  that,  unless  the  Government  of  the 
United  States  adopted  a  constructive  long-term 
policy,  the  very  existence  of  the  wool-growing 
industry  of  this  country  would  be  threatened. 
President  Truman  requested  the  Office  of  War 
Mobilization  and  Reconversion  to  review  the  wool 
situation  with  other  interested  departments  and 
agencies  and  to  propose  a  wool  progi-am  that  was 
mutually  satisfactory.  Such  a  program  was  pre- 
pared and  was  transmitted  by  President  Truman 
to  Senator  O'Mahoney  in  March  1946  as  represent- 
ing the  considered  views  of  the  Administration  on 
the  best  methods  of  solving  a  serious  problem. 

The  President's  program  suggested  that  Con- 
gress enact  wool  legislation  which  would  provide 
that:  (1)  the  parity  price  of  wool  be  revised  or 
established  at  a  so-called  "comparable  level," 
since  1909-14  was  an  unfavorable  period  for  wool 
prices,  partially  because  of  the  elimination  of  im- 
port duties  on  wool  in  1913;  (2)  the  Commodity 
Credit  Corporation  support  incomes  to  wool  pro- 
ducers through  purcliases,  loans,  or  payments 
within  tlie  same  percentage  range  of  the  revised 
parity  prices  as  it  was  directed  to  support  prices  to 
producers  of  basic  agricultural  commodities,  at 


788 


Department  of  State  Bulletin 


JSovember  3,  1946 


not  less  than  50  nor  more  than  75  percent  of  the 
revised  parity;  (3)  the  Commodity  Credit  Cor- 
poration be  authorized  to  continue  to  sell  wool  at 
prices  competitive  with  duty-paid  imported  for- 
eign wool;  an^  (4)  funds  from  the  gross  receipts 
from  duties  collected  under  the  customs  laws  be 
appropriated  and  made  available  to  the  Commod- 
ity Credit  Corporation  to  offset  the  losses  incurred 
by  the  Corporation  under  purchase  or  loan  oper- 
ations, or  the  amount  of  payments  made  to  wool 
producers  in  lieu  of  such  purchase  or  loan  opera- 
tion. 

The  proposed  program  submitted  by  the  Pres- 
ident also  recognized  the  importance  to  United 
States  wool  growers  of  collaboration  with  other 
wool-growing  and  wool-consuming  countries  in 
order  to  coordinate  world  wool-marketing  and 
price  policies.  With  respect  to  the  world  wool 
problem,  the  President's  communication  to  Sena- 
tor O'Mahoney  contained  the  following  para- 
graph: 

"In  addition  to  such  legislative  program,  it 

Conversations  on  Wool  Problems 

At  the  invitation  of  His  Majesty's  Govermnent 
in  the  United  Kingdom,  conversations  concerning 
prospective  wool  problems  will  be  held  in  London, 
November  11-16,  between  major  wool-producing 
and  wool-consuming  countries.  The  purpose  of  the 
meeting  is  the  exchange  of  information  and  views 
by  the  various  governments. 

During  the  war  a  large  surplus  of  wool  equal  to 
about  three  times  the  normal  carry-over  accumu- 
lated in  the  British  Dominions.  In  order  to  mar- 
ket these  stocks  the  United  Kingdom,  Australia, 
New  Zealand,  and  the  Union  of  South  Africa 
formed  the  British  Wool  Disposals  Limited,  a  cor- 
poration jointly  owned  by  the  four  Governments. 
The  presence  of  so  large  a  trading  organization  in 
the  wool  market  is  the  source  of  some  apprehen- 
sion on  the  part  of  other  wool-producing  and  wool- 
consuming  countries. 

In  the  United  States  the  Commodity  Credit 
Corporation  holds  large  stocks  of  domestic  wool. 
This  fact,  the  world  surplus,  and  other  contribu- 
tory factors  have  resulted  in  a  decline  in  sheep 
numbers  and  wool  production  in  this  coimtry. 


would  seem  desirable  to  have  the  executive  agen- 
cies undertake  the  development  of  an  interna- 
tional wool  agreement  in  collaboration  with  the 
various  interested  foreign  governments  to  provide 
for  coordinated  action  and  more  unified  supervi- 
sion of  world  wool  marketing  and  price  policies 
from  the  standpoints  of  producers,  consumers,  and 
international  trade.  I  am  asking  the  executive 
agencies  to  determine  the  willingness  of  foreign 
governments  to  participate  in  such  undertaking. 
In  the  meantime,  it  is  hoped  that  consultations  can 
be  held  with  foreign  wool  agencies  which  will  pro- 
vide for  a  mutual  understanding  of  objectives  and 
activities  in  selling  policies." 

The  Seventy-ninth  Congress  failed  to  enact  a 
wool  bill  before  adjournment.  However,  a  bill, 
S-2033,  embodying  the  essential  features  of  the 
program  recommended  was  reported  favorably  by 
the  Senate  Committee  on  Agriculture  and  For- 
estry. It  is  expected  that  an  effort  will  be  made 
to  enact  legislation  embodying  long-term  wool 
policy  before  the  expiration  of  the  purchase  pro- 
gi-am  on  March  31, 1947. 


Recognizing  the  possible  harm  which  might  result 
from  unwise  handling  of  these  problems,  the  Presi- 
dent proposed  a  comprehensive  legislative  pro- 
gram for  the  wool  industry.  In  the  meantime  he 
asked  the  executive  agencies  to  hold  consultations 
with  foreign  wool  agencies  which  would  provide 
for  mutual  understanding  of  objectives  and  activi- 
ties in  selling  policies.  In  accordance  with  these 
instructions  the  United  States  is  cooperating  in 
the  wool  talks. 

Donald  D.  Kennedy,  Chief  of  International  Re- 
sources Division,  heads  the  U.S.  Delegation. 
Robert  Schwenger,  Preston  Richards,  and  Floyd 
Davis  of  the  Department  of  Agriculture ;  Clarence 
W.  Nichols  of  the  Department  of  State ;  and  Paul 
Nyhus,  Agricultural  Attache  at  the  London  Em- 
bassy, are  the  other  members.  The  countries 
which  have  been  invited  to  be  represented  at  the 
conversations  are :  Argentina,  Australia,  Belgium, 
Canada,  China,  France,  India,  Italy,  New  Zealand, 
South  Africa,  Uruguay,  United  States,  and 
U.S.S.R. ;  it  is  not  known  whether  the  last  named 
will  accept. 


719718 — 46- 


789 


PROBLEIVI  OF  THE  TURKISH  STRAITS:  PRINCIPAL  TREATIES 
AND  CONVENTIONS  C1774-1936> 


Edited,  with  an 
Introduction,  hy 
Harry  N.  Howard 


This  series  of  treaties  and  conventions  is  being  presented  for 
public  use  because  of  the  current  interest  in  the  problem  of 
the  Turkish  Straits.  No  pretense  is  made  to  completeness, 
since  the  publication  is  confined  to  the  important  treaties 
following  the  Treaty  of  Kuchuk-Kainardji  (1774)  when  the 
Black  Sea  was  first  really  opened  to  the  passage  of  commer- 
cial vessels  and  the  modern  history  of  the  problem  may  be 
said  to  have  begun. 


The  problem  of  the  Turkish  Straits,  in  one 
form  or  another,  is  one  of  the  oldest,  most  con- 
tinuous in  history.  It  reaches  from  the  period 
of  the  Trojan  Wars,  in  the  twelfth  century  B.  C, 
through  the  days  of  ancient  Greece  and  Eome 
and  the  period  of  the  Byzantine  Empire  to  today's 
latest  newspaper  stories. 

The  modern  history  of  the  problem  of  the 
Straits  may  be  said  to  have  begun  with  the  Treaty 
of  Kuchuk-Kainardji  between  Russia  and  the 
Ottoman  Empire,  July  10,  1774,  according  to 
which  Russian  commercial  vessels  received  the 
right  to  pass  through  the  Straits  to  and  from 
the  Black  Sea — a  right  granted  in  the  ensuing 
years  to  the  commercial  vessels  of  other  nations 
as  well. 

Aside  from  the  Treaty  of  Kuchuk-Kainardji 
the  well-known  Treaty  of  Unkiar  Eskelessi,  July 
8,  1833,  between  Russia  and  the  Sublime  Porte 
is  included.     This,  likewise,  is  true  of  the  great 


'  For  an  article  by  Harry  N.  Howard  analyzing  this 
convention,  see  Bulletin  of  Sept.  8,  1946,  p.  435. 


international  conventions  of  1840,  1841,  1856,  and 
1878,  which  firmly  established  the  interests  of  the 
various  European  powers  in  the  Straits,  defined 
the  international  character  of  the  Straits,  and  laid 
down  the  basic  principles  governing  the  passage 
of  both  commercial  and  war  vessels  through  the 
Straits.  In  principle,  according  to  the  nineteenth 
century  conventions  of  the  Straits,  those  strategic 
waters  were  to  be  open,  in  peace,  to  the  commerce 
of  all  nations  and  closed,  according  to  "the  ancient 
rule  of  the  Sultan's  Empire,"  to  ships  of  war. 

The  great  conventions  governing  the  Straits  in 
the  twentieth  century  are  those  of  Lausanne  (July 
24, 1923)  and  Montreux  (July  20,  1936),  since  the 
Convention  of  Sevres  (August  10,  1920)  did  not 
enter  into  effect.  The  Convention  of  Lausanne 
lasted  from  1923  until  November  9, 1936,  when  the 
Montreux  Convention  entered  into  force.  Under 
the  Montreux  Convention,'  the  International  Com- 
mission of  the  Straits,  established  at  Lausanne, 
was  abolished,  the  "principle  of  freedom  of  transit 
and  navigation  by  sea"  without  limit  of  time  was 


790 


Department  of  State  Bulletin 


November  3,  1946 


recognized  and  affirmed,  and  the  passage  of  war- 
ships, with  notable  exceptions  in  favor  of  the 
Black  Sea  powers,  was  subject  to  important  limita- 
tions. Articles  19  and  25  attempted  to  fit  the 
Montreux  Convention  within  the  framework  of 
the  League  of  Nations. 

American  readers  will,  no  doubt,  be  somewhat 
interested  in  those  treaties  and  agreements  which 
have  been  entered  into  by  the  United  States  and 
which  have  a  bearing  on  the  problem.  The  first 
of  these  is  the  American-Turkish  treaty  of  May 
7,  1830,  which  provided  for  most-favored-nation 
treatment  of  American  commercial  vessels  pass- 
ing through  the  Straits.  These  rights  were  con- 
firmed in  a  new  American-Turkish  treaty  in  1862. 


Likewise,  the  American-Turkish  treaty  of  Oc- 
tober 1,  1929  provided  for  most-favored-nation 
treatment,  on  a  reciprocal  basis,  of  American  mer- 
chant ships  in  Turkish  waters,  a  principle  which 
was  also  involved  in  the  reciprocal  trade  agree- 
ment of  April  1,  1939. 

Altogether,  selections  from  about  twenty  of  the 
principal  treaties  and  conventions  are  here  made 
conveniently  available  to  readers  of  the  Depart- 
ment OF  State  Bulletin  in  view  of  the  current 
interest  in  the  problem  of  the  Turkish  Straits. 
It  is  hoped  that,  by  providing  an  appropriate 
historical  and,  especially,  treaty  background,  the 
problem  of  the  Straits  today  may  be  placed  in 
clearer  perspective. 


PRINCIPAL  TREATIES  AND   CONVENTIONS   WITH   RESPECT  TO  THE  PROBLEM 
OF  THE  TURKISH   STRAITS  (1774-1936) 


I.  Treaty  of  Kuchuk-Kainardji  Between  Russia 
and  the  Ottoman  Empire,  July  10,  1774 

[From  Turkey  No.  16  (1878).  Treaties  and  Other 
Documents  Relating  to  the  Black  Sea,  the  Darda- 
nelles, and  the  Bosphorus:  1535-1877.  (Transla- 
tions, Cmd.  1953,  No.  18.  See  also  F.  de  Mar- 
tens, Recueil  des  traitis,  1st  ed.,  I,  507,  IV,  606, 
and  2d  ed.,  II,  286;  Gabriel  Noradounglaia'n  (2 
vols.,  Paris,  1900),  Recueil  d'actes  intemationaxix 
de  I'Empire  Ottoman,  I,  324.] 

Article  XI.  For  the  convenience  and  advantage  of  the 
two  Empires,  there  shall  be  a  free  and  unimpeded  naviga- 
tion for  the  merchant-ships  belonging  to  the  two  Contract- 
ing Powers,  in  all  the  seas  which  wash  their  shores ;  the 
Sublime  Porte  grants  to  Russian  merchant-vessels, 
namely,  such  as  are  universally  employed  by  the  other 
Powers  for  commerce  and  in  the  ports,  a  free  passage 
from  the  Black  Sea  into  the  White  Sea,  and  reciprocally 
from  the  White  Sea  into  the  Black  Sea,  as  also  the  power 
of  entering  all  the  ports  and  harbors  situated  either  on 
the  seacoasts,  or  in  the  passages  and  channels  which  join 
those  seas.  In  like  manner,  the  Sublime  Porte  allows 
Russian  subjects  to  trade  in  its  States  by  land  as  well 
as  by  water,  and  upon  the  Danube  in  their  ships,  in 
conformity  with  what  has  been  specified  above  in  this 
Article,  with  all  the  same  privileges  and  advantages  as 
are  enjoyed  in  its  States  by  the  most  friendly  nations, 
whom  the  Sublime  Porte  favors  most  in  trade,  such  as 


the  French  and  the  English;  and  the  Capitulations  of 
those  two  nations  and  others  shall,  just  as  if  they  were 
here  inserted  word  for  word,  serve  as  a  rule,  under  all 
circumstances  and  in  every  place,  for  whatever  concerns 
commerce  as  well  as  Russian  merchants,  who  upon  paying 
the  same  duties  may  import  and  export  all  kinds  of  goods, 
and  disembark  their  merchandise  at  every  port  and  har- 
bor as  well  upon  the  Black  as  upon  the  other  seas, 
Constantinople  being  expressly  included  in  the  number. 

While  granting  in  the  above  manner  to  the  respective 
subjects  the  freedom  of  commerce  and  navigation  upon 
all  waters  without  exception,  the  two  Empires,  at  the 
same  time,  allow  merchants  to  stop  within  their  terri- 
tories for  as  long  a  time  as  their  aflfairs  require,  and 
promise  them  the  same  security  and  liberty  as  are  en- 
joyed by  the  su!)jeets  of  other  friendly  Courts.  And  in 
order  to  be  consistent  throughout,  the  Sublime  Porte 
also  allows  the  residence  of  Consuls  and  Vice-Consuls  in 
every  place  where  the  Court  of  Russia  may  consider  it 
expedient  to  establish  them,  and  they  shall  be  treated 
upon  a  perfect  footing  of  equality  with  the  Consuls  of 
the  other  friendly  Powers.  It  permits  them  to  have  in- 
terpreters called  Baratii,  that  is,  those  who  have  patents, 
providing  them  with  Imperial  patents,  and  causing  them 
to  enjoy  the  same  prerogatives  as  those  in  the  service  of 
the  said  French,  English,  and  other  nations. 

Similarly,  Russia  permits  the  subjects  of  the  Sublime 
Porte  to  trade  in  its  dominions,  by  sea  and  by  land,  with 
the  same  prerogatives  and  advantages  as  are  enjoyed  by 
the  most  friendly  nations,  and  upon  paying  the  accus- 
tomed duties.    In  case  of  accident  happening  to  the  ves- 


791 


sels,  the  two  Empires  are  bound  respectively  to  render 
them  the  same  assistance  as  is  given  in  similar  cases  to 
other  friendly  nations;  and  all  necessary  things  shall  be 
furnished  to  them  at  the  ordinary  prices. 


II.  The  Treaty  of  Defensive  Alliance  Between 
Russia  and  the  Ottoman  Empire, 
December  23,  1798 

[Unofficial  translation  ;  Noradounghian,  II,  24-27 ; 
Martens,  2d  ed.,  VI,  532-36.] 

Article  X.— On  request  of  one  of  the  two  Powers  to  the 
other  for  naval  assistance,  the  requesting  party  will  supply 
the  ships  with  food  and  provisions,  according  to  agree- 
ment, as  long  as  they  [the  two  Powers]  are  acting  against 
the  common  enemy,  beginning  with  the  day  [the  ships] 
enter  the  canal  [the  Straits.]  The  requesting  party  will 
furnish  from  its  Admiralty  and  its  stores,  without  the 
least  difficulty,  and  at  current  prices,  everything  neces- 
sary for  repairs.  The  warships  and  supply  ships  of  the 
two  contracting  Powers,  during  the  common  war,  will  be 
received,  without  difficulty,  in  each  other's  ports,  either 
to  pass  the  winter  or  for  repairs. 


III.  Treaty  of  Defensive  Alliance  Between 
Russia  and  the  Ottoman  Empire, 
September  23,  1805 

[Serge  Goriainov,  Le  Bospliore  et  les  Dardanelles. 
Etude  historique  sur  la  question  des  Etroits. 
D'aprds  la  correspondance  diplomatique  ddpos6e 
aux  Archives  centrales  de  Saint-Petersbourg 
(Paris,  1910),  p.  6.] 

Article  VII.— The  two  high  contracting  parties  agree 
to  consider  the  Black  Sea  as  closed  and  not  to  permit 
therein  the  appearance  of  the  flag  of  war  or  armed  ship 
of  any  power  whatsoever,  and,  in  case  any  should  at- 
tempt to  enter  tlierein,  the  two  high  contracting  parties 
engage  to  regard  such  an  attempt  as  a  casus  foederis  and 
to  oppose  it  with  all  their  naval  forces,  as  the  sole  means 
of  assuring  their  mutual  tranquillity.  It  is  understood 
that  the  free  passage  through  the  canal  of  Constanti- 
nople will  continue  to  be  effective  for  warships  and  mili- 
tary transports  of  His  Imperial  Majesty  of  all  the  Rus- 
sias,  to  which  on  each  occasion  the  Sublime  Porte  will 
offer  every  assistance  and  accord  every  facility  as  may 
be  required. 

[Noradounghian,  II,  70-74.] 


Article  VII. — The  two  contracting  parties,  having  agreed 
as  to  the  closure  of  the  Black  Sea,  declare  that  any  at- 
tempt of  any  power  whatsoever  to  violate  it  will  be  con- 
sidered as  an  act  of  hostility  against  them.  Consequently, 
they  engage  to  oppose  with  all  their  naval  forces  the  entry 
into  this  sea  of  any  foreign  warship  and  of  any  ship 
loaded  with  munitions  of  war. 


IV.  Treaty  Between  Great  Britain  and  the 
Ottoman  Empire,  Concluded  at  the  Dardanelles, 
January  5,  1809 

[From  Cmd.  1953  (187S),  No.  27.    French  text  in 
Noradounghian,  II,  81.] 

Article  V. — In  return  for  the  indulgence  and  good  treat- 
ment afforded  by  the  Sublime,  Porte  to  English  merchants, 
with  respect  to  their  goods  and  property,  as  well  as  in  all 
matters  tending  to  facilitate  their  commerce,  England  shall 
reciprocally  extend  every  indulgence  and  friendly  treat- 
ment to  the  flag,  subjects,  and  merchants  of  the  Sublime 
Porte,  which  may  hereafter  frequent  the  dominions  of  His 
Britannic  Majesty  for  the  purpose  of  commerce. 

Article  XI.— As  ships  of  war  have  at  all  times  been 
prohibited  from  entering  the  Canal  of  Constantinople,  viz, 
in  the  Straits  of  the  Dardanelles  and  of  the  Black  Sea, 
and  as  tliis  ancient  regulation  of  the  Ottoman  Empire 
is  in  future  to  be  observed  by  every  Power  in  time  of 
peace,  the  Court  of  Great  Britain  promises  on  its  part 
to  conform  to  this  principle. 


V.  Treaty  of  Peace  Between  Russia  and  the 
Ottoman  Empire,  Signed  at  Adrianople, 
September  14,  1829 

[Cmd.  1953  (1878),  No.  35.  Text  also  in  Hertslet, 
Map  of  Eurone  6y  Treaty,  II,  813-831 ;  Noradoung- 
hian, II,  166;  Martens,  Nouvcau  recueil,  VII,  143.] 

Article  F/i.— Russian  subjects  shall  enjoy,  throughout 
the  whole  extent  of  the  Ottoman  Empire,  as  well  by  land 
as  by  sea,  the  full  and  entire  freedom  of  trade  secured 
to  them  by  the  Treaties  concluded  heretofore  between 
the  two  High  Contracting  Parties.  This  freedom  of 
trade  shall  not  be  molested  in  any  way,  nor  shall  it  be 
fettered  in  any  case,  or  under  any  pretext,  by  any  pro- 
hibition or  restriction  whatsoever,  nor  in  consequence  of 
any  regulation  or  measure,  whether  of  public  govern- 
ment or  internal  legislation.  Russian  subjects,  ships, 
and  merchandi.se,  shall  be  protected  from  all  violence 
and  imposition.  The  first  shall  remain  under  the  ex- 
clusive jurisdiction  and  control  of  the  Russian  Minister 


792 


Department  of  State  Bulletin 


November  3,  1946 


and  Consuls;  Russian  ships  shall  never  be  subjected  to 
any  search  on  the  part  of  the  Ottoman  authorities, 
neither  out  at  sea  nor  in  any  of  the  ports  or  roadsteads 
under  the  dominion  of  the  Sublime  Porte;  and  all  mer- 
chandise or  goods  belonging  to  a  Russian  subject  may, 
after  payment  of  the  Custom-house  dues  imposed  by  the 
Tariffs,  be  freely  sold,  deposited  on  land  in  the  ware- 
houses of  the  owner  or  consignee,  or  transshipped  on 
board  another  vessel  of  any  nation  whatsoever,  without 
the  Russian  subject  being  required,  in  this  case,  to  give 
notice  of  the  same  to  any  of  the  local  authorities,  and 
much  less  to  ask  their  permission  so  to  do.  It  is  ex- 
pressly agreed  that  the  different  kinds  of  wheat  coming 
from  Russia  shall  partake  of  the  same  privileges,  and  that 
their  free  transit  shall  never,  under  any  pretext,  suffer 
the  least  difficulty  or  hindrance. 

The  Sublime  Porte  engages,  moreover,  to  take  especial 
care  that  the  trade  and  navigation  of  the  Black  Sea  par- 
ticularly, shall  be  impeded  in  no  manner  whatsoever. 
For  this  purpose  it  admits  and  declares  the  passage  of 
the  Strait  of  Constantinople  and  that  of  the  Dardanelles 
to  be  entirely  free  and  open  to  Russian  vessels  under  the 
merchant  flag  laden  or  in  ballast,  whether  they  come  from 
the  Black  Sea  for  the  purpose  of  entering  the  Mediter- 
ranean, or  whether,  cowing  from  the  Mediterranean, 
they  wish  to  enter  the  Black  Sea ;  such  vessels,  pro- 
vided they  be  merchant-ships,  whatever  their  size  and 
tonnage,  shall  be  exposed  to  no  hindrance  or  annoyance 
of  any  kind,  as  above  provided.  The  two  Courts  shall 
agree  upon  the  most  fitting  means  for  preventing  all  de- 
lay in  issuing  the  necessary  instructions.  In  virtue  of 
the  same  principle,  the  passage  of  the  Strait  of  Constanti- 
nople and  of  that  of  the  Dardanelles  is  declared  free  and 
open  to  all  the  merchant-ships  of  Powers  who  are  at 
peace  with  the  Sublime  Porte,  whether  going  into  the 
Russian  ports  of  the  Black  Sea,  or  coming  from  them, 
laden  or  in  ballast,  upon  the  same  conditions  which  are 
stipulated  for  vessels  under  the  Russian  flag. 

Lastly,  the  Sublime  Porte,  recognizing  in  the  Imperial 
Court  of  Russia  the  right  of  securing  the  neces.sary  guaran- 
tees for  this  full  freedom  of  trade  and  navigation  in  the 
Black  Sea,  declares  solemnly,  that  on  its  part  not  the  least 
obstacle  shall  ever,  under  any  pretext  whatsoever,  be  op- 
posed to  it.  Above  all  it  promises  never  to  allow  itself 
hencefortli  to  stop  or  detain  vessels  laden  or  in  ballast, 
whether  Russian  or  belonging  to  nations  with  whom  the 
Ottoman  Porte  should  not  be  in  a  state  of  declared  war, 
which  vessels  shall  be  passing  through  the  Strait  of  Con- 
stantinople and  that  of  the  Dardanelles,  on  their  way  from 
the  Black  Sea  into  the  Mediterranean,  or  from  the  Medi- 
terranean into  the  Russian  Ports  of  the  Black  Sea.  And 
if,  which  God  forbid,  any  one  of  the  stipulations  contained 
in  the  present  Article  should  be  infringed,  and  the  re- 
monstrances of  the  Russian  Minister  thereupon  should  fail 
in  obtaining  a  full  and  prompt  redress,  the  Sublime  Porte 
recognizes  beforeliand  in   the  Imperial  Court  of  Russia 


the  right  of  considering  such  an  infraction  as  an  act  of 
hostility,  and  of  immediately  having  recourse  to  reprisals 
against  the  Ottoman  Empire. 


VI.  Treaty  of  Commerce  and  Navigation  Between 
the  United  States  and  tlie  Ottoman  Empire, 
Signed  at  Constantinople,  May  7, 1830 

[D.  H.  Miller,  Treaties  and  Other  International 
Acts  of  the  United  States  of  America,  III  (No  69) 
p.  049.] 

Article  V//.— The  merchant  vessels  of  the  United 
States,  either  in  ballast  or  laden  with  the  productions  of 
their  countries  or  with  productions  and  merchandise  not 
prohibited  of  the  countries  of  the  Ottoman  Empire,  may 
pass  from  the  waters  of  the  Imperial  Residence  and  go 
and  come  in  the  Black  Sea  like  the  aforesaid  nations  [most- 
favored  nations]. 


VII.  The  Treaty  of  Unkiar  Eslcelessi  [Hunl<ar 
Isltelesi]  Between  Russia  and  the  Ottoman  Empire, 
July  8, 1833 

[Cmd.  1953  (1878),  No.  39.  Text  also  in  Hertslet, 
II  (No.  168),  025-928;  Noradounghian,  II,  230.] 
Article  /.—There  shall  be  forever  Peace,  Amity,  and 
Alliance  between  His  Majesty  the  Emperor  of  all  the 
Russias  and  His  Majesty  the  Emperor  of  the  Ottomans, 
their  Empires  and  their  Subjects,  as  well  by  land  as  by  sea. 
This  Alliance  having  solely  for  its  object  the  common 
defence  of  their  dominions  against  all  attack,  their  Majes- 
ties engage  to  come  to  an  unreserved  understanding  with 
each  other  upon  all  the  matters  which  concern  their  re- 
spective tranquility  and  safety,  and  to  afford  to  each  other 
mutually  for  this  purpose  substantial  aid,  and  the  most 
efficacious  assistance. 

Article  II.— The  Treaty  of  Peace  concluded  at  Adri- 
anople  on  the  2nd  September,  1829,  as  well  as  all  the  other 
Treaties  comprised  therein,  as  also  the  Convention  signed 
at  St.  Petersburgh  on  the  9th/21st  July,  1832,  are  fully 
confirmed  by  the  present  Treaty  of  Defensive  Alliance  in 
the  same  manner  as  if  the  said  transactions  had  been 
inserted  in  it  word  for  word. 

Article  III. — In  consequence  of  the  principle  of  con- 
servation and  mutual  defence,  which  Is  the  basis  of  the 
present  Treaty  of  Alliance,  and  by  reason  of  a  most  sin- 
cere desire  of  securing  the  permanence,  maintenance,  and 
entire  independence  of  the  Sublime  Porte,  His  Majesty 
the  Emperor  of  all  the  Russias,  in  the  event  of  circum- 
stances occurring  which  should  again  determine  the  Sub- 
lime Porte  to  call  for  the  naval  and  military  assistance  of 
Russia,  although,  if  it  please  God,  that  case  is  by  no  means 


793 


likely  to  happen,  engages  to  furnish,  by  land  and  by  sea,  as 
many  troops  and  forces  as  the  Two  High  Contracting 
Parties  may  deem  necessary :  It  is  accordingly  agreed, 
that  In  this  case  the  land  and  sea  forces,  whose  aid  the 
Sublime  Porte  may  call  for,  shall  be  held  at  its  disposal. 

Article  IV. — In  conformity  with  what  is  above  stated,  in 
the  event  of  one  of  the  two  Powers  requesting  the  assist- 
ance of  the  other,  the  expense  only  of  provisioning  the 
land  and  the  sea  forces  which  may  be  furnished,  shall 
fall  to  the  charge  of  the  Power  who  shall  have  applied  for 
the  aid. 

Article  V. — Although  the  two  High  Contracting  Parties 
sincerely  intend  to  maintain  this  engagement  to  the  most 
distant  period  of  time,  yet,  as  it  is  possible  that  in  process 
of  time  circumstances  may  require  that  some  changes 
should  be  made  in  this  Treaty  it  has  been  agreed  to  fix 
its  duration  at  eight  years  from  the  day  of  the  exchange 
of  the  Imperial  ratifications.  The  two  parties,  previously 
to  the  expiration  of  that  term,  will  concert  together,  ac- 
cording to  the  state  of  affairs  at  that  time,  as  to  the  re- 
newal of  the  said  Treaty. 

Sepabatb  and  Seceet  Aeticle 

In  virtue  of  one  of  the  clauses  of  the  1st  Article  of  the 
Patent  Treaty  of  Defensive  Alliance  concluded  between 
the  Imperial  Court  of  Russia  and  the  Sublime  Porte,  the 
two  High  Contracting  Parties  are  bound  to  afford  each 
other  mutually  substantial  aid,  and  the  most  efficacious 
assistance  for  the  safety  of  their  respective  dominions. 
Nevertheless,  as  His  Majesty  the  Emperor  of  all  the  Rus- 
slas,  wishing  to  spare  the  Sublime  Ottoman  Porte  the 
expense  and  inconvenience  which  might  be  occasioned  to  it 
by  affording  substantial  aid,  will  not  ask  for  that  aid  if 
circumstances  should  place  the  Sublime  Porte  under  the 
obligation  of  furnishing  it,  the  Sublime  Ottoman  Porte,  in 
place  of  the  aid  which  it  is  bound  to  furnish  in  case  of 
need,  according  to  the  principle  of  reciprocity  of  the  Patent 
Treaty,  shall  confine  its  action  in  favour  of  the  Imperial 
Court  of  Russia  to  closing  the  Strait  of  the  Dardanelles, 
that  is  to  say,  to  not  allowing  any  foreign  vessel  of  war 
to  enter  therein  under  any  pretext  whatsoever. 

The  present  Separate  and  Secret  Article  shall  have  the 
same  force  and  value  as  if  it  was  inserted  word  for  word 
in  the  Treaty  of  Alliance  of  this  day. 


VIII.   Convention    Between  Great  Britain,  Austria, 
Prussia,  Russia,  and  Turkey,  for  the  Pacification 
of  the  Levant,  Signed  at  London,  July  15,  1840 

[Cmd.  1^3  (1878)  No.  43.     Text  also  In  Hertslet, 
II,  1008-1012;  Noradounghian,  II,  303  ff.] 

Article  III.  If  Mehemet  Ali,  after  having  refused  to 
submit  to  the  conditions  of  the  arrangement  abovemen- 
tioned  [specified  In  a  separate  Act],  should  direct  his  land 


or  sea  forces  against  Constantinople,  the  High  Contract- 
ing Parties,  upon  the  express  demand  of  the  Sultan, 
addressed  to  their  Representatives  at  Constantinople, 
agree,  in  such  case,  to  comply  with  the  request  of  that 
Sovereign,  and  to  provide  for  the  defense  of  his  throne 
by  means  of  a  cooperation  agreed  upon  by  mutual  consent, 
for  the  purpose  of  placing  the  two  Straits  of  the  Bosphorus 
and  Dardanelles,  as  well  as  the  capital  of  the  Ottoman 
Empire,  in  security  against  all  aggression. 

It  is  further  agreed  that  the  forces  which,  in  virtue  of 
such  concert,  may  be  sent  as  aforesaid,  shall  there  remain 
so  employed  as  long  as  their  presence  shall  be  required 
by  the  Sultan ;  and  when  His  Highness  shall  deem  their 
presence  no  longer  necessary,  the  said  forces  shall  simul- 
taneously withdraw,  and  shall  return  to  the  Black  Sea 
and  to  the  Mediterranean  respectively. 

Article  IV.  It  is,  liowever,  expressly  understood,  that 
the  cooperation  mentioned  in  the  preceding  Article,  and 
destined  to  place  the  Straits  of  the  Dardanelles  and  of  the 
Bosphorus,  and  the  Ottoman  capital,  under  the  temporary 
safeguard  of  the  High  Contracting  Parties  against  all 
aggression  of  Mehemet  Ali,  shall  be  considered  only  as  a 
measure  of  exception  adopted  at  the  express  demand  of 
the  Sultan,  and  solely  for  his  defense  in  the  single  case 
above-mentioned ;  but  it  is  agreed  that  such  measure  shall 
not  derogate  in  any  degree  from  tlie  ancient  rule  of  the 
Ottoman  Empire,  in  virtue  of  which  it  has  at  all  times 
been  prohibited  for  ships  of  war  of  foreign  Powers  to 
enter  the  Straits  of  the  Dardanelles  and  of  the  Bosphorus. 
And  the  Sultan,  on  the  one  hand,  hereby  declares  that,  ex- 
cepting the  contingency  above-mentioned,  it  is  his  firm 
resolution  to  maintain  in  future  this  principle  invariably 
establislied  as  the  ancient  rule  of  his  Empire;  and  as  long 
as  the  Porte  is  at  peace,  to  admit  no  foreign  ship  of  war 
into  the  Straits  of  the  Bosphorus  and  of  the  Dardanelles ; 
on  the  other  hand,  their  Majesties  the  Queen  of  the  United 
Kingdom  of  Great  Britain  and  Ireland,  the  Emperor  of 
Austria,  King  of  Hungary  and  Bohemia,  the  King  of 
Prussia,  and  the  Emperor  of  all  the  Russias,  engage  to 
respect  this  determination  of  the  Sultan,  and  to  conform 
to  the  above-mentioned  principle. 


IX.  Convention  Between  Great  Britain,  Austria, 
France,  Prussia,  Russia,  and  Turkey, 
Signed  at  London,  July  13,  1841 


[Cmd.  1953  (1878),  No.  46.    Text  also  in  Hertslet, 
II,  1024-1026.] 

Article  I.  His  Highness  the  Sultan,  on  the  one  part, 
declares  that  he  is  firmly  resolved  to  maintain  for  the 
future  the  principle  invariably  established  as  the  ancient 
rule  of  his  Empire,  and  in  virtue  of  which  it  has  at  all 
times  been  prohibited  for  the  ships  of  war  of  foreign 
Powers  to  enter  the  Straits  of  the  Dardanelles  and  of  the 


794 


Department  of  State  Bulletin 


November  3,  1946 


Bosphonis ;  and  that  so  long  as  the  Porte  is  at  peace,  His 
Highness  will  admit  no  foreign  ship  of  war  into  the  said 
Straits. 

And  their  Majesties  the  Queen  of  the  United  Kingdom 
of  Great  Britain  and  Ireland,  the  Emperor  of  Austria, 
the  King  of  Hungary  and  Bohemia,  the  King  of  the  French, 
the  King  of  Prussia,  and  the  Emperor  of  all  the  Russias, 
on  the  other  part,  engage  to  respect  this  determination 
of  the  Sultan,  and  to  conform  themselves  to  the  principle 
above  declared. 

Article  II.  It  is  understood  that  in  recording  the  in- 
violability of  the  ancient  rule  of  the  Ottoman  Empire 
mentioned  in  the  preceding  Article,  the  Sultan  reserves 
to  himself,  as  in  past  times,  to  deliver  Firmans  of  Passages 
for  light  vessels  under  flag  of  war,  which  shall  be  em- 
ployed as  is  usual  in  the  service  of  the  Missions  of  foreign 
Powers. 


X.  General  Treaty  Between  Great  Britain,  Austria, 
France,  Prussia,  Russia,  Sardinia,  and  the 
Ottoman  Empire,  Signed  at  Paris,  Marcli  30,  1856 


[Cmd.  1953  (1878),  No.  54.    Text  also  in  Hertslet, 
II,  1250-1265.] 

Article  X.  The  Convention  of  13th  July,  1841,  which 
maintains  the  ancient  rule  of  the  Ottoman  Empire  rela- 
tive to  the  closing  of  the  Straits  of  the  Bosphorus  and  of 
the  Dardanelles,   has  been  revised  by  common  consent. 

The  Act  concluded  for  that  purpose,  and  in  conformity 
with  that  principle,  between  the  High  Contracting  Parties 
is  and  remains  annexed  to  the  present  Treaty,  and  shall 
have  the  same  force  and  validity  as  if  it  formed  an  in- 
tegral part  thereof. 

Article  XI}  The  Black  Sea  is  neutralized:  its  waters 
and  its  ports,  thrown  open  to  the'  mercantile  marine 
of  every  nation,  are  formally  and  in  perpetuity  interdicted 
to  the  flag  of  war,  either  of  the  Powers  possessing  its 
coasts,  or  of  any  other  Power,  with  the  exceptions  men- 
tioned in  Articles  XIV  and  XIX  of  the  present  treaty. 

Article  XII.  Free  from  any  impediment,  the  commerce 
in  the  ports  and  waters  of  the  Black  Sea  shall  be  sub- 
ject only  to  regulations  of  health,  customs,  and  police, 
framed  in  a  spirit  favorable  to  the  development  of  com- 
mercial transactions. 

In  order  to  afford  to  the  commercial  and  maritime 
interests  of  every  nation  the  security  which  is  desired, 
Russia  and  the  Sublime  Porte  will  admit  Consuls  in  to 
their  ports  situated  upon  the  coast  of  the  Black  Sea, 
in  conformity  with  the  principles  of  international  law. 

Article  XIII.'  The  Black  Sea  being  neutralized  accord- 
ing to  the  terms  of  Article  XI,  the  maintenance  or  estab- 
lishment upon  its  coast  of  military-maritime  arsenals  be- 
comes alike  unnecessary  and  purposeless ;  in  consequence. 
His  Majesty  tlie  Emperor  of  all  the  Russias  and  His  Im- 
perial Majesty  the  Sultan  engage  not  to  establish  or  to 
maintain  upon  that  coast  any  military.maritlme  arsenal. 


Article  XIV.'  Their  Majesties  the  Emperor  of  all  the 
Russias  and  the  Sultan  having  concluded  a  Convention 
for  the  purpose  of  settling  the  force  and  the  number 
of  light  vessels  necessary  for  the  service  of  their  coasts, 
which  they  reserve  to  themselves  to  maintain  in  the  Black 
Sea,  that  Convention  is  annexed  to  the  present  Treaty, 
and  shall  have  the  same  force  and  validity  as  if  it  formed 
an  integral  part  thereof.  It  cannot  be  either  annulled  or 
modified  without  the  assent  of  the  Powers  signing  the 
present  Treaty. 

Article  XIX.  In  order  to  insure  the  execution  of  the 
regulations  which  shall  have  been  established  by  common 
agreement,  in  conformity  with  the  principles  above  de- 
clared, each  of  the  Contracting  Powers  shall  have  the 
right  to  station,  at  all  times,  two  light  vessels  at  the 
mouths  of  the  Danube. 

Additional  atid  Transitory  Article. — The  stipulations  of 
the  Convention  respecting  the  Straits,  signed  this  day, 
shall  not  be  applicable  to  the  vessels  of  war  employed 
by  the  belligerent  Powers  for  the  evacuation,  by  sea,  of 
the  territories  occupied  by  their  armies;  but  the  said 
stipulations  shall  resume  their  entire  effect  as  soon  as  the 
evacuation  shall  be  terminated. 


XI.  Convention  Between  Russia  and  the  Ottoman 
Empire  Limiting  Their  Naval  Force  in  the  Black 
Sea,  Signed  at  Paris,  March  30, 1856 

[Cmd.  1953  (1878),  No.  55.    Text  also  in  Hertslet, 
II,  1271.] 

Article  I.  The  High  Contracting  Parties  mutually  en- 
gage not  to  have  in  the  Black  Sea  any  otlier  Vessels  of 
war  than  those  of  which  the  number,  the  force,  and  the 
dimensions  are  hereinafter  stipulated. 

Article  II.  The  High  Contracting  Parties  reserve  to 
themselves  each  to  maintain  in  that  sea  six  steam-vessela 
of  fifty  metres  in  length  at  the  line  of  flotation,  of  a  ton- 
nage of  eight  hundred  tons  at  the  maximum,  and  four 
light  steam  or  sailing-vessels  of  a  tonnage  which  shall  not 
exceed  two  hundred  tons  each. 


XII.  Convention  Between  Great  Britain,  Austria, 
France,  Prussia,  Russia,  Sardinia,  and  the  Ottoman 
Empire  Respecting  the  Straits  of  the  Dardanelles 
and  of  the  Bosphorus. — Signed  at  Paris, 
March  30,  1856 


[Cmd.  1953  (1878),  No.  56. 
II,  12G8.] 


Text  also  in  Hertslet, 


Article  I.  His  Majesty  the  Sultan  on  the  one  part,  de- 
clares that  he  is  firmly  resolved  to  maintain  for  the  future 
the  principle  invariably  established  as  the  ancient  rule 


'  Abrogated  by  treaty  of  Mar.  13,  1871. 


795 


of  his  Empire,  and  in  virtue  of  which  it  has,  at  all  times, 
been  prohibited  for  the  ships  of  war  of  foreign  Powers 
to  enter  the  Strait  of  the  Dardanelles  and  of  the  Bos- 
phorus;  and  that,  so  long  as  the  Porte  is  at  peace.  His 
Majesty  shall  admit  no  foreign  ship  of  war  into  tlie  said 
Straits. 

And  their  Majesties  the  Queen  of  the  United  Kingdom 
of  Great  Britain  and  Ireland,  the  Emperor  of  Austria, 
the  Emperor  of  the  French,  the  King  of  Prussia,  the  Em- 
peror of  all  the  Russias,  and  the  King  of  Sardinia,  on  the 
other  part,  engage  to  respect  this  determination  of  the 
Sultan,  and  to  conform  themselves  to  the  principle  above 
declared. 

Article  II.  The  Sultan  reserves  to  himself,  as  in  past 
times,  to  deliver  firmans  of  passage  for  light  vessels  under 
flag  of  war,  which  shall  be  employed,  as  is  usual,  in  the 
service  of  the  Missions  of  foreign  Powers. 

Article  III.  The  same  exception  applies  to  the  light  ves- 
sels under  flag  of  war  which  each  of  the  Contracting 
Powers  Is  authorized  to  station  at  the  mouths  of  the 
Danube  in  order  to  secure  the  execution  of  the  regulations 
relative  to  the  liberty  of  that  river,  and  the  number  of 
which  is  not  to  exceed  two  for  each  Power. 


XIII,  Treaty  of  Commerce  and  Navigation  Between 
the  United  States  and  the  Ottoman  Empire, 
February  25,  1862.     Proclaimed  July  2, 1862 

[W.  M.  Malloy,  Treaties,  Conventions,  Interna- 
tional Acts,  Protocols  and  Agreements  between 
the  United  States  of  America  and  Other  Powers, 
1776-1909   (Washington,  1910),   II,  1321-28.] 

Article  I. — AH  rights,  privileges,  and  immunities,  which 
have  been  conferred  on  the  citizens  or  vessels  of  the 
United  States  of  America  by  the  treaty  already  existing 
between  the  United  States  of  America  and  the  Ottoman 
Empire,  are  confinned,  now  and  forever,  with  the  ex- 
ception of  those  clauses  of  the  said  treaty  which  it  Is 
the  object  of  the  present  treaty  to  modify ;  and  it  is 
moreover  expressly  stipulated  that  all  rights,  privileges, 
or  immunities,  which  the  Sublime  Porte  now  grants,  or 
may  hereafter  grant  to,  or  suffer  to  be  enjoyed  by  the 
subjects,  ships,  commerce,  or  navigation  of  any  other 
foreign  Power,  shall  be  equally  granted  to  and  exercised 
and  enjoyed  by  the  citizens,  vessels,  commerce,  and  navi- 
gation of  the  United  States  of  America. 


XIV.  Convention  Between  Great  Britain,  Austria, 
France,  Germany  (Prussia),  Italy,  Russia,  and 
the  Ottoman  Empire,  for  the  Revision  of  Certain 
Stipulations  of  the  Treaty  of  March  30, 1856. 
Signed  at  London,  March  13,  1871 

[Cmd.  1953  (1878),  No.  62.     Text  also  in  Herts- 
let,  III,  1920-1921.] 


Article  I.  Articles  XI,  XIII,  and  XIV  of  the  Treaty  of 
Paris  of  March  30,  18.'56,  as  well  as  the  special  Conven- 
tion concluded  between  Russia  and  the  Sublime  Porte, 
and  annexed  to  the  said  Article  XIV,  are  abrogated,  and 
replaced  by  the  following  Article. 

Article  II.  The  principle  of  the  closing  of  the  Straits 
of  the  Dardanelles  and  the  Bosphorus,  such  as  it  has  been 
established  by  the  separate  Convention  of  March  30, 
1856,  is  maintained,  with  power  to  His  Imperial  Majesty 
the  Sultan  to  open  the  said  Straits  in  time  of  peace  to  the 
vessels  of  war  of  friendly  and  allied  Powers,  in  case  the 
Sublime  Porte  should  judge  it  necessary  in  order  to  secure 
the  execution  of  the  stipulations  of  the  Treaty  of  Paris 
of  March  30,  1856. 

Article  III.  The  Black  Sea  remains  open,  as  hereto- 
fore, to  the  mercantile  marine  of  all  nations. 


XV.  The  Treaty  of  San  Stefano  Between  Russia 
and  the  Ottoman  Empire,   March  3,  1878. 
Preliminary  Treaty 

[Hertslet,  IV,  2674-2694.] 

Article  XXIV.  The  Bosphorus  and  the  Dardanelles  shall 
remain  open  in  time  of  war,  as  in  time  of  peace,  to  the 
merchant  vessels  of  neutral  States  arriving  from  or  bound 
to  Russian  ports.  The  Sublime  Porte  consequently  en- 
gages never  henceforth  to  establish  at  the  ports  of  the 
Black  Sea  and  the  Sea  of  Azov  a  fictitious  blockade  at 
variance  with  the  spirit  of  the  Declaration  signed  at  Paris, 
April  4/16,  1856. 


XVI.  Treaty  Between  Great  Britain,  Austria- 
Hungary,  France,  Germany,  Italy,  Russia,  and  the 
Ottoman  Empire,  for  the  Settlement  of  the  Affairs 
of  the  East,  Signed  at  Berlin,  13th  July,  1878 

[Hertslet,  IV   (No.  530),  2759-2798.] 

Maintenance  of  Tkeuties  op  March  30,  1856  and  Mabch 
13,  1871  (Dardanelle.s  and  Bosphobus,  etc.) 

Article  LXIII.  The  Treaty  of  Paris  of  March  30,  1856, 
as  well  as  the  Treaty  of  London  of  March  13,  1871,  are 
maintained  in  all  such  of  their  provisions  as  are  not 
abrogated  or  modified  by  the  preceding  stipulations. 


i 


796 


Department  of  State  Bulletin 


November  3,  1946 


XVII.  Declarations  Made  by  the  British  and  Russian 
Plenipotentiaries  at  the  Congress  of  Berlin, 
Respecting  the  Straits  of  the  Dardanelles  and 
Bosphorus,  11th  and  12th  July,  1878 

[Hertslet,  IV,  2727-2728.] 

(1)  Bbiiish  Declabation.     Extract  fbom  Pkotocol,  11th 
July,  1878 

With  regard  to  the  paragraph  relating  to  the  Treaties 
of  Paris  and  London,  Lord  Salisbury  remarks  that  at 
first  sight,  at  a  preceding  sitting,  he  had  stated  that  he 
was  not  satisfied  with  the  wording  of  this  Article.  These 
apprehensions  are  now  partly  set  at  rest  by  the  explana- 
tions offered  to  the  Congress :  His  Excellency  confines  him- 
self today  to  asking  that  the  following  Declaration,  which 
is  binding  only  his  Government,  may  be  inserted  in  the 
Protocol : 

"Considering  that  the  Treaty  of  Berlin  will  modify 
an  important  part  of  the  arrangements  sanctioned  by 
the  Treaty  of  Paris  of  1856,  and  that  the  interpretation 
of  Article  II  of  the  Treaty  of  London  which  is  dependent 
on  the  Treaty  of  Paris,  may  thus  become  a  matter  of 
dispute: 

"I  declare  on  behalf  of  England  that  the  obligations 
of  Her  Britannic  Majesty  relating  to  the  closing  of  the 
Straits  do  not  go  further  than  an  engagement  with  the 
Sultan  to  respect  in  this  matter  His  Majesty's  independent 
determinations  in  conformity  with  the  spirit  of  existing 
Treaties.     .     .     ." 

(2)  Russian  DECi,AB.\noN.    Extract  fkom  Pbotocol  12th 
July,  1878 

Count  Schouvalofif,  referring  to  the  declaration  made 
in  the  preceding  sitting  by  Lord  Salisbury,  on  the  sub- 
ject of  the  Straits,  demands  the  insertion  in  the  Protocol 
of  a  Declaration  on  the  same  subject  presented  by  the 
Plenipotentiaries  of  Russia : 

"The  Plenipotentiaries  of  Russia,  without  being  able 
exactly  to  appreciate  the  meaning  of  the  proposition  of 
the  second  Plenipotentiary  of  Great  Britain,  respecting 
the  closing  of  the  Straits,  restrict  themselves  to  demand- 
ing, on  their  part,  the  insertion  in  the  Protocol  of  the 
observation  :  that,  in  their  opinion,  the  principle  of  the 
closing  of  the  Straits  is  an  European  principle,  and  that 
the  stipulations  concluded  in  this  respect  in  1841,  1856 
and  1871,  confirmed  at  present  by  the  Treaty  of  Berlin' 
are  binding  on  the  part  of  all  the  Powers,  in  accordance 
with  the  spirit  and  letter  of  the  existing  Treaties  not 
only  as  regards  the  Sultan  but  also  as  regards  all  the 
Powers  signatory  to  these  transactions." 


XVIil.  Treaty  of  Peace  Between  the  Allied  Powers 
and  Turkey,  Signed  at  Sevres,  August  10,  1920 

[Text  from  British  Treaty  Series  (1920).  Treaty 
of  Peace  with  Turkey.  Signed  at  Sevres,  August 
10,  1920.  Cmd.  964.  This  treaty  did  not  enter 
into  force.] 

Section  U.— Straits 

Article  37.— The  navigation  of  the  Straits,  including 
the  Dardanelles,  the  Sea  of  Marmora  and  the  Bosphorus, 
shall  in  future  be  open,  both  in  peace  and  war,  to  every 
vessel  of  commerce  or  of  war,  and  to  military  and  com- 
mercial aircraft,  without  distinction  of  fiag. 

These  waters  shall  not  be  subject  to  blockade,  nor 
shall  any  belligerent  right  be  exercised  nor  any  act  of 
hostility  be  committed  within  them,  unless  in  pursuance 
of  a  decision  of  the  Council  of  the  League  of  Nations. 

Article  SS.— The  Turkish  Government  recognizes  that 
it  is  necessary  to  take  further  measures  to  ensure  the 
freedom  of  navigation  provided  for  in  Article  37,  and  ac- 
cordingly delegates,  so  far  as  it  is  concerned,  to  a  Com- 
mission to  be  called  the  "Commission  of  the  Straits",  and 
hereinafter  referred  to  as  "the  Commission",  the  control 
of  the  waters  specified  in  Article  39. 

The  Greek  Government,  so  far  as  it  is  concerned,  dele- 
gates to  the  Commission  the  same  powers  and  undertakes 
to  give  it  in  all  respects  the  same  facilities. 

Such  control  shall  be  exercised  in  the  name  of  the 
Turkish  and  Greek  Governments  respectively,  and  in  the 
manner  provided  in  this  Section. 

Article  3S.— The  authority  of  the  Commission  will  ex- 
tend to  all  the  waters  between  the  Mediterranean  mouth 
of  the  Dardanelles  and  the  Black  Sea  mouth  of  the  Bos- 
phorus, and  to  the  waters  within  three  miles  of  each  of 
these  mouths. 

This  authority  may  be  exercised  on  shore  to  such  ex- 
tent as  may  be  necessary  for  the  execution  of  the  pro- 
visions of  this  Section. 

Article  40.— The  Commission  shall  be  composed  of  rep- 
resentatives appointed  respectively  by  the  United  States 
of  America  (if  and  when  that  Government  is  willing  to 
participate),  the  British  Empire,  Prance,  Italy,  Japan, 
Russia  (if  and  when  Russia  becomes  a  member  of  the 
League  of  Nations),  Greece,  Rouniania,  and  Bulgaria  and 
Turkey  (if  and  when  the  two  latter  states  become  members 
of  the  League  of  Nations).  Each  Power  shall  appoint  one 
representative.  The  representatives  of  the  United  States 
of  America,  the  British  Empire,  France,  Italy,  Japan  and 
Russia  shall  each  have  two  votes.  The  representatives  of 
Greece,  Roumania,  and  Bulgaria  and  Turkey  shall  each 
have  one  vote.  Each  Commissioner  sliall  be  removable 
only  by  the  Government  which  appointed  him. 

Article  4I. — The  Commissioners  shall  enjoy,  within  the 
limits  specified  in  Article  39,  diplomatic  privileges  and 
immunities. 
Article  ^2.— The  Commission  will  exercise  the  powers 


719718 — 46- 


797 


conferred  on  It  by  the  present  Treaty  in  complete  inde- 
pendence of  the  local  authority.  It  will  have  its  own  flag, 
its  own  budget  and  its  separate  organization. 

Article  43. — Within  the  limits  of  its  jurisdiction  as  laid 
down  in  Article  39  the  Commission  will  be  charged  with 
the  following  duties:  (o)  the  execution  of  any  works 
considered  necessary  for  the  improvement  of  the  channels 
or  the  approaches  to  harbours;  (6)  the  lighting  and  buoy- 
ing of  the  channels;  (c)  the  control  of  pilotage  and  tow- 
age; (d)  the  control  of  anchorages;  (e)  the  control 
necessary  to  assure  the  application  in  the  ports  of  Con- 
stantinople and  Haidar  Pasha  of  the  regime  prescribed 
in  Articles  335  to  344,  Part  XI  (Ports,  Waterways  and 
Railways)  of  the  present  Treaty;  (f)  the  control  of  all 
matters  relating  to  wrecks  and  salvage;  (g)  the  control 
of  literage. 

Article  44. — In  the  event  of  the  Commission  finding  that 
the  liberty  of  passage  is  being  interfered  with,  it  will 
inform  tlie  representatives  at  Constantinople  of  the  Allied 
Powers  providing  the  occupying  forces  provided  for  in 
Article  178.  These  representatives  will  thereupon  concert 
with  the  naval  and  military  commanders  of  the  said 
forces  such  measures  as  may  be  deemed  necessary  to 
preserve  the  freedom  of  the  Straits.  Similar  action  shall 
be  taken  by  the  said  representatives  in  the  event  of  any 
external  action  threatening  the  liberty  of  passage  of  the 
Straits. 

Article  45. — For  the  purpose  of  the  acquisition  of  any 
property  or  the  execution  of  any  permanent  works  which 
may  be  required,  the  Commission  shall  be  entitled  to 
raise  such  loans  as  it  may  consider  necessary.  These  loans 
will  be  secured,  so  far  as  possible,  on  the  dues  to  be  levied 
on  the  shipping  using  the  Straits,  as  provided  in  Article  53. 

Article  46- — The  functions  previously  exercised  by  the 
Constantinople  Superior  Council  of  Health  and  the  Turkish 
Sanitary  Administration  which  was  directed  by  the  said 
Council,  and  the  functions  exercised  by  tlie  National  Life- 
boat Service  of  the  Bosphorus,  will  within  the  limits 
specified  in  Article  39  be  discharged  under  the  control  of 
the  Commission  and  in  such  manner  as  it  may  direct. 

The  Commission  will  cooperate  in  the  execution  of  any 
common  policy  adopted  by  the  League  of  Nations  for  pre- 
venting and  combating  disease. 

Article  47. — Subject  to  the  general  powers  of  control 
conferred  upon  the  Commission,  the  rights  of  any  persons 
or  companies  now  holding  concessions  relating  to  light- 
houses, docks,  quays  or  similar  matters  shall  be  main- 
tained ;  but  the  Commission  shall  be  entitled  if  it  thinks 
it  necessary  in  the  general  interest  to  buy  out  or  modify 
such  rights  upon  the  conditions  laid  down  in  Article  311, 
Part  IX  (Economic  Clauses)  of  the  present  Treaty,  or 
itself  to  take  up  a  new  concession. 

Article  48. — In  order  to  facilitate  the  execution  of  the 
duties  with  which  it  is  entrusted  by  this  Section,  the 
Commission  shall  have  power  to  organize  such  a  force 
of  special  police  as  may  be  necessary.  This  force  shall 
be  drawn  so  far  as  possible  from  the  native  population  of 


the  zone  of  the  Straits  and  islands  referred  to  in  Article 
178,  Part  V  (Military,  Naval  and  Air  Clauses),  excluding 
the  islands  of  Lemnos,  Imbros,  Samothrace,  Tenedo,s 
and  Mitylene.  The  said  force  shall  be  commanded  by 
foreign  police  officers  appointed  by  the  Commission. 

Article  49. — In  the  portion  of  the  zone  of  the  Straits, 
including  the  islands  of  the  Sea  of  Marmora,  which  re- 
mains Turkish,  and  pending  the  coming  into  force  of  the 
reform  of  the  Turkish  judicial  system  provided  for  in 
Article  136,  all  infringements  of  the  regulations  and  by- 
laws made  by  the  Commission,  committed  by  nationals 
of  capitulatory  Powers,  shall  be  dealt  with  by  the  Con- 
sular Courts  of  the  said  Powers.  The  Allied  Powers 
agree  to  make  such  infringements  justifiable  twfore  their 
Consular  Courts  or  authorities.  Infringements  com- 
mitted by  Turkish  nationals  or  nationals  of  non-capitu- 
latory  Powers  shall  be  dealt  with  by  the  competent  Turk- 
ish judicial  authorities. 

In  the  portion  of  the  said  zone  placed  under  Greek 
sovereignty  such  infringements  will  be  dealt  with  by  the 
competent  Greek  judicial  authorities. 

Article  50. — The  officers  or  members  of  the  crew  of  any 
merchant  vessel  within  the  limits  of  the  jurisdiction  of 
the  Commission  who  may  be  arrested  on  shore  for  any 
offense  committed  either  ashore  or  afloat  within  the 
limits  of  the  said  jurisdiction  shall  be  brought  before 
the  competent  judicial  authority  by  the  Commission's 
police.  If  the  accused  was  arrested  otherwise  than  by 
the  Commission's  police  he  shall  immediately  be  handed 
over  to  tliem. 

Article  51. — The  Commission  shall  appoint  such  sub- 
ordinate officers  or  officials  as  may  be  found  indispensable 
to  assist  it  in  carrying  out  the  duties  with  which  it  is 
charged. 

Article  52. — In  all  matters  relating  to  the  navigation 
of  the  waters  within  the  limits  of  the  jurisdiction  of  the 
Commission  all  the  ships  referred  to  in  Article  37  shall  be 
treated  upon  a  footing  of  absolute  equality. 

Article  53. — Subject  to  the  provisions  of  Article  47  the 
existing  rights  under  which  dues  and  charges  can  be 
levied  for  various  purposes,  whether  direct  by  the  Turkish 
Government  or  by  international  bodies  or  private  com- 
panies, on  ships  or  cargoes  within  the  limits  of  the  juris- 
diction of  the  Commission  shall  be  transferred  to  the 
Commission.  The  Commission  shall  fix  these  dues  and 
charges  at  such  amounts  only  as  may  be  reasonably  neces- 
sary to  cover  the  cost  of  the  works  executed  and  the  serv- 
ices rendered  to  shipping,  including  the  general  costs  and 
expenses  of  all  the  administration  of  the  Commission,  and 
the  salaries  and  pay  provided  for  in  paragraph  3  of  the 
Annex  to  this  Section. 

For  these  purposes  only  and  with  the  prior  consent  of 
the  Council  of  the  League  of  Nations  the  Commission  may 
also  establish  dues  and  charges  other  than  those  now 
existing  and  fix  their  amounts. 

Article  5.^.— All  dues  and  charges  imposed  by  the  Com- 
mission shall  be  levied  without  any  discrimination  and 


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Department  of  State  Bulletin 


November  3,  1946 


on  a  footing  of  absolute  equality  between  all  vessels,  what- 
ever their  port  of  origin,  destination  or  departure,  their 
flag  or  ownership,  or  the  nationality  or  ownership  of  their 
cargoes. 

This  disposition  does  not  affect  the  right  of  the  Com- 
mission to  fix  in  accordance  with  tonnage  the  dues  pro- 
vided for  by  this  Section. 

Article  55. — The  Turkish  and  Greelj  Governments  re- 
spectively undertake  to  facilitate  the  acquisition  by  the 
Commission  of  such  land  and  buildings  as  the  Commission 
shall  consider  it  necessary  to  acquire  in  order  to  carry  out 
effectively  the  duties  with  which  it  is  entrusted. 

Article  56. — Ships  of  war  in  transit  through  the  waters 
specified  in  Article  39  shall  conform  in  all  respects  to 
the  regulations  issued  by  the  Commission  for  the  observ- 
ance of  the  ordinary  rules  of  navigation  and  of  sanitary 
requirements. 

Article  57. —  (1)  Belligerent  warships  shall  not  revictual 
nor  take  in  stores,  except  so  far  as  may  be  strictly  neces- 
sary to  enable  them  to  complete  the  passage  of  the  Straits 
and  to  reach  the  nearest  port  where  they  can  call,  nor 
shall  they  replenish  or  increase  their  supplies  of  war  ma- 
terial or  their  armament  or  complete  their  crews,  within 
the  waters  under  the  control  of  the  Commission.  Only 
such  repairs  as  are  absolutely  necessary  to  render  them 
seaworthy  shall  be  carried  out,  and  they  shall  not  add 
In  any  manner  whatever  to  their  fighting  force.  The  Com- 
mission shall  decide  what  repairs  are  necessary,  and  these 
must  be  carried  out  with  the  least  possible  delay. 

(2)  The  passage  of  belligerent  warships  through  the 
waters  under  the  control  of  the  Commission  shall  be 
effected  with  the  least  possible  delay,  and  without  any 
other  interruption  than  that  resulting  from  the  necessities 
of  the  service. 

(3)  The  stay  of  such  warships  at  ports  within  the 
jurisdiction  of  the  Commission  shall  not  exceed  twenty- 
four  hours  except  in  case  of  distress.  In  such  case  they 
shall  be  bound  to  leave  as  soon  as  possible.  An  interval 
of  at  least  twenty-four  hours  shall  always  elapse  between 
the  sailing  of  a  belligerent  ship  from  the  waters  under 
the  control  of  the  Commission  and  the  departure  of  a 
ship  belonging  to  an  opposing  belligerent. 

(■1)  Any  further  regulations  affecting  in  time  of  war 
the  waters  under  the  control  of  the  Commission,  and 
relating  in  particular  to  the  passage  of  war  material  and 
contraband  destined  for  the  enemies  of  Turkey,  or  re- 
victualling,  taking  in  stores  or  carrying  out  repairs 
in  the  said  waters,  will  be  laid  down  by  the  League  of 
Nations. 

Article  5S.— Prizes  shall  in  all  respects  be  subjected  to 
the  same  conditions  as  belligerent  vessels  of  war. 

Article  59.— No  belligerent  shall  embark  or  disembark 
troops,  munitions  of  war  or  warlike  materials  in  the 
waters  under  the  control  of  the  Commission,  except  In 
cases  of  accidental  hindrance  of  the  passage,  and  in  such 
cases  the  passage  shall  be  resumed  with  all  possible  des- 
patch. 


Article  60.— Nothing  in  Articles  57,  58  or  69  shall  be 
deemed  to  limit  the  powers  of  a  belligerent  or  belligerents 
acting  In  pursuance  of  a  decision  by  the  Council  of  the 
League  of  Nations. 

Article  61. — Any  differences  which  may  arise  between 
the  Powers  as  to  the  interpretation  or  execution  of  the 
provisions  of  this  Section,  and  as  regards  Constantinople 
and  Haidar  Pasha  of  the  provisions  of  Articles  335  to  344, 
Part  XI  (Ports,  Waterways,  and  Railways)  shall  be  re- 
ferred to  the  Commission.  In  the  event  of  the  decision 
of  the  Commission  not  being  accepted  by  any  Power,  the 
question  shall,  on  the  demand  of  any  Power  concerned, 
be  settled  as  provided  by  the  League  of  Nations,  pending 
whose  decision  the  ruling  of  the  Commission  will  be 
carried  out. 


XIX.   Treaty  of  Friendship  Between  Soviet  Russia 
and  Turkey,  March  16, 1921 

[Great  Britain,  Foreign  Office,  British  and  For- 
eign State  Papers,  1923,  part  II,  vol.  IIS,  pp.  990- 
96.  Article  V,  cited  below,  is  equivalent  to 
article  9  of  the  Treaty  of  Kars,  October  13,  1921, 
ibid.,  1924,  vol.  120,  pp.  906-13,  and  to  article 
9  of  the  Turco-Ukralnian  treaty  of  January  2, 
1922,  Current  History  (No.  5,  February  1923), 
vol.  XVII,  p.  770.] 

.  Article  F.— In  order  to  assure  the  opening  of  the  Straits 
to  the  commerce  of  all  nations,  the  contracting  parties 
agree  to  entrust  the  final  elaboration  of  an  international 
agreement  concerning  the  Black  Sea  to  a  conference 
composed  of  delegates  of  the  littoral  States,  on  condition 
that  the  decisions  of  the  above-mentioned  conference  shall 
not  be  of  such  a  nature  as  to  diminish  the  full  sovereignty 
of  Turkey  or  the  security  of  Constantinople,  her  capital. 


XX.  The  Convention  Relating  to  the  Regime  of  the 
Straits,  Signed  at  Lausanne,  July  24,  1923 

[Treaty  Series  No.  16  (1923).     Treaty  of  Peace 
with  Turkey,  and  Other  Instruments  Signed  at 
Lausanne  on  July  24,  1923,  together  with  Agree- 
ments hetween  Greece  and  Turkey  signed  on  Jan- 
uary SO,  1923  and  Subsidiary  Documents  fanning 
part  of   the   Turkish  Peace  Settlement.     (With 
Map.)     Cmd.  1929,  pp.  109-29;  23  League  of  Na- 
tions Treaty  Series,  115  flf.] 
Signatories:     British     Empire,     France,     Italy,     Japan, 
Bulgaria,  Greece,  Rumania,  Russia,  Yugoslavia,  and 
Turkey. 

Article  i.— The  High  Contracting  Parties  agree  to  rec- 
ognize and  declare  the  principle  of  freedom  of  transit  and 


799 


of  navigation  by  sea  and  by  air  in  the  Strait  of  the  Dar- 
danelles, the  Sea  of  Marmora  and  the  Bosphorus,  herein- 
after comprised  under  the  general  term  of  the  "Straits". 
Article  2. — The  transit  and  navigation  of  commercial  ves- 
sels and  aircraft,  and  of  war  vessels  and  aircraft  in  the 
Straits  in  time  of  peace  and  in  time  of  vrar  shall  hence- 
forth be  regulated  by  the  provisions  of  the  attached  Annex. 

Annex.  Rules  for  the  Passage  of  Commercial  Vessels 

AND     AlBCE.\FT,     AND     OF     Wab     VeSSEXS     AND     AjBCKAFT 

Through  the  Stbaits 

1.  Merchant  Vessels,  Including  Hospital  Ships,  Yachts  and 

Fishing  Vessels  and  Non-Military  Aircraft, 
(a)  In  Time  of  Peace. 

Complete  freedom  of  navigation  and  passage  by  day 
and  by  night  under  any  flag  and  with  any  kind  of  cargo, 
without  any  formalities,  or  tax,  or  charge  whatever 
(subject,  however,  to  international  sanitary  provisions) 
unless  for  services  directly  rendered,  such  as  pilotage, 
light,  towage  or  other  similar  charges,  and  without 
prejudice  to  the  rights  exercised  in  this  respect  by  the 
services  and  undertakings  now  operating  under  con- 
cessions granted  by  the  Turkish  Government. 

To  facilitate  the  collection  of  these  dues,  merchant 
vessels  passing  the  Straits  will  communicate  to  stations 
appointed  by  the  Turkish  Government  their  name,  na- 
tionality, tonnage  and  destination. 

(6)  In  Time  of  War,  Turkey  Being  Neutral. 

Complete  freedom  of  navigation  and  passage  by  day 
and  by  night  under  the  same  conditions  as  above.  The 
duties  and  rights  of  Turkey  as  a  neutral  Power  cannot 
authorise  her  to  take  any  measures  liable  to  interfere 
with  navigation  through  the  Straits,  the  waters  of  which, 
and  the  air  above  which,  must  remain  entirely  free  in 
time  of  war,  Turkey  being  neutral  just  as  in  time  of 
peace. 

Pilotage  remains  optional. 

(c)  In  Time  of  War,  Turkey  Being  a  Belligerent. 

Freedom  of  navigation  for  neutral  vessels  and  neutral 
non-military  aircraft,  if  the  vessel  or  aircraft  in  ques- 
tion does  not  assist  the  enemy,  particularly  by  carrying 
contraband,  troops  or  enemy  nationals.  Turkey  will 
have  the  right  to  visit  and  search  such  vessels  and  air- 
craft, and  for  this  purpose  aircraft  are  to  alight  on 
the  ground  or  on  the  sea  in  such  areas  as  are  specified 
and  prepared  for  this  purpose  by  Turkey.  The  rights 
of  Turkey  to  apply  to  enemy  vessels  the  measures  al- 
lowed by  international  law  are  not  affected. 

Turkey  will  have  full  power  to  take  such  measures  as 
she  may  consider  necessary  to  prevent  enemy  vessels 
from  using  the  Straits.  These  measures,  however,  are 
not  to  be  of  such  a  nature  as  to  prevent  the  free  passage 
of  neutral  vessels,  and  Turkey  agrees  to  provide  such 
vessels  with  either  the  necessary  instructions  or  pilots 
for  the  above  puriwse. 


2.  Warships,  Including  Fleet  AuMliaries,  Troopships,  Air- 
craft Carriers  and  Military  Aircraft. 

(a)  In  Time  of  Peace. 

Complete  freedom  of  passage  by  day  and  by  night 
under  any  flag,  without  any  formalities,  or  tax,  or  charge 
whatever,  but  subject  to  the  following  restrictions  as 
to  the  total  force : 

The  maximum  force  which  any  one  Power  may  send 
through  the  Straits  into  the  Black  Sea  is  not  to  be 
greater  than  that  of  the  most  powerful  fleet  of  the 
littoral  Powers  of  the  Black  Sea  existing  in  that  sea 
at  the  time  of  passage;  but  with  the  proviso  that  the 
Powers  reserve  to  themselves  the  right  to  send  into 
the  Black  Sea  at  all  times  and  under  all  circumstances, 
a  force  of  not  more  than  three  ships,  of  which  no  in- 
dividual ship  shall  exceed  10,000  tons. 

Turkey  has  no  responsibility  in  regard  to  the  number 
of  war  vessels  which  pass  through  the  Straits. 

In  order  to  enable  the  above  rule  to  be  observed  the 
Straits  Commission  provided  for  in  Article  10  will,  on 
the  1st  January  and  the  1st  July  of  each  year,  enquire 
of  each  Black  Sea  littoral  Power  the  number  of  each 
of  the  following  classes  of  vessel  which  such  Power 
possesses  in  the  Black  Sea :  Battleships,  battle-cruisers, 
aircraft-carriers,  cruisers,  destroyers,  submarines,  or 
other  types  of  vessels  as  well  as  naval  aircraft ;  distin- 
guishing between  the  ships  which  are  in  active  commis- 
sion and  the  ships  with  reduced  complements,  the  ships 
In  reserve  and  the  ships  undergoing  repairs  or  altera- 
tions. 

The  Straits  Commission  will  then  inform  the  Powers 
concerned  that  the  strongest  naval  force  in  the  Black 
Sea  comprises:  Battleships,  battle-cruisers,  aircraft-car- 
riers, cruisers,  destroyers,  submarines,  aircraft  and 
units  of  other  types  which  may  exist.  The  Straits 
Commission  will  also  immediately  inform  the  Powers 
concerned  when,  owing  to  the  passage  into  or  out  of  the 
Black  Sea  of  any  ship  of  the  strongest  Black  Sea  force, 
any  alteration  in  that  force  has  taken  place. 

The  naval  force  that  may  be  sent  through  the  Straits 
into  the  Black  Sea  will  be  calculated  on  the  number  and 
type  of  the  ships  of  war  in  active  commission  only. 

(B)   In  Time  of  War,  Turkey  Being  Neutral. 

Complete  freedom  of  passage  by  day  and  by  night 
under  any  flag,  without  any  formalities,  or  tax,  or  charge 
whatever,  under  the  same  limitations  as  in  paragraph 
2  (a). 

However,  these  limitations  will  not  be  applicable  to 
any  belligerent  Power  to  the  prejudice  of  its  belligerent 
rights  in  the  Black  Sea. 

The  rights  and  duties  of  Turkey  as  a  neutral  Power 
cannot  authorise  her  to  take  any  measures  liable  to 
interfere  with  navigation  through  the  Straits,  the 
waters  of  which,  and  the  air  above  which,  must  remain 
entirely  free  in  time  of  war,  Turkey  being  neutral,  just 
as  in  time  of  peace. 


I 


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Department  of  State  Bulletin 


November  3,  1946 


Warships  and  military  aircraft  of  belligerents  will  be 
forbidden  to  make  any  capture,  to  exercise  the  right  of 
visit  and  search,  or  to  carry  out  any  other  hostile  act 
in  the  Straits. 

As  regards  revictualling  and  carrying  out  repairs,  war 
vessels  will  be  subject  to  the  terms  of  the  Tliirteenth 
Hague  Convention  of  1907,  dealing  with  maritime 
neutrality. 

Military  aircraft  will  receive  in  the  Straits  similar 
treatment  to  that  accorded  under  the  Tliirteenth  Hague 
Convention  of  1907  to  warships,  pending  the  conclusion 
of  an  international  Convention  establishing  the  rules  of 
neutrality  for  aircraft. 

(c)  In  Time  of  War,  Turkey  Being  Belligerent. 

Complete  freedom  of  passage  for  neutral  warships, 
without  any  formalities,  or  tax,  or  charge  whatever, 
but  under  the  same  limitations  as  in  paragraph  2(a). 

The  measures  taken  by  Turkey  to  prevent  enemy  ships 
and  aircraft  from  using  the  Straits  are  not  to  be  of  such 
a  nature  as  to  prevent  the  free  passage  of  neutral  ships 
and  aircraft,  and  Turkey  agrees  to  provide  the  said  ships 
and  aircraft  with  either  the  necessary  instructions  or 
pilots  for  the  above  purpose. 

Neutral  military  aircraft  will  make  the  passage  of 
the  Straits  at  their  own  risk  and  peril,  and  will  submit  to 
investigation  as  to  their  character.  For  this  purpose 
aircraft  are  to  alight  on  the  ground  or  on  the  sea  in 
such  areas  as  are  specified  and  prepared  for  this  purpose 
by  Turkey. 

3.  (a)  The  passage  of  the  Straits  by  submarines  of 
Powers  at  peace  with  Turkey  must  be  made  on  the 
surface. 

(6)  The  officer  in  command  of  a  foreign  naval  force, 
whether  coming  from  the  Mediterranean  or  the  Black 
Sea,  will  communicate,  without  being  compelled  to  stop, 
to  a  signal  station  at  the  entrance  to  the  Dardanelles  or 
the  Bosphorus,  the  number  and  the  names  of  vessels 
under  his  orders  which  are  entering  the  Straits. 

These  signal  stations  shall  be  notified  from  time  to 
time  by  Turkey ;  until  such  signal  stations  are  notified, 
the  freedom  of  passage  for  foreign  war  vessels  in  the 
Straits  shall  not  thereby  be  prejudiced,  nor  shall  their 
entry  into  the  Straits  be  for  this  reason  delayed. 

(c)  The  right  of  military  and  non-military  aircraft 
to  fly  over  the  Straits,  under  the  conditions  laid  down 
in  the  present  rules,  necessitates  for  aircraft — 

(i)  Freedom  to  fly  over  a  strip  of  territory  of  five 

kilometres  wide  on  eacM  side  of  the  narrow  parts  of 

the  Straits; 

(ii)   Liberty,  in  the  event  of  a  forced  landing,  to 

alight  on  the  coast  or  on  the  sea  in  the  territorial 

waters  of  Turkey. 

4.  Limitation  of  Time  of  Transit  for  Warships. 

In  no  event  shall  warships  in  transit  through  the  Straits, 
except  in  the  event  of  damage  or  peril  of  the  sea,  remain 


therein  beyond  the  time  which  is  necessary  for  them  to 
effect  their  passage,  including  the  time  of  anchorage  dur- 
ing the  night  if  necessary  for  safety  of  navigation. 

5.  Stay  in  the  Ports  of  the  Straits  and  of  the  Black  Sea. 

(a)  Paragraphs  1,  2  and  3  of  this  Annex  apply  to  the 
passage  of  vessels,  warships  and  aircraft  through  and 
over  the  Straits  and  do  not  affect  the  right  of  Turkey  to 
make  such  regulations  as  she  may  consider  necessary 
regarding  the  number  of  men-of-war  and  military  air- 
craft of  any  one  Power  which  may  visit  Turkish  ports  or 
aerodromes  at  one  time,  and  the  duration  of  their  stay. 

(6)  Littoral  Powers  of  the  Black  Sea  will  also  have 
a  similar  right  as  regards  their  ports  and  aerodromes. 

(c)  The  light-vessels  which  the  Powers  at  present  rep- 
resented on  the  European  Commission  of  the  Danube  main- 
tain as  stationnaires  at  the  mouths  of  that  river  as  far 
up  as  Galatz  will  be  regarded  as  additional  to  the  men-of- 
war  referred  to  in  paragraph  2,  and  may  be  replaced  in 
case  of  need. 

6.  Special  Provisions  Relating  to  Sanitary  Protection. 
Warships  which  have  on  board  cases  of  plague,  cholera 

or  typhus,  or  which  have  had  such  cases  on  board  during 
the  last  seven  days,  and  warships  which  have  left  an  in- 
fected port  within  less  than  five  times  24  hours  must  pass 
through  the  Straits  in  quarantine  and  apply  by  the  means 
on  board  such  prophylactic  measures  as  are  necessary  to 
prevent  any  possibility  of  the  Straits  being  infected. 

The  same  rule  shall  apply  to  merchant  ships  having  a 
doctor  on  board  and  passing  straight  through  the  Straits 
without  calling  at  a  port  or  breaking  bulk. 

Merchant  ships  not  having  a  doctor  on  board  shall  be 
obliged  to  comply  with  the  international  sanitary  regu- 
lations before  entering  the  Straits,  even  If  they  are  not 
to  call  at  a  port  therein. 

Warships  and  merchant  vessels  calling  at  one  of  the 
ports  in  the  Straits  shall  be  subject  in  tliat  port  to  the 
inteniational  sanitary  regulations  applicable  in  the  port 
in  question. 

Article  3. — With  a  view  to  maintaining  the  Straits  free 
from  any  obstacle  to  free  passage  and  navigation,  the 
provisions  contained  in  Articles  4  to  9  will  be  applied  to 
the  waters  and  shores  thereof  as  well  as  to  the  islands 
situated  therein,  or  in  the  vicinity. 

Article  J,. — Tlie  zones  and  islands  indicated  below  shall 
be  demilitarised: 

1.  Both    shores    of    the    Straits    of    the    Dardanelles 
and  the  Bosphorus  over  the  extent  of  the  zones  delimited 
below     .     .     .     : 
Dardanelles: 

On  the  north-west,  the  Gallipoli  Peninsula  and  the  area 
southeast  of  a  line  traced  from  a  point  on  the  Gulf  of 
Xeros  4  kilometres  northeast  of  Bakla-Burnu,  reaching 
the  Sea  of  Marmora  at  Kunbaghi  and  passing  south  of 
Kavak  (this  village  excluded) ; 


801 


On  the  south-east,  the  area  Included  between  the  coast 
and  a  line  20  kilometres  from  the  coast,  starting  from 
Cape  Eski-Stamboul  opposite  Tenedos  and  reaching  the 
Sea  of  Marmora  at  a  point  on  the  coast  immediately  north 
of  Karabigha. 

Bosplionis    (without  prejudice  to  the  special  provisions 
relating  to  Constantinople  contained  In  Article  8)  : 

On  the  east,  the  area  extending  up  to  a  line  15  kilometres 
from  the  eastern  shore  of  the  Bosphorus; 

On  the  tcest,  the  area  up  to  a  line  15  kilometres  from 
the  western  shore  of  the  Bosphorus. 

2.  All  the  islands  in  the  Sea  of  Marmora,  with  the 
exception  of  the  island  of  Emir  Ali  Adasi. 

3.  In  the  Aegean  Sea,  the  islands  of  Samothrace,  Lemnos, 
Imbros,  Tenedos  and  Rabbit  Islands. 

Article  5. — A  Commission  composed  of  four  representa- 
tives appointed  respectively  by  the  Governments  of  France, 
Great  Britain,  Italy  and  Turkey  shall  meet  within  15 
days  of  the  coming  into  force  of  the  present  Convention 
to  determine  on  the  spot  the  boundaries  of  the  zone  laid 
down  in  Article  4(1). 

The  Governments  represented  on  that  Commission  will 
pay  the  salaries  of  their  respective  representatives. 

Any  general  expenses  incurred  by  the  Commission  shall 
be  borne  in  equal  shares  by  the  Powers  represented  thereon. 

Article  G. — Subject  to  the  provisions  of  Article  8  con- 
cerning Constantinople,  there  shall  exist,  in  the  demili- 
tarised zones  and  islands,  no  fortifications,  no  permanent 
artillery  organisation,  no  submarine  engines  of  war  other 
than  submarine  vessels,  no  military  aerial  organisation, 
and  no  naval  base. 

No  armed  forces  shall  he  stationed  in  the  demilitarised 
zones  and  islands  except  the  police  and  gendarmerie 
forces  necessary  for  the  maintenance  of  order;  the  arma- 
ment of  such  forces  will  be  composed  only  of  revolvers, 
swords,  rifles  and  four  Lewis  guns  per  hundred  men,  and 
will  exclude  any  artillery. 

In  the  territorial  waters  of  the  demilitarised  zones  and 
islands,  there  shall  exist  no  submarine  engines  of  war 
other  than  submarine  vessels. 

Notwithstanding  the  preceding  paragraphs  Turkey  will 
retain  the  right  to  transport  her  armed  forces  through 
the  demilitarised  zones  and  islands  of  Turkish  territory, 
as  well  as  through  their  territorial  waters,  where  the 
Turkish   fleet  will   have  the  right   to   anchor. 

Moreover,  in  so  far  as  the  Straits  are  concerned,  the 
Turkish  Goverj^ient  shall  have  the  right  to  observe  by 
means  of  aeroplanes  or  balloons  both  the  surface  and  the 
bottom  of  the  sea.  Turkish  aeroplanes  will  always  be 
able  to  fly  over  the  waters  of  the  Straits  and  the  demili- 
tarised zones  of  Turkish  territory,  and  will  have  full  free- 
dom to  alight  therein,  either  on  land  or  on  sea. 
.  In  the  demilitarised  zones  and  islands  and  in  their  ter- 
ritorial waters,  Turkey  and  Greece  shall  similarly  be  en- 
titled to  effect  such  movements  of  personnel  as  are  ren- 
dered necessary  for  the  instruction  outside  these  zones  and 
islands  of  the  men  recruited  therein. 


Turkey  and  Greece  shall  have  the  right  to  organize  in  the 
said  zones  and  islands  in  their  respective  territories  any 
system  of  observation  and  communication,  both  tele- 
graphic, telephonic  and  visual.  Greece  shall  be  entitled 
to  send  her  fleet  into  the  territorial  waters  of  the  de- 
militarised Greek  islands,  but  may  not  use  these  waters 
as  a  base  of  operations  against  Turkey  nor  for  any  mili- 
tary or  naval  concentration  for  this  purpose. 

Article  7. — No  submarine  engines  of  war  other  than  sub- 
marine vessels  shall  be  installed  in  the  waters  of  the  Sea 
of  Marmora. 

The  Turkish  Government  shall  not  install  any  permanent 
battery  or  torpedo  tubes,  capable  of  interfering  with  the 
passage  of  the  Straits,  in  the  coastal  zone  of  the  European 
shore  of  the  Sea  of  Marmora  or  in  the  coastal  zone  of  the 
Anatolian  shore  situated  to  the  east  of  the  demilitarised 
zone  of  the  Bosphorus  as  far  as  Darije. 

Article  8. — At  Constantinople,  including  for  this  pur- 
pose Stamboul,  Pera,  Galata,  Scutari,  as  well  as  the 
Princes  Islands,  and  in  the  immediate  neighbourhood  of 
Constantinople,  there  may  be  maintained  for  the  require- 
ments of  the  capital,  a  garrison  vi-ith  a  maximum  strength 
of  12,000  men.  An  arsenal  and  naval  base  may  also  be 
maintained  at  Constantinople. 

Article  9. — If,  in  case  of  war,  Turkey,  or  Greece,  in 
pursuance  of  their  belligerent  rights,  should  modify  in 
any  way  the  provisions  of  demilitarisation  prescribed 
above,  they  will  be  bound  to  re-establish  as  soon  as  peace 
is  concluded  the  regime  laid  down  in  the  present  Conven- 
tion. 

Article  10. — ^There  shall  be  constituted  at  Constanti- 
nople an  International  Commission  composed  in  accord- 
ance with  Article  12  and  called  the  "Straits  Commission". 

Article  11. — The  Commission  will  exercise  its  functions 
over  the  waters  of  the  Straits. 

Article  12. — The  Commission  shall  be  composed  of  a 
representative  of  Turkey,  who  shall  be  President,  and 
representatives  of  France,  Great  Britain,  Italy,  Japan, 
Bulgaria,  Greece,  Roumania,  Russia,  and  the  Serb- 
Croat-Slovene  State,  in  so  far  as  these  Powers  are  signa- 
tories of  the  present  Convention,  each  of  these  Powers 
being  entitled  to  representation  as  from  its  ratification 
of  the  said  Convention. 

The  United  States  of  America,  in  the  event  of  their 
acceding  to  the  present  Convention,  will  also  be  entitled 
to  have  one  representative  on  the  Commission. 

Under  the  same  conditions  any  independent  littoral 
States  of  the  Black  Sea  which  are  not  mentioned  in  the 
first  paragraph  of  the  present  Article  will  possess  the 
same  right. 

Article  IS.— The  Governments  represented  on  the 
Commission  will  pay  the  salaries  of  their  representatives. 
Any  incidental  expenditure  incurred  by  the  Commission 
will  be  borne  by  the  said  Governments  in  the  proportion 
laid  down  for  the  division  of  the  expenses  of  the  League 
of  Nations. 

Article  U/.—lt  will  be  the  duty  of  the  Commission  to 


802 


Department  of  State  Bulletin 


ISovemher  3,  1946 


see  that  the  provisions  relating  to  the  passage  of  warships 
and  military  aircraft  are  carried  out ;  these  provisions 
are  laid  down  in  paragraphs  2,  3  and  4  of  the  Annex  to 
Article  2. 

Article  15. — The  Straits  Commission  will  carry  out  its 
functions  under  the  auspices  of  the  League  of  Nations, 
and  will  address  to  the  League  an  annual  report  giving 
an  account  of  its  activities,  and  furnishing  all  informa- 
tion which  may  be  useful  in  the  interests  of  commerce 
and  navigation  ;  with  this  object  in  view  the  Commission 
wUl  place  itself  in  touch  with  the  departments  of  the 
Turkish  Government  dealing  with  navigation  through 
the  Straits. 

Article  16. — It  will  be  the  duty  of  the  Commission  to 
prescribe  such  regulations  as  may  be  necessary  for  the 
accomplishment  of  its  task. 

Article  17. — The  terms  of  the  present  Convention  will 
not  infringe  the  right  of  Turkey  to  move  her  fleet  freely 
in  Turkish  waters. 

Article  IS. — The  High  Contracting  Parties,  desiring  to 
secure  that  the  demilitarisation  of  the  Straits  and  of  the 
contiguous  zones  shall  not  constitute  an  unjustifiable 
danger  to  the  military  security  of  Turkey,  and  that  no 
act  of  war  should  imperil  the  freedom  of  the  Straits  or 
the  safety  of  the  demilitarised  zones,  agree  as  follows: 

Should  the  freedom  of  navigation  of  the  Straits  or  the 
security  of  the  demilitarised  zones  be  imperilled  by  a 
violation  of  the  provisions  relating  to  freedom  of  passage, 
or  by  a  surprise  attack  or  some  act  of  war  or  threat  of 
war,  the  High  Contracting  Parties,  and  in  any  case  France, 
Great  Britain,  Italy  and  Japan,  acting  in  conjunction,  will 
meet  such  violation,  attack,  or  other  act  of  war  or  threat 
of  war,  by  all  the  means  that  the  CouncU  of  the  League 
of  Nations  may  decide  for  this  purpose. 

So  soon  as  the  circumstances  which  may  have  necessi- 
tated the  action  provided  for  in  the  preceding  paragraph 
shall  have  ended,  the  regime  of  the  Straits  as  laid  down 
by  the  terms  of  the  present  Convention  shall  again  be 
strictly  applied. 

The  present  provision,  which  forms  an  integral  part 
of  those  relating  to  the  demilitarisation  and  to  the  free- 
dom of  the  Straits,  does  not  prejudice  the  rights  and 
obligations  of  the  High  Contracting  Parties  under  the 
Covenant  of  the  League  of  Nations. 

Article  19. — The  High  Contracting  Parties  will  use  every 
possible  endeavour  to  induce  non-signatory  Powers  to 
accede  to  the  present  Convention. 

This  adherence  will  be  notified  through  the  diplomatic 
channel  to  the  Government  of  the  French  Republic,  and 
by  that  Government  to  all  signatory  or  adhering  States. 
The  adherence  will  take  effect  as  from  the  date  of  notifi- 
cation to  the  French  Government. 

Article  20. — The  present  Convention  shall  be  ratified. 
The  ratifications  shall  be  deposited  at  Paris  as  soon  as 
possible.     .     .     . 


XXI.  Convention  Regarding  the  Regime  of  the 
Straits,  Signed  at  Montreux,  July  20,  1936. 
Entered  into  force  November  9,  1936 

[Turkey  No.  1  (1936).  Convention  regarding 
the  Regime  of  the  Straits  with  Correspondence 
relating  thereto.  Montreux,  July  20,  1936. 
Cmd.  5249 ;  173  League  of  Nations  Treaty  Series, 
213.] 

Signatories :    Bulgaria,    France,    Great   Britain,    Greece, 
Japan,  Rumania,  Turkey,  U.S.S.R.,  and  Yugoslavia. 

Article  1. — The  High  Contracting  Parties  recognise  and 
affirm  the  principle  of  freedom  of  transit  and  navigation 
by  sea  in  the  Straits. 

The  exercise  of  this  freedom  shall  henceforth  be  regu- 
lated by  the  provisions  of  the  present  Convention. 

Section  I. — Merchant  Vessels 

Article  2. — In  time  of  peace,  merchant  vessels  shall 
enjoy  complete  freedom  of  transit  and  navigation  in  the 
Straits,  by  day  and  by  night,  under  any  flag  and  with 
any  kind  of  cargo,  without  any  formalities,  except  as 
provided  in  Article  3  below.  No  taxes  or  charges  other 
than  those  authorised  by  Annex  I  to  the  present  Con- 
vention shall  be  levied  by  the  Turkish  authorities  on 
these  vessels  when  passing  in  transit  without  calling  at 
a  port  in  the  Straits. 

In  order  to  facilitate  the  collection  of  these  taxes  or 
charges  merchant  vessels  passing  through  the  Straits 
shall  communicate  to  the  ofllcials  at  the  stations  referred 
to  in  Article  3  their  name,  nationality,  tonnage,  destina- 
tion and  last  port  of  call  (provenance). 

Pilotage  and  towage  remain  optional. 

Article  3. — All  ships  entering  the  Straits  by  the  Aegean 
Sea  or  by  the  Black  Sea  shall  stop  at  a  sanitary  station 
near  the  entrance  to  the  Straits  for  the  puriio.ses  of  the 
sanitary  control  prescribed  by  Turkish  law  within  the 
framework  of  international  sanitary  regulations.  This 
control,  in  the  case  of  ships  possessing  a  clean  bill  of 
health  or  presenting  a  declaration  of  health  testifying 
that  they  do  not  fall  within  the  scope  of  the  provisions 
of  the  second  paragraph  of  the  present  article,  shall  be 
carried  out  by  day  and  by  night  with  all  possible  speed, 
and  the  vessels  in  question  shall  not  be  required  to  make 
any  other  stop  during  their  passage  through  the  Straits. 

Vessels  which  have  on  board  cases  of  plague,  cholera, 
yellow  fever,  exanthematic  typhus  or  smallpox,  or  which 
have  had  such  cases  on  board  during  the  previous  seven 
days,  and  vessels  which  have  left  an  infected  port  within 
less  than  five  times  twenty-four  hours  shall  stop  at  the 
sanitary  stations  indicated  in  the  preceding  paragraph 
in  order  to  embark  such  sanitary  guards  as  the  Turkish 
authorities  may  direct.  No  tax  or  charge  shall  be  levied 
in  respect  of  these  sanitary  guards  and  they  shall  be  dis- 


803 


embarked  at  a  sanitary  station  on  departure  from  tlie 
Straits. 

Article  ^.— In  time  of  war,  Turliey  not  being  belligerent, 
merchant  vessels,  under  any  flag  or  with  any  kind  of 
cargo,  shall  enjoy  freedom  of  transit  and  navigation  in 
the  Straits  subject  to  the  provisions  of  Articles  2  and  3. 

Pilotage  and  towage  remain  optional. 

Article  5. — In  tiuK'  of  war,  Turkey  being  belligerent, 
merchant  vessels  not  belonging  to  a  country  at  war  with 
Turkey  shall  enjoy  freedom  of  transit  and  navigation  in 
the  Straits  on  condition  that  they  do  not  in  any  way  assist 
the  enemy. 

Such  vessels  shall  enter  the  Straits  by  day  and  their 
transit  shall  be  effected  by  the  route  which  shall  in  each 
case  be  indicated  by  the  Turkish  authorities. 

Article  6. — Should  Turkey  consider  herself  to  be  threat- 
ened with  imminent  danger  of  war,  the  provisions  of 
Article  2  shall  nevertheless  continue  to  be  applied  except 
that  vessels  must  enter  the  Straits  by  day  and  that  their 
transit  must  be  effected  by  the  route  which  shall,  in  each 
case,  be  indicated  by  the  Turkish  authorities. 

Pilotage  may,  in  this  case,  be  made  obligatory,  but  no 
charge  shall  be  levied. 

Article  7. — The  term  "merchant  vessels"  applies  to  all 
vessels  which  are  not  covered  by  Section  II  of  the  present 
Convention. 

Section  II. — Vessels  of  War 

Article  S. — For  the  purposes  of  the  present  Convention, 
the  definitions  of  vessels  of  war  and  of  their  specification 
together  with  those  relating  to  the  calculation  of  tonnage 
shall  be  as  set  forth  in  Annex  II  to  the  present  Convention. 

Article  9. — Naval  auxiliary  vessels  specifically  designed 
for  the  carriage  of  fuel,  liquid  or  non-liquid,  shall  not 
be  subject  to  the  provisions  of  Article  13  regarding  notifica- 
tion, nor  shall  they  be  counted  for  the  purpose  of  calculat- 
ing the  tonnage  which  is  subject  to  limitation  under  Ar- 
ticles 14  and  18,  on  condition  that  they  shall  pass  through 
the  Straits  singly.  They  shall,  however,  continue  to  be 
on  the  same  footing  as  vessels  of  war  for  the  purpose  of 
the  remaining  provisions  governing  transit. 

The  auxiliary  vessels  specified  in  the  preceding  para- 
graph shall  only  be  entitled  to  benefit  by  the  exceptional 
status  therein  contemplated  if  their  armament  does  not 
include :  for  use  against  floating  targets,  more  than  two 
guns  of  a  maximum  calibre  of  105  millimetres ;  for  use 
against  aerial  targets,  more  than  two  guns  of  a  maximum 
calibre  of  7ii  millimetres. 

Article  10. — In  time  of  peace,  light  surface  vessels, 
minor  war  vessels  and  auxiliary  vessels,  whether  belonging 
to  Black  Sea  or  non-Black  Sea  Powers,  and  whatever  their 
flag,  shall  enjoy  freedom  of  transit  through  the  Straits 
without  any  taxes  or  charges  whatever,  provided  that  such 
transit  is  begun  during  daylight  and  subject  to  the  con- 
ditions laid  down  in  Article  13  and  the  articles  following 
thereafter. 

Vessels  of  war  other  than  those  which  fall  within  the 


categories  specified  in  the  preceding  paragraph  shall  only 
enjoy  a  right  of  transit  under  the  special  conditions  pro- 
vided by  Articles  11  and  12. 

Article  11. — Black  Sea  Powers  may  send  through  the 
Straits  capital  ships  of  a  tonnage  greater  than  that  laid 
down  in  the  first  paragraph  of  Article  14,  on  condition 
that  these  vessels  pass  through  the  Straits  singly,  escorted 
by  not  more  than  two  destroyers. 

Article  12. — Black  Sea  Powers  shall  have  the  right  to 
send  through  the  Straits,  for  the  purpose  of  rejoining 
their  base,  submarines  constructed  or  purchased  outside 
the  Black  Sea,  provided  that  adequate  notice  of  the  lay- 
ing down  or  purchase  of  such  submarines  shall  have  been 
given  to  Turkey. 

Submarines  belonging  to  the  said  Powers  shall  also  be 
entitled  to  pass  through  the  Straits  to  be  repaired  in  dock- 
yards outside  the  Black  Sea  on  condition  that  detailed 
information  on  the  matter  is  given  to  Turkey. 

In  either  case,  the  said  submarines  must  travel  by  day 
and  on  the  surface,  and  must  pass  through  the  Straits 
singly. 

Article  13. — The  transit  of  vessels  of  war  through  the 
Straits  shall  be  preceded  by  notification  given  to  the  Turk- 
ish Government  through  the  diplomatic  channel.  The 
normal  period  of  notice  shall  be  eight  days ;  but  it  is  de- 
sirable that  in  the  case  of  non-Black  Sea  Powers  this 
period  should  be  increased  to  fifteen  days.  The  notifica- 
tion sliall  specify  the  destination,  name,  type  and  number 
of  the  vessels,  as  also  the  date  of  entry  for  the  outward 
passage  and,  if  necessary,  for  the  return  journey.  Any 
change  of  date  shall  be  subject  to  three  days'  notice. 

Entry  into  the  Straits  for  the  outward  passage  shall 
take  place  within  a  period  of  five  days  from  the  date 
given  in  the  original  notification.  After  the  expiry  of  this 
period,  a  new  notification  shall  be  given  under  the  same 
conditions  as  for  the  original  notification. 

When  effecting  transit,  the  commander  of  the  naval  force 
shall,  without  being  under  any  obligation  to  stop,  com- 
municate to  a  signal  station  at  the  entrance  to  the  Dar- 
danelles or  the  Bosphorus  the  exact  composition  of  the 
force  under  his  orders. 

Article  I'l. — The  maximum  aggregate  tonnage  of  all  for- 
eign naval  forces  which  may  be  in  course  of  transit  through 
the  Straits  shall  not  exceed  15,000  tons,  except  in  the 
cases  provided  for  in  Article  11  and  in  Annex  III  to  the 
present  Convention. 

Tlie  forces  specified  in  the  preceding  paragraph  shall 
not,  however,  comprise  more  than  nine  vessels. 

Vessels,  whether  belonging  to  Black  Sea  or  non-Black 
Sea  Powers,  paying  visits  to  a  port  in  the  Straits,  in  ac- 
cordance with  the  provisions  of  Article  17,  shall  not  be 
included  in  this  tonnage. 

Neither  shall  vessels  of  war  which  have  suffered  damage 
during  their  passage  through  the  Straits  be  included  in 
this  tonnage;  such  vessels,  while  undergoing  repair,  shall 
be  subject  to  any  special  provisions  relating  to  security 
laid  down  by  Turkey. 

Article  15. — Vessels  of  war  in  transit  through  the  Straits 


804 


Department  of  State  Bulletin 


November  3,  1946 


shall  in  uo  circumstances  make  use  of  any  aircraft  which 
they  may  be  carrying. 

Article  iff.— Vessels  of  war  in  transit  through  the  Straits 
shall  not,  except  in  tlie  event  of  damage  or  peril  of  the 
sea,  remain  therein  longer  than  is  necessary  for  them  to 
effect  the  passage. 

Article  i7.— Nothing  in  the  provisions  of  the  preceding 
article.^  sliall  prevent  a  naval  force  of  any  tonnage  or  com- 
position from  paying  a  courtesy  visit  of  limited  duration 
to  a  port  in  the  Straits,  at  the  invitation  of  the  Turkish 
Government.  Any  such  force  must  leave  the  Straits  by  the 
same  route  as  that  by  which  it  enteretl,  unless  it  fulfils 
the  conditions  required  for  passage  in  transit  through  the 
Straits  as  laid  down  by  Articles  10,  14,  and  18. 

Article  iS.— (1)  The  aggregate  tonnage  which  non-Black 
Sea  Powers  may  have  in  that  sea  in  time  of  peace  shall 
be  limited  as  follows : 

(a)  Except  as  provided  in  paragraph  (6)  below,  the 
aggregate  tonnage  of  the  said  Powers  shall  not  exceed 
30,000  tons ; 

(6)  If  at  any  time  the  tonnage  of  the  strongest  fleet 
in  the  Black  Sea  shall  exceed  by  at  least  10,000  tons  the 
tonnage  of  the  strongest  fleet  in  that  sea  at  the  date  of 
the  signature  of  the  present  Convention,  the  aggregate 
tonnage  of  30,000  tons  mentioned  in  paragraph  (o)  shall 
be  increased  by  the  same  amount,  up  to  a  maximum  of 
45,000  tons.  For  this  purpose,  each  Black  Sea  Power 
shall,  in  conformity  with  Annex  IV  to  the  present  Con- 
vention, inform  the  Turkish  Government,  on  the  1st 
January  and  the  1st  July  of  each  year,  of  the  total 
tonnage  of  its  fleet  in  the  Black  Sea ;  and  the  Turkish 
Government  shall  transmit  this  information  to  the  other 
High  Contracting  Parties  and  to  the  Secretary-General 
of  the  League  of  Nations. 

(c)  The  tonnage  wliich  any  one  non-Black  Sea  Power 
may  have  in  tlie  Black  Sea  shall  be  limited  to  two- 
thirds  of  the  aggregate  tonnage  provided  for  in  para- 
graphs (a)  and  (6)  above; 

((J)  In  the  event,  however,  of  one  or  more  non-Black 
Sea  Powers  desiring  to  send  naval  forces  into  the  Black 
Sea,  for  a  humanitarian  purpose,  the  said  forces,  which 
shall  in  no  ease  exceed  8,000  tons  altogether,  shall  be 
allowed  to  enter  the  Black  Sea  without  having  to  give 
the  notification  provided  in  Article  13  of  the  present 
Convention,  provided  an  authorisation  is  obtained  from 
the  Turki.sh  Government  in  the  following  circumstances : 
if  the  figure  of  the  aggregate  tonnage  specified  in  para- 
graphs (a)  and  (6)  above  has  not  been  reached  and  will 
not  be  exceeded  by  the  despatch  of  the  forces  which  it  is 
desired  to  send,  the  Turkish  Government  shall  grant 
the  said  authorisation  within  the  shortest  possible  time 
after  receiving  the  request  which  has  been  addressed 
to  it ;  if  the  said  figure  has  already  been  reached  or  if 
the  despatch  of  the  forces  which  it  is  desired  to  send  will 
cause  it  to  be  exceeded,  the  Turkish  Government  will 
immediately  inform  the  other  Black  Sea  Powers  of 
the  request  for  authorisation,  and  if  the  said  Powers 
make  no  objection  within  twenty-four  hours  of  having 


received  this  information,  the  Turkish  Government  shall, 
within  twenty-four  hours  at  tlie  latest,  inform  the  in- 
terested Powers  of  the  reply  which  it  has  decided  to 
make  to  their  request. 

Any  furtlier  entry  into  the  Black  Sea  of  naval  forces 
of  non-Black  Sea  Powers  shall  only  be  effected  within 
the  available  limits  of  the  aggregate  tonnage  provided 
for  in  paragraphs  (a)  and  (6)  above. 
(2)  Vessels  of  war  belonging  to  non-Black  Sea  Powers 
shall  not  remain  in  the  Black  Sea  more  than  twenty-one 
days,  whatever  be  the  object  of  their  presence  there. 

Article  19. — In  time  of  war,  Turkey  not  being  belligerent, 
warships  shall  enjoy  complete  freedom  of  transit  and 
navigation  through  the  Straits  under  the  same  conditions 
as  those  laid  down  in  Articles  10  to  18. 

Vessels  of  war  belonging  to  belligerent  Powers  shall  not, 
however,  pass  through  the  Straits  except  in  cases  arising 
out  of  the  application  of  Article  25  of  the  present  Conven- 
tion, and  in  cases  of  assistance  rendered  to  a  State  victim 
of  aggression  in  virtue  of  a  treaty  of  mutual  assistance 
binding  Turkey,  concluded  within  the  framework  of  the 
Covenant  of  the  League  of  Nations,  and  registered  and 
published  in  accordance  with  the  provisions  of  Article  18 
of  the  Covenant. 

In  the  exceptional  cases  provided  for  in  the  preceding 
paragraph,  the  limitations  laid  down  in  Articles  10  to  18 
of  the  present  Convention  shall  not  be  applicable. 

Notwithstanding  the  prohibition  of  passage  laid  down 
in  paragraph  2  above,  vessels  of  war  belonging  to  bellig- 
erent Powers,  whether  they  are  Black  Sea  Powers  or 
not,  which  have  become  separated  from  their  bases,  may 
return  thereto. 

Vessels  of  war  belonging  to  belligerent  Powers  shall 
not  make  any  capture,  exercise  the  right  of  visit  and 
search,  or  carry  out  any  hostile  act  in  the  Straits. 

Article  20. — In  time  of  war,  Turkey  being  belligerent, 
the  provisions  of  Articles  10  to  18  shall  not  be  applicable; 
the  passage  of  warships  shall  be  left  entirely  to  the  dis- 
cretion of  the  Turkish  Government. 

Article  2i.— Should  Turkey  consider  herself  to  be  threat- 
ened with  imminent  danger  of  war  she  shall  have  the  right 
to  apply  the  provisions  of  Article  20  of  the  present  Con- 
vention. 

Vessels  which  have  passed  through  the  Straits  before 
Turkey  has  made  use  of  the  powers  conferred  upon  her 
by  the  preceding  paragraph,  and  which  thus  find  them- 
selves separated  from  their  bases,  may  return  thereto. 
It  is,  however,  understood  that  Turkey  may  deny  this  right 
to  vessels  of  war  belonging  to  the  State  whose  attitude 
has  given  rise  to  the  application  of  the  pre.sent  article. 

Should  the  Turkish  Government  make  use  of  the  powers 
conferred  by  the  first  paragraph  of  the  present  article,  a 
notification  to  that  effect  shall  be  addressed  to  the  High 
Contracting  Parties  and  to  the  Secretary-General  of  the 
League  of  Nations. 

If  the  Council  of  the  League  of  Nations  decide  by  a 
majority  of  two-thirds  that  the  measures  thus  taken  by 
Turkey  are  not  justified,  and  if  such  should  also  be  the 


805 


opinion  of  the  majority  of  the  High  Contracting  Parties 
signatories  to  the  present  Convention,  the  Turkish  Gov- 
ernment undertakes  to  discontinue  the  measures  in  ques- 
tion as  also  any  measures  which  may  have  been  taken 
under  Article  6  of  the  present  Convention. 

Article  22.— Vessels  of  war  which  have  on  board  cases 
of  plague,  cholera,  yellow  fever,  exanthematic  typhus  or 
smallpox  or  which  have  had  such  cases  on  board  within  the 
last  seven  days  and  vessels  of  war  which  have  left  an 
infected  port  within  less  than  five  times  twenty-four  hours 
must  pass  through  the  Straits  in  quarantine  and  apply 
by  the  means  on  board  such  prophylactic  measures  as  are 
necessary  in  order  to  prevent  any  possibility  of  the  Straits 
being  infected. 

Section  III. — Aircraft 

Article  23.— In  order  to  assure  the  passage  of  civil  air- 
craft between  the  Mediterranean  and  the  Black  Sea,  the 
Turki-sh  Government  will  indicate  the  air  routes  avail- 
able for  this  pui-pose,  outside  the  forbidden  zones  which 
may  be  established  in  the  Straits.  Civil  aircraft  may  use 
these  routes  provided  that  they  give  the  Turkish  Govern- 
ment, as  regards  occasional  flights,  a  notification  of  three 
days,  and  as  regards  flights  on  regular  services,  a  general 
notification  of  the  dates  of  passage. 

The  Turkish  Government  moreover  undertakes,  not- 
withstanding any  remilitarization  of  the  Straits,  to  fur- 
nish the  necessary  facilities  for  the  safe  passage  of  civil 
aircraft  authorized  under  the  air  regulations  in  force  in 
Turkey  to  fly  across  Turkish  territory  between  Europe 
and  Asia.  The  route  which  is  to  be  followed  in  the 
Straits  zone  by  aircraft  which  have  obtained  an  author- 
ization shall  be  indicated  from  time  to  time. 

Section  IV. — General  Provisions 
Article  2^.— Tlie  functions  of  the  International  Com- 
mission set  up  under  the  Convention  relating  to  the  regime 
of  the  Straits  of  the  24th  July,  1923,  are  hereby  trans- 
ferred to  the  Turkish  Government. 

The  Turkish  Government  undertakes  to  collect  statis- 
tics and  to  furnish  information  concerning  the  applica- 
tion of  Articles  11,  12,  14  and  18  of  the  present  Convention. 
They  will  supervise  the  execution  of  all  the  provisions 
of  the  present  Convention  relating  to  the  passage  of  vessels 
of  war  through  the  Straits. 

As  soon  as  they  have  been  notified  of  the  intended 
passage  through  the  Straits  of  a  foreign  naval  force  the 
Turkish  Government  shall  inform  the  representatives  at 
Angora  of  the  High  Contracting  Parties  of  the  composi- 
tion of  that  force,  its  tonnage,  the  date  fixed  for  its  entry 
into  the  Straits,  and,  if  necessary,  the  probable  date  of 
its  return. 

The  Turkish  Government  shall  address  to  the  Secretary- 
General  of  the  League  of  Nations  and  to  the  High  Con- 
tracting Parties  an  annual  report  giving  details  regard- 
ing the  movements  of  foreign  vessels  of  war  through  the 
Straits  and  furnishing  all  information  which  may  be  of 
service  to  commerce  and  navigation,  both  by  sea  and  by 


air,  for  which  provision  is  made  in  the  present  Conven- 
tion. 

Article  25.— Nothing  in  the  present  Convention  shall 
prejudice  the  rights  and  obligations  of  Turkey,  or  of  any 
of  the  other  High  Contracting  Parties  members  of  the 
League  of  Nations,  arising  out  of  the  Covenant  of  the 
League  of  Nations. 

Section  V. — Final  Provisions 
Article  26. — The  present  Convention  shall  be  ratified  as 
soon  as  possible. 

The  ratifications  shall  be  deposited  in  the  archives  of 
the  Government  of  the  French  Republic  in  Paris. 

The  Japanese  Government  shall  be  entitled  to  inform 
the  Government  of  the  French  Republic  through  their 
diplomatic  representative  in  Paris  that  the  ratification 
has  been  given,  and  in  that  case  they  shall  transmit  the 
instrument  of  ratification  as  soon  as  possible. 

A  proccs-verbal  of  the  deposit  of  ratifications  shall  be 
drawn  up  as  soon  as  six  instruments  of  ratification,  in- 
cluding that  of  Turkey,  shall  have  been  deposited.  For 
this  purpose  the  notification  provided  for  in  the  preceding 
paragraph  shall  be  taken  as  the  equivalent  of  the  deposit 
of  an  instrument  of  ratification. 

The  present  Convention  shall  come  into  force  on  the 
date  of  the  said  proces-verlal. 

The  French  Government  will  transmit  to  all  the  High 
Contracting  Parties  an  authentic  copy  of  the  proces- 
verbal  provided  for  in  the  preceding  paragraph  and  of 
the  proces-verbaux  of  the  deposit  of  any  subsequent 
ratifications. 

Article  27. — The  present  Convention  shall,  as  from  the 
date  of  its  entry  into  force,  be  open  to  accession  by  any 
Power  signatory  to  the  Treaty  of  Peace  at  Lausanne 
signed  on  the  24th  July,  1923. 

Each  accession  shall  be  notified,  through  the  diplomatic 
channel,  to  the  Government  of  the  French  Republic,  and 
by  the  latter  to  all  the  High  Contracting  Parties. 

Accessions  shall  come  into  force  as  from  the  date  of 
notification  to  the  French  Government. 

Article  28.— The  present  Convention  shall  remain  in 
force  for  twenty  years  from  the  date  of  its  entry  into  force. 

The  principle  of  freedom  of  transit  and  navigation  af- 
firmed in  Article  1  of  the  present  Convention  shall  how- 
ever continue  without  limit  of  time. 

If,  two  years  prior  to  the  expiry  of  the  said  period  of 
twenty  years,  no  High  Contracting  Party  shall  have 
given  notice  of  denunciation  to  the  French  Government 
the  present  Convention  shall  continue  in  force  until  two 
years  after  such  notice  shall  have  been  given.  Any  such 
notice  shall  be  communicated  by  the  French  Government 
to  the  High  Contracting  Parties. 

In  the  event  of  the  present  Convention  being  denounced 
in  accordance  with  the  provisions  of  the  present  article, 
the  High  Contracting  Parties  agree  to  be  represented  at 
a  conference  for  the  purpose  of  concluding  a  new 
Convention. 

Article  29.— At  the  expiry  of  each  period  of  five  years 


I 


I 


806 


Department  of  State  Bulletin 


November  3,  1946 


from  the  date  of  the  entry  Into  force  of  the  present  Con- 
vention each  of  the  High  Contracting  Parties  shall  be  en- 
titled to  Initiate  a  proposal  for  amending  one  or  more  of 
the  provisions  of  the  present  Convention. 

To  be  valid,  any  request  for  revision  formulated  by  one 
of  the  High  Contracting  Parties  must  be  supported,  in  the 
case  of  modifications  to  Articles  14  to  18,  by  one  other 
High  Conti-acting  Party,  and,  in  the  case  of  modifications 
to  any  other  article,  by  two  other  High  Contracting 
Parties. 

Any  request  for  revision  thus  supported  must  be 
notified  to  all  the  High  Contracting  Parties  three  months 
prior  to  the  expiry  of  the  current  period  of  five  years. 
This  notification  shall  contain  details  of  the  proposed 


amendments  and  the  reasons  which  have  given  rise  to 
them. 

Should  it  be  found  Impossible  to  reach  an  agreement 
on  these  proposals  through  the  diplomatic  channel,  the 
High  Contracting  Parties  agree  to  be  represented  at  a 
conference  to  be  summoned  for  this  purpose. 

Such  a  conference  may  only  take  decisions  by  a  unani- 
mous vote,  except  as  regards  cases  of  revision  involving 
Articles  14  and  18,  for  which  a  majority  of  three-quarters 
of  the  High  Contracting  Parties  shall  be  sufficient. 

The  said  majority  shall  include  three-quarters  of  the 
High  Contracting  Parties  which  are  Black  Sea  Powers, 
including  Turkey.     .     .     . 


XXII.  Commerce  and  Navigation  Treaty  Between  the  United  States  of  America 
and  the  Turltish  Republic,  October  1,  1929.     Proclaimed  April  25,  1930 


[Treaty  Series  813.] 

Article  III.— (a)  Vessels  of  the  United  States  of 
America  will  enjoy  in  Turkey  and  Turkish  vessels  will 
enjoy  in  the  United  States  of  America  the  same  treatment 
as  national  vessels. 

(6)  The  stipulations  of  Article  III  paragraph  (o)  do 
not  apply : 

(1)  To  coastwise  traffic  (cabotage)  governed  by  the 
laws  which  are  or  shall  be  in  force  within  the  territories 
of  each  of  the  High  Contracting  Parties ; 

(2)  To  the  support  in  the  form  of  bounties  or  sub- 
sidies of  any  kind  which  is  or  may  be  accorded  to  the 
national  merchant  marine; 


(3)  To  fishing  in  the  territorial  waters  of  the  High 
Contracting  Parties ;  nor  to  special  privileges  which 
have  been  or  may  be  recognized,  in  one  or  the  other 
country,  to  products  of  national  fishing; 

(4)  To  the  exercise  of  the  maritime  service  of  ports, 
roadsteads  or  seacoasts;  nor  to  pilotage  and  towage; 
nor  to  diving ;  nor  of  maritime  assistance  and  salvage ; 
so  long  as  such  operations  are  carried  out  in  the  re- 
spective territorial  waters,  and  for  Turkey  in  the  Sea 
of  Marmara. 

(c)  All  other  exceptions  not  included  in  those  men- 
tioned above  shall  be  subject  to  most-favored-nation 
treatment. 


XXIII.  Reciprocal  Trade  Agreement  and  Supplementary  Exchange  of  Notes 
Between  the  United  States  of  America  and  Turkey,  April  1,  1939. 
EKective  Definitively  November  20,  1939 


[Executive  Agreement  Series  163.] 

Article  VI. — Unconditional  most-favored-natlon  treat- 
ment shall  be  accorded  by  the  Government  of  each  country 
to  the  commerce  of  the  other  country  with  respect  to  cus- 
toms duties  or  charges  imposed  on  or  in  connection  with 
imports  or  exports  and  the  method  of  levying  such  duties 
or  charges,  with  respect  to  all  regulations  and  formalities 
in  connection  with  importation  or  exportation,  the  sale  or 
use  of  imported  products  within  the  country,  transit, 
warehousing,  the  transshipment  of  goods,  the  re-exporta- 


tion of  goods,  and  with  respect  to  official  charges  appli- 
cable to  these  various  operations. 

Unconditional  most-favored-nation  treatment  shall 
lilvewise  be  accorded  by  the  Government  of  each  country 
to  the  commerce  of  the  other  country  with  respect  to  all 
duties,  charges  or  exactions  other  than  customs  duties 
imposed  on  or  in  connection  with  imports  or  exports. 

In  awarding  contracts  for  public  works  and  in  pur- 
chasing non-military  supplies,  the  Government  of  neither 
country  shall  discriminate  against  the  other  country  in 
favor  of  any  third  country. 


807 


THE  UNITED  NATIONS 


President  Truman's  Address  to  the  General  Assembly 


On  behalf  of  the  Government  and  the  people 
of  the  United  States  I  extend  a  warm  welcome  to 
the  delegates  who  have  come  here  from  all  parts 
of  the  world  to  represent  their  countries  at  this 
meeting  of  the  General  Assembly  of  the  United 
Nations. 

I  recall  with  great  pleasure  the  last  occasion  on 
which  I  met  and  spoke  with  the  representatives 
of  the  United  Nations.  Many  of  you  who  are 
here  today  were  present  then.  It  was  the  final 
day  of  the  conference  at  San  Francisco,  when  the 
United  Nations  Charter  was  signed.  On  that  day 
the  constitutional  foundation  of  the  United  Na- 
tions was  laid. 

For  the  people  of  my  country  this  meeting  has 
a  special  historic  significance.  After  the  first 
World  War  the  United  States  refused  to  join  the 
League  of  Nations,  and  our  seat  was  empty  at  the 
first  meeting  of  the  League  Assembly.  This  time 
the  United  States  is  not  only  a  member ;  it  is  host 
to  the  United  Nations. 

I  can  assure  you  that  the  Government  and  the 
people  of  the  United  States  are  deeply  proud  and 
grateful  that  the  United  Nations  has  chosen  our 
country  for  its  headquarters.     We  will  extend  the 

'  Delivered  at  the  opening  session  of  the  Second  Part 
of  the  First  Session  of  the  General  Assembly  in  New  York 
City  on  Oct.  23  and  released  to  the  press  by  the  White 
House  on  the  same  date. 


fullest  measure  of  cooperation  in  making  a  home 
for  the  United  Nations  in  this  country.  The 
American  people  welcome  the  delegates  and  the 
Secretariat  of  the  United  Nations  as  good  neigh- 
bors and  warm  friends. 

This  meeting  of  the  Assembly  symbolizes  the 
abandomnent  by  the  United  States  of  a  policy  of 
isolation. 

The  overwhelming  majority  of  the  American 
people,  regardless  of  party,  support  the  United 
Nations. 

They  are  resolved  that  the  United  States,  to  the 
full  limit  of  its  strength,  shall  contribute  to  the 
establishment  and  maintenance  of  a  just  and  last- 
ing peace  among  the  nations  of  the  world. 

However,  I  must  tell  you  that  the  American 
people  are  troubled  by  the  failure  of  the  Allied 
nations  to  make  more  progress  in  their  common 
search  for  lasting  peace. 

It  is  important  to  remember  the  intended  place 
of  the  United  Nations  in  moving  toward  this  goal. 
The  United  Nations — as  an  organization — was 
not  intended  to  settle  the  problems  arising  im- 
mediately out  of  the  war.  The  United  Nations 
■was  intended  to  provide  the  means  for  maintain- 
ing international  peace  in  the  future  after  just 
settlements  have  been  made. 

The  settlement  of  these  problems  was  deliber- 
ately consigned  to  negotiations  among  the  Allies, 
as  distinguished  from  the  United  Nations.     This 


808 


Department  of  State  Bulletin      •      November  3,  1946 


THE   UNITED  NATIONS 


was  done  in  order  to  give  the  United  Nations  a 
better  opportunity  and  a  freer  hand  to  carry  out 
its  long-range  task  of  providing  peaceful  means 
for  the  adjustment  of  future  differences,  some 
of  which  might  arise  out  of  the  settlements  made 
as  a  result  of  this  war. 

The  United  Nations  cannot,  however,  fulfil  ade- 
quately its  own  responsibilities  until  the  peace 
settlements  have  been  made  and  unless  these  settle- 
ments form  a  solid  foundation  upon  which  to  build 
a  permanent  peace. 

I  submit  that  these  settlements,  and  our  search 
for  everlasting  peace,  rest  upon  the  four  essential 
freedoms. 

These  are  freedom  of  speech,  freedom  of  reli- 
gion, freedom  from  want,  and  freedom  from  fear. 
These  are  fundamental  freedoms  to  which  all  the 
United  Nations  are  pledged  under  the  Charter. 

To  the  attainment  of  these  freedoms — every- 
where in  the  world — through  the  friendly  coopera- 
tion of  all  nations,  the  Government  and  people 
of  the  United  States  are  dedicated. 

The  fourth  freedom — freedom  from  fear — 
means,  above  all  else,  freedom  from  fear  of  war. 

This  freedom  is  attainable  now. 

Lately,  we  have  all  heard  talk  about  the  pos- 
sibility of  another  world  war.  Fears  have  been 
aroused  all  over  the  world. 

These  fears  are  unwarranted  and  unjustified. 

However,  rumors  of  war  still  find  willing  lis- 
teners in  certain  places.  If  these  rumors  are  not 
checked  they  are  sure  to  impede  world  recovery. 

I  have  been  reading  reports  from  many  parts  of 
the  world.  These  reports  all  agree  on  one  major 
point — the  people  of  every  nation  are  sick  of  war. 
They  know  its  agony  and  its  futility.  No  re- 
sponsible government  can  ignore  this  universal 
feeling. 

The  United  States  of  America  has  no  wish  to 
make  war,  now  or  in  the  future,  upon  any  people 
anywhere  in  the  world.  The  heart  of  our  foreign 
policy  is  a  sincere  desire  for  peace.  This  nation 
will  work  patiently  for  peace  by  every  means  con- 
sistent with  self-respect  and  security.  Another 
world  war  would  shatter  the  hopes  of  mankind 
and  completely  destroy  civilization  as  we  know  it. 

I  am  sure  that  every  delegate  in  this  hall  will 
join  me  in  rejecting  talk  of  war.  No  nation  wants 
war.    Every  nation  needs  peace. 


To  avoid  war  and  rumors  and  danger  of  war, 
the  peoples  of  all  countries  must  not  only  cherish 
I^eace  as  an  ideal  but  they  must  develop  means  of 
settling  conflicts  between  nations  in  accordance 
with  principles  of  law  and  justice. 

The  difficulty  is  that  it  is  easier  to  get  people  to 
agree  upon  peace  as  an  ideal  tlian  to  agree  upon 
principles  of  law  and  justice  or  to  agree  to  subject 
their  own  acts  to  the  collective  judgment  of  man- 
kind. 

But  difficult  as  the  task  may  be,  the  path  along 
which  agreement  may  be  sought  with  hope  of 
success  is  clearly  defined. 

In  the  first  place,  every  member  of  the  United 
Nations  is  legally  and  morally  bound  by  the 
Charter  to  keep  the  peace.  More  specifically, 
every  member  is  bound  to  refrain  in  its  interna- 
tional relations  from  the  threat  or  use  of  force 
against  the  territorial  integrity  or  political  inde- 
pendence of  any  state. 

In  the  second  place,  I  remind  you  that  23  mem- 
bers of  the  United  Nations  have  bound  themselves 
by  the  Charter  of  the  Niimberg  Tribunal  to  the 
principle  that  planning,  initiating,  or  waging  a 
war  of  aggression  is  a  crime  against  humanity 
for  which  individuals  as  well  as  states  shall  be 
tried  before  the  bar  of  international  justice. 

The  basic  principles  upon  which  we  are  agreed 
go  far,  but  not  far  enough,  in  removing  fear  of 
war  from  the  world.  There  must  be  agreement 
upon  a  positive,  constructive  course  of  action  as 
well. 

The  peoples  of  the  world  know  that  there  can 
be  no  real  peace  unless  it  is  peace  with  justice  for 
all — justice  for  small  nations  and  for  large  na- 
tions, and  justice  for  individuals  without  dis- 
tinction as  to  race,  creed,  or  color — a  peace  that 
will  advance,  not  retard,  the  attainment  of  the 
four  freedoms. 

We  shall  attain  freedom  from  fear  when  every 
act  of  every  nation,  in  its  dealings  with  every  other 
nation,  brings  closer  to  realization  the  other  free- 
doms— freedom  of  speech,  freedom  of  religion,  and 
freedom  from  want.  Along  this  path  we  can  find 
justice  for  all,  without  distinction  between  the 
strong  and  the  weak  among  nations,  and  without 
discrimination  among  individuals. 

After  the  peace  has  been  made,  I  am  convinced 
that  the  United  Nations  can  and  will  prevent  war 


809 


THE  UNITED  NATIONS 


between  nations  and  remove  the  fear  of  war  that 
distracts  the  peoples  of  the  world  and  interferes 
with  their  progress  toward  a  better  life. 

The  war  has  left  many  parts  of  the  world  in 
turmoil.  Differences  have  arisen  among  the 
Allies.  It  will  not  help  us  to  pretend  that  this 
is  not  the  case.  But  it  is  not  necessary  to  exag- 
gerate the  differences. 

For  my  part,  I  believe  there  is  no  difference  of 
interest  that  need  stand  in  the  way  of  settling 
these  problems  and  settling  them  in  accordance 
with  the  principles  of  the  United  Nations  Charter. 
Above  all,  we  must  not  permit  differences  in  eco- 
nomic and  social  systems  to  stand  in  the  way  of 
peace,  either  now  or  in  the  future.  To  permit  the 
United  Nations  to  be  broken  into  irreconcilable 
parts  by  different  political  philosophies  would 
bring  disaster  to  the  world. 

So  far  as  Germany  and  Japan  are  concerned,  the 
United  States  is  resolved  that  neither  shall  again 
become  a  cause  for  war.  We  shall  continue  to  seek 
agreement  upon  peace  terms  which  ensure  that 
both  Germany  and  Japan  remain  disarmed,  that 
Nazi  influence  in  Germany  be  destroyed,  and  that 
the  power  of  the  war  lords  in  Japan  be  eliminated 
forever. 

The  United  States  will  continue  to  seek  settle- 
ments arising  from  the  war  that  are  just  to  all 
states,  large  and  small,  that  uphold  the  human 
rights  and  fundamental  freedoms  to  which  the 
Charter  pledges  all  its  members,  and  that  do  not 
contain  the  seeds  of  new  conflicts. 

A  peace  between  the  nations  based  on  justice 
will  make  possible  an  early  improvement  in  living 
conditions  throughout  the  world  and  a  quick  re- 
covery from  the  ravages  of  war.  The  world  is 
crying  for  a  just  and  durable  peace  with  an  in- 
tensity that  must  force  its  attainment  at  the  earliest 
possible  date. 

If  the  members  of  the  United  Nations  are  to  act 
together  to  remove  the  fear  of  war,  the  first  re- 
quirement is  for  the  Allied  nations  to  reach  agree- 
ment on  the  peace  settlements. 

Propaganda  that  promotes  distrust  and  misun- 
derstanding among  the  Allies  will  not  help  us. 
Agreements  designed  to  remove  the  fear  of  war 
can  be  reached  only  by  the  cooperation  of  nations 
to  respect  the  legitimate  interests  of  all  states  and 
act  as  good  neighbors  toward  each  other. 


Lasting  agreements  between  allies  cannot  be 
imposed  by  one  nation  nor  can  they  be  reached 
at  the  expense  of  the  security,  independence,  or 
integrity  of  any  nation.  There  must  be  accom- 
modation by  all  the  Allied  nations  in  which  mutual 
adjustments  of  lesser  national  interests  are  made 
in  order  to  serve  the  greater  interest  of  all  in  peace, 
security,  and  justice. 

This  Assembly  can  do  much  toward  recreating 
the  spirit  of  friendly  cooperation  and  toward  re- 
affirming those  principles  of  the  United  Nations 
which  must  be  applied  to  the  peace  settlements. 
It  must  also  prepare  and  strengthen  the  United 
Nations  for  the  tasks  that  lie  ahead  after  the  set- 
tlements have  been  made. 

All  member  nations,  large  and  small,  are  repre- 
sented here  as  equals.  Wisdom  is  not  the  monop- 
oly of  strength  or  size.  Small  nations  can  con- 
tribute equally  with  the  large  nations  toward 
bringing  constructive  thought  and  wise  judgment 
to  bear  upon  the  formation  of  collective  policy. 

This  Assembly  is  the  world's  supreme  delibera- 
tive body. 

The  highest  obligation  of  this  Assembly  is  to 
speak  for  all  mankind  in  such  a  way  as  to  promote 
the  unity  of  all  members  in  behalf  of  a  peace  that 
will  be  lasting  because  it  is  founded  upon  justice. 

In  seeking  unity  we  should  not  be  concerned 
iibout  expressing  differences  freely.  The  United 
States  believes  that  this  Assembly  should  demon- 
strate the  importance  of  freedom  of  speech  to  the 
cause  of  peace.  I  do  not  share  the  view  of  any 
who  are  fearful  of  the  effects  of  free  and  frank 
discussion  in  the  United  Nations. 

The  United  States  attaches  great  importance 
to  the  principle  of  free  discussion  in  this  Assem- 
bly and  in  the  Security  Council.  The  free  and 
direct  exchange  of  arguments  and  information 
promotes  understanding  and  therefore  contrib- 
utes, in  the  long  run,  to  the  removal  of  the  fear 
of  war  and  some  of  the  causes  of  war. 

The  United  States  believes  that  the  rule  of 
unanimous  accord  among  the  five  permanent  mem- 
bers of  the  Security  Council  imposes  upon  these 
members  a  special  obligation.  This  obligation  is 
to  seek  and  reach  agreements  that  will  enable  them 
and  the  Security  Council  to  fulfil  the  responsibil- 


810 


Department  of  State  Bulletin 


November  3,  1946 


THE  UNITED  NATIONS 


ities  they  have  assumed  under  the  Charter  toward 
their  fellow  members  of  the  United  Nations  and 
toward  the  maintenance  of  peace. 

It  is  essential  to  the  future  of  the  United  Na- 
tions that  the  members  should  use  the  Council  as 
a  means  for  promoting  settlement  of  disputes  as 
well  as  for  airing  them.  The  exercise  of  neither 
veto  rights  nor  majority  rights  can  make  peace 
secure.  There  is  no  substitute  for  agreements  that 
are  universally  acceptable  because  they  are  just  to 
all  concerned.  The  Security  Council  is  intended 
to  promote  that  kind  of  agreement  and  it  is  fully 
qualified  for  that  purpose. 

Because  it  is  able  to  function  continuously,  the 
Security  Council  represents  a  most  significant  de- 
velopment in  international  relations — the  continu- 
ing application  of  the  public  and  peaceful  methods 
of  a  council  chamber  to  the  settlement  of  disputes 
between  nations. 

Two  of  the  greatest  obligations  undertaken  by 
the  United  Nations  toward  the  removal  of  the 
fear  of  war  remain  to  be  fulfilled. 

First,  we  must  reach  an  agreement  establishing 
international  controls  of  atomic  energy  that  will 
ensure  its  use  for  peaceful  purposes  only,  in  ac- 
cordance with  the  Assembly's  unanimous  resolu- 
tion of  last  winter. 

Second,  we  must  reach  agreements  that  will  re- 
move the  deadly  fear  of  other  weapons  of  mass 
destruction,  in  accordance  with  the  same  resolu- 
tion. 

Each  of  these  obligations  is  going  to  be  difficult 
to  fulfil.  Their  fulfilment  will  require  the  utmost 
in  perseverance  and  good  faith,  and  we  cannot  suc- 
ceed without  setting  fundamental  precedents  in 
the  law  of  nations.  Each  will  be  worth  every- 
thing in  perseverance  and  good  faith  that  we  can 
give  to  it.  The  future  safety  of  the  United  Na- 
tions, and  of  every  member  nation,  depends  upon 
the  outcome. 

On  behalf  of  the  United  States  I  can  say  we  are 
not  discouraged.  We  shall  continue  to  seek  agree- 
ment by  every  possible  means. 

At  the  same  time  we  shall  also  press  for  prepara- 
tion of  agreements  in  order  that  the  Security 
Council  may  have  at  its  disposal  peace  forces  ade- 
quate to  pi"event  acts  of  aggression. 


The  United  Nations  will  not  be  able  to  remove 
the  fear  of  war  from  the  world  unless  substantial 
progress  can  be  made  in  the  next  few  years  toward 
the  realization  of  another  of  the  four  freedoms — 
freedom  from  want. 

The  Charter  pledges  the  members  of  the  United 
Nations  to  work  together  toward  this  end.  The 
structure  of  the  United  Nations  in  this  field  is  now 
nearing  completion,  with  the  Economic  and  Social 
Council,  its  commissions,  and  related  specialized 
agencies.  It  provides  more  complete  and  effective 
institutions  through  which  to  work  than  the  world 
has  ever  had  before. 

A  great  opportunity  lies  before  us. 

In  these  constructive  tasks  which  concern  di- 
rectly the  lives  and  welfare  of  human  beings 
throughout  the  world,  humanity  and  self-interest 
alike  demand  of  all  of  us  the  fullest  cooperation. 

The  United  States  has  already  demonstrated  in 
many  ways  its  grave  concern  about  economic  re- 
construction that  will  repair  the  damage  done  by 
war. 

We  have  participated  actively  in  every  measure 
taken  by  the  United  Nations  toward  this  end.  We 
have  in  addition  taken  such  separate  national  ac- 
tion as  the  granting  of  lai'ge  loans  and  credits  and 
renewal  of  our  reciprocal  trade-agreements  pro- 
gram. 

Through  the  establishment  of  the  Food  and 
Agriculture  Organization,  the  International  Bank 
for  Reconstruction  and  Development,  and  the  In- 
ternational Monetary  Fund,  members  of  the 
United  Nations  have  proved  their  capacity  for 
constructive  cooperation  toward  common  economic 
objectives.  In  addition,  the  International  Labor 
Organization  is  being  brought  into  relationship 
with  the  United  Nations. 

Now  we  must  complete  the  structure.  The 
United  States  attaches  the  highest  importance  to 
the  creation  of  the  International  Trade  Organiza- 
tion now  being  discussed  in  London  by  a  pre- 
paratory committee. 

This  country  wants  to  see,  not  only  the  rapid 
restoration  of  devastated  areas,  but  the  industrial 
and  agricultural  progress  of  the  less  well-developed 
areas  of  the  world. 

We  believe  that  all  nations  should  be  able  to 


811 


THE   UNITED  NATIONS 


develop  a  healthy  economic  life  of  their  own.  We 
believe  that  all  peoples  should  be  able  to  reap  the 
benefits  of  their  own  labor  and  of  their  own  natural 
resources. 

There  are  immense  possibilities  in  many  parts 
of  the  world  for  industrial  development  and  agri- 
cultural modernization. 

These  possibilities  can  be  realized  only  by  the 
cooperation  of  members  of  the  United  Nations, 
helping  each  other  on  a  basis  of  equal  rights. 

In  the  field  of  social  reconstruction  and  advance- 
ment the  completion  of  the  charter  for  a  world 
health  organization  is  an  important  step  forward. 

The  Assembly  now  has  before  it  for  adoption 
the  constitution  of  another  specialized  agency  in 
this  field — the  International  Refugee  Organiza- 
tion. It  is  essential  that  this  Organization  be 
created  in  time  to  take  over  from  UNRRA  as 
early  as  possible  in  the  new  year  the  tasks  of  car- 
ing for  and  repatriating  or  resettling  the  refugees 
and  displaced  persons  of  Europe.  There  will  be 
similar  tasks,  of  great  magnitude,  in  the  Far  East. 

The  United  States  considers  this  a  matter  of 
great  urgency  in  the  cause  of  restoring  peace  and 
in  the  cause  of  humanity  itself. 

I  intend  to  urge  the  Congress  of  the  United 
States  to  authorize  this  country  to  do  its  full  part 
both  in  financial  support  of  the  International 
Refugee  Organization  and  in  joining  with  other 
nations  to  receive  those  refugees  who  do  not  wish 
to  return  to  their  former  homes  for  reasons  of 
political  or  religious  belief. 

The  United  States  believes  a  concerted  effort 
must  be  made  to  break  down  the  barriers  to  a 
free  flow  of  information  among  the  nations  of 
the  world. 

We  regard  freedom  of  expression  and  freedom 
to  receive  information — the  right  of  the  people 
to  know — as  among  the  most  important  of  those 
human  rights  and  fundamental  freedoms  to  which 
we  are  pledged  under  the  United  Nations  Charter. 

The  United  Nations  Educational,  Scientific  and 
Cultural  Organization,  which  is  meeting  in  No- 
vember, is  a  recognition  of  this  fact.  That  Or- 
ganization is  built  upon  the  premise  that  since 
wars  begin  in  the  minds  of  men,  the  defense  of 
peace  must  be  constructed  in  the  minds  of  men. 


and  that  a  free  exchange  of  ideas  and  knowledge 
among  peoples  is  necessary  to  this  task.  The 
United  States  therefore  attaches  great  importance 
to  all  activities  designed  to  break  down  barriers 
to  mutual  understanding  and  to  wider  tolerance. 

The  United  States  will  support  the  United  Na- 
tions with  all  the  resources  that  we  possess. 

The  use  of  force  or  the  threat  of  force  anywhere 
in  the  world  to  break  the  peace  is  of  direct  concern 
to  the  American  peoiDle. 

The  course  of  history  has  made  us  one  of  the 
stronger  nations  of  the  world.  It  has  therefore 
placed  upon  us  special  responsibilities  to  conserve 
our  strength  and  to  use  it  rightly  in  a  world  so 
interdependent  as  our  world  today. 

The  American  people  recognize  these  special 
responsibilities.  We  shall  do  our  best  to  meet 
them,  both  in  the  making  of  the  peace  settlements 
and  in  the  fulfilment  of  the  long-range  tasks  of 
the  United  Nations.  ■ 

The  American  people  look  upon  the  United 
Nations  not  as  a  temporary  exjjedient  but  as  a 
permanent  partnership — a  partnership  among  the 
peoples  of  the  world  for  their  common  peace  and 
common  well-being. 

It  must  be  the  determined  purpose  of  all  of  us 
to  see  that  the  United  Nations  lives  and  grows  in 
the  minds  and  the  hearts  of  all  peoples. 

May  Almighty  God,  in  His  infinite  wisdom  and 
mercy,  guide  us  and  sustain  us  as  we  seek  to  bring 
peace  everlasting  to  the  world. 

With  His  help  we  shall  succeed. 


THE  FOREIGN  SERVICE 
Diplomatic  and  Consular  Offices 

The  American  Vice  Consulate  at  Curitiba, 
Brazil,  was  closed  to  the  public  on  October  12, 1946. 

The  American  Consulate  at  San  Sebastian, 
Spain,  was  closed  on  September  30,  1946. 

The  status  of  the  American  Mission  at  Vienna, 
Austria,  has  been  changed  to  that  of  Legation, 
effective  September  7, 1946. 


812 


Department   of  State  Bulletin 


November  3,  1946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings 


In  Session  as  of  October  27,  1946 

Far  Eastern  Commission 

United  Nations: 

Security  Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

TJNRRA   -    Intergovernmental    Committee    on    Refugees:    Joint 

Planning  Committee 
General  Assembly 

German  External  Property  Negotiations  with  Portugal  (Safehaven).. 

PICAO:  Interim  Council 

Preparatory  Commission  of  the  International  Conference  on  Trade 
and  Employment:   First  Meetmg 

Second  Pan  American  Conference  on  Leprosy 

International  Committee  on  Weights  and  Measures 

Permanent  Committee  of  the  International  Health  OflBce 

United  Maritime  Consultative  Council:    Second  Meeting 

Scheduled 

PICAO: 

Regional 

Air  Traffic  Control  Committee,  European- Mediterranean  Region. 

Divisional 

Meteorological  Division 

Special  Radio  Technical  Division 

Communications  Division 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  TraflBc  Control  Practices  Division 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division 

Informal  Four  Power  Broadcasting  Conference 


International  Commission  for  Air  Navigation  (CINA):  Twenty-ninth 
Session 

FAO:    Preparatory  Commission  To  Study  World  Food  Board  Pro- 
posals. 


Washington. 


Lake  Success 

Lake  Success 

Lake  Success 

Washington   and 

Lake  Success 
Flushing  Meadows.  _ 

Lisbon 


Montreal . 
London.. 


Rio  de  Janeiro. 

Paris 

Paris 

Washington 


Paris. 


Montreal. 
Montreal. 
Montreal. 
Montreal. 
Montreal. 
Montreal. 
Montreal. 

Paris 

Dublin... 


Washington. 


February  26 

March  25 
March  25 
June  14 
July  25 

October  23 
September  3 
September  4 
October  15 

October  19-31 
October  22 
October  23 
October  24-30 


October  28 

October  29 

October  30-November  8 

November  19 

November  26 

December  3 

January  7 

January  14 

October  28-30 

October  28-31 

October  28 


Calendar  prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


813 


Calendar  of  Meetings — Continued 


World  Health  Organization :  Interim  Commission 

Council  of  Foreign  Ministers 

International  Telegraph  Consulting  Committee  (CCIT) 

I ARA :  Meetings  on  Conflicting  Custodial  Claims 

International  Technical  Committee  of  Aerial  Legal  Experts  (CITEJA). 

International  Wool  Meeting 

ILO: 

Industrial  Committee  on  Textiles 

Industrial  Committee  on  BuUding,  CivU  Engineering  and  Public 
Works 

UNESCO: 

Preparatory  Commission 

General  Conference 

"Month  Exhibition" 

Second  Inter- American  Congress  of  Radiology 

Rubber  Study  Group  Meeting 

United  Nations: 

Economic  and  Social  Council 

Commission  on  Narcotic  Drugs 

Statistical  Commission 

Inter- American  Commission  of  Women:  Fifth  Annual  Assembly 

Intergovernmental  Committee  on  Refugees  (IGCR):  Sixth  Plenary 
Session 

Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education 


Geneva - 

November  4 

New  York. 

November  4 

London 

November  4-9 

Brussels. 

November  6 

Cairo 

November  6 

London      _-   _     _   _ 

November  11-16 

Brussels 

November  14-22 

Brussels. 

November  25-December  3 

Paris 

November  14-15 
November  19 
November 

November  17-22 

November  25 

November  27 
January  (tentative) 

December  2-12 

December  11 

January  12-24 
January  12-24 

Paris 

Paris. 

Habana 

The  Hague 

Lake  Success 

Lake  Success 

Washington, 

London 

Caracas .- 

Caracas 

Activities  and  Developments  » 


FIRST  INTER-AMERICAN  MEDICAL  CONGRESS  > 

The  First  Inter-American  Medical  Congress 
held  at  Rio  de  Janeiro,  Brazil,  September  7-15, 
1946,  was  attended  by  956  doctors  representing  the 
following  19  countries  of  the  Western  Hemi- 
sphere: Brazil,  United  States,  Argentina,  Boli- 
via, Canada,  Chile,  Colombia,  Costa  Rica,  Cuba, 
Ecuador,  El  Salvador,  Guatemala,  Mexico,  Pan- 
ama, Paraguay,  Peru,  Santo  Domingo,  Uruguay, 
and  Venezuela. 

The  United  States  Delegation  consisted  of  Col. 
Arden  Freer,  Medical  Corps,  Chief,  Consultants 
Division,  Office  of  the  Surgeon  General,  War 
Department;  Capt.  Carroll  P.  Hungate,  Medical 


'  Prepared  by  the  Division  of  International  Conferences, 
Department  of  State. 


814 


Department  of  State  Bulletin      •      November  3,  1946 


ACTIVITIES  AND   DEVELOPMENTS 


Corps,  U.  S.  N.  R. ;  Dr.  James  A.  Shannon,  Con- 
sultant, U.  S.  Public  Health  Service,  Federal 
Security  Agency ;  and  Capt.  John  J.  Wells,  Medi- 
cal Corps,  U.  S.  N. 

In  addition  to  this  ofEcial  Delegation,  the  fol- 
lowing physicians  from  the  United  States  at- 
tended in  a  private  capacity :  Dr.  R.  G.  Hoskins, 
Boston,  Mass.;  Dr.  S.  J.  McCIendon,  San  Diego, 
Calif.;  Dr.  M.  T.  McEachern,  Chicago,  111.;  Dr. 
Moses  Behrend,  Philadelphia,  Pa.;  Col.  Charles 
Bruce,  Washington,  D.  C. ;  Dr.  Albert  Berg;  Dr. 
George  Cowgill,  New  Haven,  Conn.;  Dr.  Roland 
M.  Klemme,  St.  Louis,  Mo. ;  Dr.  A.  Packchanian ; 
Dr.  Tracy  Putnam,  New  York,  N.  Y. ;  Dr.  Peyton ; 
Dr.  Abilio  D.  da  Silva  Reis,  Oakland,  Calif. ;  and 
Dr.  Howard  E.  Snyder,  Winfield,  Kans. 

The  program  consisted  of  exhibits,  scientific 
meetings  at  which  papers  were  read,  inspection 
trips,  and  entertainment.  The  agenda  for  the 
scientific  meetings  and  organization  of  the  Con- 
gress centered  around  the  following  topics:  (1) 
bospital  organization  and  management;  (2)  con- 
tinental immigration  policies  as  to  medical  and 
racial  aspects;  (3)  war  medicine  and  surgery; 
(4)  cancer  prevention  and  therapeutics;  (5) 
Chagas  disease;  (6)  nutrition  and  vitaminology; 
(7)  endocrinology  and  thyreotoxicosis;  (8) 
tuberculosis;  (9)  neuropsychiatry;  (10)  hygiene, 
public  health  and  continental  sanitary  legisla- 
tion; (11)  surgical  themes;  (12)  medical  themes ; 
and  (13)  themes  of  free  choice. 

The  scientific  papers  presented  to  the  Congress 
were  generally  well  prepared  and  freely  discussed. 
It  was  believed  that  the  conference  served  a  useful 
purpose  in  disseminating  professional  knowledge 
in  the  field  of  medicine  and  in  promoting  under- 
standing among  the  nations  represented. 

The  Congress  voted  to  hold  its  next  meeting  at 
Mexico  City  in  1948. 

hpTH  CONGRESS  OF  THE  POSTAL  UNION    OF 
THE  AMERICAS  AND  SPAIN  > 

On  April  3,  1946  the  United  States  Post  Office 
Department  received  advice  that  the  Fifth  Con- 
gress of  the  Postal  Union  of  the  Americas  and 
Spain  would  be  held  at  Rio  de  Janeiro,  Brazil,  dur- 
ing the  month  of  September  1946.^    The  necessary 


preparations  were,  therefore,  made  to  have  the 
United  States  represented  at  the  Congress,  and 
consideration  was  given  various  propositions  sub- 
mitted for  discussion.  The  United  States  Dele- 
gation attending  the  Congress  consisted  of :  John 
J.  Gillen,  director,  International  Postal  Service; 
Edward  J.  Mahoney,  assistant  director.  Inter- 
national Postal  Service;  Joseph  J.  Zarza,  post 
office  inspector;  Francis  J.  Carty,  assistant  super- 
intendent, New  York  Post  Office ;  and  Fred  D.  J. 
Donovan,  secretary  of  the  United  States  Dele- 
gation. 

Prior  to  leaving  for  Rio  de  Janeiro  the  United 
States  Delegation  prepared  the  following  eleven- 
point  agenda:  (1)  consideration  to  be  given  any 
propositions  that  may  be  submitted  regarding 
"free  transit"  for  air  mail;  (2)  clarification  to  be 
sought  on  the  section  of  the  Union's  Convention 
dealing  with  "free  transit"  for  surface  mail — there 
appeared  to  be  a  difference  of  opinion  in  the  in- 
terpretation of  the  wording  of  this  paragraph; 
(3)  reduction  of  air-mail  postage;  (4)  establish- 
ment of  uniform  airgraph,  letter,  and  air-mail 
postage  universally;  (5)  reduction  of  air  trans- 
portation charges;  (6)  inauguration  of  air  parcel 
post;  (7)  inauguration  of  some  means  by  which 
newspapers  and  magazines  can  be  sent  in  bulk  at 
a  reduced  rate  throughout  the  world  for  the  dis- 
semination of  information  to  all  concerned,  par- 
ticularly United  States  Government  representa- 
tives in  foreign  lands;  (8)  the  use  of  the  Fifth 
Congress  as  a  "sounding  board"  for  the  Universal 
Postal  Union  Congress  scheduled  to  be  held  at 
Paris,  France,  in  May  1947;  (9)  consideration  of 
several  minor  changes  in  the  money-order  agree- 
ment; (10)  consideration  of  the  establishment  of 
United  States  "liaison  posts"  in  certain  sections 
of  the  world;  and  (11)  philately. 

The  Congress  was  officially  opened  on  Septem- 
ber 2.  The  following  23  countries  were  repre- 
sented: Argentina,  Bolivia,  Brazil,  Canada, 
Colombia,  Costa  Rica,  Cuba,  Chile,  Dominican 
Republic,  Ecuador,  El  Salvador,  Spain,  United 


'  Prepared  by  the  Division  of  International  Conferences, 
Department  of  State,  in  collaboration  with  the  Post  OflBce 
Department. 

'This  Congress  was  originally  scheduled  to  convene  at 
Rio  de  Janeiro  in  September  1&41,  but  the  meeting  was 
postponed  l)ecause  of  the  war. 


815 


States  of  America,  Guatemala,  Haiti,  Honduras, 
Mexico,  Nicaragua,  Panama,  Paraguay,  Peru, 
Uruguay,  and  Venezuela.  A  general  spirit  of 
cooperativeness  and  good-will  was  evident  among 
the  delegates. 

One  of  the  most  important  proposals  submitted 
by  the  United  States  Delegation  dealt  with  the 
interpretation  of  paragraph  3  of  the  Union's 
Convention  relative  to  the  free  transit  of  mail 
throughout  the  countries  of  the  Union.  The  in- 
terpretation submitted  by  the  United  States  Dele- 
gation was  accepted  by  the  Postal  Congress. 
Numerous  other  proposals  were  submitted  by  the 
various  countries  covering  classification  and  rates 
of  postage  on  mail  matter.  After  extensive  dis- 
cussions a  number  of  them  were  approved  by  the 
Congress. 

Although  the  United  States  is  not  a  party  to  the 
air  mail  agreement,  the  delegates  of  the  other 
countries  requested  that  the  United  States  repre- 
sentatives take  an  active  part  in  the  deliberations 
of  the  Air  Mail  Committee.  Consequently,  the 
United  States  Delegation  worked  with  the  Air 
Mail  Committee  for  several  days,  and  it  was  be- 
lieved that  a  number  of  the  provisions  of  the 


agreement  were  improved.  However,  it  was  not 
believed  to  be  to  the  advantage  of  the  United 
States  to  become  a  party  to  the  air  mail  agree- 
ment in  view  of  the  present  changeable  situation 
in  air  transportation  and  especially  considering 
the  many  changes  which  might  occur  at  the  forth- 
coming congress  of  the  Universal  Postal  Union  at 
Paris. 

It  was  decided  to  hold  the  Sixth  Congress  of 
the  Postal  Union  of  the  Americas  and  Spain  in 
Lima,  Peru,  possibly  in  1949.  In  view  of  the  fact 
that  previous  Congresses  had  been  held  in  South 
America,  it  was  felt  by  the  United  States  Delega- 
tion that  consideration  should  be  given  to  the 
holding  of  tlie  Seventh  Congress  in  the  United 
States,  possibly  in  Washington. 

The  concluding  meeting  of  the  Congress  was 
held  on  Sei^tember  25,  at  which  time  the  final 
documents  were  signed  by  the  delegates. 

At  the  termination  of  the  Congress  the  United 
States  delegates  returned  to  Washington  by  way 
of  Montevideo,  Buenos  Aires,  Santiago,  Lima,  and 
Balboa  for  the  purpose  of  contacting  and  inter- 
viewing various  postal  officials  and  United  States 
Government  representatives  in  those  countries. 


United  Maritime  Consultative  Council:  Second  Session 

By  UNDER  SECRETARY  FOR  ECONOMIC  AFFAIRS,  WILLIAM   L.  CLAYTON 


Gentlemen  : 

«  •  ■  •  • 

Aside  from  the  necessities  of  war  and  its  after- 
math, many  nations  of  the  world  were  working 
together  for  international  purposes  as  regards 
shipping  before  the  United  Nations  came  into  ex- 
istence. That  is  a  factor  of  no  small  significance. 
An  example  of  such  cooperation  is  in  the  field  of 
maritime  safety  where  governments  have  been 
working  together  on  such  problems  as  collision 
rules  and  codes  of  signals  for  many  years.  The 
Titanic  disaster  in  1912  was  the  immediate  cause 
for  the  convening  of  the  first  great  diplomatic 
conference  regarding  safety  of  life  at  sea  in  1914. 


'  Address  delivered  before  the  Council  in  Washington  on 
Oct.  24  and  released  to  the  press  on  the  same  date. 


World  War  I  prevented  the  ratification  of  the 
treaty  developed  in  that  conference;  the  now  ex- 
isting safety  treaty  was  adopted  at  the  1929  con- 
ference. It  is  now  believed  desirable  that  this 
treaty  be  brought  up  to  date.  The  idea  has  been 
advanced  that  safety  matters  would  be  facilitated 
if  an  international  organization  with  a  permanent 
secretariat  were  established  in  the  field  of  maritime 
safety.  We  in  the  United  States  have  had  these 
problems  under  study  for  nearly  two  years  by 
committees  on  which  interested  governmental 
agencies  and  representatives  of  the  shipping  and 
shipbuilding  industries  were  represented.  Orig- 
inally it  was  considered  doubtful  whether  it  would 
be  possible  to  bring  the  nations  together  on  the 
establishment  of  an  intergovernmental  organiza- 


816 


Department  of  State  Bulletin 


November  3,  1946 


ACTIVITIES  AND   DEVELOPMENTS 


tion  covering  even  so  technical  a  subject  as  safety 
of  life  at  sea,  a  subject  that  has  a  minimum  of 
political  and  economic  implications.  With  the 
passage  of  time,  however,  the  United  Nations  has 
been  organized  and  cooi^eration  has  been  estab- 
lished in  several  fields  where  formerly  there  was 
no  continuing  basis  for  intergovernmental  coop- 
eration. In  the  light  of  these  developments,  if  a 
continuing  intergovernmental  organization  were 
decided  upon,  the  step  in  no  sense  would  be  revolu- 
tionarj'. 

The  United  Maritime  Authority,  however,  did 
a  different  type  job  under  the  exigencies  of  war. 
The  pooling  of  Allied  shipping  and  the  allocation 
of  tonnages  in  accordance  with  common  objectives 
showed  that  it  was  possible  to  subordinate  normal 
competitive  shipping  interests  of  various  countries 
to  international  necessities.  Nevertheless  we  were 
all  relieved  when  it  became  possible  to  lay  aside 
the  UMA  controls  and  to  restore  freedom  of  ship- 
ping operations  with  limited  coordination  in  the 
ocean  transportation  of  UNRRA  and  other  relief 
and  rehabilitation  cargoes.  Meanwhile  the  United 
Maritime  Consultative  Council  filled  the  need  for 
a  forum  for  the  discussion  of  shipping  problems 
of  interest  to  the  participating  governments. 

Last  spring  the  temporary  Transport  and  Com- 
munications Commission  of  the  Economic  and 
Social  Council  recommended  the  establishment  of 
an  international  organization  in  the  shipping  field 
to  handle  technical  matters.  Acting  upon  this 
recommendation  in  June,  the  Economic  and  Social 
Council  asked  the  United  Maritime  Consultative 
Council,  which  was  then  holding  its  first  session 
in  Amsterdam,  for  its  views  on  this  question. 

The  Council  at  Amsterdam  indicated  its  belief 
that  a  permanent  organization  probably  would  be 
necessary  and  established  a  working  committee  in 
London  to  study  the  problem.  This  Committee's 
recommendations  for  the  suggested  international 
organization  are  before  this  session  of  the  UMCC 
for  consideration. 

A  principal  item  on  your  agenda  is  your  reply 
to  the  United  Nations'  inquiry  requesting  your 
views  on  the  possible  establishment  of  an  inter- 
governmental organization.  In  this  undertaking 
you  have  my  support  and  may  you  arrive  at  the 
best  possible  solution,  whatever  that  may  be. 


Wliatever  you  may  decide  to  recommend  or  not 
to  recommend  with  regard  to  an  international  or- 
ganization, I  am  sure  you  will  have  in  mind  the 
lessons  of  the  war  and  the  necessity  for  a  coopera- 
tive peace.  I  hope  the  friendships  between  you 
developed  during  the  war  will  be  cemented  still 
more  closely  in  peace  by  this  opportunity  to  ex- 
change your  views  and  to  work  toward  a  common 
goal. 

I  cannot  close  without  brief  reference  to  a  sub- 
ject so  near  and  dear  to  my  heart  and  that  is  the 
importance  of  the  economic  aspects  of  the  peace 
which  we  are  all  striving  to  put  on  a  permanent 
basis  throughout  the  world. 

It  should  be  self-evident  that  ocean  shipping 
will  play  a  part  in  the  building  and  maintenance 
of  this  peace  no  less  important  than  the  part  it 
played  in  winning  the  war  for  freedom. 

The  power-driven  vessel  plying  the  free  seas  is 
the  cheapest  form  of  transportation  in  the  world. 

For  many  years  we  shipped  cotton  from  Houston 
to  Shanghai  at  less  cost  than  it  took  to  bring  it 
from  Oklahoma  to  Houston. 

Man  himself  can  now  fly  over  the  seas  quicker 
than  he  can  travel  on  the  surface,  but  it  seems  safe 
to  say  that  his  goods  will  for  the  most  part  always 
travel  on  and  not  above  the  water. 

There  is  now  meeting  in  London  a  conference 
of  18  nations  called  by  the  Economic  and  Social 
Council  for  a  preliminary  discussion  of  the  pro- 
posals of  the  United  States  Government  for  the 
expansion  of  world  trade  and  employment. 

These  proposals  contemplate  a  reduction  in  the 
barriers  to  international  trade  and  the  elimination 
of  discriminations  in  such  trade ;  they  provide  for 
the  establishment  through  the  Economic  and  So- 
cial Council  of  an  International  Trade  Organiza- 
tion designed  to  substitute  multilateral  for  unilat- 
eral action  in  the  international  trade  field. 

Heretofore  nations  have  acted  unilaterally  in 
this  field.  In  so  doing  they  have  often  taken  meas- 
ures which  injured  their  neighbors,  the  neighbors 
retaliated  with  the  result  that  all  were  hurt  and 
all  were  mad. 

Our  proposals  ai-e  designed  to  bring  about  a 
great  expansion  in  world  economy — increased 
production  and  consumption,  and  a  great  increase 
{Continued  on  page  822) 


817 


THE  RECORD  OF  THE  WEEK 


U.S.  Efforts  to  Secure  Free  Elections  in  Bulgaria 


NOTE  FROM  THE  SECRETARY  OF  STATE  TO  BULGARIAN  PRIME  MINISTER' 


[Released  to  the  press  October  21] 

September  24, 19^6 
Since  our  conversation  on  August  27  about 
political  conditions  in  your  country  and  the  prob- 
lem those  conditions  create  for  tlie  United  States 
in  signing  peace  with  Bulgaria,  I  have  given  con- 
siderable thought  to  Bulgaro  -  United  States  re- 
lations. 

I  had  hoped  that  implementation  of  the  pro- 
gram set  forth  in  the  aide  memoire  handed  by  you 
to  Mr.  Barnes  on  August  31  for  my  information 
would  go  far  to  dissipate  the  problems  that  I  dis- 
cussed with  you.  As  I  told  you,  it  is  my  belief 
that  implementation  of  the  Moscow  Agreement 
to  enlarge  the  basis  of  the  Bulgarian  Government 
by  the  inclusion  of  two  representative  leaders  of 
the  Opposition  before  the  elections  on  October  27 
for  the  Grand  National  Assembly  would  be  the 
most  effective  means  of  assuring  widespread  ac- 
ceptance of  election  results.  Wliile  I  have  as 
yet  perceived  no  signs  of  an  effort  on  the  part 
of  the  Bulgarian  Government  since  your  return 
to  Sofia  to  put  the  Moscow  Agreement  into  effect 
before  the  elections,  I  still  hope  that  such  efforts 
will  be  made. 

I  have  decided  to  follow  up  our  conversation 
in  Paris  with  this  letter  because  of  my  sincere  de- 
sire to  do  everything  possible  myself  to  assure  in 
the  case  of  Bulgaria  fulfillment  of  the  hopes  that 
were  entertained  and  expressed  by  President 
Koosevelt,  Marshal  Stalin,  and  Prime  Minister 


^Kimon  Georgiev. 


Churchill,  the  representatives  of  the  three  great 
Allies  at  Yalta.  I  feel  that  I  should  also  tell  you 
that  I  have  instructed  General  Robertson  to  re- 
quest of  the  Acting  President  of  the  Allied  Con- 
trol Commission  that  all  party  leaders  in  Bulgaria 
be  heard  by  the  Commission  on  the  subject  of  the 
forthcoming  elections  for  the  Grand  National  As- 
sembly and  general  political  conditions  in  the 
country.  General  Robertson  will  request  a  spe- 
cial meeting  of  the  Allied  Control  Commission 
to  consider  what  steps  along  the  following  lines 
might  be  taken  by  the  Commission  lurther  to  as- 
sure free  elections  for  the  Grand  National  As- 
sembly : 

(1)  freedom  of  press,  radio,  and  assembly  for 
the  Opposition ; 

(2)  non-interference  of  the  militia,  either  with 
candidates  or  voters,  except  to  maintain  law  and_ 
order ; 

(3)  release  of  political  prisoners,  or  open 
formulation  of  charges  against  them; 

(4)  elimination  of  any  possible  threat  of  post- 
election retaliation  for  political  reasons. 

I  am  sure  you  will  understand  my  motives  in 
writing  you  as  frankly  as  I  have  and  that  in  this 
connection  you  will  recall  my  words  on  the  sub- 
ject of  the  difficulty  that  present-day  conditions 
in  your  country  present  to  the  United  States  with 
respect  to  the  resumption  and  development  of 
friendly  relations  between  our  two  peoples  and 
Governments. 


818 


Department  of  State  Bulletin 


November  3,  1946 


THE  RECORD  OF  THE  WEEK 


REPLY  FROM  THE  BULGARIAN  PRIME  MINISTER' 


I  have  the  honor  to  acknowledge  the  receipt  of 
your  letter  of  September  24.  I  am  especially 
grateful  for  the  solicitude  which  you  have  shown 
in  the  interest  of  a  solution  that  would  clear  the 
way  to  the  renewal  and  development  of  friendly 
relations  between  the  Governments  of  the  United 
States  and  Bulgaria,  as  well  as  between  the  Bul- 
garian people  and  the  noble  people  of  the  United 
States  toward  whom  we  have  always  entertained 
deep  gratitude  and  respect. 

I  am  able  to  make  the  following  explanatory 
comment  on  the  contents  of  your  letter : 

On  August  27  in  the  conversation  which  we 
had,  I  explained  to  you  orally  the  impediments 
to  the  realization  in  practice  of  the  Moscow  Agree- 
ment for  the  enlargement  of  the  Bulgarian  Gov- 
ernment by  the  inclusion  of  two  representative 
leaders  of  the  opposition.  I  confirm  anew  that  the 
responsibility  does  not  rest  with  the  Government. 
As  it  was  then,  so  is  it  now.  There  are  no  factors 
in  the  situation  that  might  combine  to  the  reali- 
zation of  the  Moscow  Agreement. 

Because  of  this,  in  its  intention  to  normalize 
its  relations  with  the  opposition,  especially  after 
your  conversation  with  President  V.  Kolaroff,  the 
Government  decided  to  seek  a  solution  in  another 
direction;  namely  through  holding  elections  for 
the  Grand  National  Assembly,  the  date  of  which 
has  been  set  for  October  27.  These  elections  will 
permit  the  entire  Bulgarian  people.  Government 
ind  opposition,  to  send  representatives  to  the  Con- 
stituent Assembly.  The  results  of  these  elections 
svill  determine  the  composition  of  the  future  gov- 
ernment and  will  indicate  the  manner  of  settle- 
ment of  relations  between  the  Government  and  the 
opposition. 

The  Bulgarian  Government,  which  has  enjoyed 
popular  support  since  September  9,  has  decided 
:o  hold  entirely  free  elections,  which  are  to  re- 
ject the  true  will  of  the  people.  With  regard  to 
;his,  it  has  taken  dispositions  calculated  fully  to 
•ealize  the  measures  which  you  also  recommend 
n  your  letter  to  me.     In  connection  with  these 


recommendations,  I  should  point  out  the  follow- 
ing: 

One.  Freedom  of  the  press  in  our  country  with- 
in the  limits  of  existing  law  is  fully  assured.  At 
this  moment  three  opposition  newspapers  appear 
without  hindrance  as  the  organs  of  three  opposi- 
tion parties,  namely  newspapers  Narodno  Zeme- 
delsko  Zname,  Svoioden  Narod,  and  Zname.  In 
these  newspapers  expression  is  freely  given  to  op- 
position views  and  to  fairly  exacting  criticism  of 
the  Government. 

The  Government  has  given  its  agreement  that 
all  political  parties,  including  the  opposition,  may 
expound  their  election  platforms  over  the  state 
radio. 

As  concerns  the  right  of  assembly  of  the  opposi- 
tion, they  have  never  been  forbidden  to  gather  or 
assemble,  and  such  meetings  are  held  throughout 
the  country.  In  this  period  of  the  electoral  cam- 
paigns these  meetings  are  primarily  private,  but 
in  several  localities  public  gatherings  have  al- 
ready been  held,  and  the  possibility  of  holding 
such  gatherings  elsewhere  is  assured. 

Two.  All  basic  laws,  and  especially  the  elec- 
toral law,  forbid  the  militia  in  our  country  inter- 
fering or  exerting  influence  in  the  choice  of  can- 
didates for  popular  representatives,  or  in  the 
exercise  of  the  electoral  rights  of  Bulgarian  citi- 
zens. In  addition,  the  Government  has  made 
clear  through  its  most  authorized  representatives 
to  all  officials  of  the  militia  and  the  administra- 
tion and  to  the  whole  country  that  the  militia 
will  have  only  one  obligation  before  and  during 
elections ;  namely,  to  assure  order  and  freedom  for 
every  citizen  to  vote  as  he  chooses. 

Three.  In  good  time  the  Government,  imme- 
diately after  the  proclamation  of  the  Peoples  Re- 
public, with  a  view  to  creating  the  indispensable 
psychological  conditions  for  free  exercise  of  the 
electoral  right  of  Bulgarian  citizens,  liberated  all 


'Translated  from  the  Bulgarian. 


819 


persons  detained  on  political  grounds  and  against 
whom  there  was  no  basis  for  formulation  of 
charges  of  infringement  of  existing  laws.  Simul- 
taneously about  1,700  persons  who  had  been  con- 
demned by  the  Peoples  Courts  for  Fascist  activi- 
ties up  to  September  9,  1944  were  released  from 
prison,  and  sentences  of  all  remaining  ones  were 
considerably  reduced.  I  informed  you  of  the 
achievements  in  this  direction  in  my  letter  of 
September  21. 

At  present  737  persons  in  all  are  interned  in  the 
labor-educational  institutions  of  the  entire  coun- 
try. Of  these  only  6  percent,  around  45  persons, 
are  adherents  of  opposition  parties,  Agrarians 
(Petkov),  Socialists  (Lulchev),  Democrats 
(Mushanov),  Anarchists  (Girginov). 

Their  detention  is  not  political  abuse  but  is  due 
to  the  accusations  formulated  against  them  for 
infringement  of  the  administration  laws  as  well 
as  regulations  in  connection  with  the  conditions 
for  applying  the  armistice  agreement.  The  re- 
maining 94  are  persons  with  Fascist  tendencies, 
morally  depraved  persons,  and  idlers  detained  on 
basic  existing  laws. 

Four.  All  of  the  measures  mentioned  up  to  this 
point  which  the  Bulgarian  Government  under- 
took to  assure  order  and  freedom  in  the  forth- 
coming elections,  as  well  as  all  further  measures 
that  will  be  undertaken  in  this  same  direction, 
such  as  the  creation  of  electoral  control  and  su- 
pervisory committees  with  the  participation  of  the 
opposition  parties,  to  which  the  opposition  has  al- 
ready consented,  will  constitute  sufficient  guaran- 
tee for  the  removal  of  any  menace  whatever  of 
post-election  reprisals  on  political  grounds. 

Proof  of  this  sufficiency  of  guarantee  is  also 
the  fact  that  the  opposition  parties  have  registered 
lists  of  candidates  throughout  the  country.  Offi- 
cial data  show  that  parties  of  Fatherland  Front 
have  posted  99  lists,  united  opposition  parties. 
Agrarians  and  Socialists,  18  lists.  Democrats  35 
lists.  Besides  another  eight  lists  have  been  posted 
by  other  opposition  groups,  which  facts  lead  to 

'  Major  General  Robertson  is  American  representative  on 
the  Allied  Control  Council.  Colonel  General  Biryusov  is 
Soviet  representative  and  acting  chairman  of  the  Council. 


the  conclusion  that  political  conditions  are  favor- 
able for  a  free  electoral  contest. 

In  advising  you  of  the  above  I  thank  you  once 
again.  Your  Excellency,  for  the  frankness  with 
which  you  bring  up  and  discuss  questions  that  in- 
terest and  concern  me  as  well,  and  I  take  this  op- 
portunity to  assure  you  with  the  same  frankness 
that  I  and  the  Bulgarian  Government  will  do 
everji^hing  necessary  so  that  the  Bulgarian  people 
may  freely  express  their  will  on  October  27. 


LETTER    FROM    MAJOR    GENERAL  ROBERTSON 
TO  COLONEL  GENERAL  BIRYUSOV  > 

I  have  been  directed  by  the  United  States  Sec- 
retary of  State,  James  F.  Byrnes,  to  request  a 
special  meeting  of  the  Allied  Control  Commis- 
sion to  consider  what  steps  along  the  following 
lines  might  be  taken  by  the  Commission  further 
to  assure  free  elections  for  the  Bulgarian  Grand 
National  Assembly  on  October  27 :  (1)  Freedom 
of  the  press,  radio  and  assembly  for  the  opposi- 
tion; (2)  non-interference  of  the  militia  either 
with  candidates  or  voters  except  to  maintain  law 
and  order;  (3)  release  of  political  prisoners  or 
open  formulation  of  charges  against  them;  (4) 
elimination  of  any  possible  threat  of  post  election 
retaliation  for  political  reasons.  I  am  also  in- 
structed to  request  that  all  political  leaders  in  Bul- 
garia be  heard  by  the  Commission  on  the  subject 
of  the  forthcoming  elections. 

In  view  of  the  importance  of  the  subject  and 
the  urgency  of  early  action,  I  request  that  the 
regular  plenary  session  of  the  Commission  sched- 
uled for  October  3  be  converted  into  a  special  ses- 
sion with  yourself  presiding.  I  have  conferred 
with  General  Oxley  who  is  agreeable  to  the  post- 
ponement of  the  agenda  for  that  meeting  to  some 
later  date.  I  have  been  requested  by  Mr.  Byrnes 
to  keep  him  informed  telegraijhically  of  develop- 
ments. Under  these  circumstances,  I  feel  that  I 
must  inform  him  at  once  as  to  whether  you  are 
agreeable  to  convoking  a  special  meeting  on  Octo- 
ber 3  in  place  of  the  regularly  scheduled  plenary 
meeting. 


820 


Department  of  State  Bulletin 


November  3,  1946 


THE  RECORD  OF  THE   WEEK 


REPLY  FROM  COLONEL  GENERAL  BIRYUSOV 

I  am  very  much  surprised  at  your  request  of 
calling  a  special  meeting  of  the  Allied  Control 
Commission  for  discussing  the  measures  which 
should  be  taken,  according  to  your  opinion,  by  the 
Commission  for  the  guarantee  of  free  elections  to 
the  Grand  National  Assembly  scheduled  for  Oc- 
tober 27, 1946. 

It  should  be  known  to  you  that  the  guarantee 
of  free  elections  is  the  prerogative  of  the  Bul- 
garian Government  which  in  that  respect  has 
done  everything  necessary,  which  is  attested  in 
particular  by  the  decision  of  opposition  parties, 
published  on  September  14  and  19,  who  boycotted 
elections  of  November  18  last  year,  in  regards  to 
participation  in  the  election  to  the  Grand  National 
Assembly. 

Therefore,  the  discussion  of  questions  raised  by 
you  in  the  Commission  and  even  more,  the  tak- 
ing of  any  kind  of  measures  by  the  Commission 


would  be  in  violation  of  these  prerogatives  and 
a  rude  intei-ference  in  the  internal  affairs  of  Bul- 
garia. On  the  other  hand,  the  Commission  can- 
not consider  these  questions,  as  they  do  not  come 
under  its  jurisdiction,  as  determined  by  the 
Armistice  Agreement  with  Bulgaria. 

REPLY  FROM  MAJOR  GENERAL  ROBERTSON 

I  have  just  received  your  letter  No.  3316,  Oc- 
tober 4,  1946,  in  reply  to  mine  (No.  A-834,  Oc- 
tober 1,  1946)  requesting  a  special  meeting  of  the 
Allied  Control  Commission  to  consider  means  of 
assuring  free  elections  for  the  Grand  National 
Assembly  on  October  27.  I  cannot  agree  with 
any  of  the  conclusions  arrived  at  in  your  letter. 
I  am  therefore  telegraphing  the  contents  of  your 
letter  to  Mr.  Byrnes  with  the  request  that  he  take 
such  steps  in  the  circumstances  as  he  may  consider 
necessary. 


U.S.  and  Italy  Express  Mutual  Peace  Aims 


EXCHANGE  OF  TELEGRAMS  BETWEEN  THE  SECRETARY  OF  STATE 
AND  ITALIAN  FOREIGN  MINISTER 


[Released  to  the  presB  October  23] 

October  19,  IQJfi. 

The  Honorable  James  F.  Btrkes, 
Secretary  of  State,  Washington. 
In  taking  over  the  direction  of  the  foreign 
policy  of  my  country,  I  am  happy  to  confirm  to 
you  the  wish  which  I  expressed  when  I  met  you 
at  Paris,  to  work  to  make  always  more  cordial 
the  relations  between  Italy  and  the  United  States 
of  America.  Italy  has  need  of  America,  and 
offers  to  America  her  contribution  to  the  reorgan- 
ization of  peace  on  the  basis  of  international  col- 
laboration. I  hope  to  have  the  opportunity  to 
discuss  and  settle  with  you  the  problems  inherent 
in  the  economic  life  of  my  country.  I  beg  you  to 
accept  my  respectful  greeting. 

Nekni 


Octoher  22, 1946. 

His  Excellency  Pietro  Nenni, 

Minister  for  Foreign  Affairs,  Rome. 
In  acknowledging  receipt  of  your  cordial  tele- 
gram on  the  occasion  of  your  assumption  of  your 
new  honor  and  responsibility  as  Foreign  Minister, 
I  desire  to  take  this  opportunity  to  renew  my  ex- 
pressions of  friendship  for  the  Italian  people. 
Italy  has  already  proved  that  years  of  oppression 
could  not  stifle  the  free  democratic  spirit  of  her 
people.  This  spirit,  I  am  confident,  will  enable 
them  to  overcome  the  difficulties  arising  from  the 
war  and  to  work  with  all  free  peoples  for  a  last- 
ing peace.  In  this  endeavor,  they  can  count  on 
the  full  support  of  the  American  people  and  I 
shall  be  happy  to  work  with  you  to  strengthen 
ever  more  firmly  the  close  ties  which  bind  our  two 
countries. 

James  F.  Byrnes 


821 


Clarification  of  American  Policy  on  Palestine 


[Released  to  the  press  October  25] 

Tc-^t  of  -notes  exchanged  hetween  Secretary  of 
State  Byrnes  and  the  American  memher  of  the 
executive  convmittee  of  the  Jewish  Agency  for 
Palestine 

October  23, 19Ifi. 
My  dear  Mr.  Btrnes  : 

It  is  my  understanding  that  the  statement  made 
by  the  President  on  October  4  has  been  extremely 
heliDful  in  clarifying  the  position  of  the  United 
States  with  regard  to  certain  problems  relating 
to  Palestine.  Unfortunately,  however,  there  have 
been  persistent  rumors,  some  of  which  have  ap- 
peared in  the  press,  to  the  effect  that  the  President's 
statement  is  not  to  be  considered  as  policy  of  the 
American  Government  and  that,  in  fact,  the  State 
Department  is  not  giving  full  support  to  the  policy 
which  the  President's  statement  would  seem  to 
reflect. 

I  would  deeply  appreciate  it  if  you  M'ould  be  good 
enough  to  let  me  kiaow  whether  or  not  these  rumors 
have  any  foundation  in  fact. 
Sincerely  yours, 

Stephen  S.  Wise 

October  2Jf,  19^6. 
My  DE.VR  Dr.  Wise  : 

I  have  received  your  letter  of  October  23,  in 
which  you  were  good  enough  to  mention  the  help- 
fulness of  the  President's  recent  statement  on  the 
subject  of  Palestine  and  the  displaced  persons  in 
Europe.  In  your  letter  you  also  referred  to  cer- 
tain rumors  which  allege  that  there  is  a  difference 
of  opinion  between  the  President  and  the  Depart- 
ment of  State  on  these  matters,  and  you  asked  for 
clarification. 

I  am  happy  to  assure  you  that  the  rumors  to 
which  j'ou  refer  have  no  basis  in  fact.  The  state- 
ment made  by  the  President  on  October  4 '  with 
regard  to  Palestine  and  to  Jewish  immigi-ation 
into  Palestine  is,  of  course,  an  expression  of  the 

'  BuixETiN  of  Oct.  13,  1946,  p.  669. 


policy  of  this  Goverimient.    With  this  policy  I  am 
in  hearty  accord. 

The  importance  which  this  Government  attaches 
to  the  matter  and  the  deep  personal  concern  of 
the  President  over  the  situation  in  Palestine  and 
over  the  condition  of  the  displaced  persons  in  Eu- 
rope— a  concern  which  I  share — is  shown  by  the 
fact  that  on  this  occasion,  as  on  several  prior  oc- 
casions, the  President  himself  has  expressed  the 
views  of  this  Government.  The  Department  of 
State  and  the  Foreign  Service  are  endeavoring 
loyally  and  wholeheartedly  to  do  their  part  in  the 
implementation  of  these  policies  with  regard  to 
Palestine  and  associated  problems.  They  will  con- 
tinue so  to  do. 

Sincerely  yours, 

James  F.  Byrnes 


Maritime  Council — Continued  from  page  817 

in  the  exchange  of  goods  between  nations  to  the 
end  that  the  peoples  of  the  world  may  have  more 
to  eat,  more  to  wear,  and  better  homes  in  which  to 
live. 

We  do  not  contend  that  a  higher  standard  of  liv- 
ing throughout  the  world  will  of  itself  be  any 
guaranty  of  the  preservation  of  peace,  but  we  do 
insist  that  it  will  serve  to  create  a  climate  con- 
ducive to  the  preservation  of  peace. 

1  hope  it  is  not  too  much  to  say  that  we  con- 
fidently expect  that  the  shipping  interests  of  the 
world,  for  tlie  most  part,  will  support  actively 
our  proposals  to  expand  world  trade  and  emialoy- 
ment  as  an  important  element  in  the  building  and 
maintenance  of  permanent  j^eace. 

Part  "B"  of  the  United  Maritime  Executive 
Board's  recommendation  pursuant  to  which  the 
United  Maritime  Consultative  Council  was  estab- 
lished, provides  that  "A  chairman  for  each  meeting 
should  be  designated  by  the  government  of  the 
nation  where  such  meeting  is  to  be  held." 


822 


Department  of  State  Bulletin 


November  3,   1946 


THE  RECORD  OF  THE  WEEK 


Report  on  the  Mission  on  Japanese  Combines 


The  Zaibatsu  system  of  Japan — a  system  of  in- 
dusti'ial  combines  controlling  vast  wealth  and 
economic  power — bears  a  heavy  responsibility  for 
the  war  and  could  be  an  important  tool  for  re- 
building Japan's  war  potential.  This  is  the  find- 
ing of  the  Eeport  of  the  Mission  on  Japanese  Com- 
bines, which  was  released  on  October  27  by  the 
Department  of  State  and  the  War  Department.^ 

The  report  sets  forth  that  the  power  of  the  Zai- 
batsu over  the  economy  of  Japan  is  unparalleled 
in  any  other  capitalistic  industrialized  country. 
The  paid-up  capital  of  17  Zaibatsu  combines 
amounted  in  1944  to  almost  a  fourth  of  the  total 
paid-up  capital  of  all  Japanese  joint  stock  compa- 
nies. In  single  industries,  this  strength  was  even 
more  significant.  Fifteen  Zaibatsu  combines  pro- 
duced 51  percent  of  the  coal  output  of  Japan,  69 
percent  of  the  aluminum,  50  percent  of  the  paper 
and  pulp,  20  percent  of  the  rayon,  88  percent  of  the 
steam  engines,  69  percent  of  the  steam  locomotives, 
50  percent  of  the  airplanes,  88  percent  of  the  soda. 
43  percent  of  the  ammonia  sulphate,  33  perceiit  of 
the  silk,  49  23ercent  of  the  synthetic  dyes,  and  almost 
30  percent  of  the  explosives.  Zaibatsu  banks  ac- 
counted for  57  percent  of  the  assets  and  71  percent 
of  the  loans  and  advances  of  all  ordinary  banks. 
Of  all  the  savings  bank  assets,  99  percent  were  to 
be  found  in  Zaibatsu  savings  banks.  Of  all  the 
trust  company  assets,  69  percent  were  controlled 
by  the  Zaibatsu.  They  own  74  percent  of  the  total 
assets  of  fire-insurance  companies  and  38  percent 
of  all  the  life-insurance  company  assets. 

The  report  was  prepared  by  a  special  mission  of 
experts  who  early  this  year  were  sent  to  Japan 
jointly  by  the  Department  of  State  and  the  War 
Department.  The  Mission  was  headed  by  Corwin 
D.  Edwards,  consultant  on  cartels.  Department  of 
State.  Mr.  Edwards  is  also  professor  of  economics 
at  Northwestern  University. 

Recommendations  made  by  the  Mission  are  being 
taken  into  account  in  formulating  a  United  States 
program  for  the  deconcentration  of  Japanese  in- 
ter-corporate business  structure.     This  progi-am 


will  be  presented  to  the  Far  Eastern  Commission 
for  its  consideration.  Upon  final  determination  of 
the  program  by  the  Far  Eastern  Commission, 
policy  directives  will  be  issued  to  the  Supreme 
Commander  of  the  Allied  Powers  for  implemen- 
tation. The  Supreme  Commander,  however,  has 
already  taken  steps  toward  Zaibatsu  dissolution  in 
accordance  with  the  United  States  policy  of  en- 
couraging a  wide  distribution  of  wealth  and  in- 
come. 

The  Mission's  task,  according  to  the  report, 
"greatly  facilitated  by  the  help  of  officials  in 
SCAP",  was  to  study  Japanese  industrial  rela- 
tionships and  to  make  recommendations  as  to 
"standards,  policies  and  procedures  for  carrying 
out  the  basic  objective  of  destroying  the  power 
of  the  great  Japanese  combines". 

To  get  the  necessary  facts  the  Mission  looked 
deeply  into  every  aspect  of  the  Zaibatsu.  It 
studied  the  Zaibatsu  system  as  a  general  institu- 
tion and  probed  into  si)ecific  case  histories  of 
important  individual  Zaibatsu  organizations. 
The  Mission  also  investigated  the  methods  of  the 
Japanese  combines  in  extending  their  control, 
through  social  institutions  and  government  as- 
sistance, over  the  entire  economy  of  Japan.  It 
studied  the  means  by  which  the  Japanese  Govern- 
ment's war  program  enhanced  this  control.  The 
report  shows  how  these  giant  monopolies,  by  pur- 
suing their  own  interests,  were  linked  with  the 
Japanese  program  of  aggression  and  war. 

Various  measures  assisting  in  breaking  Zaibatsu 
control  but  not  aimed  primarily  at  dissolution — 
such  as  demilitarization,  reparations,  and  taxa- 
tion— were  examined  by  the  Mission  and  found  to 
be  insufficient.  The  Mission  concluded  that  the 
Zaibatsu  owners  of  industry  would  have  to  be 
divested  of  their  ownership  and  control.  Accord- 
ingly, the  Mission  surveyed  various  possibilities 
of  new  ownership  for  Zaibatsu  holdings  in  order 


'  Department  of  State  publication  2628. 


823 


to  provide  factual  background  essential  to  formu- 
late such  measures. 

The  report  said  of  Japan's  economy  as  it  was 
before  occupation: 

"Instead  of  the  diffused  business  initiative 
which  gives  rise  to  a  middle  class,  Japan's  indus- 
try has  been  largely  under  the  control  of  a  few 
great  combines,  the  greatest  of  which  began  their 
rise  to  jjower  in  feudal  times  and  all  of  which 
have  enjoyed  preferential  treatment  from  the 
Japanese  Government.  This  type  of  industrial 
organization  tends  to  hold  down  wages,  to  block 
the  development  of  labor  unions,  to  destroy  the 
basis  for  democratic  independence  in  politics,  and 
thus  to  prevent  the  rise  of  interests  which  could 
be  used  as  counterweights  to  the  military  designs 
of  small  groups  of  ambitious  men.  .  .  .  the 
concentration  of  Japanese  wealth  and  economic 
power  must  carry  a  substantial  share  of  the  re- 
sponsibility for  Japanese  aggression. 

"It  is  in  this  sense  that  the  Zaibatsu — that  is, 
the  money  clique — ai'e  to  be  regarded  as  among 
the  groups  principally  responsible  for  the  war 
and  as  a  principal  factor  in  the  Japanese  war 
potential." 

The  report  pointed  to  the  absence  in  Japanese 
society  of  any  movement  "strong  enough  to  pro- 
duce a  Sherman  Act,  a  Commissioner  of  Corpo- 
rations, a  Money  Trust  Investigation,  a  Federal 
Trade  Commission,  or  a  Securities  and  Exchange 
Commission  such  as  developed  in  the  United 
States     .  .  ." 

The  report  declared  that  "the  partnership  be- 
tween business  and  government  in  Japan  is  evi- 
dent throughout  the  fabric  of  Japanese  law ;  it  is 
reflected  in  the  complex  system  of  subsidies, 
monopolies,  discriminatory  taxes,  and  other  de- 
vices favoring  business.  It  is  evident  also  in  the 
manner  in  which  Japanese  law  relating  to  business 
is  enforced". 

Monopolistic  and  entrenched  wealth  was  pro- 
tected by  the  law,  the  report  added :  "A  study  of 
the  different  tax  laws  leads  one  to  the  conclusion 
that  in  their  drafting  considerable  care  has  been 
used  to  insure  against  their  bearing  too  heavily 
upon  the  corporation  and  individuals  of  greatest 
means." 


Treaty  of  General  Relations  With  the 
Republic  of  the  Philippines 

[Beleased  to  the  press  October  23] 

The  treaty  of  general  relations  between  the 
United  States  and  the  Republic  of  the  Philippines, 
signed  at  Manila  July  4,  1946,  was  brought  into 
force  October  22,  1946  (at  4:10  p.m.,  Manila 
time;  3:10  a.m.,  Washington  time)  by  the  ex- 
change of  ratifications  of  the  treaty  and  accom- 
panying pi'otocol.  The  exchange  of  ratifications 
was  effected  at  Manila  by  Paul  V.  McNutt,  Amer- 
ican Ambassador  to  the  Republic  of  the  Philip- 
pines, and  Manuel  Roxas,  President  of  the  Repub- 
lic of  the  Philippines. 

Following  is  the  text  of  the  treaty  and  accom- 
panying protocol : 

Treaty  of  General  Relations  Between  the  United 
States  of  America  and  the  Republic  of  the  Phil- 
ippines 

The  United  States  of  America  and  the  Republic 
of  the  Philippines,  being  animated  by  the  desire 
to  cement  the  relations  of  close  and  long  friend- 
ship existing  between  the  two  countries,  and  to 
provide  for  the  recognition  of  the  independence 
of  the  Republic  of  the  Philippines  as  of  July  4, 
1946  and  the  relinquishment  of  American  sover- 
eignty over  the  Philippine  Islands,  have  agreed 
upon  the  following  articles : 

Article  I 

The  United  States  of  America  agrees  to  withdraw  and 
surrender,  and  does  hereby  withdraw  and  surrender,  all 
right  of  possession,  supervision,  jurisdiction,  control  or 
sovereignty  existing  and  exercised  by  the  United  States  of 
America  in  and  over  the  territory  and  the  people  of  the 
Philippine  Islands,  except  the  use  of  such  bases,  neces- 
sary appurtenances  to  such  bases,  and  the  rights  incident 
thereto,  as  the  United  States  of  America,  by  agreement 
with  the  Republic  of  the  Philippines,  may  deem  necessary 
to  retain  for  the  mutual  protection  of  the  United  States 
of  America  and  of  the  Republic  of  the  Philippines.  The 
United  States  of  America  further  agrees  to  recognize,  and 
does  hereby  recognize,  the  independence  of  the  Republic 
of  the  Philippines  as  a  separate  self-governing  nation 
and  to  acknowledge,  and  does  hereby  acknowledge,  the 
authority  and  control  over  the  same  of  the  Government 
instituted  by  the  people  thereof,  under  the  Constitution  of 
the  Republic  of  the  Philippines. 


824 


Department  of  State  Bulletin 


November  3,  1946 


THE  RECORD  OF  THE  WEEK 


Article  II 

The  diplomatic  representatives  of  eaclj  country  shall 
enjoy  in  the  territories  of  the  other  the  privileges  and 
immunities  derived  from  generally  recognized  interna- 
tional law  and  usage.  The  consular  representatives  of 
each  country,  duly  provided  with  exequatur,  will  be  per- 
mitted to  reside  in  the  territories  of  the  other  in  the 
places  wherein  consular  representatives  are  by  local  laws 
permitted  to  reside;  they  shall  enjoy  the  honorary  privi- 
leges and  the  immunities  accorded  to  such  officers  by 
general  international  usage;  and  they  shall  not  be  treated 
in  a  manner  less  favorable  than  similar  officers  of  any 
other  foreign  country. 

Article  III 

Pending  the  final  establishment  of  the  requisite  Philip- 
pine Foreign  Service  establishments  abi'oad,  the  United 
States  of  America  and  the  Republic  of  the  Philippines 
agree  that  at  the  request  of  the  Republic  of  the  Philip- 
pines the  United  States  of  America  will  endeavor,  in  so 
far  as  it  may  be  practicable,  to  represent  through  its 
Foreign  Service  the  interests  of  the  Republic  of  the 
Philippines  in  countries  where  there  is  no  Philippine 
representation.  The  two  countries  further  agree  that 
any  such  arrangements  are  to  be  subject  to  tei-miuation 
when  in  the  judgment  of  either  country  such  arrange- 
ments are  no  longer  necessary. 

Article  IV 

The  Republic  of  the  Philippines  agrees  to  assume,  and 
does  hereby  assume,  all  the  debts  and  liabilities  of  the 
Philippine  Islands,  its  provinces,  cities,  municipalities 
and  instrumentalities,  which  shall  be  valid  and  subsist- 
ing on  the  date  hereof.  The  Republic  of  the  Philippines 
will  make  adequate  provision  for  the  necessary  funds  for 
the  payment  of  interest  on  and  principal  of  bonds  issued 
prior  to  May  1,  1934  under  authority  of  an  Act  of  Con- 
gress of  the  United  States  of  America  by  the  Philippine 
Islands,  or  any  province,  city  or  municipality  therein, 
and  such  obligations  shall  be  a  first  lien  on  the  taxes 
collected  in  the  Philippines. 

Article  V 

The  United  States  of  America  and  the  Republic  of  the 
Philippines  agree  that  all  cases  at  law  concerning  the 
Government  and  people  of  the  Philippines  which,  in  ac- 
cordance with  Section  7  (6)  of  the  Independence  Act  of 
1934,  are  pending  before  the  Supreme  Court  of  the  United 
States  of  America  at  the  date  of  the  granting  of  the 
independence  of  the  Republic  of  the  Philippines  shall  con- 
tinue to  be  subject  to  the  review  of  the  Supreme  Court 
of  the  United  States  of  America  for  such  period  of  time 
after  independence  as  may  be  necessary  to  effectuate  the 
disposition  of  the  cases  at  hand.  The  contracting  parties 
also  agree  that  following  the  disposition  of  such  cases 
the  Supreme  Court  of  the  United  States  of  America  will 


cease  to  have  the  right  of  review  of  cases  originating  in 
the  Philippine  Islands. 

Article  VI 

In  so  far  as  they  are  not  covered  by  existing  legisla- 
tion, all  claims  of  the  Government  of  the  United  States 
of  America  or  its  nationals  against  the  Government  of 
the  Republic  of  the  Philippines  and  all  claims  of  the 
Government  of  the  Republic  of  the  Philippines  and  its 
nationals  against  the  Government  of  the  United  States 
of  America  shall  be  promptly  adjusted  and  settled.  The 
property  rights  of  the  United  States  of  America  and  the 
Republic  of  the  Philippines  shall  be  promptly  adjusted 
and  settled  by  mutual  agreement,  and  all  existing  prop- 
erty rights  of  citizens  and  corporations  of  the  United 
States  of  America  in  the  Republic  of  the  Philippines  and 
of  citizens  and  corporations  of  the  Republic  of  the  Philip- 
pines in  the  United  States  of  America  shall  be  acknowl- 
edged, respected  and  safeguarded  to  the  same  extent  as 
property  rights  of  citizens  and  corporations  of  the  Re- 
public of  the  Philippines  and  of  the  United  States  of 
America  respectively.  Both  Governments  shall  desig- 
nate representatives  who  may  in  concert  agree  on 
measures  best  calculated  to  effect  a  satisfactory  and  ex- 
peditious disposal  of  such  claims  as  may  not  be  covered 
by  existing  legislation. 

Article  VII 

The  Republic  of  the  Philippines  agrees  to  assume  all 
continuing  obligations  assumed  by  the  United  States  of 
America  under  the  Treaty  of  Peace  between  the  United 
States  of  America  and  Spain  concluded  at  Paris  on  the 
10th  day  of  December,  1898,  by  which  the  Philippine 
Islands  were  ceded  to  the  United  States  of  America,  and 
under  the  Treaty  between  the  United  States  of  America 
and  Spain  concluded  at  Washington  on  the  7th  day  of 
November,  1900. 

Article  VIII 

This  Treaty  shall  enter  into  force  on  the  exchange  of 
instruments  of  ratification. 

This  Treaty  shall  be  submitted  for  ratification  in  ac- 
cordance with  the  constitutional  procedures  of  the  United 
States  of  America  and  of  the  Republic  of  the  Philippines; 
and  instruments  of  ratification  shall  be  exchanged  and 
deposited  at  Manila. 

Signed  at  Manila  this  fourth  day  of  July,  one  thousand 
nine  hundred  forty-six. 

FOR  THE  GOVERNMENT  OF  THE  UNITED  STATES 
OF  AMERICA : 
[SEiAL]  Paul  V.  McNtttt 

FOR  THE  GOVERNMENT  OP  THE  REPUBLIC  OF 
THE  PHILIPPINES : 
[seal]  Manuel  Roxas 


825 


Protocol  to  Accompany  the  Treaty  of  General  Rela- 
tions Between  the  United  States  of  America  and 
the  Republic  of  the  Philippines,  Signed  at  Manila 
on  the  Fourth  Day  of  July  1946 

It  is  understood  and  agreed  by  the  High  Contracting 
Parties  that  this  Treaty  is  for  the  purpose  of  recognizing 
the  independence  of  the  Republic  of  the  Philippines  and 
for  the  maintenance  of  close  and  harmonious  relations 
between  the  two  Governments. 

It  is  understood  and  agreed  that  this  Treaty  does  not 
attempt  to  regulate  the  details  of  arrangements  between 
the  two  Governments  for  their  mutual  defense;  for  the 
establishment,  termination  or  regulation  of  the  rights  and 
duties  of  the  two  countries,  each  with  respect  to  the  other, 
in  the  settlement  of  claims,  as  to  the  ownership  or  control 
of  real  or  personal  property,  or  as  to  the  carrying  out  of 
provisions  of  law  of  either  country ;  or  for  the  settlement 
of  rights  or  claims  of  citizens  or  corporations  of  either 
country  with  respect  to  or  against  the  other. 

It  is  understood  and  agreed  that  the  conclusion  and 
entrance  into  force  of  this  Treaty  is  not  exclusive  of  fur- 
ther treaties  and  executive  agreements  providing  for  the 
speciUc  regulation  of  matters  broadly  covered  herein. 

It  is  understood  and  agreed  that  pending  final  ratifica- 
tion of  this  Treaty,  the  provisions  of  Articles  II  and  III 
shall  be  observed  by  executive  agreement. 

Signed  at  Manila  this  fourth  day  of  July,  one  thousand 
nine  hundred  forty-six. 

FOR  THE  GOVERNMENT  OF  THE  UNITED  STATES 
OF  AMERICA: 
[seal]  Paul  v.  McNtjtt 

FOR  THE  GOVERNMENT  OF  THE  REPUBLIC  OF 
THE  PHILIPPINES: 
[.SEAL]  Mantjel  Rosas 

Establishment  of  the  Philippine  Alien 
Property  Administration 

The  President  on  October  14,  1946,  by  Execu- 
tive Order  9789,^  established  in  the  Office  for  Emer- 
gency Management  of  the  Executive  Office  of  the 
President  the  Philippine  Alien  Property  Adminis- 
tration. According  to  the  Executive  order,  a  Phil- 
ippine Alien  Property  Administrator  shall  be  ap- 
IDointed  by  the  President,  and  shall  be  vested  with 
all  custodial  authority,  rights,  privileges,  powers, 
duties,  and  functions  with  respect  to  property  lo- 
cated in  the  Philippines.  All  property  in  the  Phil- 
ippines transferred  to  the  Alien  Property  Custo- 
dian (and  later  transferred  to  the  Attorney  Gen- 
eral of  the  United  States  under  Executive  Order 
9788 1  of  October  15, 1946  terminating  the  Office  of 


'  11  Federal  Register  11981. 

^  Executive  Agreement  Series  232. 


Alien  Property  Custodian  and  transferring  its 
functions  to  the  Attorney  General)  shall  be  vested 
in  the  Philippine  Alien  Property  Administrator. 
Tlie  Secretary  of  State  shall  be  consulted  (except 
as  otherwise  agreed  to)  before  the  vesting  of  any 
propert)'  or  interest  pursuant  to  tliis  Executive 
order. 

Defense  of  Iceland  Agreement 
Terminated 

[Released  to  the  press  October  25] 

The  transfer  to  the  Government  of  Iceland  of 
the  airport  at  Keflavik,  constructed  by  the  United 
States  during  the  war,  was  observed  in  appro- 
priate ceremonies  at  the  airport  on  October  25. 
The  return  of  the  Keflavik  airport  to  Iceland  was 
provided  in  the  United  States-Icelandic  agree- 
ment concluded  on  October  7,  1946,  which  also 
terminated  the  defense  of  Iceland  agreement  of 
July  1, 1941.= 

American  Army  personnel,  under  the  agree- 
ment, are  being  progressively  withdrawn  during 
the  180-day  withdrawal  period,  which  began  Octo- 
ber 7,  1946,  stipulated  in  the  agreement. 

All  naval  personnel,  except  a  small  group  acting 
as  caretakers  for  Navy  property  until  disposed  of, 
have  been  withdrawn. 

Entrance  Visas  for  Estonians 

STATEMENT  BY  THE  PRESIDENT 

[Released  to  the  press  by  the  White  House  October  24] 

I  have  felt  considerable  personal  concern  over 
the  48  Estonians  who  recently  displayed  such 
courage  and  determination  in  crossing  the  Atlantic 
to  our  shores  in  two  small  oiaen  boats.  This  is  the 
type  of  pioneering  spirit  that  built  this  nation. 

This  morning  the  Attorney  General  stayed  the 
order  requiring  these  people  to  leave  the  United 
States.  This  order  had  been  issued  by  local  offi- 
cials in  conformity  with  existing  immigration 
regulations  when  it  was  discovered  that  these 
peojjle  had  not  obtained  entrance  visas  because  of 
over-subscription  of  the  immigration  quota  for 
Estonians. 

I  have  directed  that  all  avenues  be  explored 
toward  enabling  this  group  to  remain  here,  if  they 
so  desire,  so  that  they  may  eventually  become  citi- 
zens of  this  country.  The  Department  of  State 
is  now  working  on  these  details. 


826 


Department  of  State  Bulletin 


November  3,   1946 


Rank  of  Embassy  for  Missions  in  New 
Delhi  and  Washington 

[Released  to  the  press  October  23] 

The  Governments  of  the  United  States  and 
India  have  agreed  to  an  exchange  of  Ambassadors 
and  to  the  raising  of  their  respective  missions 
in  New  Delhi  and  Washington  to  the  rank  of 
embassies. 

In  order  to  establish  closer  and  more  direct 
contacts  between  India  and  the  United  States, 
the  Government  of  India  in  1941  designated  an 
Agent  General  to  represent  it  in  Washington, 
and  the  United  States  Government  appointed  an 
American  Commissioner  to  New  Delhi.  The  mu- 
tually beneficial  relations  resulting  from  this  ex- 
change are  attested  by  the  present  agreement  to 
elevate  the  two  missions  to  the  status  of  embassies. 

George  R.  Merrell,  at  present  American  Com- 
missioner to  India  with  the  personal  rank  of  Min- 
ister, will  act  as  Charge  d'Affaires  ad  interim  of 
the  American  Embassy  with  the  personal  rank  of 
Minister  pending  the  designation  and  arrival  in 
India  of  an  American  Ambassador. 

Termination  of  Tripartite  Rubber 
Agreement 

[Released  to  the  press  October  16] 

The  American  Embassy  in  Argentina  has  ad- 
vised the  Department  of  State  that  notes  have 
been  exchanged  with  the  Goverimient  of  Argen- 
tina terminating  the  Tripartite  U.  S.-Brazil- 
Argentina  Rubber  Agreement. 

The  United  States  and  Brazil  exchanged  notes 
canceling  the  agreement,  effective  August  29,^  the 
reason  being  that  changed  conditions  following 
the  end  of  hostilities  have  removed  the  need  for  it. 

Tlie  Tripartite  Rubber  Agreement  was  con- 
cluded May  2, 1945  by  representatives  of  the  Gov- 
ernments of  Argentina,  Brazil,  and  the  United 
States.  It  established  procedures  to  integrate 
Argentina  into  the  existing  inter-American  sys- 
tem covering  the  supply  of  rubber  and  rubber 
products.  The  purpose  of  the  arrangement  was 
to  conserve  the  maximum  quantities  of  natural 
rubber  for  the  prosecution  of  the  war. 


THE  RECORD  OF  THE  WEEK 

Tax  Convention  Signed  With  France 

[Released  to  the  press  October  22  J 

A  convention  between  the  United  States  and 
France  for  the  avoidance  of  double  taxation  and 
the  prevention  of  fiscal  evasion  in  the  case  of  taxes 
on  estates  and  inheritances  and  for  the  purpose  of 
modifying  and  supplementing  certain  provisions 
of  the  convention  of  July  25,  1939  relating  to  in- 
come taxation  was  signed  at  Paris  on  October  18, 
1946  by  Jefferson  Caffery,  American  Ambassador 
to  France,  and  Georges  Bidault  as  Minister  of 
Foreign  Affairs  of  France. 

The  convention  provides  that  it  shall  be  rati- 
fied and  the  ratifications  exchanged.  The  pro- 
visions applicable  to  taxes  on  estates  and  inherit- 
ances will  enter  into  force  on  the  day  of  the 
exchange  of  instruments  of  ratification  and  will 
apply  solely  to  estates  or  inheritances  in  the  case 
of  persons  who  die  on  or  after  that  date.  The 
provisions  applicable  to  taxes  on  income  will,  ex- 
cept as  otherwise  provided,  enter  into  force  on 
the  fii-st  day  of  January  following  the  exchange 
of  instruments  of  ratification. 

The  new  convention  was  drafted  in  ad  refer- 
endum negotiations  which  took  place  in  Washing- 
ton during  March  and  April  with  a  delegation 
which  came  from  France  for  that  purpose.'^ 

Earlier  agreements  between  the  United  States 
and  France  for  the  avoidance  of  double  taxation 
include  an  arrangement  for  relief  from  double  in- 
come tax  on  shipping  profits,  effected  by  exchange 
of  notes  signed  at  Washington  on  June  11  and 
July  8,  1927 ;  ^  a  convention  and  protocol  concern- 
ing double  taxation,  signed  at  Paris  on  April  27, 
1932;^  and  the  convention  for  the  avoidance  of 
double  taxation  and  the  establishment  of  rules  of 
reciprocal  administrative  assistance  in  the  case  of 
income  and  other  taxes,  and  accompanying  pro- 
tocol, signed  at  Paris  on  July  25, 1939.' 


'  BuixETiN  of  Sept.  15,  1946,  p.  514. 

"Bulletin  of  Mar.  17,  1946,  p.  451,  and  July  7,  1946, 
p.  40. 

'  Executive  Agreement  Serie.s  12. 
'Treaty  Series  885. 
"  Treaty  Series  988. 


U.  S.  GOVERNMENT  PRINTING   OFFICE:  IS46 


827 


General  Policy  ^^se 

Problem  of  the  Turkish  Straits:  Principal 
Treaties  and  Conventions  (1774-1936). 
Edited,  with  an  Introduction,  by  Harry 

N.Howard 790 

U.    S.    Efforts   to   Secure   Free   Elections  in 
Bulgaria: 
Note    From    the    Secretary    of    State    to 

Bulgarian   Prime   Minister 818 

Reply  From  Bulgarian  Prime  Minister  ,    .       819 
Letter  From  Major  General  Robertson  to 

Colonel   General   Biryusov 820 

Reply  From  Colonel  General  Biryusov   .    .       821 
Reply  From  Major  General  Robertson   .    .       821 
U.  S.  and  Italy  Express  Mutual  Peace  Aims. 
Exchange    of    Telegrams    Between    the 
Secretary  of  State  and  Italian  Foreign 

Minister 821 

Clarification  of  American  Policy  on  Pales- 
tine          822 

Entrance    Visas    for    Estonians.     Statement 

by   the   President 826 

The  United  Nations 

President     Truman's     Address    to     General 

Assembly 808 

Economic  Affairs 

American   Wool   Import  Policy.     By  James 

Gilbert  Evans 783 

Conversations  on  Wool  Problems 789 

First  Inter-American  Medical  Congress   .    .    .       814 
Fifth  Congress  of  the  Postal  Union  of  the 

Americas  and  Spain 815 


Economic  Affairs — Continued  Pago 
United      Maritime      Consultative     Council: 
Second  Session.     By  Under  Secretary  for 
Economic  Affairs,  William  L.  Clayton   .       816 
Establishment  of  the  Philippine  Alien  Prop- 
erty Administration 826 

Occupation  Matters 

Report  on  the  Mission  on  Japanese  Com- 
bines           823 

Treaty  Information 

Problem  of  the  Turkish  Straits:  Principal 
Treaties  and  Conventions  With  Respect 
to  the  Problem  of  the  Turkish  Straits 

(1774-1936) 791 

Treaty  of  General  Relations  With  the  Re- 
public of  the  Philippines 824 

Defense  of  Iceland  Agreement  Terminated   .       826 
Tax  Convention  Signed  With  France   .    .    .       827 
Termination    of    Tripartite    Rubber    Agree- 
ment         827 

The  Foreign  Service 

Diplomatic  and  Consular  Offices 812 

Rank  of  Embassy  for  Missions  in  New  Delhi 

and  Washington 827 

International  Organizations  and  Con- 
ferences 

Calendar  of  Meetings 813 

Publications 

Report  on  the  Mission  on  Japanese  Com- 
bines           823 


'{mi 


Harry  N.  Howard  vifho  edited  the  treaties  and  agreements  pertaining  to 
the  Turkish  Straits  is  Chief  of  the  Near  Eastern  Branch  of  the  Division  of 
Research  for  Near  East  and  Africa,  Office  of  Near  Eastern  and  African 
Affairs,  Department  of  State. 

James  Qilbert  Evwns,  author  of  "American  Wool  Import  Policy",  is  Chief, 
Fibers  Section,  Division  of  International  Resources,  Office  of  International 
Trade  Policy,  Department  of  State. 


fj/ie/  ^eha/}^t^tenl/  xw  t/taie/ 


JFS.-ARAB  VIEWS  ON  PALESTINE  PROBLEM ...   848 

THE  LAWYER  IN  MILITARY  GOVERNMENT  OF 

GERMANY     •     By  Charles  Fahy 852 

NATIONAL  WAR  COLLEGE  AND   DEPARTMENT  OF 

STATE      •     Article  by  Perry  N.  Jester 837 

INTERNATIONAL  INDUSTRIAL   CONTROL  OF 

QUININE     •     Article  by  Walter  M.  Rudolph 831 


For  complete  contents  see  back  cover 


Vol.  XV,  No.  384 
November  10,  1946 


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INTERNATIONAL  INDUSTRIAL  CONTROL  OF  QUININE 


hy  Walter  M.  Rudolph 


As  the  United  States  and  other  nations  re-examine  inter- 
national economic  institutions  and  seek  to  reduce  restrictions 
on  international  trade,  quinine  assumes  an  additional  im- 
portance as  a  case  study  of  the  pre-war  patterns  of  inter- 
national industrial  control.  The  purpose  of  this  article  is 
to  examine  historically  the  pertinent  facts  relative  to  the 
achievement  of  control  over  the  production  of  cinchona  hark 
and  the  marketing  of  quinine  and  to  suggest,  on  the  basis  of 
those  facts,  possible  policy  measures  which  might  he  con- 
sidered in  the  development  of  a  program  designed  to  assure 
for  the  United  States  in  the  future  a  continuing  flow  of  neces- 
sary supplies  of  qui?iine  compounds. 


In  the  United  States  quinine  is  essential  in  peace 
and  strategic  in  war.  The  bottle  or  the  package 
of  quinine  in  one  form  or  another  has  been  a  famil- 
iar and  indispensable  object  in  the  medicine  cabi- 
net of  thousands  of  American  homes.  The  drug 
has  been  widely  used  to  combat  the  common  cold 
and  a  variety  of  respiratory  ailments.  The  im- 
portance of  quinine  in  the  treatment  of  malaria 
and  similar  diseases  is  well  known.  Quinidine, 
it  is  said,  has  no  substitute  in  the  treatment  of 
certain  heart  diseases.  Quinine  compounds  are 
said  to  have  been  indispensable  in  the  polarization 
of  lenses. 

In  tlie  war  years  quinine  was  of  vital  importance 
to  American  armed  forces  in  use  against  tropical 
and  other  diseases.  Indeed,  it  took  the  events  of 
World  War  II  to  dramatize  fully  the  value  of  this 


important  drug  to  American  health  and  national 
security.  This  new  awareness  was  occasioned  by 
the  exposure  of  large  numbers  of  American  troops 
to  malaria-infested  areas  and  by  enemy  occupation 
of  territories  upon  which  the  United  States  had 
previously  been  dependent  for  its  normal  source  of 
quinine  supplies. 

The  quinine  trade,  expressed  in  dollars,  is  not 
of  startling  significance.  In  1937  and  1939  annual 
United  States  imports  of  quinine  compounds 
amounted  to  only  a  little  more  than  $1,000,000, 
while  imports  of  cinchona  bark,  from  whicli  qui- 
nine is  derived,  were  valued  at  about  $800,000  in 
each  of  the  two  years.  The  importance  of  quinine 
to  the  United  States  does  not  lie  in  the  dollar  value 
of  the  nation's  trade  in  this  commodity.  Its  im- 
portance is  due  to  its  medicinal  utility  and  to  this 
country's  dependence  for  supplies  upon  foreign 


sources. 


831 


American  Supplies  from  Java 

Although  indigenous  to  South  and  Central 
America,  the  cinchona  tree  has  had  its  most  in- 
tensive cultivation  in  the  Netherlands  East  Indies. 
Seeds  were  imported  from  the  Americas  into  Java 
shortly  after  the  middle  of  the  last  century.  By 
1890  the  superiority  of  Javanese  cinchona  bark 
had  been  clearly  demonstrated,  and  since  that  time 
over  90  percent  of  the  world's  supply  has  been 
drawn  from  that  source.  The  superiority  of 
Javanese  bark  rests  upon  its  high  alkaloid  con- 
tent compared  with  that  cultivated  in  South  or 
Central  America.  Quinine  content  of  Java  bai'k 
frequently  runs  as  high  as  7  to  13  percent.  Most 
wild  South  and  Central  American  bark  contains  no 
more  than  1  or  2  percent  quinine.  However,  cul- 
tivation of  cinchona  trees  planted  from  seeds 
brought  during  the  war  from  Java  via  the  Philip- 
pines is  likely  to  increase  the  quinine  content  of 
American  cinchona  bark. 

U.  S.  Government  interest  in  Quinine  Supplies 

This  Government's  concern  with  quinine  natu- 
rally centers  upon  a  program  designed  to  secure 
adequate  supplies.  As  the  United  States  and 
other  nations  re-examine  international  economic 
institutions  and  seek  to  reduce  restrictions  on 
international  trade,  quinine  assumes  an  additional 
importance  as  a  case  study  of  the  pre-war  i^at- 
terns  of  international  industrial  control.  A  pro- 
gram for  obtaining  adequate  quinine  supplies 
should  include  measures  to  free  the  quinine  trade 
from  the  pre-war  obstacles  which  restricted  its 
production  and  distribution.  The  key  to  the  in- 
dustrial control  of  quinine  rests  in  domination 
over  the  cinchona-tree  plantations  which  produce 
the  raw  material  necessary  for  quinine  manufac- 
ture. Control  of  the  industry  has  been  achieved 
with  relative  ease,  since  the  plantations  are  con- 
fined to  a  small  geographic  area. 

II 
Competition  and  Combined  Control 

Prior  to  1892  cinchona  bark  had  been  sold  in 
Java  at  auctions  held  twice  a  year.  The  first 
attempt  to  control  the  quinine  market  was 
launched  in  that  year  when  European  manufac- 
turers organized  a  syndicate  to  buy  the  raw  mate- 
rials and  sell  quinine  and  other  alkaloid  deriva- 


tives of  cinchona  bark.  With  consolidation  of 
the  major  purchasing  elements  into  a  single 
buyer,  auction  bark  prices  declined  drastically. 

Two  years  later  the  Bandoengsche  Kininefab- 
riek  was  organized  in  Java  to  manufacture  quinine 
sulphate.  This  company  operated  for  almost  20 
years  in  competition  with  European  factories. 
The  local  factory,  chiefly  through  development  of 
the  American  market  where  requirements  seemed 
large  and  stable,  was  able  to  guarantee  native 
planters  higher  prices  than  the  European  manu- 
facturers. It  was  able  to  sell  finished  products  in 
many  markets  at  lower  prices  than  the  Europeans, 
lai'gely  because  of  savings  in  raw  material  trans- 
portation costs.  For  more  than  a  decade  this 
organization  flourished  and  its  price  policies  stim- 
ulated planting  activities.  However,  the  result- 
ing increase  in  bark  offerings  combined  with  the 
sharp  drop  in  American  demand  for  finished 
products  following  the  panic  of  1907  left  the 
Bandoeng  factory  with  an  oversupply  of  bark. 
As  a  result,  the  factory  was  forced  for  a  consider- 
able period  to  decline  all  offers  of  bark  not  already 
contracted  for.  The  withdrawal  of  the  Bandoeng 
factory  from  the  buying  market  resulted  in  greatly 
depressed  prices  for  bark  throughout  the  period 
1908-1912.  This  experience  led  the  planters  to 
conclude  that  it  would  be  desirable  from  their 
standpoint  to  stabilize  the  bark  market. 

Just  prior  to  World  War  I,  the  major  elements 
of  the  quinine  trade  entered  into  a  combination 
to  reduce  competition  in  the  production  of  cin- 
chona bark  and  in  the  marketing  of  quinine  in 
order  to  stabilize  trade  and  prices.  Negotiations 
were  carried  on  from  1911  to  1913  between  the 
Bandoeng  and  European  manufacturers  on  the 
one  hand  and  the  Java  planters  on  the  other.  The 
planters  wanted  a  guaranteed  market  for  their 
bark  and  to  this  end  were  actively  planning  erec- 
tion of  new  factories  in  Java.  The  manufacturere 
opposed  the  erection  of  new  plants  and  sought 
assurances  that  bark  which  they  failed  to  purchase 
would  not  be  thrown  on  the  market  for  sale  to 
other  prospective  purchasers. 

Forming  of  Cartel 

An  accord  was  reached  in  1913.  Its  provisions 
were  designed  to  promote  and  protect  the  mutual 
interest  of  the  parties.    The  manufacturers  agreed 


832 


Department  of  State  Bulletin     •     November  10,  7946 


to  buy  certain  minimum  supplies  each  year  at 
fixed  minimum  prices.  The  East  Indian  Govern- 
ment was  authorized  to  erect  a  factory  in  Java 
to  supply  itself  and  the  native  population  with  a 
fixed  maximum  annual  production.  The  Kina 
Bureau  was  established  to  police  the  agreement, 
settle  controversies  between  planters  and  manu- 
facturers, obtain  statistical  data,  set  standards  and 
inspect  bark  for  quality,  and  establish  individual 
bark-delivery  quotas  among  the  various  planters. 
The  Bureau  was  composed  of  representatives  of 
planters  and  manufacturers  in  equal  numbers, 
with  an  impai'tial  chairman.  Manufacturers 
from  the  Netherlands,  England,  France,  Germany, 
and  Java  were  represented.  The  accord  was  to 
run  for  five  years. 

Because  of  the  inability  of  the  French,  British, 
and  German  manufacturers  to  participate  in  nego- 
tiations during  the  war,  the  factories  in  the  Nether- 
lands and  Bandoeng  undertook  negotiations  with 
the  planters  when  the  first  accord  expired  in  1918. 
Since  that  time,  the  Netherlands  and  Netherlands 
Indies  factories  have  been  the  exclusive  representa- 
tives of  manufacturers  in  periodic  agreements  with 
the  planters.  The  second  accord  was  concluded 
in  1918,  a  third  was  concluded  in  1923,  and  a  fourth 
in  1928.  The  latter  agreement  ran  for  a  ten-year 
period. 

Cartel  Controls 

Since  the  third  and  fourth  conventions  con- 
tained only  minor  revisions  of  detail,  an  examina- 
tion of  the  second  convention  concluded  in  1918 
will  serve  to  reveal  the  pattern  of  industrial  con- 
trol in  world  quinine  markets.^  This  convention 
provided  for  control  over  prices  of  raw  materials 
and  manufactured  derivatives,  and  for  allocation 
and  control  over  sales  of  bark.  It  also  provided 
for  determination  of  technical  standards,  adjudi- 
cation and  settlement  of  disputes  by  the  Kina 
Bureau,  and  collection  of  technical  and  statistical 
data. 

Prices  were  controlled  through  delegating  to  the 
Bureau  the  function  of  setting  the  price  of  quinine 
sulphate,  presumably  on  the  basis  of  market  con- 
ditions. A  minimum  price  for  bark  was  set,  and 
fluctuations  of  bark  prices  over  the  minimum  were 
provided  for  in  a  fixed  ratio  to  prices  of  quinine 
sulphate. 


Distribution  of  bark  was  controlled  through 
requiring  planters  to  ship  to  Amsterdam  quotas  of 
bark  determined  by  the  Bureau.  Available  bark 
in  excess  of  these  quotas  could  not  be  sold  for 
"pharmaceutical"  purposes.  The  effect  of  this 
provision  was  to  require  manufacturers  all  over 
the  world,  whether  or  not  parties  to  the  accord,  to 
buy  Java  bark  in  Amsterdam  from  the  Bureau. 
The  Bandoeng  factory  was  protected,  however, 
through  a  requirement  that  pharmaceutical  bark 
could  be  sold  in  Java  provided  its  use  was  con- 
fined to  the  Netherlands  East  Indies  and  provided 
that  all  such  sales  had  the  approval  of  the  Bureau. 

Manufacturers  were  required  to  buy  through  the 
Bureau  certain  established  annual  minimum 
quotas.  They  submitted  bids  to  the  Bureau  for 
and  in  excess  of  their  quota,  and  the  Bureau  de- 
termined the  amount  each  manufacturer  received. 
The  Bureau  also  set  the  quota  to  be  delivered  by 
each  planter. 

Ill 

Effect  of  the   Cartel   Control   on   American   Manu- 
facturers 

Because  of  the  control  outlined  above  over  the 
essential  raw  material  for  the  manufacturers  of 
cinchona-bark  alkaloid  derivatives,  enterprisers 
in  the  United  States  have  been  reluctant  to  enter 
the  field.  Prior  to  World  War  II  only  two  Amer- 
ican firms  had  been  engaged  in  the  manufacture 
in  this  country  of  quinine  and  other  cinchona 
derivatives.  During  the  war,  a  third  firm  proc- 
essed some  bark. 

There  is  no  indication  that  the  American  manu- 
facturers were  ever  parties  to  the  international 
quinine  marketing  agreements.  They  were,  never- 
theless, as  indicated  above,  subject  to  the  control 
of  the  Kina  Bureau  through  that  agency's  de- 
termination of  the  amount  of  cinchona  bark  and 
derivative  products  they  were  permitted  to  have. 
More  than  that,  the  position  of  American  manu- 
facturers has  been  further  complicated  by  the  op- 
eration of  the  Netherlands  manufacturers'  selling 
agency  in  New  York,  which,  paradoxically,  makes 


^  For  the  full  text  of  the  quinine  convention  of  1918,  see 
U.S.  Department  of  Commerce,  Bureau  of  Foreign  and 
Domestic  Commerce,  Trade  Information  Bulletin  no.  273, 
October  1924,  "Quinine  Production  and  Marketing"  by 
Samuel  H.  Cross,  pp.  29  ff. 


833 


the  American  manufacturers  dependent  on  their 
principal  competitor  for  their  source  of  raw  ma- 
terial. They  have  been  subject  to  the  threat  of 
reduced  raw-material  supplies  when  attempting 
unilaterally  to  sell  below  the  prices  established  by 
the  Netherlands  manufacturers'  New  York  selling 
agency.  Moreover,  on  occasion  the  latter  agency 
has  given  large  United  States  consumers  substan- 
tial discounts  below  their  established  price.  Since 
United  States  manufacturers  depended  upon  the 
Kina  Bureau  for  their  supplies,  they  could  meet 
this  tyjje  of  competition  only  if  they  were  willing 
to  take  the  chance  of  losing  their  source  of  raw 
materials. 

Grand  Jury  Investigation 

The  effects  of  these  and  other  practices  led  in 
1928  to  a  Federal  Grand  Jury  investigation  of  the 
quinine  market.  The  files  of  the  American 
manufacturers  were  subpenaed.  The  grand  jury 
brought  an  indictment  charging  a  combination 
among  European  manufacturers  depriving  the 
American  markets  of  the  benefits  of  competition, 
price  fixing  in  the  United  States,  price  raising 
in  the  United  States,  restriction  of  production, 
discriminatoiy  pricing  among  United  States 
consumers  of  quinine,  and  attempts  to  coerce 
American  manufacturers  into  becoming  parties  to 
restrictive  agreements.  There  was  further  evidence 
that  the  Kina  Bureau  and  its  New  York  selling 
agency  enforced  a  unilaterally  determined  market- 
sharing  arrangement  in  the  United  States.  They 
fixed  the  quota  of  bark  to  be  shipped  to  American 
manufacturers  and  deducted  from  that  quota  the 
bark  equivalent  of  any  quinine  sold  by  American 
manufacturers  to  consumers  which  the  Kina  Bu- 
reau had  allocated  to  other  manufacturers.  More- 
over, there  were  indications  that  the  monopoly 
control  of  quinine  was  used  to  force  consmners  to 
purchase  other  pharmaceuticals  from  the  same 
source. 

Although  the  Government  claimed  legal  juris- 
diction over  the  cartel  in  view  of  its  effect  upon 
the  American  market,  it  was  clear  that  practical 
jurisdiction  was  unobtainable  since  the  principal 
defendants  remained  outside  the  United  States. 
Hence,  in  an  attempt  to  induce  the  defendants  to 
accept  United  States  jurisdiction  the  criminal  in- 
dictment was  replaced  by  a  civil  complaint.     Later, 


a  consent  decree  was  negotiated  with  the  principal 
defendants.  Through  the  mechanism  of  the  con- 
sent decree,  entered  in  September  1928,  the  court 
perpetually  enjoined  the  defendants  from  fixing 
retail  prices  in  the  United  States,  limiting  the 
shipment  or  sale  into  or  within  the  United  States 
of  cinchona  bark  or  quinine  derivatives,  dividing 
profits  or  territory  within  the  United  States,  dis- 
criminating in  price  among  purchasers  within  the 
United  States,  or  maintaining  in  force  any  con- 
tracts which  would  deny  purchasers  the  right  to 
deal  in  the  products  sold  by  a  competitor. 

The  legal  and  practical  difficulties  of  enforcing 
the  decree,  however,  are  dramatized  in  the  last 
provision  which  reads:  ^'■Provided.,  however^  that 
nothing  herein  contained  shall  be  construed  to 
restrain  or  prohibit  any  defendant  from  doing  any 
act  or  entering  into  any  agreement  which  is  en- 
tirely completed  outside  the  United  States  and 
which  does  not  requii'e  any  act  or  thing  to  be  done 
within  the  United  States." 

Wartime  Needs 

Throughout  the  1930's  American  quinine  manu- 
facturers attempted  to  obtain  permission  from  the 
Netherlands  manufacturers  to  carry  larger  stocks 
in  the  United  States,  but  such  requests  were  in- 
variably refused.  During  the  antitrust  investiga- 
tion, in  order  to  provide  a  method  of  collecting 
fines  in  the  event  of  a  criminal  conviction  the 
Govermnent  had  seized  stocks  in  the  United  States 
belonging  to  Netherlands  manufacturers.  There- 
after, the  Netherlanders  were  reluctant  to  main- 
tain stocks  in  the  United  States  on  their  own  ac- 
count. On  the  other  hand,  they  refused  to  permit 
American  manufacturers  to  maintain  large  stocks, 
since  the  existence  of  such  stocks  would,  of  course, 
have  given  American  manufacturers  more  lever- 
age in  their  bargaining  for  further  requirements. 
American  manufacturers  attempted  to  develop  a 
source  of  supply  in  Java  independent  of  the  Eu- 
ropean combination,  but  the  Java  planters  refused 
to  enter  into  any  commercial  relations  which  might 
antagonize  the  Netherlands  manufacturers. 

When  the  war  clouds  gathered  in  the  later  1930's, 
American  manufacturers  redoubled  their  efforts 
to  increase  cinchona  supplies.  Up  to  that  time  all 
bark  had  been  shipped  to  Amsterdam  prior  to 
transhipment  to  the  United  States.    Following  the 


834 


DBpatimen^  of  Sfafe  Bulletin 


November  10,  1946 


outbreak  of  war,  after  continued  negotiations  in 
wliich  the  Department  of  State  intervened,  this 
Government  and  the  American  manufacturers 
were  able  to  purchase  a  few  months'  supply.  Im- 
mediately prior  to  the  invasion  of  the  Netherlands, 
American  manufacturers  with  thg  support  of  the 
Department  again  attempted  to  increase  supplies 
in  the  United  States.  The  Netherlands  manufac- 
turers, however,  were  not  influenced  in  this  mat- 
ter by  reports  of  Nazi  plans  of  aggression,  and  be- 
fore any  action  cpuld  be  taken  the  Netherlands  had 
been  overrun. 

Between  the  middle  of  1940  and  the  end  of  1941, 
American  manufacturers  and  the  Government 
made  repeated  efforts  to  increase  substantially  the 
cinchona  stockpile  in  the  United  States.  All  such 
attempts,  however,  were  resisted  by  the  Kina  Bu- 
reau officials,  who  had  transferred  the  seat  of  their 
activities  to  Java,  and  supplies  were  obtained  only 
after  lengthy  negotiations.  Following  the  Jap- 
anese attack  on  Pearl  Harbor  and  the  conquest  of 
Java,  the  United  States  Government  was  foi'ced  to 
rely  on  wild  Latin  American  bark.  High  subsidies 
were  paid  and  shipments  of  bark  were  obtained,  but 
the  bark  contained  low  percentages  of  alkaloid. 
Inadequate  American  supplies  of  quinine  were 
therefore  supplemented  with  atabrine.  Had  the 
United  States  failed  to  develop  this  and  other  sub- 
stitutes, the  South  Pacific  campaign  would  have 
been  placed  in  added  jeopardy. 

Current  Quinine  Supplies 

Since  the  end  of  the  war.  Government  purchase 
of  wild  Latin  American  bark  has  been  continued, 
to  avoid  substantial  increases  in  the  prices  of  the 
finished  product.  The  political  situation  in  Java 
has  handicapped  attempts  to  obtain  bark  from 
that  source.  At  present.  United  States  stocks  are 
very  low.  Since  much  of  the  Latin  American  bark 
contains  little  or  no  quinidine,  availability  of  bark 
from  Java  assumes  increasing  importance. 

IV 

Immediate  and  Long-Range  Interests 

The  developments  briefly  traced  above  suggest 
that  the  interests  of  this  Government  concerning 
production  of  cinchona  bark  and  marketing  of 
quinine  are  both  immediate  and  long-range  in  na- 
ture.   They  may  be  considered  immediate  in  that 


current  peacetime  requirements  of  quinine  must  be 
obtained  as  quickly  as  possible.  They  may  be  re- 
garded as  long-range  in  that  this  Government 
should,  in  accordance  with  its  policy  of  national  de- 
fense, seek  to  insure  that  the  United  States  security 
shall  not  again  be  jeopardized  by  the  lack  of  this 
important  product  in  the  event  of  a  future  emer- 
gency. Also,  this  Government  should,  in  accord- 
ance with  its  economic  foreign  policy,  seek  to  fi'ee 
the  competitive  forces  in  the  production  of  cin- 
chona bark  and  the  marketing  of  the  manufactured 
products  and  to  develop  conditions  providing  equal 
opportunity  and  access  to  the  quinine  market  for 
nationals  of  any  country. 

With  stocks  in  the  United  States  now  reaching 
low  levels,  it  is  in  the  public  interest  that  arrange- 
ments be  made  for  the  importation'  as  expedi- 
tiously as  possible  of  quinine  derivatives  or  of  cin- 
chona bark  with  adequate  alkaloid  content  suffi- 
cient as  a  minimum  to  satisfy  the  current  needs  of 
the  United  States  market.  These  requirements,  it 
may  be  pointed  out,  have  been  increased  over  the 
pre-war  needs  by  the  presence  in  this  country  of  a 
large  number  of  veterans  who  have  returned  from 
malaria-infested  areas  of  the  South  Pacific.  The 
United  States  Government  has  already  sponsored  a 
purchase  program  which  i-equires  negotiations 
with  foreign  sources.  The  Department  of  State  is 
accordingly  collaborating  with  appropriate  Gov- 
ernment procurement  agencies  and  facilitating 
negotiations  with  foreign  governments  in  this 
program. 

As  to  the  security  aspect  of  this  country's  long- 
range  policy,  it  is  anticipated  that  quinine  will  be 
included  in  the  program  for  accumulating  strate- 
gic stockpiles  within  this  country  adequate  to  meet 
the  essential  military  and  civilian  requirements  of 
the  United  States  in  the  event  supplies  are  cut  off 
during  an  emergency.  In  such  event,  the  pre-war 
limitations  upon  the  amount  of  stocks  of  cinchona 
bark  v/hich  the  cartel  has  permitted  to  be  main- 
tained within  the  United  States  must  be  removed 
if  the  stockpiling  program  is  to  be  successful. 

In  pursuing  this  country's  long-range  economic 
interest,  the  United  States  policy  should  be  directed 
toward  seeking  intergovernmental  cooperation  in 
eliminating  the  exclusive  and  monopoly  control 
over  Javanese  cinchona  bark.  Since  the  exclusive 
purchasing  arrangement,  described  above,  among 


835 


the  Netherlands  manufacturing  group  was  the  key 
to  the  pre-war  control  over  the  manufacture  and 
distribution  of  cinchona  alkaloid  derivatives,  this 
Government  should  advance  and  support  the  prin- 
ciple that  American  quinine  manufacturers  should 
be  permitted  to  make  direct  purchases  of  bark  in 
Java  at  non-discriminatory  prices  and  in  unre- 
stricted quantities  for  direct  shipment  to  the 
United  States.  It  should  also  urge  the  removal 
of  limitations  which  have  been  placed  on  the  level 
of  stocks  in  the  United  States  permitted  American 
manufacturers.  Furthermore,  this  Govermnent 
should  protect  the  right  of  American  manufac- 
turers to  compete  freely  for  customers  without 
fear  of  unfair  discriminatory  practices  in  this 
country. 

Relation  to  World  Trade 

These  objectives  might  be  achieved  in  either  of 
two  ways.  The  United  States  and  other  govern- 
ments interested  in  these  objectives  might  develop 
mutually  satisfactory  arrangements  through  a 
series  of  bilateral  understandings  or  through  a 
multilateral  agreement.  To  this  end,  the  United 
States  might  request  interested  governments  to 
review  the  past  marketing  arrangements  in  the 
quinine  industry  and  to  cooperate  in  an  effort  to 
eliminate  those  features  of  the  arrangements 
which  deprive  American  and  other  quinine  manu- 
facturers of  reasonable  access  to  the  raw  materials 
necessary  to  their  operations.  Another  way  of 
achieving  these  objectives  might  be  through  an 
appeal  to  the  ITO,  following  its  establishment,  for 
a  suitable  world-wide  arrangement. 

In  its  Proposals  for  Expansion  of  World  Trade 
and  Employment,  the  Department  of  State  has 
advanced  the  position  that  "There  should  be  indi- 
vidual and  concerted  efforts  by  members  of  the 
[International  Trade]  Organization  to  curb  those 
restrictive  business  practices  in  international  trade 
.  .  .  which  have  the  effect  of  frustrating  the 
objectives  of  the  Organization  to  promote  expan- 
sion of  production  and  trade,  equal  access  to  mar- 
kets and  raw  materials,  and  the  maintenance  in  all 
countries  of  high  levels  of  employment  and  real 
income."  Among  the  practices  which  are  deemed 
restrictive  in  the  Proposals  are  those  which  fix 
prices,  divide  markets,  limit  production  or  exports. 


or  exclude  enterprises  from  particular  fields.  It 
would  appear  that  the  marketing  arrangements 
in  the  quinine  industry  have  run  counter  to  most 
or  all  of  these  principles  and  would  therefore 
be  subject  to  inquiry  by  the  International  Trade 
Organization. 

In  the  event  that  bilateral  or  multilateral  under- 
standings with  other  governments  camiot  be 
reached  or  that  interested  governments  do  not 
become  membei's  of  the  ITO,  Governmental  assist- 
ance to  private  business  enterprises  in  the  large- 
scale  development  of  alternative  sources  of  supply 
may  be  found  advisable.  Such  assistance  might 
result  in  the  development  not  only  of  alternative 
sources  of  cinchona  but  also  of  synthetic  quinine 
substitutes.  To  the  extent  that  such  assistance 
might  require  Government  subsidies,  it  would 
doubtless  be  rendered  with  much  reluctance  in  view 
of  the  Department's  expressed  disapproval  of 
Government  subsidies  in  international  trade. 
However,  in  justice  to  itself  and  other  consumer 
countries,  this  Government  should  take  all  practi- 
cal measures  to  avoid  complete  dependence  on  the 
pre-war  cartel  for  United  States  supplies  of  cin- 
chona bark  and  its  alkaloid  derivatives  unless 
assurances  are  received  that  such  supplies  will  be 
available  on  a  non-discriminatory  and  non- 
restrictive  basis. 

It  should  be  emphasized  that  the  future  of  syn- 
thetic substitutes  may  seriously  affect  the  whole 
quinine  industry.  Research  into  quinine  synthet- 
ics is  reported  already  to  have  yielded  extremely 
fruitful  results.  For  example,  wartime  develop- 
ment of  better  methods  for  the  use  of  atabrine  in 
the  suppression  and  treatment  of  malaria  has  dem- 
onstrated that  atabrine  is  superior  to  quinine  and 
that  other  anti-malarial  compounds  have  been 
developed  which  may  be  even  more  effective  than 
those  heretofore  used.  Although  alkaloids  de- 
rived from  cinchona  bark  still  are  important, 
esiDecially  for  certain  medicinal  and  industrial 
purposes,  substitutes  may  displace  these  alkaloids 
to  a  considerable  degree  in  many  uses  and  thus 
lower  the  United  States  requirements  for  them. 
The  nature  and  extent  of  the  effect  of  such  an 
economic  shift  upon  the  production  and  marketing 
of  cinchona  bark  and  its  derivative  products  is  not 
yet  known. 


836 


Departmeni  oi  State  BiiUetin     •     November  70,  1946 


NATIONAL  WAR  COLLEGE  AND  DEPARTMENT  OF  STATE 


by  Perinf  N.  Jester^  F.S.O. 


The  creation  of  the  National  War  College  for  the  joint 
training  of  carefully  selected  officers  in  the  higher  ranks  of 
all  the  armed  services  and  of  the  Department  of  State  and 
the  American  Foreign  Service  has  established  a  matrix  for 
the  shaping  of  leadership  for  the  years  to  come  iy  "bringing 
together  the  ingredients  of  proved  capacity,  experience, 
knoioledge,  and  a  vision  of  tomorrow  in  the  terrns  of 
national  welfare. 


The  two  great  world  wars  of  this  century  and 
the  interval  of  peace  or  semi-peace  between  them 
have  dramatically  emphasized  numerous  funda- 
mental requirements  for  both  the  victorious  wag- 
ing of  war  under  modern  conditions  and  the 
hoped-for  successful  conduct  of  peace,  in  a  world 
in  which  time  and  space  factors  have  suddenly 
diminished  while  all  other  operational  factors 
have,  during  the  same  period,  increased  enor- 
mously in  their  complexity.  Few  of  these  funda- 
mental requirements  are  more  outstanding  in  their 
basic  importance  or  in  the  far-reaching  character 
of  their  implications  than  the  following: 

First,  the  necessity  for  extensive  and  continu- 
ous training  for  all  positions  of  leadership  right 
up  to  the  highest  level  in  both  military  and  politi- 
cal spheres;  and 

Secondly,  the  need  for  greater  and  more  effective 


integi'ation  of  effort  and  understanding  on  the 
part  of  all  the  services  which  operate  to  protect 
the  national  interest  both  in  war  and  in  peace. 
More  simply  described,  the  first  requirement  is  the 
need  for  higher  competence  in  command  positions 
in  situations  of  greater  complexity,  and  the  sec- 
ond, the  need  for  more  effective  teamwork  between, 
services  of  varied  backgrounds  and  functions. 

These  needs  were  pointed  up  more  sharply  than 
ever  before  in  the  second  World  War  by  the  more 
extensive  use  of  joint  and  combined  staff  work 
among  the  several  fighting  services  at  various  levels 
of  command  and,  as  the  war  progressed,  by  the 
inclusion  on  some  of  these  staffs  of  political  advis- 
ers or  political  assistants  representing  the  princi- 
pal political  and  administrative  authority  of  our 
Government  in  the  field  of  foreign  affairs,  namely, 
the  Department  of  State. 


720567 — 46 


83r 


As  now  seen  in  retrospect,  the  record  of  our  ef- 
forts for  peace  in  the  years  between  the  two  world 
wars  might  have  been  more  fruitful  if  there  had 
been  closer  working  relations  and  a  closer  integra- 
tion of  i^olicy  between  the  political  forces  of  our 
Government  and  the  armed  forces.  It  is  now  the 
opportunity  of  the  present  to  correct  the  omissions 
of  the  past. 

Building  on  the  experience  of  many  decades  in 
the  operation  of  the  Army  War  College  and  the 
Naval  War  College  and  in  view  of  the  new  empha- 
sis in  World  War  II  on  joint  operations  and  the 
need  for  joint  training  in  the  higher  echelons  of 
command,  the  Joint  Chiefs  of  Staff  in  June  1943 
established  the  Army  and  Navy  Staff  College. 
The  jjurpose  was  to  provide  an  organizational 
focus  for  the  simultaneous  training  and  indoctri- 
nation of  ranking  officers  of  all  the  armed  services. 
This  joint  effort  in  training  proved  to  be  highly 
successful  not  only  as  an  educational  and  training 
activity  in  itself  but  also  as  a  contribution  to  the 
better  integration  of  staff  work  and  field  opera- 
tions between  the  several  fighting  services. 

The  experiences  of  the  war,  and  even  more  the 
global  requirements  of  our  Government  in  the 
aftermath  of  the  war,  indicated  the  further  de- 
sirability and  even  necessity  not  only  of  continu- 
mg  such  joint  training  on  the  command  levels  but 
of  seeking  better  understanding  as  well  between 
the  various  levels  of  high  command  in  the  armed 
forces  and  comparable  positions  of  authority  and 
responsibility  in  the  Department  of  State  and  the 
Foreign  Service  of  the  United  States. 

Accordingly,  in  January  1946  the  Joint  Chiefs 
of  Staff  proposed  the  establishment  of  a  combined 
institution  for  the  joint  training  of  carefully 
selected  officers  in  the  higher  ranks  of  all  the 
armed  services  and  of  the  Department  of  State  and 
the  Foreign  Service.  On  February  1,  1946,  the 
Secretary  of  State  agreed  to  the  joint  sponsorship 
of  the  new  institution  by  the  Department  of  State 
together  with  the  War  Department  and  the  Navy 
Department  and  to  the  active  participation  of  the 
organizations  under  his  authority. 

Planning  went  forward  rapidly  for  an  early  be- 
ginning of  actual  training  operations.     The  in- 


terests of  the  Department  and  the  Foreign  Service 
in  these  initial  negotiations  were  represented 
by  the  Director  of  the  Office  of  the  Foreign  Serv- 
ice, Selden  Chapin.  Outstanding  authorities  in 
many  fields,  leading  educators,  and  representatives 
of  the  great  universities  of  the  country  were  con- 
sulted in  the  formulation  of  the  curriculum.  The 
name,  "National  War  College",  was  adopted,  prob- 
ably as  the  result  of  the  taking  over  of  the  facili- 
ties of  the  old  Army  War  College  which  had  ceased 
to  function  as  an  institution  during  the  war.  On 
June  30,  1946  the  Army  and  Navy  Staff  College 
also  discontinued  its  independent  status,  and  its 
staff,  faculty,  and  functions  were  taken  over  by 
the  new  National  War  College,  which  began  its 
official  existence  on  July  1, 1946. 

The  announcement  of  plans  for  the  establish- 
ment of  a  joint  training  institution  for  ranking 
officers  of  the  three  Departments  and  the  services 
under  their  jurisdiction  was  widely  acclaimed  in 
the  press  of  the  nation  as  a  forward  step  of  great 
significance. 

The  National  War  College  is  admirably  located 
in  the  buildings  and  grounds  of  the  old  Army  War 
College,  which  was  developed  on  the  site  of  Fort 
Humphreys  at  Greenleaf  Point  where  the  Ana- 
costia  River  and  the  Washington  Channel  come 
together,  just  a  short  distance  from  the  junction 
of  the  former  with  the  Potomac  River.  A  well- 
developed  library,  gymnasium,  and  other  facilities 
serve  the  needs  of  the  faculty,  staff,  and  students. 

On  the  same  grounds  and  associated  with  the 
National  War  College  in  its  joint  training  activi- 
ties is  the  Industrial  College  of  the  Armed  Forces, 
which,  as  the  name  implies,  has  a  more  specialized 
function. 

There  has  thus  been  created,  under  the  direct 
authority  of  the  Joint  Chiefs  of  Staff,  and  with  the 
full  participation  of  the  Department  of  State,  a 
new  high-level  training  institution  which  consti- 
tutes the  apex  of  the  training  organizations  and 
command  schools  in  the  several  services,  such  as 
the  Command  and  Staff  College,  Fort  Leaven- 
worth, Kansas ;  the  Air  University,  Maxwell  Field, 
Alabama;  the  Armed  Forces  Staff  College,  Nor- 
folk, Virginia ;  the  Naval  War  College,  Nevqjort, 


838 


Department  of  Stafe  Bulletin     •     November  10,  1946 


Ehode  Island ;  and  the  Foreign  Service  Institute 
which  was  recently  authorized  by  Congress  to  take 
over  the  training  functions  of  the  personnel  of  the 
American  Foreign  Service  and  the  Department 
of  State. 

The  Commandant  of  the  National  War  College 
is  Vice  Admiral  Harry  W.  Hill,  U.S.N.,  former 
Commandant  of  the  Army  and  Navy  Staff  Col- 
lege. Deputy  Commandants  are  Maj.  Gen.  Alfred 
M.  Gruenther,  U.S.A.,  and  Brig.  Gen.  T.  H.  Lan- 
don.  Army  Air  Forces.  George  F.  Kemian,  F.S.O., 
who  was  until  recently  Counselor  of  the  American 
Embassy  at  Moscow,  is  Deputy  for  Foreign  Af- 
fairs. The  collaboration  of  the  Department  of 
State  and  the  Foreign  Service  in  this  joint  train- 
ing venture  is  under  the  general  supervision  of 
Donald  Russell,  the  Assistant  Secretary  of  State 
for  Administration. 

The  initial  course  of  the  National  War  College 
began  on  September  3, 1946,  with  a  class  composed 
of  30  Army  Ground  officers,  30  Army  Air  Force 
officers,  30  Naval  officers,  and  10  Foreign  Service 
officers.  In  addition,  there  are  90  part-time  stu- 
dents of  the  Industrial  College  of  the  Armed 
Forces.  The  students  are  senior  officers  of  the 
four  services  who  have  been  carefully  selected 
from  among  those  who  have  qualifications  for  high 
command.  The  ranks  of  the  Army  officers  attend- 
ing are  made  up  of  brigadier  generals  and  colo- 
nels, the  Navy  officers  have  the  rank  of  captain, 
and  the  Foreign  Service  officers  are  principally  of 
classes  II  to  IV.  These  ranks  represent  officers 
with  15  to  20  years  of  experience  in  each  of  the 
several  services. 

The  Department  of  State  and  the  Foreign  Serv- 
ice are  represented  in  this  first  class  of  officer- 
trainees  by  the  following  Foreign  Service  officers : 
William  P.  Cochran,  Jr.,  John  M.  Cabot,  Ray- 
mond A.  Hare,  Perry  N.  Jester,  Foy  D.  Kohler, 
John  J.  MacDonald,  Carmel  Offie,  Charles  W. 
Thayer,  William  C.  Trimble,  and  Walter  N. 
Walmsley. 

The  first  semester,  from  September  3  until  De- 
cember 20,  is  devoted  primarily  to  politico-military 
subjects,  with  special  attention  to  the  integration 
of  our  foreign  policy  with  our  military  policy. 
Detailed  study  will  also  be  directed  to  the  foreign 


policy  of  the  United  States  in  all  its  regional 
aspects  and  to  its  relation  to  the  foreign  policies 
of  other  major  powers.  The  impact  of  the  atomic 
age  upon  international  and  military  problems  will 
be  investigated  and  discussed.  Problems  of  na- 
tional defense  will  be  covered  with  special  atten- 
tion to  the  United  Nations,  the  aims  and  objectives 
of  other  nations,  methods  of  pressure  and  adjust- 
ment between  nations  in  accordance  with  inter- 
national law,  customary  procedures  in  the  past, 
and  possible  procedures  in  the  future.  Members 
of  the  class  will  be  assigned  problems  of  the  type 
which  are  being  continually  handled  by  the  State- 
War-Navy  Coordinating  Committee. 

The  second  semester,  from  January  2  until  June 
21,  will  be  devoted  to  problems  of  military  strategy 
and  joint  operations,  chiefly  from  the  viewpoint  of 
the  Joint  Chiefs  of  Staff  and  the  Tlieater  Com- 
mander. The  impact  of  new  weapons  on  future 
warfare  will  be  studied.  Analytical  studies  will 
be  assigned  covering  specific  operations  and  prob- 
lems encountered  in  World  War  II.  Special  em- 
phasis will  be  placed  to  determine  the  procedures 
on  a  national  level  which  will  utilize  effectively 
scientific  methods  and  scientific  organizations. 

Instruction  will  be  principally  by  the  lecture 
system,  with  committee  studies,  reports,  and 
analyses  by  individual  students.  Extensive  use 
will  be  made  of  problems  in  which  realistic  situa- 
tions will  be  assumed  and  solutions  will  be  re- 
quired by  student  groups. 

Members  of  the  faculty  have  been  and  will  be 
drawn  chiefly  from  the  larger  universities,  the 
armed  forces,  and  the  Department  of  State. 
Among  the  distinguished  civilian  members  of  the 
faculty  are  Professor  Hardy  C.  Dillard,  Univer- 
sity of  Virginia,  who  serves  as  director  of  studies ; 
Professors  Bernard  Brodie  and  Sherman  Kent, 
Yale  University,  and  Professor  Walter  L. 
Wright,  Jr.,  Princeton  University.  Prominent 
scientists,  professors,  and  other  civilian  specialists 
have  been  and  are  being  invited  to  deliver  lectures. 

Among  the  notable  lecturers  from  without  the 
faculty  addressing  the  students  of  the  National 
War  College  during  the  first  month  of  its  initial 
course  (September  1946)  were  the  following- 
persons  : 


839 


Dr.  W.  A.  McNail,  director,  Bell  Telephone  Lab- 
oratories; Maj.  Gen.  Leslie  R.  Groves,  U.  S.  A.; 
Dr.  Carleton  J.  Hayes,  Columbia  University ;  Dr. 
Charles  A.  Thomas,  vice  president,  Monsanto 
Chemical  Co. ;  Dr.  Edward  M.  Earle,  Institute  for 
Advanced  Study,  Princeton,  N.  J. ;  Mr.  John  M. 
Hancock,  War  Resources  Board;  Senator  Brien 
McMahon,  United  States  Senate;  Dr.  James  B. 
Conant,  president.  Harvard  University;  Dr.  J. 
Robert  Oppenheimer,  University  of  California; 
Mr.  Joseph  Barnes,  foreign  editor.  New  York 
Herald  Tribune;  Professor  Harold  J.  Laski,  Uni- 
versity of  London,  England ;  Field  Marshal  Vis- 
count Bernard  L.  Montgomery  of  Alamein;  Dr. 
Jacob  Viner,  Princeton  University ;  Vice  Admiral 
Russell  Willson,  U.S.N. ;  Professor  Arnold  Oscar 
Wolfers,  Yale  University;  Professor  Grayson 
Louis  Kirk,  Columbia  University;  Professor 
Philip  C.  Jessup,  Columbia  University ;  Professor 
Denis  William  Brogan,  Cambridge  University, 
Ei^ghand;  Professor  Harold  Sprout,  Princeton 
University ;  Dr.  Isaiah  Bowman,  president,  Johns 
Hopkins  University. 

There  has  thus  been  founded  a  college  which 
in  itself  takes  rank  as  the  highest-level  educational 
institution  of  the  United  States  Government,  and 
an  organization  where,  under  skilled  guidance,  the 
defense  of  the  United  States,  the  protection  of  its 
interests,  and  the  furtherance  of  its  policy  may  be 
jointly  studied  and  possibly  furthered  by  officers 
of  those  services  which  are  called  upon  to  imple- 
ment such  policy  both  in  times  of  war  and  in  times 
of  peace.  It  would  be  a  mistake,  however,  to 
regard  this  process  and  probable  result  as  arising 
solely  from  the  study  of  books  or  the  expounding 
of  themes.  The  by-products  of  the  association  of 
this  group  of  officers,  in  terms  of  reciprocal  friend- 
ship and  mutual  regard,  loom  large  in  the  thinking 
of  its  planners.  As  usual  in  complex  human 
affairs,  the  imponderables  may  be  decisive.  The 
hours  spent  in  athletic  pursuits,  although  brief,  in 
relaxation  together,  and  the  opportunity  afforded 
for  the  cross-fertilization  of  ideas  arising  from 
different  modes  of  past  training  and  experience, 
may  lay  the  foundation  for  vital  cooperation  in 
the  interests  of  the  nation  in  days  to  come. 

It  would  also  be  a  mistake  to  view  the  objective 
of  this  joint  training  as  a  preparation  for  war. 

640 


On  the  contrary,  the  emphasis  rests  on  the  dis- 
covery of  means  for  the  maintenance  of  peace.  In 
this  sense,  the  institution  is  unsuitably  named.  It 
should  be  called,  at  least,  the  National  Defense 
College  or  College  of  National  Security.  In  this 
sense  also,  the  contribution  of  the  Department  of 
State  may  well  be  constructive  and  forceful. 

Lastly,  it  would  be  a  mistake  to  assume  that  the 
method  of  approach  to  the  problems  posed  by  these 
objectives  is  confined  to  an  over-intensive  study  of 
the  i^ast  or  to  an  emphasis  on  the  differences  which 
have,  up  to  the  present,  divided  and  separated  these 
varied  services.  The  purpose  of  the  institution 
is  to  orient  this  carefully  selected  cadre  of  officers 
into  the  requirements  of  the  future,  into  the  de- 
mands of  times  unborn ;  and  a  premium  is  there- 
fore placed  on  imagination,  foresight,  and  the 
ability  to  learn  to  pull  together  as  one  high 
command  team. 

There  is  one  final  observation  which  arises  from 
a  consideration  of  the  importance  of  this  new  insti- 
tution.    A  matrix  has  been  established  for  the 
shaping  of  leadership  for  the  years  to  come,  by 
bringing    together    the    ingredients    of    proved 
capacity,  experience,  knowledge,  and  a  vision  of 
the  needs  of  tomorrow  in  terms  of  national  wel- 
fare.    It  is  therefore  quite  within  the  realm  of 
possibility  that  this  college  may  afford  the  mecha- 
nism for  brmging  together  on  a  very  high  level 
the  requirements  of  national  policy  and  strategy 
as  seen  by  the  armed  services ;  the  long-range  plan- 
ning in  the  field  of  international  relations  which 
will  be  carried  out  by  the  Department  of  State 
and  the  Foreign  Service ;  the  specific  training  and 
background  preparation  in  that  field  which  will 
be  developed  by  the  Foreign  Service  Institute; 
the  considerations  of  national  welfare  in  the  do- 
mestic field  as  these  may  be  interpreted  by  the 
other  Departments  of  the  executive  branch  of  the 
Government;  and  the  equally  useful  participation 
of   political   leaders  from   the  Congress  of  the 
United  States  who  are  concerned  with  both  domes- 
tic and  foreign  issues.     In  this  joint  effort,  there 
may  be  found  in  the  National  War  College  a  suit- 
able meeting-place  for  the  contributions  of  many 
minds  and  many  types  of  experience  to  the  prob- 
lems which  surround  the  achievement  of  peace  and 
the  path  of  life,  liberty,  and  the  pursuit  of  happi- 
ness for  millions  of  Americans. 

Departmenf  of  State  Bulletin     •     November  10,  1946 


THE  UNITED  NATIONS 


Observance  of  UNESCO  Month 


STATEMENT  BY  THE  SECRETARY  OF  STATE 


[Released  to  the  press  October  29] 

UNESCO— the  United  Nations  Educational, 
Scientific  and  Cultural  Organization — is  an 
important  agency  of  the  United  Nations.  Its 
task  is  to  lay  the  foundations  of  future  world 
peace  in  the  minds  and  hearts  of  men.  A  major 
duty  of  modern  statesmanship  is  to  establish  con- 
ditions of  mutual  understanding  among  the  peo- 
ples of  the  world.  This  can  only  be  achieved  if 
the  peoples  of  the  world  themselves  turn  their 
thoughts  toward  this  goal. 


The  meeting  of  the  General  Conference  of 
UNESCO,  which  opens  on  November  19  m  Paris, 
furnishes  an  appropriate  occasion  for  emphasiz- 
ing the  fundamental  unity  which  in  part  already 
exists,  but  in  part  must  yet  be  created,  among  all 
peoples.  For  this  reason,  the  month  of  November 
has  been  designated  as  UNESCO  Month.  I  hope 
that  all  citizens  of  the  United  States,  singly  and 
through  their  groups  and  organizations,  will 
participate  in  its  observance. 


STATEMENT  BY  ASSISTANT  SECRETARY  BENTON' 


[Released  to  the  press  October  29] 

The  Preparatory  Commission  of  UNESCO  has 
called  upon  the  people  of  member  nations  to  mark 
the  occasion  of  the  annual  meetings  of  the 
UNESCO  General  Conference  with  appropriate 
observances.  Such  observances  would  call  atten- 
tion to  problems  and  to  progress  on  the  road 
toward  mutual  understanding  among  peoples. 

The  first  of  these  annual  meetings  of  the 
UNESCO  General  Conference  opens  in  Paris 
November  19.  The  month  of  November,  and 
through  the  period  of  the  conference  sessions,  has 
therefore  been  designated  as  "UNESCO  Month". 

Special  international  exhibits,  concerts,  and 
lectures  to  mark  "UNESCO  Month"  will  be  held 
in  France,  the  host  country.     I  hope  that  many 


organizations  in  the  United  States,  both  national 
and  local,  will  plan  to  demonstrate  their  interest 
in  the  aims  of  UNESCO.  This  they  can  do 
through  school  assemblies,  for  example,  and 
through  library  exhibits  and  adult  discussion 
groups. 

I  know  of  no  task  more  challenging,  more  diffi- 
cult, or  more  hopeful  than  the  task  of  UNESCO : 
to  advance  the  cause  of  joeace  through  understand- 
ing among  peoples.  UNESCO  is  both  a  symbol 
and  an  instrument  of  our  determination  to  con- 
struct the  defenses  of  peace  in  the  minds  and 
hearts  of  men. 


'  Chairman  of  tlie  American  Delegation  to  the  General 
Conference  of  UNESCO. 


841 


THE  UNITED  NATIONS 


CONGRESSIONAL  ADVISERS  TO  UNESCO 


[Released  to  the  press  November  1] 

William  Benton,  Assistant  Secretary  of  State 
for  public  affairs,  announced  on  November  1  that 
Senator  James  E.  Murray,  of  Montana,  and  Con- 
gi-essman  Chester  Merrow,  of  New  Hampshire, 
will  serve  as  Congressional  advisers  to  the  United 
States  Delegation  to  the  first  session  of  the  Gen- 
eral Conference  of  UNESCO,  which  will  con- 
vene in  Paris  on  November  19.     Senator  Murray 


and  Congressman  Merrow  have  both  been  asso- 
ciated intimately  with  United  States  participation 
in  the  work  of  UNESCO  during  the  past  year. 
They  were  members  of  the  United  States  Delega- 
tion which  helped  frame  the  UNESCO  constitu- 
tion in  London  in  November  1945  and  were  the 
authors  of  the  joint  resolution  enacted  on  July  30 
as  Public  Law  565  which  provides  for  membership 
and  participation  by  the  United  States  in 
UNESCO. 


Transfer  of  Epidemiological  Information  Services 
From  UNRRA  to  Health  Organization 


An  exchangei  of  letters  between  Mr.  F.  H.  La 
Guardia,  Director  General  of  UNREA,  and  Dr. 
Brock  Chisholm,  Executive  Secretary  of  the  In- 
terim Commission  of  the  World  Health  Organiza- 
tion, at  Lake  Success  on  October  22,  194G,  effected 
the  transfer  from  UNRRA  to  the  Interim  Commis- 
sion, as  of  December  1,  1946,  of  the  duties  and  re- 
sponsibilities in  the  international  exchange  of  in- 
formation assigned  to  UNRRA  by  the  Sanitary 
Conventions  of  1944.  This  exchange  of  letters 
gave  effect  to  provisions  of  the  protocols  of  April 
30,  1946  prolonging  the  International  Sanitary 
Convention,  1944,  and  the  International  Sanitary 
Convention  for  Aerial  Navigation,  1944,  and  was 
conducted  under  the  authority  of  resolution  94 
of  the  Fifth  Session  of  the  UNRRA  Council  and 
the  arrangement  of  July  22,  1946  establishing  the 
Interim  Commission.  This  constitutes  the  first 
step  in  consolidation,  under  the  World  Health  Or- 
ganization, of  the  international  exchange  of  epi- 
demiological information  formerly  conducted  by 
the  International  Office  of  Public  Health,  the 
Health  Organization  of  the  League  of  Nations 
(and  the  United  Nations  as  its  heir) ,  and  UNRRA. 

The  letters  effecting  the  exchange  of  functions 
follow : 


Dear  Dr.  Chisholm  : 

In  accordance  with  our  discussion  at  the  meet- 
ing held  on  Friday,  October  11,  1946,  of  the  In- 
terim Commission-UNRRA  Committee  concern- 
ing the  transfer,  pursuant  to  Resolution  94,  of  the 
duties  and  functions  relating  to  the  administration 
of  certain  Sanitary  Conventions  entrusted  to 
UNRRA  under  Resolutions  52  and  85  of  the 
UNRRA  Council,  I  propose  that  such  duties  and 
functions  be  assumed  by  the  Interim  Commission 
as  from  December  1,  1946.  The  duties  and  func- 
tions entrusted  to  the  Administration  under  Reso- 
lutions 52  and  85  are  specified  in  the  International 
Sanitary  Convention  of  1944,  modifying  the  In- 
ternational Sanitary  Convention  of  June  21, 1926, 
the  Protocol  to  Prolong  the  International  Sani- 
tai-y  Convention,  1944,  the  International  Sanitary 
Convention  for  Aerial  Navigation,  1944,  modify- 
ing the  International  Sanitary  Convention  for 
Aerial  Navigation  of  April  12,  1933,  and  the  Pro- 
tocol to  Prolong  the  International  Sanitary  Con- 
vention for  Aerial  Navigation,  1944. 

The  Administration  upon  receipt  of  the  accept- 
ance by  the  Interim  Commission  of  this  proposal 
will  notify  the  Governments  concerned  of  the 
transfer  and  of  the  date  thereof,  through  the  De- 
{Gontinued  on  page  847) 


842 


Department  of  State  Bulletin     •     November  70,  7946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings 


In  Session  as  of  November  3,  1946 

Far  Eastern  Commission 

United  Nations: 
Security  Council 
Military  StafiF  Committee 
Commission  on  Atomic  Energy 
UNRRA-Inter-governmental    Committee    on    Refugees    (IGCR) 

Joint  Planning  Committee 
General  Assembly 

German  External  Property  Negotiations  with  Portugal  (Safehaven) 

PICAO: 

Interim  CouncO 
Regional 

Air     Traffic     Control     Committee,     European-Mediterranean 
Region 
Divisional 

Meteorological  Division 

Special  Radio  Technical  Division 

International  Committee  on  Weights  and  Measures 

Permanent  Committee  of  the  International  Health  Office 

FAO:  Preparatory  Commission  to  study   World  Food  Board   Pro- 
posals 

Scheduled  November  1946-January  1947 

PICAO: 
Divisional 

Communications  Division 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division 

World  Health  Organization:  Interim  Commission 

Council  of  Foreign  Ministers 

International  Telegraph  Consulting  Committee  (CCIT) 

lARA:  Meetings  on  Conflicting  Custodial  Claims 

International  Technical  Committee  of  Aerial  Legal  Experts  (CITEJA) 

International  Wool  Meeting 


Washington 

February  26 

Lake  Success 
Lake  Success 
Lake  Success 
Washington  and 
Lake  Success 
Flushing  Meadows 

March  25 
March  25 
June  14 
July  25 

October  23 

Lisbon 

September  3 

Montreal 

September  4 

Paris 

October  28 

Montreal 
Montreal 

October  29 

October  30-November  8 

Paris 

October  22 

Paris 

October  23 

Washington 

October  28 

Montreal 

November  19 

Montreal 

November  26 

Montreal 

December  3 

Montreal 

January  7 

Montreal 

January  14 

Geneva 

November  4 

New  York 

November  4 

London 

November  4-9 

Brussels 

November  6 

Cairo 

November  6 

London 

November  11-16 

Calendar  prepared  by  the  Division  of  International  Conferences,  Department  of  State. 


843 


Calendar  of  Meetings — Continued 


ILO: 

Industrial  Committee  on  Textiles 
Industrial  Committee  on  Building,  Civil  Engineering 
Works 

and  Public 

Brussels 
Brussels 

November  14-22 
November  25-Decem- 
berS 

UNESCO: 

Preparatory  Commission 
General  Conference 
"Month"  Exhibition 

Paris 
Paris 
Paris 

November  14-15 
November  19 
Novembei^December 

Second  Inter-American  Congress  of  Radiology- 

Habana 

November  17-22 

International  Whaling  Conference 

Washington 

November  20 

Rubber  Study  Group  Meeting 

The  Hague 

November  25 

United  Nations: 

ECOSOC:  Commission  on  Narcotic  Drugs 

Statistical  Commission 
Telecommunications  Advisory  Committee 

Lake  Success 
Lake  Success 
Lake  Success 

November  27 
January  (tentative) 
November  10 

Inter-American  Commission  of  Women:  Fifth 

Annual 

Assembly 

Washington 

December  2-12 

Inter-governmental    Committee    on    Refugees 
nary  Session 

(IGCR) : 

Sixth 

Pie- 

London 

December  11 

Twelfth  Pan  American  Sanitary  Conference 

Caracas 

January  12-24 

Second  Pan  American  Conference  on  Sanitary  Education 

Caracas 

January  12-24 

Activities  and  Developments  » 


U.   S.    DELEGATION    TO    PREPARATORY    COM- 
MISSION OF  FAO 

[Released  to  the  press  October  28] 

The  President  has  approved  the  personnel  of 
the  United  States  Delegation  to  the  Preparatory 
Commission  which  was  convened  by  the  Food  and 
Agriculture  Organization  of  the  United  Nations 
in  Washington  on  October  28, 1946.  The  opening 
session  was  convened  at  10 :  45  a.m.,  E.S.T.,  in  the 
Department  of  Agriculture  Auditorium.  The 
Preparatory  Commission  will  consider  the  pro- 
posals of  the  Director  General  of  FAO  regarding 
the  establishment  of  a  world  food  board  and  alter- 
native proposals  for  accomplishing  the  same  ob- 
jectives (stabilizing  agricultural  prices  and  im- 
proving nutrition  throughout  the  world).  The 
meeting  is  being  held  pursuant  to  a  resolution  of 
the  Second  Session  of  the  FAO  Conference  which 
was  held  in  Copenhagen,  Denmark,  September  2 
to  13, 1946. 

Delegate 

Norris  E.  Dodd,  Under  Secretary  of  Agriculture 


844 


Deparfment  of  Stafe  Bulletin     •     November  10,  1946 


ACTIVITIES    AND    DEVELOPMENTS 


Alternate  Delcyates 

Willard  L.  Thorp,  Deputy  to  the  Assistant  Secretary 
for  Economic  Affairs,  Department  of  State 

Leslie  A.  Wheeler,  Director,  Office  of  Foreign  Agricul- 
tural Relations,  Department  of  Agriculture 
Advisers 

Dr.  Howard  B.  Boyd,  Director,  Office  of  Price,  Produc- 
tion and  Market  Administration,  Department  of 
Agriculture 

Edward  G.  Cale,  Associate  Chief,  International  Re- 
sources Division,  Office  of  International  Trade 
Policy,  Department  of  State 

Joseph  D.  Coppock,  Economic  Adviser,  Office  of  Inter- 
national Trade  Policy,  Department  of  State 

Carl  N.  Gibboney,  Commodity  Arrangements  Policy  Ad- 
viser, Commercial  Policy  Staff,  Department  of 
Commerce 

James  G.  Maddox,  Special  Assistant  to  the  Chief,  Bureau 
of  Agricultural  Economics,  Department  of  Agri- 
culture 

Leroy  D.  Stinebower,  Special  Assistant  to  the  Assistant 
Secretary  of  State  for  Economic  Affaire,  Depart- 
ment of  State,  and  Deputy  Representative  on  the 
Economic  and  Social  Council  of  U.N. 

Miss  Faith  M.  Williams,  Director,  Staff  of  Foreign  Labor 
Conditions,  Department  of  Labor 

Dr.  Oscar  Zaglits,  Head,  Finance  and  Trade  Policy  Sec- 
tion, Office  of  Foreign  Agricultural  Relations,  De- 
partment of  Agriculture 
Secretary  of  the  Delegation 

Duncan  Wall,  Head,  Division  of  Foreign  Information 
and  Statistics,  Office  of  Foreign  Agricultural  Rela- 
tions, Department  of  Agriculture 

U.S.  TECHNICAL  GROUP  APPOINTED  FOR  PICAO 

[Released  to  the  press  October  30] 

The  composition  of  a  United  States  technical 
group,  meeting  in  Montreal  on  October  30  with 
the  Special  Kadio  Technical  Division  of  the 
PICAO  Air  Navigation  Committee  was  announced 
by  the  Department  of  State. 

The  Special  Radio  Technical  Division  meeting 
has  been  called  to  formulate  plans  for  an  inter- 
national agreement  for  standardized  radio  equip- 
ment. 

The  United  States  technical  group  is  as  follows: 

Head  of  Technical  Group 

J.  Paul  Barringer,  Assistant  Chief,  Aviation  Division, 
Department  of  State 

Alternate 

Charles  I.  Stanton,  Deputy  Administrator,  Civil  Aero- 
nautics Administration 


Advisers 

Capt.  D.  C.  Beard,  U.  S.  N.,  Operational  Readiness,  Elec- 
tronics, Office  of  DCEO  (Operations),  Navy  Department 

Capt.  A.  H.  Bergeson,  Electronics  Division,  RD  &  E, 
Bureau  of  Aeronautics,  Navy  Department 

Lt.  Col.  R.  T.  Black,  Air  Communications  Office,  Head- 
quarters, Army  Air  Forces,  War  Department 

Capt.  A.  S.  Born,  Aviation  Plans,  Office  of  DCNO  (Air), 
Navy  Department 

Roy  Bryan,  Electronics  Subdivision,  War  Department, 
Wright  Field,  Dayton,  Ohio 

Peter  Caporale,  Chief,  Communications  Engineering  Di- 
vision, Federal  Airways,  Civil  Aeronautics  Administration 

Capt.  G.  L.  Caswell,  Office  of  DCNO  (Operations),  Com- 
munications Subsection,  Fleet  Operations,  Navy  Depart- 
ment 

E.  A.  Cutrell,  American  Airlines,  New  York,  N.  Y. 

Col.  James  K.  DeArmond,  Electronic  Subdivision,  War 
Department,  Wright  Field,  Dayton,  Ohio 

Robert  Froman,  Technical  Assistant  to  Director,  Safety 
Bureau,  Civil  Aeronautics  Board 

Paul  Goldsborough,  Director  of  Communications,  Trans- 
continental and  Western  Air,  Inc. 

C.  G.  Harrison,  Telecommunications  Division,  Depart- 
ment of  State 

Lt.  Comdr.  G.  E.  Howarth,  Engineering  Division,  U.  S. 
Coast  Guard 

J.  L.  Kinney,  Flight  Operations  Service,  Safety  Regula- 
tions, Civil  Aeronautics  Administration 

C.  M.  Lample,  Director,  Air  Navigation  Facilities  Serv- 
ice, Federal  Airways,  Civil  Aeronautics  Administration 

P.  D.  McKeel,  Office  of  Assistant  Administrator  for  Fed- 
eral Airways,  Civil  Aeronautics  Administration 

Capt.  G.  G.  McLintock,  Chief  Inspection  Officer,  U.  S. 
Maritime  Service,  U.  S.  Maritime  Commission 

Lt.  Comdr.  J.  L.  McNally,  Design  Branch,  Electronics 
Division,  Bureau  of  Ships,  Navy  Department 

Thomas  Murrell,  Office  of  Secretary  of  War,  War  De- 
partment 

R.  G.  Nichols,  Aeronautical  Radio,  Inc. 

F.  B.  Novenger,  Aircraft  and  Components  Service, 
Safety  Regulation,  Civil  Aeronautics  Administration 

Capt.  C.  H.  Peterson,  Operations  Division,  U.  S.  Coast 
Guard 

Col.  J.  H.  Rothrock,  Requirements  Division,  Headquar- 
ters, Army  Air  Forces,  War  Department 

George  V.  Stelzenmuller,  Radio  Engineer,  Federal  Com- 
mimications  Commission 

D.  M.  Stuart,  Director,  Technical  Development  Service, 
Federal  Airways,  Civil  Aeronautics  Administration 

V.  I.  Weihe,  Air  Navigation  -  Traffic  Control  Division, 
Air  Transport  Association  of  America 

W.  L.  Webb,  Director  of  Engineering  and  Research, 
Bendix  Radio  Corporation,  Baltimore,  Md. 

E.  L.  White,  Chief,  Aviation  Division,  Federal  Com- 
mimications  Commission 


720567 — 46- 


845 


ACTIVITIES    AND    DEVELOPfABNTS 


U.  S.  DELEGATES  TO  INTERNATIONAL  TELE- 
GRAPH MEETING 

[Released  to  the  press  October  30] 

The  United  States  has  designated  four  observ- 
ers to  attend  a  meeting  of  a  special  commission  of 
the  International  Telegraph  Consulting  Commit- 
tee in  London,  November  4-9,  the  Department  of 
State  announced  on  October  30.  The  committee 
will  prepare  for  the  resumption  of  operations  on 
the  study  of  highly  technical  problems  affecting 
international  telegraph  which  were  interrupted 
during  the  war. 

The  American  observers  are : 

Clifford  Durr,  Commissioner  of  the  Federal 
Communications  Commission 

David  Adams,  Attorney  of  the  Federal  Com- 
munications Commission 

Marion  W.  Woodward,  Assistant  Chief  Engi- 
neer of  the  Federal  Communications  Commission 

William  H.  J.  Mclntyre,  Telecommunications 
Attache,  American  Embassy,  London 

The  special  commission,  under  the  chairman- 
ship of  Hugh  Townsend  of  the  British  Post  Office 
within  whose  jurisdiction  telegraph  matters  fall, 
will  study  the  application  throughout  the  world 
of  the  international  telegraph-rate  pattern  for 
telecommunications  services  which  was  adopted 
at  the  Bermuda  Telecommunications  Conference 
last  December  under  the  auspices  of  the  United 
States  and  the  British  Commonwealth. 

While  the  United  Stat&s  is  not  a  party  to  the 
International  Telegraph  Regulations  and  is  not  a 
member  of  the  International  Telegraph  Consult- 
ing Conmaittee,  it  received  and  accepted  the  invi- 
tation to  send  observers  to  the  London  meeting. 

FINAL  SESSION  OF  THE  SECOND  PAN  AMERICAN 
CONGRESS  OF  MINING  ENGINEERING  AND 
GEOLOGY' 

The  second  Pan  American  Congress  of  Mining 
Engineering  and  Geology  held  its  final  session  on 


'Prepared  by  Mr.  C.  A.  Wendel  of  the  International 
Resources  Division,  Department  of  State. 

'  Prepared  by  the  Division  of  International  Conferences 
in  collaboration  with  the  Division  of  International  Labor, 
Social  and  Health  Affairs,  Department  of  State. 


October  15,  1946,  at  the  Plotel  Quitandinha, 
Petropolis,  Brazil,  after  a  two-week  meeting 
devoted  to  discussion  of  mineral  problems  and  to 
insjiection  of  important  mining  and  metallurgical 
operations  in  Brazil. 

The  final  resolutions  of  the  Congress,  approved 
at  the  closing  session,  included  reaffirmation  of 
the  Economic  Charter  of  the  Americas,  sponsor- 
ship of  a  Pan  American  Institute  of  Mining  Law, 
encouragement  of  the  exchange  of  information 
and  of  technicians  between  the  American  coun- 
tries, and  promotion  of  uniform  standards  of 
statistics  and  of  teclinical  terms. 

The  Congress  also  expressed  unanimously  its 
desire  that  the  Third  Congress  be  held  in  the 
United  States  not  later  than  four  years  hence. 
The  United  States  Section  of  the  Pan  American 
Institute  of  Mining  Engineering  and  Geology 
(PAIMEG)  is  charged  with  the  responsibility  of 
coordinating  arrangements  for  this  Congress. 

Paul  C.  Daniels,  Charge  d'Affaires  ad  interim  of 
the  American  Embassy,  served  as  chairman  of  the 
United  States  Delegation  to  the  Second  Congress. 
Other  members  of  the  Delegation  were :  Dr.  R.  R. 
Sayers,  Director,  Bureau  of  Mines;  Dr.  Edward 
Steidle,  Pennsylvania  State  College ;  Dr.  William 
E.  Wrather,  Director,  Geological  Survey;  Clar- 
ence C.  Brooks,  Counselor  of  American  Embassy 
in  Brazil  for  Economic  Affairs;  Emerson  I. 
Brown,  Minerals  Attache  of  American  Embassy, 
Rio  de  Janeiro;  Ivan  G.  Harmon,  Petroleum 
Attache  of  the  American  Embassy,  Rio  de  Ja- 
neiro; Roger  Rhoades,  Chief  Geologist,  Bureau 
of  Reclamation ;  and  Clarence  A.  Wendel,  Depart- 
ment of  State.  In  addition  to  the  Delegation, 
a])out  20  other  Americans,  representing  private 
industry  and  governmental  agencies,  took  an 
active  part  in  the  proceedings  of  the  Congress. 
The  official  transcriptions  of  the  deliberations  and 
conclusions  of  the  Congress  are  not  available  at 
this  time,  pending  printing  and  translation. 

ILO  INDUSTRIAL  COMMITTEE  ON  TEXTILES' 

The  initial  meeting  of  the  ILO  Industrial  Com- 
mittee on  Textiles  is  scheduled  to  be  held  in  Brus- 
sels, Belgium  from  November  14  through  Novem- 


B46 


Department  of  State  Bulletin     •     November  70,  7946 


ACTIVITIES  AND   DEVELOPMENTS 


ber  22.  Eepresenting  the  Government  of  the 
United  States  will  be  Robert  J.  Myers,  Manpower 
Division,  Office  of  Military  Government  for  Ger- 
many (United  States),  and  Assistant  Commis- 
sioner Designate,  Bureau  of  Labor  Statistics, 
United  States  Department  of  Labor;  and  Rene 
Lutz,  Economic  Analyst,  Leather  and  Textile  Di- 
vision, United  States  Department  of  Commerce. 
Their  advisers  will  include  Verl  E.  Roberts  of  the 
Department  of  Labor,  and  Murray  Ross  of  the 
Department  of  State.  Textile  employers  of  the 
United  States  will  be  represented  by  Edwin  Wil- 
kinson, Assistant  to  the  President,  National  Asso- 
ciation of  Wool  Manufacturers,  and  Herbert  H. 
Schell,  President,  Sidney  Blumenthal  &  Company 
Incorporated.  Workers  in  the  United  States  tex- 
tile industry  will  be  represented  by  Lloyd  Klenert, 
Secretary-Treasurer,  United  Textile  Workers  of 
America,  Washington,  D.  C,  and  John  Vertente, 
Jr.,  Executive  Council  Member,  United  Textile 
Workers  of  America,  New  Bedford,  Massachu- 
setts. 

The  other  countries  scheduled  to  participate  are : 
Australia,  Belgium,  Brazil,  Canada,  China,  Den- 
mark, Egypt,  France,  United  Kingdom,  India, 
Italy,  Mexico,  Norway,  Netherlands,  Peru,  Poland, 
Sweden,  Switzerland,  Czechoslovakia,  and  Argen- 
tina. This  meeting  stems  from  the  policy  inaugu- 
rated by  the  Governing  Body  of  the  International 
Labor  Office  in  January  1945  of  establishing  seven 
major  Industrial  Committees  for  the  purpose  of 
paying  closer  attention  to  the  individual  industries 
and  thus  implementing  the  previously  evolved  gen- 
eral principles  governing  labor  standards  and  so- 
cial policy  on  an  individual  industry  basis.  In 
line  with  these  objectives,  the  ILO  has  already 
held  the  initial  meetings  of  four  of  the  Industrial 
Committees :  Coal  Mining,  Inland  Transport,  Iron 
and  Steel,  and  Metal  Trades,  in  all  of  which  the 
United  States  Government  was  represented  by 
complete  delegations.  As  in  the  case  of  the  previ- 
ously held  committee  meetings,  the  first  session  of 
the  Textile  Committee  is  expected  to  be  largely 
organizational  in  character,  and  to  lend  itself  to 
preliminary  explorations  into  the  fields  of  social 
policy  in  which  future  international  cooperation 
in  the  world  textile  industries  may  be  undertaken. 


Information  Services — Continued  from  page  842 

partment  of  State  of  the  United  States  of  Amer- 
ica, which  is  the  depository  of  the  above-named 
Conventions  and  Protocols.  In  addition,  the  Ad- 
ministration will  transfer  to  the  Interim  Commis- 
sion such  of  its  records,  equipment  and  other  ma- 
terials as  are  necessary  to  enable  the  Interim  Com- 
mission to  assume  these  duties  and  functions.  The 
records,  equipment  and  other  materials  proposed 
to  be  transferred  are  specified  m  Appendix  1,^ 
enclosed  herewith. 

Sincerely  yours, 

F.  H.  La  Gtjardia 

Director- General 

Dear  Mr.  La  Guardia  : 

In  response  to  your  letter  of  October  22, 1  have 
the  honour  to  inform  you,  in  pursuance  of  para- 
graph 2  (f)  of  the  Arrangement  concluded  on  22 
July  1946  by  61  governments  represented  on  the 
International  Health  Conference,  assigning  to  the 
Interim  Commission  of  the  World  Health  Organ- 
ization the  task  of  taking  all  necessary  steps  for 
assumption  by  that  Commission  of  the  duties  and 
functions  entrusted  to  the  United  Nations  Relief 
and  Rehabilitation  Administration  by  the  Inter- 
national Sanitary  Conventions,  1944  and  the  Pro- 
tocols to  prolong  them,  that  the  Interim  Commis- 
sion will  undertake  to  carry  out,  as  of  1st  Decem- 
ber 1946,  the  duties  and  functions  which  have  been 
l^erformed  by  the  United  Nations  Relief  and  Re- 
habilitation Administration  under  these  Interna- 
tional Sanitary  Conventions.  I  should  be  grate- 
ful if  you  would  make  the  necessary  arrangements 
to  notify  the  governments  now  parties  to  these 
conventions  of  that  fact. 

I  shall  be  glad,  with  your  permission,  to  ar- 
range with  Dr.  W.  A.  Sawyer,  Director  of  Health, 
UNRRA,  the  practical  arrangements  for  the  trans- 
fer of  these  functions,  together  with  the  relevant 
materials,  records  and  equipment  which  you  have 
offered  to  the  Interim  Commission  and  which  we 
gratefully  accept. 

Yours  very  sincerely, 

Brock  Chisholm 
Executive  Secretary 


'  Not  printed. 


847 


THE  RECORD  OF  THE  WEEK 


United  States-Arabian  Views  on  Palestine  Problem 


EXCHANGE  OF  MESSAGES  BETWEEN  THE  KING  OF  SAUDI  ARABIA 
AND  THE  PRESIDENT! 


October  15,  191fi. 
YotjR  Excellenct: 

In  my  desire  to  safeguard  and  strengthen  in 
every  way  possible  the  friendship  which  binds  our 
two  countries  together  and  which  existed  between 
the  late  President  Eoosevelt  and  which  was  re- 
newed with  Your  Excellency,  I  reitei-ate  my  feel- 
ings on  every  occasion  when  this  friendship  be- 
tween the  United  States  on  the  one  hand,  and  my 
country  and  the  other  Arab  countries  on  the  other 
hand,  is  endangered,  so  that  all  obstacles  in  the 
way  of  that  friendship  may  be  removed. 

On  previous  occasions  I  wrote  to  the  late  Presi- 
dent Eoosevelt  and  to  Your  Excellency,  and  ex- 
plained the  situation  in  Palestine;  how  the  natu- 
ral rights  of  the  Arabs  therein  go  back  thousands 
of  years  and  how  the  Jews  are  only  aggressors, 
seeking  to  perpetrate  a  monstrous  injustice,  at  the 
beginning,  speaking  in  the  name  of  humanitarian- 
ism,  but  later  openly  proclaiming  their  aggres- 
siveness by  force  and  violence  as  is  not  unknown  to 
Your  Excellency  and  the  American  people.  More- 
over, the  designs  of  the  Jews  are  not  limited  to 
Palestine  only,  but  include  the  neighboring  Arab 
countries  within  their  scope,  not  even  excluding 
our  holy  cities. 

I  was  therefore  astonished  at  the  latest  an- 
nouncement issued  in  your  name  in  support  of  the 
Jews  in  Palestine  and  its  demand  that  floodgates 


'  AMiiliiziz  Ibn  Abdul-Rahman  Al-Faisal  Al-Saud. 


of  immigration  be  opened  in  such  a  way  as  to  alter 
the  basic  situation  in  Palestine  in  contradiction  to 
previous  promises.  My  astonishment  was  even 
greater  because  the  statement  ascribed  to  Your  Ex- 
cellency contradicts  the  Declaration  which  the 
American  Legation  in  Jeddah  requested  our  For- 
eign Office  to  publish  in  the  Govermnent's  official 
paper  0mm  Al-Qura  in  the  name  of  the  White 
House,  on  August  16,  1946,  in  which  it  was  stated 
that  the  Govermnent  of  the  United  States  had  not 
made  any  proposals  for  the  solution  of  the  Pales- 
tine problem,  and  in  which  j'ou  expressed  your 
hope  that  it  would  be  solved  through  the  conversa- 
tions between  the  British  Government  and  the  For- 
eign Ministers  of  the  Arab  States,  on  the  one  hand, 
and  between  the  British  Government  and  the  third 
party  on  the  other,  and  in  which  you  expressed  the 
readiness  of  the  United  States  to  assist  the  dis- 
placed persons  among  whom  are  Jews.  Hence,  my 
great  astonishment  when  I  read  your  Excellency's 
statement  and  my  incredulity  that  it  could  have 
come  from  you,  because  it  contradicts  previous 
promises  made  by  the  Government  of  the  United 
States  and  statements  made  from  the  White  House. 
I  am  confident  that  the  American  people  who 
spent  their  blood  and  their  money  freely  to  resist 
aggression,  could  not  possibly  support  Zionist  ag- 
gression against  a  friendly  Arab  country  which 
has  committed  no  crime  except  to  believe  firmly  in 
those  principles  of  justice  and  equality,  for  which 


848 


Department  of  State  Bulletin     *     November  10,  1946 


THE   RECORD   Of  THE  WEEK 


the  United  Nations,  including  the  United  States, 
fought,  and  for  which  both  your  predecessor  and 
you  exerted  great  efforts. 

My  desire  to  preserve  the  friendship  of  the  Arabs 
and  the  East  towards  the  United  States  of  America 
has  obliged  me  to  expound  to  Your  Excellency  the 
injustice  which  would  be  visited  upon  the  Arabs  by 
any  assistance  to  Zionist  aggression. 

I  am  certain  that  Your  Excellency  and  the 
American  people  cannot  support  right,  justice,  and 
equity  and  fight  for  them  in  the  rest  of  the  world 
while  denying  them  to  the  Arabs  in  their  country, 
Palestine,  which  they  have  inherited  from  their 
ancestors  from  Ancient  Times. 
With  Greetings, 

Abdul- Aziz 

[Released  to  the  press  by  the  White  House  October  28] 

Octoler  28,  Wlfi 
Youit  Majesty: 

I  have  just  received  the  letter  with  regard  to 
Palestine  which  Your  Majesty  was  good  enough 
to  transmit  to  me  though  the  Saudi  Arabian  Lega- 
tion under  date  of  October  15, 1946,  and  have  given 
careful  consideration  to  the  views  expressed 
therein. 

I  am  particularly  appreciative  of  the  frank 
manner  in  which  you  expressed  yourself  in  your 
letter.  Your  frankness  is  entirely  in  keeping  with 
the  friendly  relations  which  have  long  existed  be- 
tween our  two  countries,  and  with  the  personal 
friendship  between  Your  Majesty  and  my  distin- 
guished predecessor ;  a  friendship  which  I  hope  to 
retain  and  strengthen.  It  is  precisely  the  cordial 
relations  between  our  countries  and  Your  Majes- 
ty's own  friendly  attitude  which  encourages  me  to 
invite  your  attention  to  some  of  the  considerations 
which  have  prompted  this  Government  to  follow 
the  course  it  has  been  pursuing  with  respect  to  the 
matter  of  Palestine  and  of  the  displaced  Jews  in 
Europe. 

I  feel  certain  that  Your  Majesty  will  readily 
agree  that  the  tragic  situation  of  the  surviving 
victims  of  Nazi  persecution  in  Europe  presents  a 
problem  of  such  magnitude  and  poignancy  that  it 
cannot  be  ignored  by  people  of  good  will  or  hu- 
manitarian instincts.  This  problem  is  worldwide. 
It  seems  to  me  that  all  of  us  have  a  conunon  respon- 


sibility for  working  out  a  solution  which  would 
permit  those  unfortunates  who  must  leave  Europe 
to  find  new  homes  where  they  may  dwell  in  peace 
and  security. 

Among  the  survivors  in  the  displaced  persons 
centers  in  Europe  are  numbers  of  Jews,  whose 
plight  is  particularly  tragic  inasmuch  as  they 
represent  the  pitiful  remnants  of  millions  who 
were  deliberately  selected  by  the  Nazi  leaders  for 
annihilation.  Many  of  these  persons  look  to  Pales- 
tine as  a  haven  where  they  hope  among  people  of 
their  own  faith  to  find  refuge,  to  begin  to  lead 
peaceful  and  useful  lives,  and  to  assist  in  the  fur- 
ther development  of  the  Jewish  National  Home. 

The  Government  and  people  of  the  United  States 
have  given  support  to  the  concept  of  a  Jewish 
National  Home  in  Palestine  ever  since  the  termina- 
tion of  the  first  World  War,  which  resulted  in  the 
freeing  of  a  large  area  of  the  Near  East,  including 
Palestine,  and  the  establishment  of  a  number  of 
independent  states  which  are  now  members  of  the 
United  Nations.  The  United  States,  which  con- 
tributed its  blood  and  resources  to  the  winning  of 
that  war,  could  not  divest  itself  of  a  certain  respon- 
sibility for  the  manner  in  which  the  freed  teiTi- 
tories  were  disposed  of,  or  for  the  fate  of  the  peo- 
ples liberated  at  that  time.  It  took  the  position, 
to  which  it  still  adheres,  that  these  peoples  should 
be  prei^ared  for  self-government  and  also  that  a 
national  home  for  the  Jewish  people  should  be 
established  in  Palestine.  I  am  happy  to  note  that 
most  of  the  liberated  peoples  are  now  citizens  of 
independent  countries.  The  Jewish  National 
Home,  however,  has  not  as  yet  been  fully 
developed. 

It  is  only  natural,  therefore,  that  this  Govern- 
ment should  favor  at  this  time  the  entry  into 
Palestine  of  considerable  numbers  of  displaced 
Jews  in  Europe,  not  only  that  they  may  find  shelter 
there,  but  also  that  they  may  contribute  their 
talents  and  energies  to  the  upbuilding  of  the  Jew- 
ish National  Home. 

It  was  entirely  in  keeping  with  the  traditional 
policies  of  this  Government  that  over  a  year  ago  I 
began  to  correspond  with  the  Prime  Minister  of 
Great  Britain  in  an  effort  to  expedite  the  solving 
of  the  urgent  problem  of  the  Jewish  survivors  in 
the  displaced  persons  camps  by  the  transfer  of  a 
substantial  number  of  them  to  Palestine.    It  was 


849 


THE  RECORD  OF  THE  WEEK 

my  belief,  to  which  I  still  adhere,  and  which  is 
widely  shared  by  the  people  of  this  country,  that 
nothing  would  contribute  more  effectively  to  the 
alleviation  of  the  plight  of  these  Jewish  survi- 
vors than  the  authorization  of  the  immediate  entry 
of  at  least  100,000  of  them  to  Palestine.  No  de- 
cision with  respect  to  this  proposal  has  been 
reached,  but  this  Government  is  still  hopeful  that 
it  may  be  possible  to  proceed  along  the  lines  which 
I  outlined  to  the  Prime  Minister. 

At  the  same  time  there  should,  of  course,  be  a 
concerted  effort  to  open  the  gates  of  other  lands, 
including  the  United  States,  to  those  unfortunate 
persons,  who  are  now  entering  upon  their  second 
winter  of  homelessness  subsequent  to  the  termina- 
tion of  hostilities.  I,  for  my  part,  have  made  it 
known  that  I  am  prepared  to  ask  the  Congi'ess  of 
the  United  States,  whose  cooperation  must  be  en- 
listed under  our  Constitution,  for  special  legisla- 
tion admitting  to  this  country  additional  numbers 
of  these  persons,  over  and  above  the  immigi-ation 
quotas  fixed  by  our  laws.  This  Government,  more- 
over, has  been  actively  exploring,  in  conjunction 
with  other  governments,  the  possibilities  of  settle- 
ment in  different  countries  outside  Europe  for 
those  displaced  persons  who  are  obliged  to  emi- 
grate from  that  continent.  In  this  connection  it 
has  been  most  heartening  to  us  to  note  the  state- 
ments of  various  Arab  leaders  as  to  the  willing- 
ness of  their  countries  to  share  in  this  humani- 
tarian project  by  taking  a  certain  number  of  these 
persons  into  their  own  lands. 

I  sincerely  believe  that  it  will  prove  possible  to 
arrive  at  a  satisfactory  settlement  of  the  refugee 
problem  along  the  lines  which  I  have  mentioned 
above. 

With  regard  to  the  possibility  envisaged  by  Your 
Majesty  that  force  and  violence  may  be  used  by 
Jews  in  aggressive  schemes  against  the  neighbor- 
ing Arab  countries,  I  can  assure  you  that  this  Gov- 
ernment stands  opposed  to  aggression  of  any  kind 
or  to  the  employment  of  terrorism  for  political 
purposes.  I  may  add,  moreover,  that  I  am  con- 
vinced that  responsible  Jewish  leaders  do  not 
contemplate  a  policy  of  aggression  against  the 
Arab  countries  adjacent  to  Palestine. 

I  cannot  agree  with  Your  Majesty  that  my  state- 
ment of  Oct.  4  is  in  any  way  inconsistent  with  the 
position  taken  in  the  statement  issued  on  my  behalf 


on  Aug.  16.  In  the  latter  statement  the  hope  was 
expressed  that  as  a  result  of  the  proposed  con- 
versations between  the  British  Government  and 
the  Jewish  and  Arab  representatives  a  fair  solu- 
tion of  the  problem  of  Palestine  could  be  found  and 
immediate  steps  could  be  taken  to  alleviate  the 
situation  of  the  displaced  Jews  in  Europe.  Un- 
fortunately, these  hopes  have  not  been  realized. 
The  conversations  between  the  British  Government 
and  the  Arab  representatives  have,  I  imderstand, 
been  adjourned  until  December  without  a  solution 
having  been  found  for  the  problem  of  Palestine  or 
without  any  steps  having  been  taken  to  alleviate 
the  situation  of  the  displaced  Jews  in  Europe. 

In  this  situation  it  seemed  incumbent  upon  me 
to  state  as  frankly  as  possible  the  urgency  of  the 
matter  and  my  views  both  as  to  the  direction  in 
which  a  solution  based  on  reason  and  good  will 
might  be  reached  and  the  immediate  steps  which 
should  be  taken.  This  I  did  in  my  statement  of 
October  4. 

I  am  at  a  loss  to  understand  why  Your  Majesty 
seems  to  feel  that  this  statement  was  in  contra- 
diction to  previous  promises  or  statements  made  by 
this  Government.  It  may  be  well  to  recall  here 
that  in  the  past  this  Government,  in  outlining  its 
attitude  on  Palestine,  has  given  assurances  that  it 
would  not  take  any  action  which  might  prove 
hostile  to  the  Arab  people,  and  also  that  in  its  view 
there  should  be  no  decision  with  respect  to  the  basic 
situation  in  Palestine  without  prior  consultation 
with  both  Arabs  and  Jews. 

I  do  not  consider  that  my  urging  of  the  admit- 
tance of  a  considerable  number  of  displaced  Jews 
into  Palestine  or  my  statements  with  regard  to  the 
solution  of  the  problem  of  Palestine  in  any  sense 
represent  an  action  hostile  to  the  Arab  people. 
My  feelings  with  regard  to  the  Arabs  when  I  made 
these  statements  were,  and  are  at  the  present  time, 
of  the  most  friendly  character.  I  deplore  any 
kind  of  conflict  between  Arabs  and  Jews,  and  am 
convinced  that  if  both  peoples  approach  the  prob- 
lems before  them  in  a  spirit  of  conciliation  and 
moderation  these  problems  can  be  solved  to  the 
lasting  benefit  of  all  concerned. 

I  furthermore  do  not  feel  that  my  statements  in 
any  way  represent  a  failure  on  the  part  of  this 
Government  to  live  up  to  its  assurance  that  in  its 
view  there  should  be  no  decision  with  respect  to  the 


850 


Department  of  State  Bulletin     *    November  10,  7946 


THE  RECORD  Of  THE  WEEK 


basic  situation  in  Palestine  without  consultation 
with  both  Arabs  and  Jews.  During  the  current 
year  there  have  been  a  number  of  consultations 
with  both  Arabs  and  Jews. 

Mindful  of  the  great  interest  which  your  coun- 
try, as  well  as  my  own,  has  in  the  settlement  of  the 
various  matters  which  I  have  set  forth  above,  I 
take  this  opportunity  to  express  my  earnest  hope 
that  Your  Majesty,  who  occupies  a  position  of 
such  eminence  in  the  Arab  world,  will  use  the  great 
influence  which  you  possess  to  assist  in  the  finding 
in  the  immediate  future  of  a  just  and  lasting  solu- 
tion. I  am  anxious  to  do  all  that  I  can  to  aid  in 
the  matter  and  I  can  assure  Your  Majesty  that  the 
Government  and  people  of  the  United  States  are 
continuing  to  be  solicitous  of  the  interests  and  wel- 
fare of  the  Arabs  upon  whose  historic  friendship 
they  place  great  value. 

I  also  take  this  occasion  to  convey  to  Your 
Majesty  my  warm  personal  greetings  and  my  best 
wishes  for  the  continued  health  and  welfare  of 
Your  Majesty  and  your  people. 
Very  sincerely  yours, 

Haekt  S.  Truman 

Electoral  Preparations  in  Rumania 

U.S.    VIEWS    STATED    IN    NOTE    TO    RUMANIAN 
GOVERNMENT 

[Released  to  the  press  October  291 

Text  of  note  delivered  by  Burton  T.  Berry, 
the  representative  of  the  United  States  in  Ric- 
7?umia,  to  G.  Tatarescu,  the  Rumanian  Minister 
for  Foreign  Affairs,  on  October  2S. 

I  have  been  instructed  to  inform  you  that,  sub- 
sequent to  its  notes  of  May  27  ^  and  June  14  ^  and 
the  Rumanian  Government's  replies  thereto,  my 
Government  has  taken  cognizance  of  the  promul- 
gation by  the  Eumanian  Government  of  an  elec- 
toral law,  of  the  steps  taken  for  registration  of 
the  Rumanian  electorate,  and  of  the  announcement 
of  a  firm  date  for  general  legislative  elections. 

It  is,  however,  a  matter  of  concern  to  my  Gov- 
ernment that,  according  to  information  at  its  dis- 
posal which  it  regards  as  reliable,  certain  aspects 
of  the  electoral  preparations  in  Rumania  suggest 


that  these  elections  may  not  be  of  the  free  and 
equitable  character  assured  by  the  Rumanian  Gov- 
ernment in  its  acceptance  of  the  Moscow  Confer- 
ence decisions  nor  result  in  the  choice  of  a  Gov- 
ernment responsive  to  the  will  of  the  people  as  en- 
visaged in  the  Crimean  Conference  agreement. 

Specifically,  my  Government  observes  the  fol- 
lowing apparent  contraventions  of  the  assurances 
which  it  received  in  January  1946  from  the  Ru- 
manian Council  of  Ministers  and  its  President : 

(1)  The  freedom  of  participation  in  the  elec- 
tions promised  in  January  appears  to  be  seriously 
endangered  in  the  case  of  those  outside  the  present 
governmental  electoral  Bloc,  by  various  acts  of 
discrimination  involving  restrictions  on  registra- 
tion and  by  the  intimidation  of  individuals. 

(2)  The  participating  parties  outside  the  gov- 
ernmental electoral  Bloc  have  been  wholly  denied 
the  use  of  broadcasting  facilities,  although  they 
were  promised  equitable  use  of  such  facilities  to 
present  their  views  and  although  they  are  sub- 
jected to  constant  attack  by  the  Bloc  parties 
through  this  medium. 

(3)  The  rights  assured  in  January  to  print, 
publish  and  distribute  their  political  publications 
is  still  greatly  restricted  in  the  case  of  parties  out- 
side the  Bloc  by  direct  and  indirect  means. 

(4)  Participating  parties  outside  the  govern- 
mental electoral  Bloc  continue  to  encounter  major 
impediments  and  violent  opposition  to  the  right 
which  was  assured  them  to  organize  associations, 
hold  meetings,  and  be  allowed  premises  for  this 
purpose. 

Mindful  of  its  undertakings  under  the  Yalta^ 
Potsdam,  and  Moscow  Conference  agreements,  the 
Government  of  the  United  States  takes  this  oc- 
casion, in  anticipation  of  the  announced  elec- 
tions, to  recall  the  assurances  communicated  to  it 
by  the  written  declaration  of  the  Council  of  Min- 
isters and  by  the  oral  statement  of  the  President 
of  the  Council,  which  formed  a  basis  for  recogni- 
tion of  the  Rumanian  Government  by  the  Gov- 
ernment of  the  United  States. 


"  For  Rumanian  reply,  see  Bulletin,  June  9,  1946,  p. 
1007,  and  June  16,  1946,  p.  1048. 
'  Bulletin  of  June  30,  1046,  p.  1125. 


851 


The  Lawyer  in  IVIilitary  Government  of  Germany 

BY  CHARLES  FAHY 


The  lawyer,  as  was  true  of  others  engaged  in  the 
work  of  the  occupation  in  Germany,  had  little  in 
the  way  of  precedents.  This  paper  is  intended 
only  to  be  descriptive.  It  is  not  an  analytical 
study  of  the  legal  work.  It  should  be  considered 
as  if  it  were  one  of  a  series,  opening  up  a  general 
view  without  elaboration  of  the  many  facets  of 
the  work.  The  lawyer  had  his  special  problems  as 
well  as  those  related  to  the  whole.  For  example, 
there  I'eposed  in  the  occupation  authorities  great 
power,  unreviewable  by  a  judiciary.  The  appeal 
was  therefore  to  one's  conscience,  courage,  and 
wisdom,  guided  by  our  traditions  in  so  far  as  the 
purposes  of  the  occupation  permitted. 

It  seems  desirable  to  review  initially  certain 
basic  state  papers  relating  to  the  occupation.  The 
Crimea  Conference  communique  of  February  1945, 
issued  by  Churchill,  Roosevelt,  and  Stalin,  an- 
nounced that  common  policies  and  plans  had  been 
agreed  upon  for  enforcing  unconditional  surren- 
der on  Nazi  Germany,  and  that  under  the  agreed 
plans  the  forces  of  the  three  powers  would  occupy 
a  separate  zone  in  Germany.^  "Coordinated  ad- 
ministration and  control  has  been  ^wovided  for 
under  the  plan  through  a  central  control  commis- 
sion consisting  of  the  Supreme  Commanders  of 
the  three  powers  with  headquarters  in  Berlin." 
France,  it  was  stated,  should  be  invited  to  take 
a  zone  of  occupation,  and  to  participate  as  fourth 
member  of  the  Control  Commission.  On  May  8, 
1945,  the  act  of  unconditional  military  surrender 
had  been  signed  in  Berlin.^     It  contained  a  provi- 


Address  delivered  before  the  Section  of  International 
Comparative  Law,  American  Bar  Association,  in  Atlantic 
City,  N.J.  on  Oct.  29  and  released  to  the  press  on  the  same 
date.     Mr.  Fahy  is  Legal  Adviser,  Department  of  State. 

'  BuLLKTTN  of  Feb.  18,  1945,  p.  213. 

=  BuiXETiN  of  July  22,  1945,  p.  106. 

'  BULMTIN  of  June  10,  194.5,  p.  1051. 

*  Bulletin  of  June  10, 1945,  p.  1054. 


sion  that  its  terms  were  without  prejudice  to  and 
would  be  superseded  by  any  general  insti'iunent  of 
surrender  imposed  by  or  on  behalf  of  the  United 
Nations  and  applicable  to  Germany  and  her  armed 
forces.  On  Jime  5  the  commanders  of  the  four 
powers  issued  at  Berlin  a  declaration  regarding 
the  defeat  and  the  assumption  of  supreme  author- 
ity by  the  Governments  of  the  United  Kingdom, 
the  United  States,  the  U.S.S.R.,  and  the  Provi- 
sional Government  of  France.^  Certain  specific 
instructions  were  contained  in  this  statement, 
principally  relating  to  military  requirements.  It 
was  also  provided  that  the  Allied  representatives 
would  impose  on  Germany  additional  political, 
administrative,  economic,  financial,  military,  and 
other  requirements,  and  would  issue  proclama- 
tions, orders,  ordinances,  and  instructions,  which 
all  German  authorities  and  the  German  people 
"shall  fully  comply  with".  On  the  same  day,  June 
5, 1945,  the  four  Govermnents  issued  another  state- 
ment, this  one  describing  the  control  machinery  in 
Germany,  as  follows :  * 

"1.  In  the  period  when  Germany  is  carrying  out 
the  basic  requirements  of  unconditional  surrender, 
supreme  authority  in  Germany  will  be  exercised, 
on  instructions  from  their  Goverimients,  by  the 
Soviet,  British,  United  States,  and  French  Com- 
manders-in-Chief, each  in  his  own  zone  of  occupa- 
tion, and  also  jointly,  in  matters  affecting  Germany 
as  a  whole.  Tlie  four  Commanders-in-Chief  will 
together  constitute  the  Control  Council.  Each 
Commander-in-Chief  will  be  assisted  by  a  politi- 
cal adviser. 

"2.  The  Control  Council,  whose  decisions  shall 
be  unanimous,  will  ensure  appropriate  uniformity 
of  action  by  the  Commanders-in-Chief  in  their 
respective  zones  of  occupation  and  will  reach 
agi'eed  decisions  on  the  chief  questions  affecting 
Germany  as  a  whole. 

"3.  Under  the  Control  Council,  there  will  be  a 


852 


Deparfment  of  State  Bulletin     *     November  10,  1946 


THE   RECORD  OF  THE   WEEK 


permanent  Co-ordinating  Committee  composed  of 
one  representative  of  each  of  the  four  Com- 
manders-in-Chief and  a  Control  Staff  organized  in 
the  following  Divisions  (which  are  subject  to 
adjustment  in  the  light  of  experience)  : 

"Military;  Naval;  Air;  Transport;  Political; 
Economic;  Finance;  Reparation,  Deliveries  and 
Restitution ;  Internal  Affairs  and  Communica- 
tions; Legal;  Prisoners  of  War  and  Displaced 
Persons;  Manpower. 

"There  will  be  four  heads  of  each  Division,  one 
designated  by  each  Power.  The  staffs  of  the  Divi- 
sions may  include  civilian  as  well  as  military  per- 
sonnel, and  may  also  in  special  cases  include  na- 
tionals of  other  United  Nations  appointed  in  a 
personal  capacity. 

"4.  The  functions  of  the  Co-ordinating  Com- 
mittee and  of  the  Control  Staff  will  be  to  advise 
the  Control  Council,  to  carry  out  the  Council's 
decisions  and  to  transmit  them  to  the  appropriate 
German  organs,  and  to  supervise  and  control  the 
day-to-day  activities  of  the  latter. 

"5.  Liaison  with  the  other  United  Nations  Gov- 
erimaents  chiefly  interested  will  be  established 
through  the  appointment  by  such  Governments 
of  military  missions  (which  may  include  civilian 
members)  to  the  Control  Coimcil.  These  mis- 
sions will  have  access  tlu'oiigh  the  appropriate 
channels  to  the  organs  of  control. 

"6.  United  Nations  organizations  will,  if  ad- 
mitted by  the  Control  Council  to  operate  in  Ger- 
many, be  subordinate  to  the  Allied  control  ma- 
chinery and  answerable  to  it. 

"7.  The  administration  of  the  'Greater  Berlin' 
area  will  be  directed  by  an  Inter- Allied  Governing 
Authority,  which  will  operate  under  the  general 
direction  of  the  Control  Council,  and  will  consist 
of  four  Commandants,  each  of  whom  will  serve  in 
rotation  as  Chief  Commandant.  They  will  be  as- 
sisted by  a  technical  staff  which  will  supervise  and 
control  the  activities  of  the  local  German  organs. 

"8.  The  arrangements  outlined  above  will  oper- 
ate during  the  period  of  occupation  following  Ger- 
man surrender,  when  Germany  is  carrying  out  the 
basic  requirements  of  unconditional  surrender. 
Arrangements  for  the  subsequent  period  will  be 
the  subject  of  a  separate  agreement." 


Likewise  on  June  6  a  third  statement  was  made 
providing  that  Germany,  within  her  frontiers  as 
of  31  December  1937,  would  for  purposes  of  the 
occupation  be  divided  into  four  zones,  one  to  be 
allotted  to  each  power,  as  therein  generally  de- 
scribed, the  occupying  forces  in  each  zone  to  be 
under  a  Commander-in-Chief.^  This  statement 
also  provided  that  the  area  of  "Greater  Berlin" 
would  be  occupied  by  forces  of  each  of  the  four 
powers,  and  that  there  would  be  established  an 
Inter-Allied  Governing  Authority  {Kommanda- 
t/ura)  consisting  of  the  four  Commandants  ap- 
pointed by  their  respective  Commanders-in-Chief, 
to  direct  jointly  the  administration  of  the  area. 
Later,  on  August  2,  the  Potsdam  Protocol "  was 
signed  in  Berlin  by  Marshal  Stalin,  Prime  Minis- 
ter Attlee,  and  President  Truman.  France  did  not 
participate  at  Potsdam  but  in  accordance  with  the 
statements  of  June  5  was  invited  to  and  did  be- 
come a  member  of  the  Control  Commission  (after 
Potsdam  called  the  Control  Council)  and  assumed 
its  place  as  one  of  the  four  occupying  powers.  The 
Potsdam  Protocol  contained  the  basic  political  and 
economic  principles  applicable  to  Germany.  The 
following  provision  should  be  noted  as  bearing  on 
the  respective  authority  of  the  Control  Council 
and  the  individual  governments : 

"In  accordance  with  the  agreement  on  control 
machinery  in  Germany,  supreme  authority  in  Ger- 
many is  exercised  on  instructions  from  their  re- 
spective governments,  by  the  Commanders-in- 
Chief  of  the  armed  forces  of  the  United  States  of 
America,  the  United  Kingdom,  the  Union  of  Soviet 
Socialist  Republics,  and  the  French  Republic,  each 
in  his  own  zone  of  occupation,  and  also  jointly,  in 
matters  affecting  Germany  as  a  whole,  in  their 
capacity  as  members  of  the  Control  Council." 

I  went  to  Germany  in  July  1945,  to  become  Legal 
Adviser  to  the  Military  Governor  and  Deputy  Mil- 
itary Governor  and  Director  of  the  Legal  Division 
with  supervision  of  the  legal  work  in  the  United 
States  zone  and  of  the  United  States  participation 
in  the  quadripartite  control  machinery.  General 
Eisenhower  was  Commander-in-Chief  of  the 
Armed  Forces  and  Military  Governor,  the  posi- 
tions now  occupied  by  General  McNamey.    Lieu- 


°  Bltlletin  of  June  10,  1945,  p.  1052. 
"  Bulletin  of  Aug.  5,  1945,  p.  153. 


853 


THE  RECORD  Of  THE  WEEK 


tenant  General  Lucius  D.  Clay,  Deputy  Military 
Governor,  was,  as  he  is  now,  in  immediate  charge 
of  the  United  States  Governmental  staff,  and  is 
our  member  of  the  Coordinating  Committee. 
Joint  control  of  the  whole  of  Germany  on  the 
agreed  quadripartite  basis  had  not  begim  in  July, 
1945.  It  was  to  await  the  conclusion  of  the  Pots- 
dam Conference  soon  to  convene.  Preparations, 
however,  were  under  way. 

Before  the  general  movement  of  Military  Gov- 
ernment staff  personnel  to  Berlin  in  August  I  was 
there  for  about  24  hours  at  a  conference  of  Mr. 
Justice  Jackson  with  Secretary  Byrnes,  General 
Betts,  Theatre  Judge  Advocate,  and  Assistant  Sec- 
retary of  War  McCloy.  It  happened  to  be  the 
day  of  the  general  election  in  England.  Mr. 
Churchill  had  gone  home  to  await  the  results,  and 
as  you  know  the  great  war  leader  was  succeeded 
at  Potsdam  by  Mr.  Attlee. 

Berlin  was  in  ruins.  A  few  young  Russian 
soldiers  stood  guard  amid  the  shambles  of  the 
previous  grandeur  of  the  Reich  Chancellery. 
These  ruins  were  typical  of  the  collapse  and  devas- 
tation of  the  cities  of  Germany.  In  our  own  sector 
of  Berlin  our  Army  was  physically  rehabilitating 
a  group  of  buildings  selected  as  the  seat  of  U.S. 
Military  Government,  and  our  forces  were  also 
putting  in  usable  condition  one  of  the  large  Ber- 
lin Court  buildings  which  was  soon  to  become  the 
seat  of  the  Allied  Control  Authority  for  the  gov- 
ernment of  all  of  Germany  under  the  four-power 
machinery. 

Pending  the  activation  of  the  quadripartite 
machinery  of  government,  our  own  zone  (the  Ld7i- 
der  of  Bavaria,  Greater  Hesse,  and  Wiirttemberg- 
Baden),  as  well  as  the  U.S.  sector  of  Berlin,  were 
completely  occupied  by  the  Army.  The  inhabi- 
tants of  the  zone  munbered  approximately  sixteen 
millions  at  that  time.  United  States  policy  for 
the  zone  had  been  formulated  prior  to  the  occupa- 
tion and  had  been  put  into  effect  through  direc- 
tives of  the  Joint  Chiefs  of  Staff.  The  principal 
directives  (J.C.S.  1067)  had  been  implemented  in 
the  zone  in  considerable  detail  by  laws  and  orders 
covering  a  wide  range.'  These  had  to  do  not  only 
with  law  and  order,  but  with  provisions  designed 
to  carry  out  the  policies  of  de-Nazification,  demili- 

'  BuLLEHN  of  Oct.  21,  1945,  p.  src. 


tarization  and  deindustrialization,  and  the  reestab- 
lishment  of  a  basis  of  a  free  society  with  Nazi 
influences  eliminated.  The  task  cannot  be  ap- 
praised without  refei'ence  to  the  utter  collapse  of 
Germany.  It  was  not  merely  a  complete  military 
collapse  ending  in  unconditional  surrender.  The 
disintegration  of  the  armies  in  the  field  was  accom- 
panied by  full  economic  and  governmental  col- 
lapse. In  the  field  of  government,  for  example, 
not  only  had  all  executive  functions  ceased,  but  all 
the  courts  were  closed.  In  the  economic  life,  all 
transport  and  communication  were  at  a  standstill. 
Life  was  barren  and  chaotic.  Only  on  the  farms 
(and  they  were  largely  stripped  of  manhood  except 
the  old  and  infirm)  was  there  evidence  of  produc- 
tive economic  life  and  that  wholly  inadequate  for 
the  needs  of  subsistence.  The  cities  were  physical 
ruins.  Millions  of  armed  forces  were  prisoners, 
and  millions  of  displaced  persons  were  on  the 
hands  of  the  occupying  forces,  struggling  home- 
ward or  seeking  some  place  other  than  where  they 
had  been. 

With  our  forces  in  our  zone  and  in  Berlin  were 
a  number  of  trained  Military  Government  detach- 
ments to  assist  in  the  control  and  direction  of  the 
life  of  the  inhabitants  on  a  governmental  basis. 
With  these  detacliments  were  legal  officers  and  of- 
ficers who  in  their  training  had  specialized  in  vari- 
ous branches  of  governing  responsibility.  These 
Military  Govenunent  units  were  initially,  by  rea- 
son of  general  conditions,  especially  of  communica- 
tions, almost  self-contained  and  somewhat  iso- 
lated. General  coordination  and  supervision  in 
theory,  and  gradually  in  practice  as  time  per- 
mitted, stemmed  back  principally  to  Army  G-5 
(Civil  Affairs)  at  Frankfurt,  where  our  Com- 
mander-in-Chief retained  his  headquarters.  Later 
there  were  established  direct  channels  on  an  op- 
erational level  between  the  Berlin  headquai-tei-s 
of  the  Oflice  of  Military  Government  and  the  of- 
fices in  the  zone.  Actual  integi-ation  of  policy 
with  operations  lagged  behind  responsibility  while 
the  difficult  tasks  of  communications  and  channels 
of  authority  were  solved.  The  changes  in  proce- 
dures from  the  command  of  a  great  fighting  army 
to  the  methods  of  governmental  functioning  were 
not  simple  and  of  course  were  complicated  by  con- 
ditions within  Germany. 


854 


Deparfmenf  of  S/afe  Bu//efin     •     November  10,  1946 


THE  RECORD  OF  THE  WEEK 


On  the  quadripartite  basis,  with  jurisdiction 
tlirough  all  of  Germany,  as  has  been  indicated, 
there  are  the  Control  Council  and  the  Coordinat- 
ing Committee.  Below  these  levels  are  the  Four 
Power  Directorates,  composed  of  the  four  Direc- 
tors of  a  particular  junction.  The  Coordinating 
Committee  and  these  Directorates  meet  almost  con- 
tinuously. The  Legal  Directorate,  for  example, 
meets  regularly  twice  a  week.  Some  Directorates 
meet  oftener.  The  scope  of  the  work  is  illustrated 
by  naming  some  of  the  other  Directorates,  such  as 
the  Political,  Economic,  Finance,  Manpower,  Civil 
Affairs,  Intelligence,  Prisoners  of  War  and  Dis- 
placed Persons,  and  Armed  Forces.  Their  num- 
ber and  character  went  through  some  change  as 
experience  dictated.  Before  these  Directorates 
and  their  subdivisions,  or  committees,  the  prob- 
lems of  the  occupation  come,  including  questions 
of  agriculture,  industry,  transportation,  labor, 
finance,  education,  public  safety,  public  health, 
military  and  naval  problems,  communications,  in- 
cluding postal,  trade  and  commerce,  political, 
legal,  etc.  The  proceedings  of  the  Control  Coun- 
cil, Coordinating  Committee,  and  Directorates  are 
in  three  languages.  Laws  are  also  published  in 
German  unless  solely  administrative  and  having 
no  impact  on  the  population.  The  work  is  facili- 
tated by  well-organized  secretariats. 

One  further  development  in  the  total  of  govern- 
mental structure  created  since  the  occupation 
should  here  be  mentioned.  In  each  zone  there 
have  been  created  German  agencies  on  a  state-wide 
basis,  the  foimdations  of  a  democratic  govern- 
ment. This  is  in  addition  to  numerous  local  offi- 
cials. The  United  States,  I  believe,  has  been  well 
in  advance  of  the  other  powers  in  tliis  respect. 
Much  responsibility  has  gradually  been  placed 
upon  the  German  Ministers  and  agencies  under 
them  in  the  three  Lander  in  the  U.S.  zone.  Their 
work  is  coordinated  through  a  Landrat  estab- 
lished at  Stuttgart.  This  subject  deserves  sepa- 
rate treatment  and  I  shall  not  enlarge  upon  it. 

The  first  meetings  of  the  Control  Council,  Co- 
ordinating Committee,  and  Directorates  were  held 
under  American  Chairmanship  in  August  1945  in 
Berlin.  The  legal  Directorate  began  considera- 
tion immediately  of  drafts  of  several  proposed 
enactments     establishing    the     basic     legislative 


scheme  for  the  Control  Authority;  that  is,  the 
form  of  legislative  action,  divided  into  defined 
categories  of  proclamations,  laws,  orders,  direc- 
tives, and  instructions;  the  establishment  of  the 
official  languages  for  legislative  action;  and  pro- 
vision for  a  gazette  of  laws  and  orders  to  be  issued 
periodically.  One  of  the  early  accomplishments 
of  the  Legal  Directorate  was  agreement  on  Procla- 
mation no.  1  ^  (signed  by  the  Control  Council 
August  30,  1946)  announcing  to  the  people  of 
Germany  the  assumption  of  supreme  authority  by 
the  four  governments  in  accord  with  the  June  5 
statement,  the  establishment  of  the  Control  Coun- 
cil, and  the  continuation  in  force  in  the  several 
zones  of  the  existing  laws  and  orders  issued  by 
the  respective  Commanders-in-Chief.  We  then 
agreed  upon  the  repeal  of  a  long  list  of  laws  of  a 
political  or  discriminatory  character  upon  which 
the  Nazi  regime  rested  (Law  No.  1,'  signed  by  the 
Control  Council  20  September,  1945).  This  law 
also  contained  a  general  provision  that  no  German 
enactment  "shall  be  applied  judicially  or  adminis- 
tratively" so  as  to  discriminate  against  any  person 
by  reason  of  his  race,  nationality,  religious  beliefs, 
or  opposition  to  the  N.S.D.A.P.  or  its  doctrines. 
At  the  same  time  was  enacted  Law  No.  2,"  termi- 
nating the  National  Socialist  German  Labor 
Party,  its  formations,  affiliated,  associated,  and 
supervised  organizations,  including  paramilitary 
organizations,  and  confiscating  their  assets.  A 
lengthy  list  of  organizations  was  appended  to 
this  statute. 

We  then  turned, to  affirmative  action,  and  agree- 
ment was  reached  upon  the  terms  of  Proclamation 
No.  3  entitled  "Fundamental  Principles  of  Judi- 
cial Reform".'^  The  paper  which  eventuated  in 
this  Proclamation  of  the  Control  Council  was 
introduced  before  the  Legal  Directorate  by  the 
United  States,  and  was  handled  there  largely  by 
Judge  J.  Warren  Madden,  then  Associate  Director 
of  the  Legal  Division  and  later  Director.  The 
proclamation  provides  in  part:  "All  persons  are 
equal  before  the  law.  No  person,  whatever  his 
race,  nationality  or  religion,  shall  be  deprived  of 

°  For  text  of  proclamation,  see  p.  859. 

'  For  text  of  law,  see  p.  859. 

"  For  text  of  law,  see  p.  860. 

"  For  text  of  proclamation,  see  p.  86L 


855 


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his  legal  rights ;  no  person  shall  be  deprived  of  life, 
liberty  or  property  without  due  process  of  law; 
criminal  responsibility  shall  be  determined  only 
for  offenses  provided  by  laws ;  crimes  'by  analogy' 
or  'sound  popular  instinct'  were  prohibited.  The 
accused  in  cruninal  cases  shall  have  'the  right  to 
a  speedy  and  public  trial  and  to  be  informed  of 
the  nature  and  cause  of  the  accusation' ;  sentences 
on  persons  convicted  under  the  Hitler  regime  on 
political,  racial  or  religious  grounds  'must  be 
quashed' ;  People's  Courts  were  abolished  and  pro- 
liibited.  This  was  soon  followed  by  Law  No.  4, 
signed  30  October,  1945,^^  establishing  the  struc- 
ture of  the  German  judicial  system.  By  this  law 
the  following  system  of  ordinary  courts  was  re- 
established: Amtsgerichfe,  Laiidgerichte,  Oher- 
landesrichte,  with  defined  jurisdiction.  The  prin- 
cipal feature  of  the  law  in  its  context  in  the  Ger- 
man Judicial  system  was  the  omission  of  any  pro- 
vision for  an  appellate  court  higher  than  the  land 
or  state  level.  The  Supreme  Court  of  Germany 
was  not  reestablished.  This  Law  No.  4  for  the 
whole  of  Germany  conformed  in  essentials  to  the 
judiciary  plan  which  had  been  established  in  the 
U.S.  zone. 

On  initiative  of  the  United  States,  Law  No.  5 
was  now  cleared  by  the  Legal  Directorate  and  was 
enacted  by  the  Control  Council  30  October,  1945. 
This  is  the  famous  law  entitled  "Vesting  and  Mar- 
shalling of  German  External  Assets",  under  which 
the  four  powers  assumed  control  of  all  German 
assets  abroad  in  aid  of  the  elimination  of  German 
war  potential.'''  Shortly  thereafter  came  the  law 
for  the  seizure  of  property  owned  by  I.G.  Farben- 
industrie  and  the  control  thereof  on  a  quadripar- 
tite basis,  a  matter  which  had  already  been  accom- 
plished in  the  U.S.  zone.  At  this  point  I  shall 
mention  only  two  additional  matters  with  which 
the  lawyers  dealt  on  a  quadripartite  basis  during 
the  earlier  months  of  the  meetings  of  the  Legal 
Directorate.  One  was  the  promulgation  by  the 
Control  Council  of  a  comprehensive  statement  of 
principles  for  the  administration  of  the  German 
penal  system,  j^xrepared  by  the  Prisons  Branch  of 
the  U.S.  Legal  Division.     That  Branch  during  the 


"  For  text  of  law,  see  p.  861. 

"  Btjlletin  of  Feb.  24,  1946,  p.  283. 

"  For  text  of  law,  see  p.  862. 


earlier  months  of  my  work  in  Germany  was  headed 
by  Mr.  James  V.  Bennett,  Director  of  the  Federal 
Bm-eau  of  Prisons.  He  was  succeeded  by  Mr.  M. 
Alexander,  who  also  went  to  Germany  with  us  in 
July  1945,  and  remained  after  Mr.  Bennett  was 
obliged  to  return  to  his  duties  in  the  United  States. 
The  other  is  Control  Council  Law  No.  10,"  a 
comj^rehensive  war  crimes  law  enacted  by  the 
Control  Council  in  December,  largely  the  handi- 
work in  its  drafting  of  Mr.  Herman  Phleger  of 
San  Francisco,  who  was  then  also  Associate  Direc- 
tor of  the  Division.  This  law  not  only  defined  the 
substantive  crimes  against  peace  and  humanity, 
and  war  crimes,  in  terms  similar  to  the  London 
agreement  for  the  Niirnberg  trials,  but  also  con- 
tained full  provisions  for  the  handling  of  requests 
for  accused  war  criminals  and  for  trials  other  than 
those  conducted  under  the  Charter  of  the  Inter- 
national Military  Tribunal.  Here  it  should  be 
noted  that  while  the  Legal  Division  of  the  Office 
of  Military  Government  was  entirely  separate  from 
the  staff  of  U.S.  Chief  of  Counsel,  Mr.  Justice 
Jackson,  and  had  no  responsibility  in  the  prepara- 
tion oi'  conduct  of  the  great  Niirnberg  trial,  we 
were  called  upon  to  aid  in  the  planning  and  organi- 
zation of  the  war  crimes  program  other  than  the 
Niirnberg  trial.  This  progi'am  was  organization- 
ally worked  out  in  conferences  with  Mr.  Justice 
Jackson,  Brig.  General  Betts,  then  Theatre  Judge 
Advocate,  Brig.  General  Telford  Taylor,  and  our 
staffs.  The  work  now  comes  under  the  Office  of 
Military  Government  and  in  inunediate  charge  of 
the  new  U.S.  Chief  of  Counsel  for  War  Crimes. 
The  Theatre  Judge  Advocate  is  continuing  on  his 
part  the  trial  of  a  great  many  of  the  more  orthodox 
types  of  war  crimes,  including  a  number  of  the 
crimes  growing  out  of  concentration  camps.  This 
is  a  i^art  of  the  little-known  story  of  the  Theatre 
Judge  Advocate  of  the  Army,  in  his  devotion  to 
which  Brig.  General  Betts  gave  his  life  in  Ger- 
many after  years  of  hard  and  faithful  service. 

The  International  Military  Tribunal  held  its 
first  session  in  Berlin,  and  our  legal  officei'S  and 
personnel  in  the  earlier  weeks  of  the  Tribunal's 
organization  assisted  it  in  its  preliminary  tasks, 
including  the  securing  of  counsel  for  a  number  of 
the  defendants.  Before  leaving  the  subject  of  war 
crimes,  I  mention  as  of  special  interest  now  the 


856 


Department  of  Sfofe  BuWeiin     •     November  TO,  J 946 


THE   RECORD  OF  THE  WEEK 


provisions  of  the  basic  war  crimes  law  (Control 
Council  Law  No.  10)  dealing  with  membership 
cases.  These  provisions  are  available  now  as  may 
be  needed  to  effectuate  the  declaration  of  criminal- 
ity in  the  Niirnberg  judgment  of  certain  categories 
of  members  of  organizations,  subject,  I  assume,  to 
the  recommendations  contained  in  the  judgment 
of  the  Tribunal  regarding  the  degree  of  punish- 
ment of  members.  Mention  should  be  made  also 
of  the  elaborate  revision  of  the  discriminatory 
Hereditary  Farm  Law  and  of  the  Domestic  Rela- 
tions Laws  and  of  the  plans  inaugurated  by  the 
Directorate  for  a  more  general  reform  of  the  Ger- 
man law. 

The  woi-k  of  the  Directorate  saw  a  large  area  of 
agreement  between  the  four  nations.  More  im- 
portant was  the  great  area  of  agreement  in  the 
Coordinating  Committee  and  the  Control  Council. 
It  is  well  known  that  certain  notable  disagreements 
have  persisted,  especially  regarding  the  treatment 
of  Germany  as  an  economic  imit  and  related  ques- 
tions of  reparations.  Decisions  of  the  Control 
Council  are  required  to  be  unanimous.  France 
was  not  a  participant  at  Potsdam  but  is  a  member 
of  the  Control  Council  and  an  occupying  power. 
She  opposed  the  creation  of  certain  central  Ger- 
man administrative  agencies  called  for  under  the 
Potsdam  Protocol,  upon  which  the  United  States 
firmly  stood.  The  consequences  of  failure  to  ob- 
tain these  agencies  in  the  earlier  months  after 
Potsdam  have  not  been  fully  remedied  and  tend 
toward  zonal  solidification.  Nevertheless,  the  in- 
ternational cooperation  is  effective  in  innumerable 
respects.  Agreement  covers  a  wider  and  wider 
area  as  time  and  effort  combine  to  that  end  and  a 
fine  working  spirit  has  been  maintained  between 
the  representatives  of  the  four  powers. 

I  shall  pass  now  from  the  quadripartite  legal 
work,  thus  very  incompletely  noted,  and  refer  to 
some  aspects  of  the  lawyer's  work  within  the 
United  States  zone. 

The  mandatory  arrest  categories  of  early  direc- 
tives soon  presented  a  problem  of  considerable 
magnitude  and  importance  in  the  zone.  The  Pots- 
dam Protocol  also  provided  that  Nazi  leaders,  in- 
fluential Nazi  supportei-s,  and  high  officials  of  Nazi 
organizations  and  institutions  and  any  other  per- 
sons dangerous  to  the  occupation  or  its  objectives 


must  be  arrested  and  interned.  Under  the  gener- 
ally phrased  description  of  "persons  dangerous  to 
the  occupation",  and  under  the  previously  existing 
directives  in  our  zone  devised  before  the  occupa- 
tion, many  thousands  of  persons  were  arrested  and 
interned.  As  the  weeks  and  months  passed  it  be- 
came apparent  that  many  persons  were  being  held 
who  were  not  dangerous  to  the  occupation,  and 
were  not  wanted  for  trial  as  war  criminals  or  other 
offenses.  This  was  contrary  to  American  princi- 
ples. The  problem,  then,  was  to  inaugurate  pro- 
cedures for  release,  governed  by  standards  having 
relation  to  the  purposes  of  the  occupation.  A  sys- 
tem of  review  boards  was  created  for  this  purpose 
which  gradually  became  an  effective  instrument 
for  remedying  unnecessary  internments.  The  re- 
lease of  many  thousands  of  persons  was  thus  ac- 
complished. The  situation  may  roughly  be  com- 
pared to  the  internment  within  the  United  States 
of  enemy  aliens  upon  the  outbreak  of  the  war, 
followed  by  the  system  of  review  of  the  cases  to 
remedy  injustices.  In  our  zone  in  Germany,  how- 
ever, the  number  of  detainees  involved  was  far 
greater  than  the  number  of  alien  enemies  ever  in- 
terned in  this  country.  These  procedures  were 
accompanied  from  time  to  time  by  revision  of  the 
arrest  categories  as  experience  taught  the  wisdom 
thereof.  The  review  board  system  constituted  an 
advance  in  progress  toward  a  rule  of  law  and 
procedures  more  consistent  with  our  traditions. 

A  related  problem  was  the  difficult  one  of 
methods  by  which  to  carry  out  the  policies  of 
de-Nazification  and  demilitarization  incorporated 
in  U.S.  directives  and  in  the  Potsdam  Agreement. 
This  was,  so  far  as  the  direct  human  element  is 
concerned,  one  of  the  most  far-reaching  and  diffi- 
cult of  all  the  problems  of  the  occupation,  espe- 
cially as  regards  the  future  effects  of  the  occupa- 
tion in  Germany.  The  primary  purpose  is  to 
remove  the  influence  of  Nazism  fi'om  all  signifi- 
cant aspects  of  German  life;  and  to  permit  the 
development  of  a  free  society.  The  arrests  were 
a  part  of  the  initial  program ;  also  removals  from 
positions  in  governmental,  teaching,  important 
business,  and  other  aspects  of  life,  and  prevention 
of  resumption  of  such  positions.  Necessarily  the 
first  approach,  prepared  prior  to  actual  occupa- 
tion, was  a  sweeping  and  categorical  approach 


857 


THE  RECORD  OF  THE  WEEK 


based  on  information  then  available  and  proceed- 
ing without  much  distinction  between  persons 
within  named  categories.  As  the  occupation 
became  stable,  better  organized,  and  secure,  and 
as  various  aspects  of  de-Nazification  continued  to 
arise  and  recur.  General  Clay  appointed  a  board  of 
his  four  advisers  (Political,  Financial,  Economic 
and  Legal)  with  the  Directors  of  the  Divisions  of 
Public  Safety  and  Intelligence,  to  review  the 
whole  subject  and  recommend  one  comprehensive 
progi-am,  with  the  view  also  of  ultimately  placing 
responsibility  upon  German  agencies  as  far  as 
possible  but  with  Military  Government  super- 
vision as  needed.  The  German  Ministers  in  the 
U.S.  zone,  who  had  been  selected  and  were  then 
functioning,  were  also  called  upon  for  legislative 
recommendations.  A  thorough  and  painstaking 
study  was  made  by  our  Board.  The  basic  work 
was  done  by  Lieutenant  Colonel  Robert  Bowie  and 
an  executive  staff  working  with  him  and  the 
Board.  The  result  of  this  work  and  that  of  the 
German  Ministers  was  the  enactment  in  our  zone 
of  a  detailed  German  law  which  was  approved  by 
the  Deputy  Military  Governor  with  the  authority 
of  the  Military  Governor  on  March  5, 194G.  I  am 
not  able  within  this  paper  to  describe  it  in  detail, 
but  note  the  following :  Its  procedural  provisions 
would,  I  believe,  stand  the  test  of  the  due  process 
clause  of  the  Fifth  Amendment.  Its  substantive 
provisions  have  regard  for  the  principle  that  indi- 
vidual culpability  varies  according  to  the  facts 
of  cases,  and  that  penalties  must  have  regard  to  the 
degree  of  culpability.  It  was  a  further  advance 
in  the  progress  of  a  rule  of  law  in  the  manage- 
ment of  the  occupation.  Great  responsibility  in 
administration  is  vested  by  the  law  in  German 
tribunals  created  under  its  terms  and  in  other 
German  officials.  In  this  manner  lasting  good 
effects  were  deemed  more  likely  to  be  accom- 
plished. Military  Government  supervision  was 
provided  for  in  the  instrument  of  approval.  It  is 
probable  that  this  law,  referred  to  by  the  Inter- 
national Military  Tribunal  in  its  recent  judgment 
notwithstanding  its  zonal  confines  at  that  time, 
will  play  a  very  substantial  part  in  the  disposition 
of  the  cases  of  members  of  organizations  declared 
criminal  at  Niirnberg.  The  basic  principles  of 
the  law,  I  am  advised,  have  been  recently  adopted 


by  the  Control  Council  for  application  throughout 
Germany. 

Ill  our  zone  several  other  legislative  enactments 
should  be  noted.  The  Frankfurt  office  was  pri- 
marily I'esponsible  for  a  thorough  revision  of  the 
Code  of  Criminal  Procedure,  and  for  the  law  for 
the  control  and  ultimate  disposition  of  the  Wehr- 
macht  properties.  The  Legal  Division  also  partici- 
I^ated  actively  in  the  studies  and  formulation  of 
plans  for  the  decisions  to  be  made  respecting  the 
future  structure  of  the  German  Govermnent  and 
the  difficult  problems  of  property  control  and  dis- 
position, claims,  and  restitution. 

An  extremely  interesting  part  of  the  activities 
of  the  Division  became  its  opinion  work,  which 
fell  to  the  Legal  Advice  Branch  of  the  Division. 
Mr.  Alvin  J.  Rockwell,  now  Director  of  the  Divi- 
sion, had  charge  of  this  Branch  during  most  of  my 
time  as  Director.  It  is  now  under  Colonel  John 
Raymond,  who  has  returned  to  Germany  after  an 
interval  at  home.  Questions  were  referred  to  us 
for  opinion  from  the  various  agencies  of  Govern- 
ment. The  opinions  rendered  were  periodically 
digested.  These  digests  and  the  full  texts  of  the 
opinions  were  made  available  to  all  parts  of  the 
Office  of  Military  Government.  They  cover  a  wide 
range,  such  as  questions  arising  out  of  the  Geneva 
conventions  affecting  prisoners  of  war;  the  legal 
relationship  between  the  Potsdam  Agreement  and 
Joint  Chiefs  of  Staff  (U.S.)  Directives;  the  legal 
consequences,  as  affects  the  authority  of  the  Com- 
manders in  each  of  the  four  sectors  in  Berlin,  of 
the  fact  that  Berlin  is  in  the  Soviet  zone  of  occu- 
pation ;  the  status  of  certain  German  laws,  and  of 
treaties,  under  the  conditions  of  the  occupation; 
the  status  of  horses  as  war  booty  or  captured  enemy 
property ;  the  construction  and  proper  application 
of  the  reparations  provisions  of  the  Potsdam  Pro- 
tocol ;  questions  under  the  Trading  With  The  En- 
emy Act.  The  flow  of  requests  for  opinions  was 
steady,  evidencing  here  the  progression  of  a  rule  of 
law  into  the  operations  of  Military  Government 
under  the  quite  unique  circumstances  of  an  occu- 
pation, after  unconditional  surrender,  by  four  na- 
tions jointly  and  severally  responsible  for  the  gov- 
ernment of  a  fifth  and  conquered  country,  and  seek- 
ing to  fulfil  this  responsibility  in  a  manner  which 
would  eliminate  the  causes  of  the  war  and  the  in- 


858 


Deparfmenf  of  Stafe  Bulletin     •     November  70,  1946 


THE  RECORD  OF  THE  WEEK 


Alienees  of  those  who  were  responsible  under  the 
Hitler  regime,  and  at  the  same  time  lay  the  founda- 
tions for  the  building  of  a  peaceful  community 
which  would  pursue  the  ideals  of  a  democratic 
society. 

No  paper,  however  summary,  on  the  legal  work 
would  be  adequate  without  some  mention  of  the 
burden  borne  by  the  legal  officers  in  the  zone  com- 
munities and  in  our  Berlin  sector  in  manning  and 
conducting  the  Military  Government  courts,  and 
in  the  daily  details  of  the  assistance  rendered  by 
them  to  other  branches  of  Military  Goverimient; 
or  without  mention  of  the  work  of  tlie  prison  offi- 
cers in  the  administration  of  the  prisons,  which 
was  also  a  responsibility  of  the  Legal  Division,  and 
the  woi-k  done  in  connection  with  the  German 
Patent  Office  in  Berlin. 

As  time  passed,  the  Legal  Division  was  called 
upon  increasingly  to  participate  in  the  legislative 


process  beyond  the  area  of  its  own  special  respon- 
sibilities. Governmental  activities  in  the  fields  of 
taxation  and  other  aspects  of  finance,  and  in  prob- 
lems of  trade,  labor,  housing,  and  civil  affairs,  for 
example,  as  well  as  the  activities,  more  specially 
those  of  the  lawyer,  enlisted  the  aid  of  the  Legal 
Division  and  of  the  Legal  Directorate.  But  I  must 
end  such  a  summary  paper  without  attempting  too 
much.  Wlien  I  left  the  work  last  May  it  was  with 
a  feeling  of  respect  and  admiration  for  the  organi- 
zation grouped  around  Lieutenant  General  Clay, 
who  has  been  recently  described  appropriately  as 
our  great  pro-consul  in  Berlin.  Under  him  and 
General  McNarney  the  task  of  carrying  out  Ameri- 
can policy,  and  assisting  in  the  formulation  of  that 
policy,  tasks  of  the  highest  import,  go  forward 
with  ability,  devotion,  and  every  success  the  cir- 
cumstances permit. 


Control    Council    Proclamations   and    Laws 


CONTROL  COUNCIL  PROCLAMATION  NO.  1 

To  the  People  of  Germany: 

The  Commanders-in-Chief  of  the  Armed  Forces  in  Ger- 
many of  the  United  States  of  America,  the  Union  of  Soviet 
Socialist  Republics,  the  United  Kingdom  of  Great  Britain 
and  Northern  Ireland  and  the  Provisional  Government  of 
the  French  Republic,  acting  jointly  as  members  of  the 
Control  Council  do  hereby  proclaim  as  follows : 


As  announced  on  5  June  1945,  supreme  authority  with 
respect  to  Germany  has  been  assumed  by  the  Governments 
of  the  United  States  of  America,  the  Union  of  Soviet 
Socialii't  Republics,  the  United  Kingdom,  and  the  Provi- 
sional Government  of  the  French  Republic. 

II 

In  virtue  of  the  supreme  authority  and  iwwers  thus 
assumed  by  the  four  Governments  the  Control  Council 
has  been  established  and  supreme  authority  in  matters 
affecting  Germany  as  a  whole  has  been  conferred  upon 
the  Control  Council. 

Ill 

Any  military  law.s,  proclamations,  orders,  ordinances, 
notices,  regulations,  and  directives  issued  by  or  under  the 
authority  of  the  respective  Commanders-in-Chief  for  their 
respective  Zones  of  Occupation  are  continued  in  force  in 
their  respective  Zones  of  Occupation. 


CONTROL  COUNCIL  LAW  NO.  1,  REPEALING  OF 
NAZI  LAWS 

The  Control  Council  enacts  as  follows: 
Article  I 
1.  The  following  laws  of  a  political  or  discriminatory 
nature  upon  which  the  Nazi   regime  rested  are  hereby 
expressly  repealed,  together  with  all  supplementary  and 
explanatory  laws,  ordinances  and  decrees : — 

(a)  Law  concerning  the  Relief  of  Distress  of  the  Nation 
and  the  Reich  [Gesetz  zur  Behebunr/  dcr  Not  des  Volkes 
una  des  Reiches)  of  24  March,  1933,  RGBl.     1/41. 

(6)  Law  for  the  reconstitution  of  Officialdom  {Gesetz 
zur  Wiederherstellung  des  Berufsbeamtentums)  of  7  April, 
1933,  RGBl.     1/175. 

(c)  Law  for  the  amendment  of  the  Provisions  of  Crimi- 
nal Law  and  Procedure  {Gesetz  zur  Anderung  von  Vor- 
schriften  des  Strafrechts  und  des  Strafverfahrens)  of  24 
April,  1934,  RGBl.     1/341. 

(d)  Law  for  the  Protection  of  National  Symbols  {Gesetz 
zum  Schutze  der  nationalen  Symhole)  of  19  May,  1933, 
RGBl.     1/285. 

(e)  Law  against  the  creation  of  Political  Parties 
{Gesetz  gegen  die  Neubildung  von  Parteien)  of  14  July, 
1033,  RGBl.     1/479. 

{f)  Law  on  Plebiscites  {Gesetz  uber  Volksaistimmung) 
of  14  July,  1933,  RGBl.     1/479. 

{g)  Law  for  securing  the  Unity  of  Party  and  State 


859 


THE   RECORD   OF  THE  WEEK 


(Oesetz  zur  Sicheruiig  der  Eiiiheit  von  Partei  nnd  Stoat) 
of  1  December,  1933,  RGBl.     1/1016. 

{h)  Law  concerning  insidious  attacks  against  tlie  State 
and  ttie  Party  and  for  tlie  protection  of  the  Party  Uniform 
and  insignia  (Gesetz  gegen  heimtuckische  Angriffe  auf 
Striat  und  Partei  nnd  ziim  Schiitz  der  Partehiniform)  of 
20  December,  1934,  RGBl.     1/1269. 

(;')  Reich  Flag  Law  (Reichsflaggengesetz)  of  15  Sep- 
tember, 1935,  RGBl.     1/1145. 

(fc)  Law  for  the  protection  of  German  Blood  and  Ger- 
man Honour  (Getsetz  zuni  Schtitzc  des  deutscUen  Blutes 
und  der  dcutschen  Ehre),  of  15  September,  1935,  RGBl. 
1/1146. 

(?)  Reich  Citizenship  Law  {Reichshurgergesetz)  of  15 
September,  1935,  RGBl.     1/1146. 

(to)  Prussian  Law  concerning  the  Gestapo  {Preuss- 
isches  Oesetz  «6er  die  Geheime  StaatspoUzei)  of  10  Feb- 
ruary, 1936,  G.  S.  21. 

(m)  Hitler  Youth  Law  (Gesetz  iihcr  die  Hitler jugend) 
of  1  December,  193G,  RGEl.    1/993. 

(o)  Ordinance  against  support  for  the  camouflaging  of 
Jewish  Businesses  (Vermdnung  gegen  die  Unterstutziing 
der  Tarnung  Judisclier  Geteeriebetrieie)  of  22  April,  193S, 
RGBl.    1/404. 

(p)  Ordinance  for  the  reporting  of  Property  of  Jews 
(Verordnwng  tiber  die  Anmeldung  des  Vermogens  von 
Juden)  of  26  April,  1938,  RGBl.    1/414. 

(g)  Law  concerning  the  alteration  of  the  trade  regula- 
tions for  the  Reich  {Gesetz  zur  Andernng  der  Gewer- 
heordnung  fur  das  deutsche  Reich )  of  1  July,  1938,  RGBl. 
1/823. 

(r)  Second  Carrying  out  Ordinance  of  the  Law  concern- 
ig  the  changing  of  Family  Names  and  Christian  Names 
(Ztceite  Verordnung  zur  Durchfuhrung  des  Gesetzes  n'ber 
die  Andermig  von  Familicnnamen  vnd  Vornainen)  of  17 
August,  1938,  RGBl.     1/1044. 

(s)  Ordinance  concerning  the  Passports  of  Jews  (Ver- 
ordnung  nber  Reisepa-ssevon  Juden)  of  5  October,  1938, 
RGBl.    1/1342. 

(O  Ordinance  for  the  elimination  of  Jews  from  eco- 
nomic life  {Verordnung  zur  AusschiiUung  der  Juden  axis 
dem  dcutschen  Wirtschafslebcn)  of  12  November,  1938, 
RGBl.    1/1580. 

(m)  Police  Ordinance  concerning  the  appearance  of  Jews 
in  Public  {Polizciverordnung  uher  das  Auftreten  der  Juden 
in  der  Offentlichkeit)  of  28  November,  1938,  RGBl.    1/1676. 

{v)  Ordinance  concerning  proof  of  German  Descent 
{Verordnung  uber  den  Naehu-eis  deutschblutigcr  Abstam- 
nuing)  of  1  August,  1940,  RGBl.    1/1063. 

iw)  Police  Ordinance  concerning  the  marking  of  Jews 
{Polizeiverwdnung  uber  die  Kennzeichnung  der  Juden)  of 
1  September,  1941,  RGBl.    1/547. 

{X)  Ordinance  concerning  the  employment  of  Jews 
(Verordnung  iiber  die  Besehaftigung  von  Juden)  of  31 
October,  1941,  RGBl.     1/675. 

(y)  Decree  of  the  Fuehrer  concerning  the  legal  status  of 
the  NSDAP  {Erlass  des  Fuehrers  \ihcr  die  RechtsstelUnig 
der  NSDAP)  of  12  December,  1942,  RGBl.    1/733. 


(z)  Police  Ordinance  concerning  the  identification  of 
male  and  female  workers  from  the  East  on  Reich  Territory 
{Polizeivcrordnung  uber  die  Kenntliehmachung  der  im 
Reich  befindlichen  Ostarbeiter  und  Arbeit erinnen)  of  19 
June,  1944,  RGBl.     1/147. 

2.  The  abrogation  of  the  above  mentioned  laws  does  not 
revive  any  law  enacted  subsequent  to  30  January,  1933, 
which  was  thereby  repealed. 

Article  II 
No  German  enactment,  however  or  whenever  enacted, 
shall  be  applied  judicially  or  administratively  in  any  in- 
stance where  such  application  would  cause  injustice  or 
Inequality,  either  (a)  by  favom'iug  any  person  because 
of  his  connection  with  the  National  Socialist  German 
Labour  Party,  its  formations,  aflSliated  associations,  or 
supervised  organizations,  or  (6)  by  discriminating  against 
any  person  by  reason  of  his  race,  nationality,  religious 
beliefs,  or  opposition  to  the  National  Socialist  German 
Labour  Party  or  its  doctrines. 

Article  III 
Any  person  applying  or  attempting  to  apply  any  law 
repealed  by  this  law  will  be  liable  to  criminal  prosecution. 
Done  at  Berlin  20  September  1945  (CONL/P(45)40) 

CONTROL  COUNCIL  LAW  NO.  2,  PROVIDING  FOR 
THE  TERMINATION  AND  LIQUIDATION  OF  THE 
NAZI  ORGANIZATIONS. 

The  Control  Council  enacts  as  follows: 
Article  I 

1.  The  National  Socialist  German  Labour  Party,  Its 
formations,  aflSliated  associations  and  supervised  agencies, 
including  para-military  organizations  and  all  other  Nazi 
institutions  established  as  instruments  of  party  domina- 
tion, are  hereby  abolished  and  declared  illegal. 

2.  The  Nazi  organizations  enumerated  in  the  attached 
Appendix,  or  which  may  be  added,  are  expressly  abolished. 
[Not  printed.] 

3.  The  re-forming  of  any  of  the  organizations  named 
herein,  whether  under  the  same  or  different  name,  is 
forbidden. 

Article  II 

All  real  estates,  equipments,  funds,  accounts,  records 
and  other  property  of  the  organizations  abolished  by  this 
law  are  confiscated.  Confiscation  is  carried  out  by  Mili- 
tary Commands ;  general  directives  concerning  the  dis- 
tribution of  the  confiscated  property  are  given  by  the 
Control  Council. 

Article  III 

Until  such  time  as  the  property  mentioned  is  actually 
placed  under  the  control  of  the  Military  Commands  aU 
officers  and  other  personnel,  including  administrative  offi- 
cials and  others  accountable  for  such  property,  are  held 
personally  responsible  for  taking  any  action  necessary  to 
preserve  intact  all  such  property  and  for  complying  with 
the  orders  of  the  Military  Commands  regarding  such 
property. 


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November  10,  1946 


THE  RECORD  Of  THE  WEEK 


Article  IV 
Any  i)erson  violating  any  provision  of  this  law  shall 
be  liable  to  criminal  prosecution. 
Done  at  Berlin  10  October  1»45  (CONL/P(45)44) 

CONTROL  COUNCIL  PROCLAMATION  NO.  3,  FUNDA- 
MENTAL PRINCIPLES  OF  JUDICIAL  REFORM 

By  the  elimination  of  the  Hitler  tyranny  by  the  Allied 
Powers  the  terrorist  system  of  Nazi  Courts  has  been  liq- 
uidated. It  is  necessary  to  establish  a  new  democratic 
judicial  system  based  on  the  achievements  of  democracy, 
civilization  and  justice.  The  Control  Council  therefore 
proclaims  the  following  fundamental  principles  of  judi- 
cial reform  which  shall  be  applied  throughout  Germany. 

I.  Equality  before  the  Law 

All  persons  are  equal  before  the  law.  No  person,  what- 
ever his  race,  nationality  or  religion,  shall  be  deprived  of 

his  legal  rights. 

II.  Guaranties  of  the  Rights  of  the  Accused 

1.  No  person  shall  be  deprived  of  life,  liberty  or  property 
without  due  process  of  law. 

2.  Criminal  re.sponsibility  shall  be  determined  only  for 
offences  provided  by  law. 

3.  Determination  by  any  court  of  any  crime  "by  anal- 
ogy" or  by  so-called  "sound  popular  instinct",  as  hereto- 
fore provided  in  the  German  Criminal  Code,  is  prohibited. 

4.  In  any  criminal  prosecution  tlie  accused  shall  have 
the  rights  recognized  by  democratic  law,  namely  the  right 
to  a  speedy  and  public  trial  and  to  be  informed  of  the 
nature  and  cause  of  the  accusation,  the  right  to  be  con- 
fronted with  wltnes.ses  in  his  favour  and  the  right  to  have 
the  assistance  of  counsel  for  his  defence.  Excessive  or 
inhuman  punishments  or  any  not  provided  by  law  will  not 
be  inflicted. 

5.  Sentences  on  persons  unjustly  convicted  under  the 
Hitler  Regime  on  political,  racial  or  religious  grounds 
must  be  quashed. 

III.  Liquidation  of  Extraordiiiarn  Hitler  Courts 

The  People's  Court,  Courts  of  the  NSDAP  and  Special 
Courts  are  abolished  and  their  re-establishment  prohibited. 

IV.  Independence  of  the  Judiciary 

1.  Judges  will  be  independent  from  executive  control 
when  exercising  their  functions  and  owe  obedience  only 
to  the  law. 

2.  Acce.ss  to  judicial  functions  will  be  open  to  all  who 
accept  democratic  principles  without  account  of  their 
race,  social  origin  or  religion.  The  promotion  of  judges 
will  be  based  solely  on  merit  and  legal  qualifications. 

V. 

Justice  will  be  administered  in  Germany  in  accordance 
with  the  principles  of  this  proclamation  by  a  system  of 
Ordinary  German  Courts. 

Done  at  Berlin  20  October  1945 

(CONL/P(45)48)   (amended  by  CONL/M(45)9) 


CONTROL  COUNCIL  LAW  NO.  4,  REORGANIZATION 
OF  THE  GERMAN  JUDICIAL  SYSTEM 

The  Control  Council,  in  accordance  with  its  proclama- 
tion to  the  German  people,  dated  20  October  1945,  decid- 
ing that  the  German  judicial  system  must  be  reorgan- 
ised on  the  basis  of  the  principles  of  democracy,  legality 
and  equality  before  the  law  of  the  citizens,  without  dis- 
tinction of  race,  nationality  or  religion,  enacts  as  follows : 

Article  I 

Reorganisation  of  the  German  courts,  will  in  principle, 
take  place  in  conformity  with  the  Law  concerning  the 
Structure  of  the  Judiciary  of  27  January  1877,  Edition  of 
22  March  1924  (RGBl  1/299).  The  following  system  of 
ordinary  courts  is  to  be  reestablished :  Amtsgerichte, 
Landgerichte,  and  Oberlandesgerichte. 

Article  II 

The  Jurisdiction  of  Amtsgerichte  and  Landgerichte  in 
civil  and  criminal  cases  will  in  general  be  determined 
in  conformity  with  the  law  in  force  on  30  January  1933 ; 
however,  the  civil  jurisdiction  of  the  Amtsgerichte  will 
be  extended  to  claim  of  a  value  not  exceeding  RM.  2000. 

The  Landgerichte  will  have  appellate  jurisdiction  over 
decisions  of  the  Amtsgerichte. 

The  Oberlandesgerichte  will  have  no  original  jurisdic- 
tion but  will  have  final  appellate  jurisdiction  over  the  de- 
cisions of  the  Landgerichte  in  civil  cases ;  they  will  have 
the  right  of  review  on  question  of  law  (Revision)  over 
decisions  of  Amtsgerichte  and  Landgerichte  in  criminal 
cases  as  provided  by  law. 

Article  III 

Jurisdiction  of  German  Courts  shall  extend  to  all  cases 
both  civil  and  criminal  with  the  following  exceptions : 

(a)  Criminal  offenses  committed  against  the  Allied  Oc- 
cupation Forces ; 

( 6 )  Criminal  offenses  committed  by  Nazis  or  any  other 
persons  against  citizens  of  Allied  nations  and  their  prop- 
erty, as  well  as  attempts  directed  towards  the  re-estab- 
lishment of  the  Nazi  regime,  and  the  activity  of  the  Nazi 
organisations; 

(e)  Criminal  offenses  involving  military  personnel  of 
Allied  Forces  or  citizens  of  Allied  nations; 

(d)  Other  selected  civil  and  criminal  cases  withdrawn 
from  the  jurisdiction  of  German  Courts,  as  directed  by 
the  Allied  Military  Command; 

(e)  When  an  offense  committed  is  not  of  such  a  nature 
as  to  compromise  the  security  of  the  Allied  Forces,  the 
Military  Command  may  leave  it  to  the  jurisdiction  of 
German  Courts. 

Article   IV 

To  effect  the  reorganization  of  the  judicial  system,  all 
former  members  of  the  Nazi  Party  who  have  been  more 
than  nominal  participants  in  its  activities  and  all  other 


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persons  who  directly  followed  the  punitive  practices  of 
the  Hitler  regime  must  be  dismissed  from  appointments 
as  judges  and  prosecutors  and  will  not  be  admitted  to 
those  appointments. 

Article  V 
In  carrying  out  this  law,  it  is  left  to  the  discretion  of 
the  Military  Command  gradually  to  bring  the  jurisdiction 
of  German  courts  into  conformity  with  this  law. 

Article  VI 
This  law  will  come  into  force  from   the  date  of  its 
promulgation.     The  Military  Commanders  of  Zones  are 
charged  with  its  execution. 

Done  at  Berlin  30  October  1945  ( CONIi/P  ( 4.j )  50 ) 

CONTROL  COUNCIL  LAW  NO.  10,  PUNISHMENT  OF 
PERSONS  GUILTY  OF  WAR  CRIMES,  CRIMES 
AGAINST    PEACE   AND   AGAINST   HUMAJSTITY 

In  order  to  give  effect  to  the  terms  of  the  Moscow  Decla- 
ration of  30  October  1943  and  the  London  Agreement  of 
8  August  1945,  and  the  Charter  issued  pursuant  thereto 
and  in  order  to  establish  a  uniform  legal  basis  in  Germany 
for  the  prosecution  of  war  criminals  and  other  similar 
offenders,  other  than  those  dealt  with  by  the  International 
Military  Tribunal,  the  Control  Council  enacts  as  follows : 

Article  I 

The  Moscow  Declaration  of  30  October  1943  "Concern- 
ing Responsibility  of  Hitlerites  for  Committed  Atrocities" 
and  the  London  Agreement  of  8  August  1945  "Concerning 
Prosecution  and  Punishment  of  Major  War  Criminals  of 
the  European  Axis"  are  made  integral  parts  of  this  Law. 
Adherence  to  the  provisions  of  the  London  Agreement  by 
any  of  the  United  Nations,  as  provided  for  in  Article  V  of 
that  Agreement,  shall  not  entitle  such  Nation  to  partici- 
pate or  interfere  in  the  operation  of  this  Law  within  the 
Control  Council  area  of  authority  in  Germany. 

Article  II 
1.  Each  of  the  following  acts  is  recognized  as  a  crime: 

(o)  Crimes  against  Peace.  Initiation  of  invasions  of 
other  countries  and  wars  of  aggression  in  violation  of 
international  laws  and  treaties,  including  but  not  limited 
to  planning,  preparation,  initiation  or  waging  a  war  of 
aggression,  or  a  war  of  violation  of  international  treaties, 
agreements  or  assurances,  or  participation  in  a  common 
plan  or  conspiracy  for  the  accomplishment  of  any  of  the 
foregoing. 

(6)  War  Crimes.  Atrocities  or  offenses  against  jier- 
sons  or  property  constituting  violations  of  the  laws  or  cus- 
toms of  war,  including  but  not  limited  to,  murder,  ill 
treatment  or  deportation  to  slave  labour  or  for  any  other 
purpose,  of  civilian  population  from  occupied  territory, 
murder  or  ill  treatment  of  prisoners  of  war  or  persons 
on  the  seas,  killing  of  hostages,  plunder  of  public  or  private 
property,  wanton  destruction  of  cities,  towns  or  villages, 
or  devastation  not  justified  by  military  necessity. 


(c)  Crimes  against  Humanity.  Atrocities  and  offenses, 
including  but  not  limited  to  murder,  extermination, 
enslavement,  deportation,  imprisonment,  torture,  rape,  or 
other  inhumane  acts  committed  against  any  civilian 
population,  or  persecutions  on  political,  racial  or  religious 
grounds  whether  or  not  in  violation  of  the  domestic  laws 
of  the  country  where  perpetrated. 

(d)  Membership  in  categories  of  a  criminal  group  or 
organization  declared  criminal  by  the  International  Mili- 
tary Tribunal. 

2.  Any  person  without  regard  to  nationality  or  the 
capacity  in  which  he  acted,  is  deemed  to  have  committed 
a  crime  as  defined  in  paragraph  1  of  this  Article,  if  he 
(a)  was  a  principal  or  (6)  was  an  accessory  to  the  com- 
mission of  any  such  crime  or  ordered  or  abetted  the  same 
or  (c)  took  a  consenting  part  therein  or  (d )  was  connected 
with  plans  or  enterprises  involving  its  commission  or 
(e)  was  a  member  of  any  organization  or  group  connected 
with  the  commission  of  any  such  crime  or  (/)  with  ref- 
erence to  paragraph  1  (a),  if  he  held  a  high  political,  civil 
or  military  (including  General  Staff)  position  in  Germany 
or  in  one  of  its  Allies,  co-belligerents  or  satellites  or  held 
high  position  in  the  financial,  industrial  or  economic  life 
of  any  such  country. 

3.  Any  person  found  guilty  of  any  of  the  Crimes  above 
mentioned  may  upon  conviction  be  punished  as  shall  be 
determined  by  the  tribunal  to  be  just.  Such  punishment 
may  consist  of  one  or  more  of  the  following : 

(a)   Death. 

(6)  Imprisonment  for  life  or  a  term  of  years,  with  or 
without  harci  labour. 

(c)  Fine,  and  imprisonment  with  or  without  hard 
labour,  in  lieu  thereof. 

(d)  Forfeiture  of  property. 

(e)  Restitution  of  property  wrongfully  acquired. 

(f)  Deprivation  of  some  or  all  civil  rights. 

Any  proi)erty  declared  to  be  forfeited  or  the  restitution 
of  which  is  ordered  by  the  Tribunal  shall  be  delivered  to 
the  Control  Council  for  Germany,  which  shall  decide  on  its 
di-sposal. 

4.  (a)  The  oflBcial  position  of  any  person,  whether  as 
Head  of  State  or  as  a  responsible  official  in  a  Govern- 
ment Department,  does  not  free  him  from  responsibility 
for  a  crime  or  entitle  him  to  mitigation  of  punishment. 

(6)  The  fact  that  any  person  acted  pursuant  to  the  order 
of  his  Government  or  of  a  superior  does  not  free  him  from 
responsibility  for  a  crime,  but  may  be  considered  in 
mitigation. 

5.  In  any  trial  or  prosecution  for  a  crime  herein  re- 
ferred to,  the  accused  shall  not  be  entitled  to  the  benefits 
of  any  statute  of  limitation  in  respect  of  the  period  from 
30  January  1933  to  1  July  1945,  nor  shall  any  immunity, 
pardon  or  amnesty  granted  under  the  Nazi  regime  be 
admitted  as  a  bar  to  trial  or  punishment. 

Article  III 

1.  Each  occupying  authority,  within  its  Zone  of  oc- 
cupation. 


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THE  RECORD  OF  THE  WEEK 


(a)  shall  have  the  right  to  cause  persons  within  such 
2Jone  suspected  of  having  committed  a  crime,  including 
those  charged  with  crime  by  one  of  the  United  Nations, 
to  be  arrested  and  shall  take  under  control  the  property, 
real  and  personal,  owned  or  controlled  by  said  persons, 
pending  decisions  as  to  its  eventual  disposition. 

(6)  shall  report  to  the  Legal  Directorate  the  names  of 
all  suspected  criminals,  the  reasons  for  and  the  places  of 
their  detention,  if  they  are  detained,  and  the  names  and 
location  of  witnesses. 

(c)  shall  take  appropriate  measures  to  see  that  wit- 
nesses and  evidence  will  be  available  when  required. 

(d)  shall  have  the  right  to  cause  all  persons  so  ar- 
rested and  charged,  and  not  delivered  to  another  authority 
as  herein  provided,  or  released,  to  be  brought  to  trial 
before  an  appropriate  tribunal.  Such  tribunal  may,  in  the 
case  of  crimes  committed  by  persons  of  German  citizen- 
ship or  nationality,  against  other  persons  of  German  cit- 
izenship or  nationality,  or  stateless  persons,  be  a  German 
Court,  if  authorized  by  the  occupying  authorities. 

2.  The  tribunal  by  which  persons  charged  with  offenses 
hereunder  shall  be  tried  and  the  rules  and  procedure  there- 
of shall  be  determined  or  designated  by  each  Zone  Com- 
mander for  his  respective  Zone.  Nothing  herein  is  in- 
tended to,  or  shall  impair  or  limit  the  jurisdiction  or  jKJwer 
of  any  court  or  tribunal  now  or  hereafter  established  in 
any  2tone  by  the  Commander  thereof,  or  of  the  Interna- 
tional Military  Tribunal  established  by  tlie  London  Agree- 
ment of  8  August  1945. 

3.  Persons  wanted  for  trial  by  an  International  Mili- 
tary Tribunal  will  not  be  tried  without  the  consent  of  the 
Committee  of  Chief  Prosecutors.  Bach  Zone  Commander 
will  deliver  such  persons  who  are  within  his  Zone  to  that 
committee  upon  request  and  will  make  witnesses  and 
evidence  available  to  it. 

4.  Persons  known  to  be  wanted  for  trial  in  another  Zone 
or  outside  of  Germany  will  not  be  tried  prior  to  decision 
under  Article  IV  unless  the  fact  of  their  apprehension  has 
been  reported  in  accordance  with  Section  1  (b)  of  this 
Article,  three  months  have  elapsed  thereafter,  and  no  re- 
quest for  delivery  of  the  type  contemplated  by  Article  IV 
has  been  received  by  the  Zone  Commander  concerned. 

5.  The  execution  of  death  sentences  may  be  deferred  by 
not  to  exceed  one  month  after  the  sentence  has  become 
final  when  the  Zone  Commander  concerned  has  reason  to 
believe  that  the  testimony  of  those  under  sentence  would 
be  of  value  in  the  investigation  and  trial  of  crimes  within 
or  without  his  Zone. 

6.  Each  Zone  Commander  will  cause  such  effect  to  be 
given  to  the  judgments  of  courts  of  competent  jurisdic- 
tion, with  respect  to  the  property  taken  under  his  con- 
trol pursuant  hereto,  as  he  may  deem  proper  in  the  in- 
terest of  justice. 

Article  IV 

1.  When  any  person  in  a  Zone  in  Germany  is  alleged  to 

have  committed  a  crime,  as  defined  in  Article  II,  iu  a 

country   other   than   Germany   or   in   another   Zone,   the 

government  of  that  nation  or  the  Commander  of  the  latter 


Zone,  as  the  case  may  be,  may  request  the  Commander  of 
the  Zone  in  which  the  person  is  located  for  his  arrest  and 
delivery  for  trial  to  the  country  or  Zone  in  which  the 
crime  was  committed.  Such  request  for  delivery  shall 
be  granted  by  the  Commander  receiving  it  unless  he  be- 
lieves such  person  is  wanted  for  trial  or  as  a  witness  by 
an  International  Military  Tribunal,  or  in  Germany,  or  in 
a  nation  other  than  the  one  making  the  request,  or  the 
Commander  is  not  satisfied  that  delivery  should  be  made, 
in  any  of  which  cases  he  shall  have  the  right  to  forward 
the  said  request  to  the  Legal  Directorate  of  the  Allied  Con- 
trol Authority.  A  similar  procedure  shall  apply  to  wit- 
nesses, material  exhibits  and  other  forms  of  evidence. 

2.  The  Legal  Directorate  shall  consider  all  requests  re- 
ferred to  it,  and  shall  determine  the  same  in  accordance 
with  the  following  principles,  its  determination  to  be 
communicated  to  the  Zone  Commander. 

(a)  A  person  wanted  for  trial  or  as  a  witness  by  an 
International  Military  Tribunal  shall  not  be  delivered  for 
trial  or  required  to  give  evidence  outside  Germany,  as  the 
case  may  be,  except  upon  approval  by  the  Committee  of 
Chief  Prosecutors  acting  under  the  London  Agreement  of 
8  August  1945. 

(6)  A  person  wanted  for  trial  by  several  authorities 
(other  than  an  International  Military  Tribunal)  shall  be 
disposed  of  in  accordance  with  the  following  priorities : 

(1)  If  wanted  for  trial  in  the  Zone  in  which  he  is,  he 
should  not  be  delivered  unless  arrangements  are  made 
for  his  return  after  trial  elsewhere ; 

(2)  If  wanted  for  trial  in  a  Zone  other  than  that 
in  which  he  is,  he  should  be  delivered  to  that  Zone  in 
preference  to  delivery  outside  Germany  unless  ar- 
rangements are  made  for  his  return  to  that  Zone  after 
trial  elsewhere; 

(3)  If  wanted  for  trial  outside  Germany  by  two  or 
more  of  the  United  Nations,  of  one  of  which  he  is  a  citi- 
zen, that  one  should  have  priority ; 

(4)  If  wanted  for  trial  outside  Germany  by  several 
countries,  not  all  of  which  are  United  Nations,  United 
Nations  should  have  priority  ; 

(5)  If  wanted  for  trial  outside  Germany  by  two  or 
more  of  the  United  Nations,  then,  subject  to  Article  IV 
2  (6)  (3)  above,  that  which  has  the  most  serious  charges 
against  him,  which  are  moreover  supported  by  evidence, 
should  have  priority. 

Article  V 

The  delivery,  under  Article  IV  of  this  Law,  of  persons 
for  trial  shall  be  made  on  demands  of  the  Governments 
or  Zone  Commanders  in  such  a  manner  that  the  delivery 
of  criminals  to  one  jurisdiction  will  not  become  the  means 
of  defeating  or  unnecessarily  delaying  the  carrying  out  of 
justice  in  another  place.  If  within  six  months  the  deliv- 
ered person  has  not  been  convicted  by  the  Court  of  the 
Zone  or  country  to  which  he  has  been  delivered,  then  such 
person  shall  be  returned  upon  demand  of  the  Commander 
of  the  Zone  where  the  person  was  located  prior  to  delivery. 

Done  at  Berlin  20  December  1945  (CONL/P(45)53) 


863 


United  States  Policy  on  Status  of  Austria 


[Released  to  the  press  October  28] 

The  Department  of  State  considers  that  the  visit 
to  the  United  States  of  Dr.  Karl  Gruber,  Foreign 
Minister  of  the  Austrian  Federal  Republic,  repre- 
sents an  appropriate  occasion  to  reaffirm  United 
States  policy  with  respect  to  the  status  of  Austria.^ 

During  the  period  following  the  first  World 
War,  the  United  States  Government  steadily  en- 
couraged the  development  of  a  free  and  independ- 
ent Austrian  state  based  on  democratic  principles, 
and  viewed  with  strong  disapproval  all  Nazi  at- 
tempts to  force  Austria  into  the  German  Reich. 
The  attitude  of  the  United  States  toward  the  mili- 
tary occupation  of  Austria  by  Germany  and  its 
formal  incorporation  in  the  German  Reich  in  1938 
was  guided  by  this  consideration  and  by  the  well- 
established  policy  of  the  United  States  toward  the 
acquisition  of  territory  by  foi'ce.  While,  as  a 
practical  matter,  the  United  States  was  obliged  in 
its  effort  to  protect  American  interests  to  take  cer- 


'  Dr.  Karl  Gruber  made  a  five-day  informal  visit  to 
AV.ishington  from  Oct.  25  to  29,  where  he  was  received  hy 
Piesident  Truman  at  the  White  House  and  participated 
in  a  series  of  conferences  with  officials  of  the  Department 
of  State. 

On  Oct.  25  Dr.  Gruber  met  with  Under  Secretary  of 
State  Acheson  to  review  the  current  Austrian  situation 
and  political  problems  of  common  interest  to  Austria  and 
the  United  States.  The  Foreign  Minister  was  informed 
that  on  Oct.  22  authorization  was  cabled  to  U.S.  Military 
Headquarters  in  Austria  to  turn  over  $.5,000,000  worth  of 
monetary  gold,  claimed  to  have  been  originally  owned  by 
the  Austrian  National  Bank  and  subsequently  seized  by 
the  German  Reichsbaiik.  This  gold,  which  is  now  in  U.S. 
custody  in  Salzburg,  will  be  restored  to  the  Austrian  Gov- 
ernment upon  presentation  of  satisfactory  evidence  of 
former   ownership. 

On  Oct.  28  Dr.  Gruber  met  with  Under  Secretary 
of  State  for  Economic  AfEairs,  William  L.  Clayton,  and 
the  heads  of  the  various  economic  offices  and  divisions  of 
the  Department  of  State  to  discuss  economic  questions 
of  importance  to  Austria,  including  the  ration  level  in 
Austria  and  post-UNRRA  relief  for  Austria.  Dr.  Gruber 
was  assured  that  the  United  States  would  do  its  utmost 


tain  administrative  measures  based  upon  the  situ- 
ation created  by  the  Anschluss,  this  Government 
consistently  avoided  any  step  which  might  be  con- 
sidered to  constitute  de  jure  recognition  of  the 
annexation  of  Austria  by  Germany. 

In  his  radio  address  on  May  27,  1941  President 
Roosevelt  referred  repeatedly  to  the  seizure  of 
Austria,  and  described  the  Austrians  as  the  first 
of  a  series  of  peoples  enslaved  by  Hitler  in  his 
march  of  conquest.^  Secretary  Hull  stated  at  a 
press  conference  on  July  27,  1942  that  "this  Gov- 
ernment has  never  taken  the  position  that  Austria 
was  legally  absorbed  into  the  German  Reich  ".^ 
In  various  wartime  administrative  measures  in  the 
United  States,  such  as  the  freezing  of  assets,  Selec- 
tive Service,  and  registration  of  aliens,  Austrian 
nationals  were  included  in  a  separate  category 
from  the  German  or  were  assimilated  to  the  na- 
tionals of  countries  which  Germany  seized  or  occu- 
pied by  force. 


to  relieve  the  difficult  situation  in  Austria.  The  discus- 
sion also  covered  financial  questions,  including  the  im- 
freezing  of  Austrian  funds  in  the  United  States,  which 
should  commence  directly  upon  the  completion  in  Austria 
of  certain  preliminary  technical  steps. 

On  Oct.  29  Dr.  Gruber  met  with  Assistant  Secretary 
Hilldrlng  to  consider  various  questions  relating  to  political 
and  economic  problems  in  Austria.  Dr.  Gruber  pointed  out 
the  political  disadvantage  of  having  within  the  frontiers 
of  Austria  a  large  group  of  displaced  persons  which  rep- 
resent in  numbers  about  10  ijercent  of  the  Austrian  popu- 
lation. General  Hilldring  promised  the  assistance  of  this 
Government  in  solving  this  problem  as  expeditiously  as 
possible.  Other  matters  discussed  were  the  restoration 
of  Danube  barge  traffic  which  is  of  vital  importance  to 
the  economy  of  Austria  and  the  operation  of  the  United 
States  section  of  the  Allied  Commission  and  its  relations 
to  the  United  States  Government.  Dr.  Gruber  was  most 
appreciative  of  the  assistance  which  General  Clai'k  and 
his  personnel  are  rendering  to  Austria  in  the  establish- 
ment of  that  country  as  a  free  and  independent  democracy. 

=  Bulletin  of  May  31,  1941,  p.  G48. 

"  Bulletin  of  Aug.  1,  1942,  p.  660. 


864 


Department  of  State  Bulletin 


November  10,  1946 


The  United  States  has  accordingly  regarded 
Austria  as  a  country  liberated  from  forcible  domi- 
nation by  Nazi  Germany,  and  not  as  an  ex-enemy 
state  or  a  state  at  war  with  the  United  States  dur- 
ing the  second  World  War.  The  Department  of 
State  believes  that  this  view  has  received  diplo- 
matic recognition  through  the  Moscow  Declara- 
tion on  Austria^  and  the  Declaration  issued  at 
Algiei-s  on  November  16, 1943  by  the  French  Com- 
mittee of  National  Liberation  concerning  the  in- 
dependence of  Austria.  In  accordance  with  the 
objectives  set  forth  in  the  Moscow  Declaration  to 
see  reestablished  a  free  and  independent  Austria, 
an  Austrian  Government  was  formed  after  free 
elections  were  held  on  November  25,  1915.-  This 
Austrian  Government  was  recognized  by  the  four 
powers  represented  on  the  Allied  Council,  as  an- 
nounced simultaneously  on  January  7,  1946  in 
Vienna  and  the  capitals  of  these  states.^  In  its 
meeting  of  April  25,  1946  the  Allied  Council, 
moreover,  considered  a  statement  of  the  United 
States  Government's  policy  in  Austria  made  by 
General  Mark  Clark,  and  expressed  its  general 
agreement  with  section  I,  "Status  of  Austria",  in 
which  the  United  States  maintained  that  since 
Austria  had  been  liberated  from  Nazi  domination 
it  should  be  treated  as  a  liberated  area. 

In  the  opinion  of  the  Department  of  State,  the 
judgment  of  the  International  Military  Tribunal 
rendered  at  Niirnberg  on  September  30-October  1, 
1946  gave  further  international  confirmation  to 
this  view  of  Austria's  status  by  defining  the  in- 
vasion of  that  country  as  an  aggressive  act — "a 
premeditated  aggressive  step  in  furthering  the 
plan  to  wage  aggressive  wars  against  other  coun- 
tries". The  Niirnberg  judgment  also  states  that 
"Austria  was  in  fact  seized  by  Germany  in  the 
month  of  March  1938". 

In  order  to  clarify  the  attitude  of  the  United 
States  Government  in  this  matter,  the  United 
States  Government  recognizes  Austria  for  all  pur- 
poses, including  legal  and  administrative,  as  a  lib- 
erated country  comparable  in  status  to  other  lib- 
erated areas  and  entitled  to  the  same  treatment, 
subject  only  to  the  controls  reserved  to  the  oc- 
cupying powers  in  the  new  agreement  on  control 
machinery  in  Austria  of  June  28,   1946.*     The 


THE  RECORD  OF  THE   WEEK 

United  States  Government  believes  that  the  in- 
ternational acts  mentioned  above  are  adequate 
reason  for  all  members  of  the  United  Nations  to 
regard  Austria  as  a  liberated  country. 


Ninety  Surplus  Planes  Sold  to  Sweden 

A  Department  spokesman  said  on  October  24 
that  the  authorization  for  the  sale  of  90  surplus 
P-51  Mustang  fighter  planes  to  the  Government  of 
Sweden  was  given  at  the  request  of  that  Govern- 
ment, due  to  the  fact  that  these  planes  were  needed 
in  part  to  replace  and  furnish  spare  parts  for  50 
P-51's  sold  to  the  Swedish  Government  in  July 
1945  by  the  U.S.  Commercial  Co.  Therefore  the 
sale  may  be  properly  viewed  as  the  completion  of 
an  earlier  sale. 

The  planes  involved  in  both  transactions  were  in 
need  of  repairs  and  the  first  group  is  now  largely 
worn  out,  so  that  it  is  understood  that  the  second 
group  of  90  planes,  also  in  need  of  repair,  will 
necessarily  be  used  to  a  great  extent  for  can- 
nibalization  and  replacement  purposes. 

In  making  the  1945  sale  and  the  present  one,  the 
Government  of  the  United  States  recognized  the 
fact  that  Sweden  rendered  valuable  services  to  the 
United  States  during  the  war  in  returning  the 
American  air  crews  forced  down  in  that  country, 
and  in  other  wartime  services.  In  addition,  the 
United  States  i-equisitioned  at  the  start  of  the  war 
several  himdred  Seversky  fighter  planes  being 
built  in  the  United  States  under  contract  for  the 
Swedish  Government,  and  although  tlie  Govern- 
ment of  Sweden  was  fully  compensated  finally  for 
the  loss,  the  action  naturally  hindered  the  develop- 
ment of  the  Swedish  air  forces  at  that  critical 
period  and  placed  some  moral  obligation  on  the 
United  States  to  rectify  when  possible  the  em- 
barrassment to  Sweden. 


^  Bulletin  of  Nov.  6,  1943,  p.  310.  See  also  Bulletin 
of  Nov.  20,  1943,  p.  344. 

=  Bulletin  of  Oct.  21,  1945,  p.  612.  See  also  Bulletin 
of  Oct.  28,  1945,  p.  665. 

=  Bltlletin  of  Jan.  20,  1946,  p.  81. 

*  Bulletin  of  July  28,  1946,  p.  175. 


865 


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Treaty  of  Friendship,  Commerce  and 
Navigation  Witli  China 

[Released  to  the  press  November  4] 

A  treaty  of  friendship,  commerce,  and  naviga- 
tion between  the  United  States  of  America  and  the 
Republic  of  China  was  signed  at  Nanking  on  No- 
vember 2.' 

This  is  the  first  post-war  comprehensive  com- 
mercial treaty  to  be  signed  by  either  Government. 
In  1844  the  United  States  and  China  signed  their 
first  treaty  of  peace,  amity,  and  commerce.  That 
treaty,  as  supplemented  and  modified  by  a  num- 
ber of  subsequent  treaties  and  agreements,  has  con- 
stituted the  basis  of  American-Chinese  relations 
1  hroughout  a  century  of  cordial  friendship  between 
the  two  countries.  Developments  in  recent  years, 
particularly  the  relinquishment  by  this  country 
and  by  other  countries  of  extraterritorial  rights  in 
China,  and  changes  in  economic  and  commercial 
practices,  have  led  both  Governments  to  desire  to 
conclude  a  modern,  comprehensive  treaty  of 
friendship,  commerce,  and  navigation,  one  which 
is  based  in  general  on  the  principle  of  mutuality 
and  which  more  adequately  meets  the  needs  of  pres- 
ent day  international  relationsliips,  in  replacement 
of  earlier  treaties  relating  to  these  matters. 

The  treaty  is  somewhat  broader  in  scope  than 
existing  United  States  commercial  treaties  with 
respect  to  the  rights  for  corporations,  and  includes 
articles  relating  to  establishment,  land  holding, 
and  industrial  and  literary  property,  commercial 
articles  similar  in  principle  to  the  general  provi- 
sions of  recent  trade  agreements,  and  more  de- 
tailed coverage  of  exchange  control,  the  activities 
of  government  monopolies,  and  other  matters. 

This  treaty  will  supersede  existing  treaties  be- 
tween the  United  States  and  China  relating  to  es- 
tablishment, commerce,  and  navigation,  but  will 
not  limit  or  restrict  the  rights,  privileges,  and  ad- 
vantages accorded  by  the  treaty  for  the  relinquish- 
ment of  extraterritorial  rights  in  China  and  the 
regulation  of  related  matters  and  accompanying 
exchange  of  notes  between  the  two  countries  signed 
at  Washington  on  January  11, 1943. 


'  For   text   of  treaty,   see   Department   of   State   press 
release  733  of  Nov.  4,  1SM6. 
'  Treaty  Series  978. 


The  treaty  is  to  be  submitted  to  the  Senate  and 
to  the  Legislative  Yuan  for  approval  and  will  en- 
ter into  force  on  the  day  of  the  exchange  of  rati- 
fications. 

The  treaty  was  signed  at  Nanking  at  4 :  00  p.  m. 
standard  Nanking  time  for  the  United  States  of 
America  by  J.  Leighton  Stuart,  Ambassador 
Extraordinary  and  Plenipotentiary  of  the  United 
States  of  America  to  the  Republic  of  China,  and 
Robert  Lacy  Smyth,  Special  Commissioner  and 
Consul  General  of  the  United  States  of  America 
at  Tientsin ;  and  for  the  Republic  of  China  by  Dr. 
Wang  Shih-Chieh,  Minister  for  Foreign  Aifairs 
of  the  Republic  of  China,  and  Dr.  Wang  Hua- 
Cheng,  Director  of  the  Treaty  Department  of  the 
Ministry  of  Foreign  Affairs  of  the  Republic  of 
China. 

Inter- American  Indian  Institute 

Venezuela 

The  Mexican  Ambassador  has  informed  the  Sec- 
retary of  State  of  the  receipt  by  the  Mexican 
Ministry  of  Foreign  Affairs  of  the  notice  of  ad- 
herence of  Venezuela  to  the  Convention  Providing 
for  the  Creation  of  an  Inter-American  Indian 
Institute,-  opened  for  signature  at  Mexico  City 
from  November  1  to  December  31,  1940.  The 
notice  of  adherence  was  deposited  August  8,  1946. 

Air  Base  Returned  to  Peru 

[Released  to  the  press  October  27] 

The  United  States  Government  has  concluded 
arrangements  with  the  Peruvian  Government  for 
transfer  to  the  latter  of  the  El  Pato  Air  Base  at 
Talara,  Peru,  implementing  the  termination  clause 
of  the  agreement  signed  by  the  two  Governments 
on  April  24,  1942.  The  work  of  the  Joint  Inven- 
tory Commission  having  been  completed,  the  date 
of  the  transfer  of  the  base  to  Peru  has  been  fixed 
for  October  29,  1946. 

The  American  Ambassador  to  Peru,  Prentice 
Cooper,  representing  the  United  States  Govern- 
ment, and  the  Peruvian  Minister  of  Aeronautics, 
Enrique  Gongora,  I'epresenting  the  Government 
of  Peru,  will  be  present  at  the  delivery  ceremony, 
which  will  take  place  at  the  base. 


B66 


Department  of  Slafe  Bullefin     *     November  10,  1946 


Anglo-American  Oil  Policy:  Basis  of  Multilateral  Trade 


BY  CHARLES  RAYNER ' 


I  should  like  to  begin  with  a  discussion  of  three 
specific  points,  because  I  feel  that  much  of  the 
confusion  which  has  existed  about  the  proposed 
Anglo-American  oil  agreement,  concerning  which 
I  shall  have  something  to  say  later  on  in  my 
address,  arises  from  a  misconception  concerning 
them.^ 

These  three  points  have  to  do  specifically  with 
the  following  problems : 

(1)  our  petroleum  import  policy  in  its  relation- 
ship (o  the  maximum  efficient  rate  of  production 
from  domestic  reserves 

(2)  the  observance  of  concession  contracts 
granted  by  foreigii  powers  to  American  nationals 

(3)  the  extent,  if  any,  of  governmental  control 
over  the  petroleum  industry  as  contemplated  both 
by  the  Anglo-American  oil  agreement  and  by  its 
possible  expansion  to  a  multilateral  basis. 

In  a  broadcast  on  August  17,'  in  which  I  partici- 
pated, an  estimate  was  made  that  in  20  years'  time, 
consumption  figures  in  the  United  States  might  be 
in  the  neighborhood  of  6I/2  million  barrels  a  day, 
with  production  on  the  basis  of  present  trends  not 
more  than  approximately  3I/2  million  barrels  a 
day.  The  difference,  it  was  assumed,  might  have 
to  be  imported.  The  statement  that  this  country 
was  faced  with  the  possibility  based  upon  a  con- 
tinuation of  present  known  trends  in  the  industry, 
of  being  forced  in  20  years'  time  to  import  some  3 
million  barrels  of  oil  a  day  to  satisfy  its  prospec- 
tive consumption  demand,  has  given  rise  to  much 
opposition  by  some  members  of  the  oil  industry. 
The  Government  officials  taking  part  in  the  broad- 
cast were  accused  of  again  raising  the  old  bogey 
of  an  "oil  scarcity". 

Well,  let's  look  at  some  of  the  facts  and  bear  in 
mind  that  this  discussion  refers  only  to  natural 
petroleum  and  excludes  the  possibilities  in  shale 
and  synthetic  oils.  A  projection  of  the  gradual 
yearly  increase  in  consumption  demand  over  the 


past  15  or  20  years,  if  continued  for  the  next  20 
years  or  until  1965,  would  indicate  a  domestic 
consumption  demand  of  between  61/2  and  7  million 
barrels  a  day.  It  would  mean  that  to  maintain 
the  present  quantity  of  reserves,  an  average  of  new 
discoveries  amounting  to  2  billion  barrels  a  year 
or  40  billion  barrels  for  the  period  would  be 
required.  Yet,  in  spite  of  a  substantial  increase 
in  the  past  8  to  10  years  in  the  number  of  explora- 
tory holes  drilled  (from  2630  in  1938  to  5280  in 
1945),  there  has  been  a  steady  decline  in  the  new 
reserves  discovered  which,  if  projected  to  1965, 
would  approximate  a  maximum  efficient  rate  of 
production  of  something  in  the  neighborhood  of 
3%  to  4  million  barrels  of  oil  a  day.  These  facts 
and  data  on  prospective  consumption  and  produc- 
tion are  not  new  to  the  industry.  They  have  been 
stated  by  members  of  the  industry  itself  upon  a 
number  of  occasions.  The  net  result  based  on 
present  known  trends  is  a  widening  gap  which  in 
20  years'  time  would  approximate  3  million  bar- 
rels of  oil  a  day  which  presumably  would  have  to 
be  bridged  by  importations.  One  more  fact — at 
the  beginning  of  the  war  a  reserve  of  crude  pro- 
ducing capacity  had  been  established  amounting 
to  about  1,200,000  barrels  a  day.  At  present  rates 
we  are  today  producing  about  200,000  barrels  a 
day  over  the  maximum  efficient  rate.  To  quote 
William  B.  Heroy  in  this  connection — "instead 
therefore  of  having  a  large  excess  of  production 
capacity  as  at  the  beginning  of  the  war,  the  coun- 
try now  has  a  substantial  deficiency." 

It  is  obvious  that  any  projection  for  a  20-year 
period  and  any  estimate  of  the  supply-demand 
picture  at  the  end  of  that  period  must  be  in  its 

'  Address  made  at  the  annual  meeting  of  the  Independ- 
ent Petroleum  Association  of  America  at  Ft.  Worth,  Texas, 
Oct.  29,  1946,  and  released  to  the  press  on  the  same  date. 
Mr.  Rayner  is  adviser  on  Petroleum  Policy,  Department 
of  State. 

^  For  text  of  agreement,  see  Buixetin  of  Sept.  30,  1945, 
p.  481. 

'  Not  printed. 


867 


THE  RECORD  OF  THE  WEEK 


very  nature  highly  speculative  and  conjectural. 
Twenty  years  in  the  oil  industry  is  a  long  time. 
Over  two  thirds  of  the  oil  fields  now  producing  in 
the  United  States  were  undiscovered  twenty  years 
ago.  Twenty  years  hence  the  same  situation  may 
possibly  be  true.  But  petroleum,  in  the  recent 
war  years,  has  increased  so  tremendously  in  impor- 
tance as  a  prime  commodity  essential  to  our 
national  safety  and  our  economic  security  that 
your  Government  must  of  necessity  give  constant 
and  continuing  heed  to  the  prospects  indicated  by 
present  trends  in  the  industry.  The  Government 
must,  therefore,  in  the  light  of  present  facts,  con- 
template the  probability  that  this  country  will 
become  a  net  importer  of  oil  on  an  increasingly 
larger  scale.  It  was  for  the  purpose  of  bringing 
that  probability  before  its  hearers  that  this  phase 
of  the  domestic  and  foreign  petroleum  situation 
was  discussed  in  the  broadcast  of  August  17. 

The  question  that  concerns  your  Association 
cliiefly,  however,  is:  "What  is  to  be  our  future 
import  policy  and  can  we  rely  upon  it  to  safe- 
guard the  prosperity  of  our  domestic  industry?" 
That  is  a  fair  question  and  it  is  entitled  to  a  clear 
and  concise  answer.    Let  me  attempt  to  answer  it- 

1.  It  is  essential  to  the  national  safety  and  the 
economic  well-being  of  this  country  that  your 
Government  should  provide  every  legitimate 
means  leading  to  the  healthy  expansion  and 
groMth  of  the  domestic  oil  industry  so  that  the 
I^rospecting  for  and  the  finding  of  new  oil  reserves 
may  be  given  added  encouragement.  Domestic 
oil  jjroduction  is  our  first  line  of  defense  and  is 
therefore  entitled  to  primary  consideration. 

2.  Practices  which  tend  to  waste  oil  and  gas 
resources  should  be  terminated,  and  production 
should  be  limited  as  a  maximum  to  that  which 
can  be  produced  under  conditions  consonant  with 
good  conservation  practices. 

3.  In  the  event  that  the  optimum  rate  of  pro- 
duction for  domestic  petroleum  does  not  meet  do- 
mestic requirements,  a  legitimate  place  exists  for 
imports  in  order  to  avoid  the  necessity  either  of 
artificial  curtailment  of  demand  or  of  uneconomic 
exploitation  of  our  domestic  reserves.  In  other 
words,  imports  of  oil  will,  as  a  general  principle, 
supplement  and  not  replace  domestic  production, 
so  that  such  imports  will  not  create  conditions 


harmful  to  the  continued  progress  and  efficiency 
of  the  domestic  industry. 

4.  The  United  States  Government,  in  the  light 
of  present  circumstances,  will  take  every  appro- 
priate means  to  encourage,  assist,  and  protect 
American  nationals  in  the  development  of  foreign 
oil  reserves. 

5.  Lastly,  it  is  the  continued  progress  and  pros- 
perity of  the  American  petroleum  industry  at  home 
and  abroad  with  all  its  ramifications  and  com- 
plexities that  will  be  a  prime  concern  of  your  Gov- 
ernment as  a  means  of  protecting  its  national 
safety  and  its  economic  welfare. 

The  second  point  which  I  should  like  to  discuss 
with  you  today  is  in  connection  with  the  sanctity 
of  concession  contracts.  There  has  been  no  change 
in  the  State  Department's  position  on  this  subject. 
It  still  upholds  the  principle  enunciated  in  the 
Anglo-American  oil  agreement  "That  the  Gov- 
ermnent  of  each  country  and  the  nationals  thereof 
shall  respect  all  valid  concession  contracts  and  law- 
fully acquired  rights,  and  shall  make  no  effort 
unilaterally  to  interfere  directly  or  indirectly  with 
such  contracts  or  rights."  I  want  to  make  this 
perfectly  clear,  as  some  misconception  has  devel- 
oped recently  on  the  part  of  some  of  the  American 
oil  companies.  This  principle  was  amplified 
somewhat  in  the  recent  broadcast.  Concession 
contracts  are  usually  granted  for  periods  ranging 
from  50  to  75  years.  Conditions  which  are  present 
at  the  time  the  concession  is  granted  may  often 
change  with  the  progress  of  economic  and  social 
advancement  so  that,  after  a  period  of  years,  dis- 
satisfaction on  the  part  either  of  the  grantor  or  the 
concessionaire  may  creep  in  and  gradually  develop 
until  some  form  of  unilateral  decisive  action  be- 
comes inevitable.  The  history  of  the  oil  business 
abroad  gives  ample  evidence  of  such  occurrences. 
It  was  suggested  in  the  broadcast  that  should  such 
a  dispute  arise  it  would  be  well  to  have  some 
tribunal  before  which  both  parties  to  the  dispute 
could  appear  voluntarily  and  be  heard  so  that  the 
world  would  know  the  rights  and  wrongs  of  the 
case.  Such  action  would  be  suggested  at  the  incep- 
tion of  the  difficulty  so  that  the  disagreement 
would  not  be  permitted  to  fester  mitil  drastic 
action  became  the  only  solution.  I  find  no  incon- 
sistency with  this  procedure  in  anything  that  was 
said  in  the  recent  broadcast. 


868 


Department  of  State  BvUetin     *     November  TO,  1946 


THE  RECORD   OF  THE  WEEK 


The  third  point  has  to  do  with  the  extent  of 
governmental  control  over  the  petroleum  industry 
as  envisioned  in  the  Anglo-American  oil  agree- 
ment and  in  its  possible  expansion  to  a  multilateial 
oil  agreement.  The  former  agreement,  in  the  opin- 
ion of  able  counsel,  is  based  upon  voluntary  com- 
pliance as  specifically  stated  in  Article  VI5  of  the 
agreement  itself,  and  nowhere  is  there  either  stated 
or  implied  any  power  of  enforcement  either  in  the 
terms  of  the  agreement  or  in  the  function  assigned 
to  the  International  Petroleum  Commission  pro- 
posed thereunder.  This  point  was  discussed  ex- 
haustively with  the  representatives  of  the  oil  in- 
dustry and  their  counsels  during  the  rewriting  of 
the  original  agreement.  The  wording  was  satis- 
factory to  the  industry  as  well  as  to  the  Govern- 
ment representatives  of  both  the  United  States  and 
Great  Britain.  I  have  been  intimately  connected 
with  the  negotiations  from  their  inception  and  I 
can  unliesitatingly  assure  you  that  there  has  been 
complete  unanimity  on  this  subject.  Either  the 
industry  advisers  or  the  negotiators  would  have 
seriously  objected  to  the  terms  of  the  agreement  if 
there  had  been  any  doubt  on  this  point. 

Now  as  to  the  multilateral  agreement.  It  is  to 
be  presiuned  that  it  would  be  the  natural  out- 
growth of  the  Anglo-American  oil  agreement  since 
that  agi-eement  contemplates  an  expansion  from 
the  interim  bilateral  phase  to  a  permanent  multi- 
lateral agreement  embracing  all  interested  pro- 
ducing and  consuming  countries.  It  is  true,  how- 
ever, that  no  such  determination  can  be  made  until 
the  agreement  has  received  the  approval  of  the 
Senate  Foreign  Relations  Committee  and  is  voted 
upon  affirmatively  by  the  Senate.  On  the  other 
hand,  as  suggested  in  the  broadcast,  some  sort  of  a 
multilateral  agreement  might  possibly  emanate 
from  the  United  Nations,  presumably  from  the 
Economic  and  Social  Council.  There  is  nothing 
in  the  charter  of  the  Economic  and  Social  Coun- 
cil that  would  pi'event  it  from  setting  up  a  com- 
mission to  handle  petroleum.  But,  irrespective  of 
the  origin  of  such  a  commission,  it  is  reasonable  to 
assume  that  it  or  any  other  established  intei-na- 
tional  economic  agency  will  be  brought  eventually 
into  relationship  with  the  United  Nations.  You 
may  be  assured  that  whatever  course  of  action  is 
eventually  undertaken,  this  Government  has  never 


contemplated  giving  more  than  advisory  functions 
to  any  international  body  in  the  petroleum  field 
created  either  under  the  Anglo-American  oil  agree- 
ment or  under  the  United  Nations. 

I  have  spoken  repeatedly  today  of  the  Anglo- 
American  oil  agi'eement  and  have  emphasized 
that  no  provision  in  that  agreement  is  to  be  con- 
strued as  requiring  either  the  Government  or  its 
nationals  to  comply  with  any  report  or  proposal 
made  by  the  International  Petroleum  Commission. 
I  have  emphasized  that  particular  phase  of  the 
agreement  advisedly,  since  there  has  been  some 
misunderstanding  on  this  point. 

I  should  like  to  conclude  by  attempting  to  give 
to  you  some  idea  of  the  gi'eat  contribution  to  peace 
and  world-wide  economic  prosperity  that  I  see  in 
an  international  agreement  on  a  commodity  as 
vital  and  as  volatile  as  oil.  I  feel  that  such  an 
attempt  is  of  particular  interest  to  your  associa- 
tion as  leaders  in  an  industry  of  which  we  as  Amer- 
ican oilmen  can  be  truly  proud. 

I  see  in  a  broad  international  understanding  on 
the  conduct  of  the  international  trade  in  oil  these 
advantages — all  of  which  formed  the  background 
and  are  encompassed  by  the  Anglo-American  oil 
agreement. 

1.  It  seems  to  me  that  such  an  agreement  would 
provide  for  a  cooperative  approach  to  common 
problems,  specifically  for  the  establishment  of  a 
forum  where  technical  and  economic  problems  in 
the  field  of  petroleum  may  be  openly  and  frankly 
discussed  by  expert  government  representatives. 
In  so  doing  it  would  provide  for  full  and  adequate 
government-industry  collaboration  and  consul- 
tation. 

2.  Such  an  agreement  would  lay  the  foundation 
for  negotiating  a  multilateral  agreement  based 
upon  the  acceptance  by  all  the  interested  produc- 
ing and  consuming  countries  of  fair  and  equitable 
principles  as  a  means  of  promoting  their  national 
and  economic  well-being. 

3.  Such  an  agreement  would  tend  to  eliminate 
practices  and  arrangements  restrictive  to  an  ex- 
panding international  trade  in  petroleum  whether 
such  harmful  activities  reflect  governmental  or 
private  policy. 

4.  Such  an  agreement  would  embody  a  formal 


869 


THE   RECORD  OF  THE  WEEK 


recognition  by  the  governments  concerned  of  the 
l^rinciple  of  equal  commercial  opportunity  and  fur- 
thermore a  recognition  that  when  rights  are  ac- 
quired to  explore  for  oil  and  to  develop  petroleum 
resources  in  any  other  country,  the  interests  of  such 
producing  country  should  be  safeguarded  with  a 
view  to  its  economic  advancement. 

5.  Such  an  agreement  would  assert  a  definite 
respect  for  valid  concession  contracts  and  other 
lawfully  acquired  rights  and  provide  against  mo- 
lestation of  such  rights  by  either  a  country  or  its 
nationals;  thus  it  should  dissipate  the  atmosphere 
of  suspicion  and  mistrust  and  create  a  new  climate 
in  which  future  petroleum  problems  may  find  full- 
est government-industry  cooperation. 

6.  Lastly,  and  not  the  least  in  importance,  such 
an  agreement  would  provide  the  means  through 
which  difficulties  which  may  arise  in  our  interna- 
tional petroleum  relations  may  be  met  and  an  at- 
tempt made  to  resolve  them  at  their  inception  by 
free  and  open  discussion  by  the  parties  at  interest 
so  that  such  difficulties  may  not  be  permitted  to 
develop  into  issues  of  major  proportions. 

It  is  for  these  reasons  then  that  I  consider  an 
international  agreement  on  oil  an  extremely  im- 
portant step  forward  in  our  foreign  relations.  It 
will  serve  to  bring  about  international  good  will 
and  understanding  in  the  field  of  vital  commodity, 
one  that  has  definitely  become  of  major  importance 
to  our  own  national  security  and  economic  well- 
being  as  well  as  to  that  of  other  nations  through- 
out the  world.  It  will  contribute  largely  to  the  at- 
tainment of  peace  and  prosperity  among  nations 
through  the  promotion  of  cooperative  understand- 
ing and  through  the  elimination  of  the  many 
causes  of  friction  that  have  marred  international 
relations  in  the  past. 

Naval  Mission  Agreement  With 
Colombia 

[Released  to  the  press  October  14] 

In  conformity  with  the  request  of  the  Govern- 
ment of  the  Republic  of  Colombia  there  was  signed 
on  October  14,  at  3 :  45  p.m.,  by  Acting  Secretary 
Acheson  and  Carlos  Sanz  de  Santamaria,  Am- 
bassador Extraordinary  and  Plenipotentiary  of 
Colombia  to  the  United  States  of  America,  an 


agreement  providing  for  a  United  States  naval 
mission  to  Colombia  for  the  purpose  of  instruction 
of  the  personnel  of  the  Colombian  Navy. 

The  agreement  is  to  continue  in  force  for  four 
years  from  the  date  of  signature  and  may  be  ex- 
tended beyond  that  period  at  the  request  of  the 
Government  of  Colombia. 

The  provisions  of  the  agreement  are  similar  to 
those  in  agi-eements  between  the  United  States  and 
other  American  republics  providing  for  the  detail 
of  officers  and  enlisted  men  of  the  United  States 
Army,  Navy,  or  Marine  Corps  to  advise  the  armed 
forces  of  those  countries.  The  provisions  relate  to 
the  duties,  rank,  and  precedence  of  the  personnel  of 
the  mission,  the  travel  accommodations  to  be  pro- 
vided for  the  members  of  the  mission  and  their 
families,  the  provision  of  suitable  medical  atten- 
tion for  the  members  of  the  mission  and  their 
families,  and  related  matters. 

Nazi  Conspiracy  and  Aggression, 
Volume  V 

The  recent  verdicts  in  the  Niirnberg  trials  and 
the  execution  of  the  Nazi  war  criminals  have  caused 
a  reawakening  of  interest  in  the  documents  which 
aided  the  war  crimes  prosecution  in  obtaining 
a  just  and  legal  verdict  of  guilty.  These  docu- 
ments are  being  made  available  to  the  general 
public  in  a  series  of  eight  volumes,  three  of  which 
(volumes  III,  IV,  and  V)  have  already  been  com- 
pleted and  are  currently  available  at  the  office  of 
the  Superintendent  of  Documents,  U.  S.  Govern- 
ment Printing  Office,  Washington,  D.  C.  The 
eight-volume  set  is  being  sold  for  $18,  delivery 
being  made  of  each  volume  as  it  comes  off  the  press. 

Volumes  I  and  II,  yet  to  be  published,  will  offer 
explanatory  material  in  essay  form,  giving  back- 
ground material  and  explaining  the  documents 
which  appear  in  the  latter  six  volumes  of  the  series. 
The  documents  cover  the  methods  used  by  the  Nazi 
conspirators  to  gain  control  of  Germany,  their 
political  purge,  destruction  of  unions,  slave  labor 
and  concentration  camps,  and  the  plans  of  aggres- 
sion and  destruction  which  launched  the  past  war. 
A  minimum  of  legal  phraseology  is  used,  since  the 
series  is  intended  primarily  for  the  general  public. 


870 


Department  of  State  Bulletin     •     November  10,  1946 


Aid^for  American  Veterans  To  Study  Abroad 


The  Department  of  State  and  the  Veterans  Ad- 
ministration are  cooperating  in  the  policy  of  aid- 
ing American  veteran  students,  who  have  the  de- 
sire and  aptitude  to  study  abroad,  under  a  program 
which  it  is  expected  will  contribute  greatly  to  the 
furtherance  of  the  international  understanding 
so  vital  to  peace  in  the  post-war  world.  Accord- 
ing to  the  records  of  the  Central  Office  of  the  Vet- 
erans Administration,  Washington,  D.C.,  more 
than  1,100  veterans  who  have  indicated  definite  de- 
sire to  study  abroad  have  already  received  certifi- 
cates of  eligibility  entitling  them  to  educational 
benefits.  In  addition  to  this  number,  hundreds  of 
other  certificates  of  eligibility  have  been  issued  for 
education  in  foreign  institutions  by  regional  offices 
of  the  Veterans  Administration  throughout  the 
country.  In  addition,  approximately  350  students 
already  have  been  successfully  enrolled  in  foreign 
institutions.  Veterans  on  the  rolls  are  widely 
scattered,  41  institutions  in  14  countries  being 
represented. 

A  list  comprising  903  foreign  institutions  at 
which  veterans  may  study  under  the  Servicemen's 
Keadjustment  Act  (the  "G.  I.  Bill")  has  been  ap- 
proved by  the  Veterans  Administration.  These 
approved  institutions  are  located  in  68  countries 
throughout  the  globe  and  include  many  of  the 
world's  leading  universities,  colleges,  and  profes- 
sional schools,  as  well  as  art  and  music  conserva- 
tories, technical  schools,  and  other  specialized 
institutions.^ 

Ranging  from  Reykjavik,  Iceland,  on  the  north, 
to  Dunedin,  New  Zealand,  on  the  south,  the  list 
includes,  in  addition  to  the  renowned  institutions 
which  have  long  attracted  American  students  to 
Euroi^e,  Latin  America,  and  the  Far  East,  many 
mstitutions  in  areas  where  few  Americans  have 
studied  before,  such  as  a  university  at  Malta  and 
an  agricultural  college  on  the  island  of  Mauritius. 

The  list  of  approved  institutions  as  it  now  stands 
is  not  a  final  one,  since  it  is  supplemented  periodi- 
cally upon  request  of  veterans  wishing  to  enrol 
for  courses  in  institutions  not  already  approved. 


For  example,  an  institution  in  Iceland  was  added 
at  the  request  of  a  veteran  who  married  an  Ice- 
landic girl  while  he  was  stationed  in  that  country 
and  who  desired  to  return  there  to  study  the  silver- 
smith's trade. 

The  requests  of  veterans  to  attend  certain  insti- 
tutions are  always  given  careful  consideration,  and 
if  there  is  any  question  regarding  the  status  of  the 
institution  concerned,  the  Foreign  Service  estab- 
lishments of  the  Department  of  State  make  neces- 
sary investigations  and  submit  data  for  the  con- 
sideration of  the  Veterans  Administration. 

Canada  leads  all  other  foreign  countries  in  the 
number  of  approved  institutions,  the  present  total 
being  221.  England  has  141;  France,  63;  Italy, 
52;  Switzerland,  43;  Australia,  27;  China,  23; 
Mexico,  27;  Scotland,  21;  India,  19;  Belgimn,  15; 
Colombia,  13 ;  and  Denmark  and  Sweden,  12  each. 

A  veteran  desiring  to  attend  a  foreign  institu- 
tion must  first  apply  for  benefits  under  the  Service- 
men's Readjustment  Act.  The  Veterans  Admin- 
istration Form  1950,  "Application  for  Education 
or  Training",  may  be  obtained  from  the  Regional 
Veterans  Administration  office  nearest  the  vet- 
eran's residence,  from  the  Central  Office  of  the  Vet- 
erans Administration,  Washington,  D.C.,  or  in 
foreign  countries  from  the  nearest  diplomatic  or 
consular  office  of  the  United  States.  This  com- 
pleted form  together  with  a  photostatic  copy  of 
the  honorable  discharge  papers  of  the  veteran 
jnust  be  returned  to  the  office  from  which  the  Form 
1950  was  obtained.  A  Veterans  Administration 
Form  1953,  "Certificate  of  Eligibility  and  Entitle- 
ment", is  then  issued  to  the  veteran.  This  form 
enables  him  to  enrol  in  any  institution  approved 
by  the  Veterans  Administration. 

As  soon  as  he  has  selected  the  institution  which 
he  desires  to  attend,  the  veteran  should  contact  the 
institution  and  request  acceptance  therein.  Not 
until  he  has  been  notified  by  the  institution  of  his 


'  For  list  of  the  foreign  institutions,  see  Department  of 
State  press  release  769,  Oct.  31,  1946. 


871 


THE   RECORD  OF  THE  WEEK 


acceptance  should  he  arrange  for  his  passport, 
visas,  and  transportation.  It  is  not  possible  to 
obtain  travel  allowances  as  part  of  the  veteran's 
benefits  under  the  provisions  of  Public  Law  346, 
known  as  the  "G.I.  Bill  of  Rights." 

Immediately  upon  his  enrolment  in  the  institu- 
tion, the  veteran  should  submit  his  Form  1953  to 
the  institution  for  endorsement.  This  endorsed 
form,  together  with  a  certified  statement  from  an 
official  of  the  institution  giving  information  re- 
garding the  classification,  course  being  pursued, 
whether  part-time  or  full-time  student,  etc.,  will 
then  be  sent  to  the  nearest  American  diplomatic 
or  consular  officer  for  transmittal  via  State  De- 
partment channels  to  the  Veterans  Administra- 
tion. This  procedure  must  be  completed  before 
subsistence  allowance  may  be  authorized. 

The  educational  benefits  under  the  Servicemen's 
Readjustment  Act,  which  include  provision  for 
tuition  and  fees  up  to  $500  for  a  regular  school 
term  and  subsistence  allowance  of  $65  or  $90  per 
month,  are  oj^en  to  qualified  veterans  who  initiate 
their  course  of  study  not  later  than  four  j^ears 
after  the  date  of  discharge  or  the  termination  of 
World  War  II,  whichever  is  the  later. 

Veterans  of  World  War  II  who  desire  to  at- 
tend institutions  in  foreign  countries  under  the 
provisions  of  the  "G.  I.  Bill  of  Rights"  are  ad- 
vised of  the  following  limitations  and  problems : 

1.  Approval  of  institutions  by  the  Veterans  Ad- 
ministration does  not  indicate  that  it  is  currently 
possible  for  veterans  to  attend  them  in  every  case, 
because  certain  countries  and  institutions  have 
found  it  impossible  to  accommodate  foreign  stu- 
dents during  the  immediate  post-war  period. 

2.  All  veterans  who  desire  to  study  abroad 
should  bear  in  mind  that  they  will  likely  encounter 
difficulties  in  connection  with  high  costs  of  liv- 
ing which,  together  with  restrictions  preventing 
American  students  from  taking  part-time  jobs 
while  attending  school,  make  it  impossible  in  many 
foreign  countries  for  the  veteran's  subsistence 
allowance  ($65  for  a  single  veteran,  or  $90  for  a 
veteran  with  a  dependent)  to  cover  minimum 
expenses. 

"Bulletin  of  Sept.  8,  1946,  p.  464,  and  Oct.  13,  1946, 
p.  690. 


3.  Differences  in  scholastic  standards  pose  an- 
other jn'oblem  which  confronts  the  veteran  study- 
ing abroad.  Some  of  the  leading  imiversities  in 
Europe  will  not  admit  American  students  before 
they  have  completed  two  or  more  years  of  under- 
graduate study,  and  some  insist  on  knowledge  of  a 
foreign  language  as  a  prerequisite  to  enrollment. 

4.  There  are  also  to  be  considered  differences  in 
scholastic  credits  and  classifications,  which  often- 
times render  it  difficult  to  transfer  from  American 
to  foreign  institutions,  and  vice  versa. 

5.  Housing,  food,  and  clothing  shortages  as  well 
as  other  unfavorable  post-war  conditions  in  the 
occupied  territories  of  Germany,  Austria,  Japan, 
and  Korea,  preclude  the  possibility  of  study  in 
these  areas  on  the  part  of  American  veterans  or 
other  citizens  of  the  United  States  during  the 
immediate  future. 

Veterans  wishing  to  study  abroad  should  request 
information  on  all  such  problems  regarding  the 
institution  and  the  foreign  country  in  wliich  they 
are  interested  by  addressing  their  inquiries  to  the 
Foreign  Education  Division  of  the  Veterans  Ad- 
ministration, Washington,  D.C.,  if  residing  in  the 
United  States,  or  to  the  nearest  diplomatic  or 
consular  office  of  the  United  States,  if  residing 
abroad. 

Coffee  Request  to  Brazil  Terminated 

[Released  to  the  press  October  22] 

The  Department  of  State  announced  on  October 
22  that  a  note  had  been  presented  to  the  Brazilian 
Embassy  in  Washington  withdrawing  the  request 
made  on  September  28,  1946,  for  500,000  bags  of 
coffee  to  be  placed  on  the  market  in  October  1946.^ 

This  action  was  taken  as  the  "Memorandiun  of 
Understanding  between  the  Governments  of 
Brazil  and  the  United  States  of  America  concern- 
ing coffee  prices  and  supplies"  was  terminated  by 
the  decontrol  of  coffee  prices  announced  by  the 
Office  of  Price  Administration  on  October  17, 
1946.  The  memorandum  of  understanding  men- 
tioned above  was  to  endure  until  March  31,  1947 
or  as  long  as  coffee  was  subject  to  price  control, 
whichever  was  the  shorter  23eriod. 


872 


Department  of  State  Bulletin     •     November  10,  1946 


THE  RECORD   OF  THE  WEEK 


Recipients  Under  Cultural 
Cooperation  Program 

The  Department  of  State  announced  on  October 
16  the  awarding  of  grants-in-aid  to  three  Ameri- 
can educators  under  the  program  providing  for 
the  exchange  of  professors  and  technical  experts 
between  this  country  and  the  other  American 
republics. 

Frederick  L.  Adair,  former  professor  of  ob- 
stetrics and  gynecology  of  the  University  of  Chi- 
cago, and  former  chief  of  the  medical  staff  of  the 
Lying-in-Hospital  of  the  Univereity  of  Chicago, 
will  lecture  at  the  universities  in  Buenos  Aires, 
Cordoba,  Santa  Fe,  and  La  Plata.  He  has  been 
invited  by  the  Society  of  Obstetrics  and  Gyne- 
cology of  Argentina  as  a  special  delegate  to  the 
Sixth  Argentine  Congi-ess  of  Obstetrics  and  Gyne- 
cology and  will  deliver  several  lectures  and  medi- 
ate in  the  discussion  of  these  subjects. 

A.  C.  Howell,  professor  of  English,  University 
of  North  Carolina,  will  serve  for  a  year  as  visiting 
professor  of  English  and  American  literature  at 
the  National  University  of  San  Carlos,  Guatemala. 
Mark  Hanna  Watkins,  professor  of  anthro- 
pology and  sociology,  Fisk  University,  Nashville, 
Tennessee,  will  spend  a  year  in  Guatemala  to  make 
a  survey  of  the  Indian  language  of  Guatemala, 
under  the  technical  direction  of  the  National 
Indian  Institute  of  Guatemala. 

On  October  18  the  Department  of  State  an- 
nounced two  additional  grants-in-aid  to  Ameri- 
cans to  lecture  and  teach  in  the  American  republics. 
Albert  L.  Delisle,  formerly  assistant  professor 
of  biology,  College  of  William  and  Mary,  Wil- 
liamsburg, Virginia,  will  serve  as  head  of  the  de- 
partment of  botany  at  the  National  College  of  Ag- 
riculture, Medellin,  Colombia.  He  will  i-emain  in 
Colombia  for  one  year,  teaching  courses  in  general 
biology,  elementary  and  advanced  botany,  plant 
taxonomy,  and  plant  physiology. 

Herman  H.  Henkle,  director,  processing  depart- 
ment, Library  of  Congress,  will  confer  with  lead- 
ing librarians  of  Guatemala,  Venezuela,  Brazil, 
Argentina,  Uruguay,  Chile,  and  Peru  during  the 
period  from  October  9  to  November  18, 1946. 

The  Department  of  State  on  October  17  an- 
nounced that  Yeh  Chien-yu,  Chinese  cartoonist 


and  artist,  will  spend  a  year  in  this  country  under 
the  cultural-cooperation  program.  After  a  two- 
week  tour  of  art  centers  and  museums  in  Cali- 
fornia, Mr.  Yeh  arrived  in  Washington  in  Octo- 
ber and  is  expected  to  spend  one  or  two  months 
visiting  art  centers  and  museums  in  the  East. 

Non-Military  Activities  in  Japan 

Sun-mation  no.  11  for  the  month  of  August, 
1946  of  non-military  activities  in  Japan,  consist- 
ing of  information  on  political,  economic,  and 
social  activities,  was  released  to  the  press  simul- 
taneously by  General  Headquarters,  Supreme 
Commander  for  Allied  Powers,  Tokyo,  and  by  the 
War  Department  in  Washington  on  October  20. 


THE  DEPARTMENT 
Appointment  of  Officers 

Warde  M.  Cameron  as  Executive  Assistant,  Office  of 
Assistant  Secretary  for  Occupied  Areas,  effective  May  2, 
1946. 

Ernest  A.  Gross  as  Special  Assistant,  Office  of  Assistant 
Secretary  for  Occupied  Areas,  efCective  May  4, 1946. 

Norman  T.  Ness  as  Director,  Office  of  Financial  and 
Development  Policy,  efCective  August  12,  1946. 

Dallas  W.  Dort  as  Adviser  on  Relief  and  Rehabilitation, 
Office  of  Assistant  Secretary  for  Economic  Affairs,  effec- 
tive September  8,  1946. 

Harlow  J.  Heneman  as  Special  Assistant,  Office  of 
Assistant  Secretary  for  Occupied  Areas,  effective  Septem- 
ber 25,  1946. 

Clare  H.  Timberlake  as  Chief,  Division  of  African 
Affairs,  effective  October  7,  1916. 

Robert  P.  Terrill  as  Associate  Chief,  International  Re- 
sources Division,  effective  October  20,  1946. 

Code  of  Federal  Regulations,  Title  22 

AUTHORITY  TO  ACCEPT  REPARATIONS 
PAYMENT' 

§301.30  Authority  to  accept  reparations  payment. 
The  Director  of  the  Office  of  Economic  Security  Policy, 
under  the  general  direction  of  the  Assistant  Secretary  for 
Economic  Affairs  and  in  accordance  with  current  general 
policies  of  the  Department,  shall  be  responsible  for  ne- 
gotiating for  and  accepting  on  behalf  of  the  United  States 


'  11  Federal  Register  12609. 


873 


THE  RECORD  OF  THE  WEEK 


Government  both  property  and  funds  allocated  to  the 
United  States  as  reparations  payments.  The  Director  of 
the  Office  of  Economic  Security  Policy,  acting  for  the  De- 
partment of  State  as  the  owning  agency  in  case  of  physical 
property,  will  declare  such  property  surplus,  when  appro- 
priate, and  make  it  available  to  the  proper  disposal  agency 
subject  to  such  special  considerations  as  are  contained  in 
the  international  agreements  under  which  such  property 
is  allocated  to  the  United  States.  Funds  received,  either 
directly  as  reparations  payments  or  as  a  result  of  sales  of 
physical  property,  will  be  deposited  in  a  special  account 
in  the  United  States  Treasury.  More  specifically,  the 
Director  shall : 

(a)  Arrange,  in  cooperation  with  appropriate  officials 
of  the  Department  of  Commerce,  to  establish  and  chair  an 
Interdepartmental  Advisory  Committee  on  Reparations 
Property  for  the  purpose  of  securing  the  advice  and  recom- 
mendations of  other  interested  Government  agencies. 

(6)  Receive  data  provided  by  the  Allied  Control  Council 
(ACC)  and  the  Inter-Allied  Reparation  Agency  (I.-VRA) 
with  respect  to  properties  which  become  available  as 
reparations  and  transmit  it  to  the  secretariat  of  the  In- 
terdepartmental Advisory  Committee  for  circularization 
to  all  interested  United  States  agencies  and  business  firms. 

(o)  Determine  the  properties  to  be  sought  for  allocation 
to  the  United  States  as  reparations  on  the  basis  of  the  rec- 
ommendations of  the  Interdepartmental  Advisory  Com- 
mittee, and  conduct  necessary  correspondence  with  the 
Allied  Control  Council  (ACC),  Inter-Allied  Reparation 
Agency  (lARA),  and  such  other  agencies  or  governments 
as  may  be  appropriate. 

(R.S.  161,  Pub.  Law  584,  79th  Cong.;  5  U.S.O.  22) 

This  regulation  shall  become  effective  immediately 
upon  publication  in  the  Federal  Register. 

[seal]  Dean  Acheson, 

Acting  Secretary  of  State 

Departmental  Regulations 

116.1    Office    of    the    Legal    Adviser    (Le):     (Effective 

9-6-46) 

I        Functions.    The  functions  of  Le  shall  include: 

A        Economic  Affairs. 

1  Providing  legal  services  for  the  Under  Secretary 
for  Economic  Affairs,  the  Assistant  Secretary  for  Eco- 
nomic Affairs  and  for  the  offices  (other  than  the  Office 
of  Foreign  Liquidation)  under  the  direction  of  the 
Assistant  Secretary  for  Economic  Affairs,  and  economic 
matters  otherwise  arising  in  the  Department. 
B         Treaties  and  Other  International  Agreements. 

1  Collecting,  compiling,  and  maintaining  informa- 
tion pertaining  to  treaties  and  other  international 
agreements. 


2  Performing  research  and  furnishing  information 
and  advice  with  respect  to  the  provisions  of  such  exist- 
ing or  proposed  instruments. 

3  Procedural  matters,  including  the  preparation 
of  full  powers,  ratifications,  proclamations,  and  protocols. 

4  Matters  related  to  the  signing  of  ratifications, 
proclamations,  and  registration  of  treaties  and  other 
international  agreements. 

5  Custody  of  the  original  texts  of  treaties  and 
other  international  agreements. 

6  Typing  and  binding  of  the  official  (ribbon)  copies 
of  treaties,  agreements,  and  so  forth,  prepared  in  the 
Department  of  State. 

C        Public  Affairs.     (Added  10-21^6) 

1  Providing  legal  services  for  the  Assistant  Secre- 
tary for  Public  Affairs,  and  for  the  Offices  and  Divisions 
under  the  direction  of  the  Assistant  Secretary  for  Public 
Affairs. 

II        Organization. 

A        Assistant  Legal  Adviser  for  Economic  Affairs. 
B        Assistant   Legal  Adviser  for   Special  Legal   and 
Public  Affairs.     (Added  10-21-46) 

182.6    Advisory   Committee   on   Voluntary   Foreign   Aid 
(VFA):   (Effective  5-14-46) 

I        Functions. 

A  The  Advisory  Committee  on  Voluntary  Foreign 
Aid  (VFA)  was  established  under  authority  of  similar 
letters  from  the  President  to  the  Secretaries  of  State  and 
Agriculture  on  May  14,  1946,  "to  tie  together  the  Govern- 
mental and  private  programs  in  the  field  of  foreign  relief 
and  to  work  with  the  Famine  Emergency  Committee  and 
other  interested  agencies  and  groups" ;  and  for  the  pur- 
pose of  continuing  the  liaison  advisory  and  consultative 
functions  formerly  performed  by  the  President's  War  Re- 
lief Control  Board  terminated  by  Executive  Order  9723 
of  May  14,  1946. 

B  The  Committee  exercises  advisory  functions  to 
guide  the  public  and  agencies  seeking  support  of  the 
public,  in  the  solicitation  and  appropriate  and  productive 
use  of  contributions  for  voluntary  foreign  aid,  including 
projects  of  a  related  character,  other  than  religious,  and 
donated  as  expressions  of  the  humanitarian  interest  of 
the  American  people  in  the  welfare  of  the  war-stricken 
people.     To  this  end  the  Committee  undertakes : 

1  Liaison  and  consultation  between  appropriate 
Federal,  international  and  other  public  authorities  and 
private  bodies  of  related  interests  to  facilitate  policies 
and  procedures. 

2  Appraisals  abroad  of  foreign  relief  and  other 
wants  appropriate  for  American  voluntary  support,  and 
of  the  evaluation  of  American  voluntary  operations. 

3  Maintenance  of  a  public  record  of  the  organiza- 
tion, programs,  operations,  receipts,  and  disbursements 


874 


Depariment  of  Sfafe  Bu//ef/n     •     November  TO,  J 946 


THE  RECORD   OF  THE  WEEK 


voluntarily  filed  by  agencies  making  appeals  for  foreign 

aid. 

4        Evaluation      of      voluntary      agency      programs, 

budgets  and  operations,  and  correlation  with  related 

public  programs  in  collaboration  with  appropriate  public 

authorities  and  private  bodies  of  interest. 

C  On  matters  concerning  the  foreign  policy  of  the 
tovernment  of  the  United  States,  the  Committee  will  be 
uided  by  the  Department  of  State. 

[  Okganization.  The  Advisory  Committee  is  com- 
osed  of  private  citizens  appointed  by  the  Secretary  of 
tate  and  the  Secretary  of  Agriculture  since  much  of  the 
ctivity  concerning  foreign  relief  is  now  centered  in  the 
•epartments  of  State  and  Agriculture.  Representatives 
nd  observers  of  the  Departments  of  State,  War,  Agricul- 
jre,  Commerce,  and  Justice,  and  of  the  United  Nations 
lelief  and  Rehabilitation  Administration,  the  Intergov- 
rnmental  Committee  for  Refugees,  and  the  American 
;ed  Cross  have  been  designated  by  the  heads  of  these 
gencies  to  collaborate  in  the  work  of  the  Committee  and 
J  participate  in  its  meetings  for  the  consideration  of 
latters  of  special  interest. 

II  Secretariat.  The  Secretariat  shall  serve  the 
advisory  Committee  and  act  at  its  direction  in  accom- 
ilishing  the  functions  enumerated  under  paragraph  I,  and 
s  follows : 

A  In  order  that  the  coordinating  relationship  with 
'Oluntary  foreign  relief  agencies  may  be  provided,  and 
heir  programs  integrated  with  public  programs,  as 
equested  by  the  President,  and  the  responsibility  therefor 
iischarged  as  effectively  as  possible,  the  Secretariat  of  the 
Advisory  Committee,  will  maintain  interdepartmental 
iaison  with  the  Departments  of  State  and  Agriculture 
(including  the  Famine  Emergency  Committee),  and  in 
•elated  matters  with  the  Departments  of  War,  Commerce, 
ind  Justice,  and  will  work  closely  with  the  staffs  of  these 
ind  other  Federal  agencies.  United  Nations  Relief  and 
Rehabilitation  Administration,  the  Intergovernmental 
:;ommittee  for  Refugees,  the  American  Red  Cross,  and 
private  agencies,  in  the  development  of  policies  and  pro- 
cedures of  mutual  interest  in  the  field  of  voluntary  foreign 
lid. 

B  The  Secretariat  will  assume  responsibility  for 
definitive  action  by  the  Advisory  Committee  on  matters 
within  its  terms  of  reference,  and  will,  in  related  matters 
which  require  policy  determination  or  i)rocedures  outside 
of  its  competence,  supply  the  appropriate  agency  with 
background  information  and  recommendations. 

C  Offices  and  Divisions  of  the  Department  of  State 
are  requested  to  bring  to  the  attention  of  the  Secretariat 
any  matters  involving  voluntary  foreign  aid  which  should 
receive  the  consideration  of  the  Advisory  Committee, 
including  Information  and  reports  received  from  abroad, 
or  extracts  from  general  reports  which  have  specific  refer- 
ence or  application  to  voluntary  foreign  aid  or  relief.     The 


Secretariat  shall  be  attached  to  the  Department  through 
the  Division  of  International  Labor,  Social  and  Health 
Affairs  (ILH)  which  will  provide  such  administrative 
services  and  facilities  for  the  Secretariat  as  may  be 
required  by  the  Advisory  Committee. 

193.3       Institute    of    Inter-American    Affairs    (IIAA): 

(Effective  5-20-46) 

I  Functions.  The  Institute  was  formed  to  aid  and 
improve  the  health  and  general  welfare  of  the  peoples  of 
the  Western  Hemisphere  in  collaboration  with  their 
governments ;  and  is  carrying  out  the  cooperative  program 
entered  into  under  agreements  with  the  other  American 
republics  in  the  fields  of  health  and  sanitation,  and  food 
supply.  Through  the  facilities  of  the  Institute,  admin- 
istrative and  other  general  services  are  performed  in  the 
United  States  and  in  the  other  American  republics  for  the 
Inter-American  Educational  Foundation,  Inc.  (lAEF), 
and  for  the  Institute  of  Inter-American  Transportation 
(HAT),  Prencinradio,  Inc.  (PCR),  and  the  Inter- Ameri- 
can Navigation  Corporation  (lANC),  these  last  three  cor- 
porations being  in  process  of  liquidation. 

II  Okganization,  Management,  and  Relation  to  the 

Depaktme3^t. 

A  The  Institute  is  a  membership  corporation  formed 
under  the  Laws  of  Delaware,  and  has  no  capital  stock. 
The  members  are  designated  by  the  Secretary  of  State,  and 
they  in  turn  elect  directors  from  their  own  number.  The 
Secretary  has  designated  as  members  of  the  Institute 
Assistant  Secretaries  Braden  (Chairman),  Benton,  Clay- 
ton, and  Russell,  together  with  a  representative  from 
the  Office  of  each  of  the  above-named  Assistant  Secretaries, 
and  two  operating  oflScials  of  the  Institute.  Each  of  the 
members  has  been  made  a  director.  The  Executive  Com- 
mittee is  composed  of  the  President  of  the  Institute  and 
the  representatives  from  the  offices  of  the  Assistant 
Secretaries. 

B  The  Board  of  Directors  has  full  management  of 
the  affairs  and  property  of  the  Institute,  and  elects  the 
officers  of  the  corporation  and  approves  the  appointment 
of  the  division  directors.  The  officers  and  division  di- 
rectors carry  on  the  Institute's  operations  in  accordance 
with  the  policies  and  resolutions  of  the  directors.  The 
Executive  Committee  acts  on  all  policy  matters  between 
meetings  of  the  Board.  The  Institute  has  its  own  ad- 
ministrative facilities,  both  in  the  United  States  and  in  the 
other  American  republics. 

C  Existing  liaison  relationships  and  communication 
channels  between  the  Institute  and  offices  of  the  Depart- 
ment have  not  been  changed  by  the  termination  of  the 
Ofiice  of  Inter-American  Affairs;  all  formal  policy  com- 
munications between  the  Department  and  tlie  Institute 
clear  through  the  office  of  the  Assistant  Secretary  for 
American  Republic  Affairs. 


875 


Economic  Affairs  p^gg 

International  Industrial  Control  of  Quinine. 

Article  by  Walter  M.  Rudolph 831 

U.S.  Delegation  to  Preparatory  Commission 

of  FAO 844 

U.S.  Technical  Group  Appointed  for  PICAO  .       845 

U.S.    Delegates   to    International   Telegraph 

Meeting 846 

Final  Session  of  the  Second  Pan  American 
Congress  of  Mining  Engineering  and 
Geology 846 

ILO  Industrial  Committee  on  Textiles   .    .    .       846 

Anglo-American  Oil  Policy:  Basis  of  Multi- 
lateral Trade.     By  Charles  Rayner  .    .    .       867 

General  Policy 

U.  S.-Arab  Views    on    Palestine  Problem: 
Exchange  of  Messages  Between  the  King 

of  Saudi  Arabia  and  the  President  .    .       848 
Electoral  Preparations  in  Rumania: 

U.S.  Views  Stated  in  Note  to  Rumanian 

Government 851 

United  States  Policy  on  Status  of  Austria  .    .       864 
Ninety  Surplus  Planes  Sold  to  Sweden.    .    .    .       865 

The  United  Nations 

Observance  of  UNESCO  Month: 

Statement  by  the  Secretary  of  State  .    .    .       841 
Statement  by  Assistant  Secretary  Benton   .       841 
Congressional  Advisers  to  UNESCO  .    .    .       842 
Transfer     of     Epidemiological     Information 
Services  from   UNRRA  to   Health   Or- 
ganization            842 

The  Foreign  Service 

National   War   College   and   Department   of 

State.     Article  by  Perry  N.  Jester  .   .    .       837 


Occupation  Matters  p^ 

The  Lawyer  in  Military  Government  of  Ger- 
many.    By  Charles  Fahy 852 

Control  Council  Proclamations  and  Laws  .    .  859 

Non-Military  Activities  in  Japan 873 

Treaty  Information 

Treaty  of  Friendship,  Commerce  and  Navi- 
gation With  China 866 

Inter-American  Indian  Institute:  Venezuela.  866 

Air  Base  Returned  to  Peru 866 

Anglo-American  Oil  Policy:  Basis  of  Multi- 
lateral Trade.     By  Charles  Rayner     .    .  867 
Naval  Mission  Agreement  With  Colombia     .  870 
Coffee  Request  to  Brazil  Terminated  .    .    .    .  872 

International  Organizations  and  Con- 
ferences 

Calendar  of  Meetings 843 

Educational,  Scientific,  and  Cultural 
Affairs 

Aid     for     .American     Veterans     To     Study 

Abroad 871 

Recipients  Lender  Cultural  Cooperation  Pro- 
gram         873 

The  Department 

Appointment  of  Officers 873 

Code  of  Federal  Regulations,  Title  22:  Au- 
thority To  Accept  Reparations  Pay- 
ment         873 

Departmental  Regulations 874 

Publications 

Nazi  Conspiracy  and  Aggression,  Volume  V  .       870 


'm(/t(vM 


Walter  If.  Rudolph,  author  of  "International  Industrial 
Control  of  Quinine",  is  Chief  of  the  Programs  Section, 
Industry  Branch,  Division  of  International  Resources, 
Office  of  International  Trade  Policy,  Department  of  State. 
Mr.  Rudolph  was  assisted  in  the  research  and  organiza- 
tion of  sections  II  and  III  of  the  article  by  Philip  H. 
Blaisdell,  formerly  Divisional  Assistant  in  the  Programs 
Section. 

Perry  N.  Jester,  F.S.O.,  author  of  the  article  on  the 
National  War  College,  is  an  officer-trainee  at  the  College. 
Mr.  Jester  was  formerly  Acting  Chief  of  the  Division  of 
Training  Services,  Office  of  the  Foreign  Service,  Depart- 
ment of  State. 


O.  t    COVKRNMENT  PRINTINC   0FPtC|ilfl4f 


^rie/  ^e^a^t^i^e^U/  .(>^ tnaie^ 


ANNOUNCEMENT  OF  TRADE-AGREEMENT  NEGOTIA- 
TIONS 907 

INTERNATIONAL  CONTROL  OF  DANGEROUS  DRUGS. 

Anide  by  George  A.  Morlock 835 

PRIVATE     INTERNATIONAL     AIR     LAW     DEVELOP- 
MENTS. 

Article  by  Stephen  Latch/ord 879 


Vol.  XV,  No.  385 
November  17,1946 


For  complete  contents  see  back  cover 


U.  S.  SUPERINTENDENT  Of  DOCUMENTS 

DEC   U  1946 


^Ae  zl^ehct/yi^ryie^  /)^  tnule 


^mv(mAtd<yy^ 


Duncan  Wall,  author  of  the  article  on  the  FAO  Copenhagen 
Conference  and  the  FAO  Preparatory  Commission,  was  Secre- 
tary to  the  American  Delegation  to  the  FAO  Conference  at 
Copenhagen.  Mr.  Wall  Is  head  of  the  Division  of  Foreign  Infor- 
mation and  Statistics,  Office  of  Foreign  Agricultural  Relations, 
Department  of  Agriculture. 

Stephen  Latchford,  author  of  the  article  on  private  interna- 
tional air  law,  is  Aviation  Advi-ser,  Aviation  Division,  Office  of 
Transport  and  Communications,  Department  of  State,  and 
chairman  of  the  United  States  section  of  CITEJA.  Mr.  Latch- 
ford was  an  adviser  to  the  United  States  delegation  to  the  First 
Interim  Assembly  of  PICAO  held  at  Montreal  in  May  and 
June  1946. 

J.  Paul  Barringer,  author  of  the  article  on  the  recent  PICAO 
Conference  on  North  Atlantic  Ocean  Weather  Observation  Sta- 
tions, is  Assistant  Chief,  Aviation  Division,  Office  of  Transport 
and  Communications,  Department  of  State,  and  he  was  Ameri- 
can delegate  to  the  PICAO  conference. 

George  A.  Morlock,  author  of  the  article  on  control  of  danger- 
ous drugs,  is  Chief  of  the  Narcotics  Section,  Division  of  Inter- 
national Labor,  Social  and  Health  Affairs,  Office  of  International 
Trade  Policy,  Department  of  State. 


For  sale  by  the  Superintendent  of  Documents 

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bulletin 

Vol.  XV,  No.  385    •    Publication  2694 
November  17,  1946 


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PRIVATE  INTERNATIONAL  AIR  LAW  DEVELOPMENTS 


iy  Stephen  Latehfard 


The  principal  topics  discussed  by  the  International  Technical 
Committee  of  Aerial  Legal  Experts  in  July  191^.6  were  as  fol- 
lows: air-carrier  liability  for  damages  to  persons  and  prop- 
erty; recordation  cf  title  to  aircraft  and  aircraft  mortgages  ; 
and  legal  status  of  aircr'aft  personnel  and  commander.  This 
article  explains  views  of  the  United  States  Government  on 
merging  of  CITE  J  A  activities  into  functions  of  the  committee 
on  international  air  Iww  provided  for  hy  the  First  Assembly 
ofPICAO. 


The  First,  Third,  and  Fourth  Commissions  of 
CITEJA  met  in  Paris  in  July  194G.  The  purpose 
of  these  CITEJA  ^  meetings  was  to  make  prepara- 
tions for  the  sessions  of  CITEJA  held  in  Cairo, 
Egypt,  in  November  1946.  The  CITEJA  commis- 
sions met  at  Cairo  beginning  on  November  G, 
and  the  fifteenth  plenary  session  of  CITEJA  be- 
gan on  November  14  and  was  scheduled  to  last 
until  November  19.  The  following  countries  were 
represented  at  the  July  1946  sessions  in  Paris: 
United  States,  Belgium,  Egypt,  Finland,  France, 
United  Kingdom,  Greece,  Hungary,  Italy,  Nethei'- 
lands,  Switzerland,  and  Czechoslovakia.  In  addi- 
tion to  the  president  of  the  CITEJA,  J.  P.  Niboyet, 
and  the  secretary  general,  Edmond  Sudre,  there 
was  a  total  of  28  representatives  of  the  countries 
listed. 


The  following  persons  attended  the  CITEJA 
sessions  in  July  as  observers :  Albert  Roper,  who  is 
at  present  the  secretary  general  of  both  the  Pro- 
visional International  Civil  Aviation  Organiza- 
tion (PICAO) — provided  for  in  the  interim  agree- 
ment on  international  civil  aviation  adopted  at 
Chicago  on  December  7, 1944 — and  of  the  Interna^ 
tional  Commission  for  Air  Navigation  (ICAN)  — 
functioning  under  the  international  convention  for 
the  regulation  of  aerial  navigation  adopted  at 
Paris  on  October  13,  1919;  and  Eugene  Pepin, 
chief  of  the  Legal  Studies  Section  of  the  Air 
Transport  Bureau  of  the  secretariat  of  PICAO. 


'  Comity  International  Technique  d'Experts  Juridiques 
A^rlens,  an  international  drafting  committee  composed  of 
air-law  experts. 


879 


The  United  States  delegation  at  the  sessions  of 
CITEJA  in  July  of  this  year  consisted  of  Arnold 
W.  Knauth  of  the  Department  of  Justice,  special- 
ist in  shipping  and  aviation  law;  J.  Brooks  B. 
Parker  of  Philadelphia,  specialist  in  insurance 
matters,  and  Paul  Keiber  of  the  Air  Transport. 
Aasociation  of  America. 

At  the  July  1946  sessions  the  First  Commission 
of  CITEJA  had  under  consideration  a  proposed 
international  convention  on  the  recordation  of 
title  to  aircraft  and  aircraft  mortgages,  the  pur- 
pose of  which  is  to  facilitate  dealing  in  and  financ- 
ing of  aircraft  engaged  in  international  air  navi- 
gation. In  1931  the  CITEJA  adopted  provision- 
ally two  separate  draft  conventions,  one  dealing 
with  the  recordation  of  title  to  aircraft  and  the 
other  with  aircraft  mortgages.  After  the  Chicago 
civil  aviation  conference  of  1944  was  held,  the 
Government  of  the  United  States  made  inquiries 
of  various  governments  as  to  whether  they  would 
authorize  signature  in  "Washington  of  two  conven- 
tions, one  relating  to  the  recordation  of  title  to 
aircraft  and  the  other  to  aircraft  mortgages.  The 
drafts  circulated  by  the  Government  of  the  United 
States  contained  a  few  suggested  modifications  of 
the  CITEJA  1931  drafts.  However,  no  definite 
action  was  taken  in  the  matter  of  signing  the  two 
drafts  proposed  by  this  Government.  At  its  four- 
teenth plenary  session  held  in  Paris  in  Januarj- 
1946,  the  CITEJA  decided  to  transmit  its  two 
1931  drafts  to  the  PICAO  for  consideration  by 
the  First  Interim  Assembly  of  PICAO,  which  met 
at  Montreal  in  May  1946.^ 

During  the  sessions  of  the  legal  commission  of 
the  First  Interim  Assembly  at  Montreal  a  number 
of  difficulties  arose  in  the  matter  of  endeavoring 
to  reconcile  conflicting  principles  of  national  laws 
concerning  the  form  and  effect  of  aircraft  mort- 


'  Prior  to  the  outbreak  of  the  war,  final  action  on 
CITEJA  projects  was  taken  at  periodic  international  con- 
ferences on  private  international  air  law,  but  they  are 
now  submitted  by  CITEJA  to  the  International  Civil  Avia- 
tion Organization  at  Montreal  for  consideration  and  pos- 
sible final  adoption  and  signature  at  the  Assembly  meetings 
of  that  Organization,  in  accordance  with  a  resolution 
adopted  by  the  Interim  Council  of  PICAO  and  agreed  to 
by  CITEJA. 


gages.  The  legal  commission  prepared  the  text  of 
a  combined  draft  convention  dealing  with  the  rec- 
ordation of  title  to  aircraft  and  aircraft  mortgages, 
after  having  given  consideration  to  the  two 
CITEJA  1931  drafts  and  the  modifications  thereof 
which  had  been  suggested  by  the  Government  of 
the  United  States  and  by  the  representatives  of 
other  governments.  The  Assembly  adopted  a  res- 
olution requesting  the  various  governments,  the 
CITEJA,  and  other  interested  parties,  to  submit 
conmients  on  this  combined  draft  to  the  Interim 
Council  of  PICAO  by  January  1,  1947.  It  is  un- 
derstood that  these  comments  will  be  considered  by 
the  Interim  Council  with  a  view  to  preparing  a  re- 
port on  the  problems  involved  for  submission  to  the 
Second  Assembly. 

Briefly,  the  proposed  convention  on  recordation 
of  title  and  aircraft  mortgages  as  developed  at 
Montreal  provides  for  the  recording  by  each  con- 
tracting state  in  a  national  aircraft  property  rec- 
ord of  title  to  aircraft,  and  establishes  the  form  and 
effect  of  aircraft  mortgages  and  other  similar  en- 
cumbrances recorded  in  the  aircraft  property  rec- 
ord, with  a  view  to  having  such  titles  and  mort- 
gages accorded  recognition  in  other  contracting 
states.  At  its  July  1946  sessions  the  CITEJA  ap- 
pointed reporters  to  make  a  sttidy  of  the  draft  de- 
veloped at  Montreal,  for  the  purpose  of  facilitat- 
ing the  taking  of  appropriate  action  thereon  at 
the  November  1946  sessions  of  CITEJA  in  Cairo, 
Egypt. 

The  First  Commission  of  CITEJA  also  had 
under  consideration  in  July  1946  a  proposed  con- 
vention dealing  with  the  liability  of  air-transport 
(operators  in  the  event  of  aerial  collisions.  The 
CITEJA  adopted  a  draft  convention  on  this  sub- 
ject at  its  eleventh  plenary  session  at  Bern, 
Switzerland,  in  September  1936.  This  draft  was 
submitted  to  the  Fourth  International  Conference 
on  Private  International  Air  Law  at  Brussels  in 
September  1938.  The  American  delegation  to  the 
Brussels  conference  took  the  position  that  a  con- 
vention on  aerial  collisions  would  be  premature 
and  that  any  definite  action  on  the  subject  should 
be  postponed  until  ample  opportunity  had  been 
afforded  to  examine,  in  the  light  of  experience,  the 
many  problems  involved  in  aerial  collisions  and 


88« 


Department  of  State  Bulletin    •   November  17,  1946 


their  complex  ramifications.  The  American  dele- 
gation at  Brussels  submitted  numerous  proposals 
concerning  the  CITEJA  draft  convention  for  the 
consideration  of  the  Brussels  conference  in  the 
event  that  it  should  decide  to  take  action  on  tlie 
CITEJA  project.  However,  the  conference  at 
Brussels  adopted  a  resolution  referring  the 
CITEJA  draft  back  to  CITEJA  for  further  con- 
sideration along  with  the  proposals  on  the  draft 
submitted  by  several  delegations  at  the  Bru.ssels 
conference.^  The  resolution  stated  that  this  ac- 
tion was  taken  because  of  the  multiplicity  of  pro- 
posals on  the  CITEJA  draft  submitted  at  Brus- 
sels and  the  lack  of  time  available  to  undertake 
a  careful  examination  of  the  project.  The 
CITEJA  draft  set  forth  the  conditions  under 
which  operatoi-s  of  aircraft  might  claim  a  limita- 
tion of  liability  in  the  event  of  aerial  collisions; 
provided  for  a  method  of  apportioning  damage 
awards  between  passengers  and  property,  and  of 
apportioning  damages  between  the  operators  of 
collided  aircraft  in  the  event  of  concurrent  negli- 
gence; and  set  forth  the  conditions  under  which 
the  operatoi-s  of  collided  aircraft  would  be  liable 
for  damages  caused  on  the  surface  as  the  result 
of  aerial  collisions. 

It  is  understood  tliat  while  the  experts  attending 
the  CITEJA  sessions  in  July  1946  felt  that  some 
progress  should  be  made  in  the  development  of  a 
pioposed  convention  on  aerial  collisions  they  did 
not  feel  that  the  matter  was  urgent.  A  number  of 
the  proposals  made  by  the  American  delegation  at 
Brussels  in  September  1938  were  adopted  at  the 
CITEJA  sessions  in  July  1946.  As  the  result  of 
the  discussions  in  July  of  this  year  a  new  text  was 
prepared  by  the  reporter  for  this  subject,  for  con- 
sideration at  the  CITEJA  sessions  in  Cairo  in 
November  1946. 

The  Second  Commission  of  CITEJA,  which  met 
in  Paris  in  July  194G,  had  under  consideration  the 
proposed  revision  of  the  convention  for  the  unifi- 
cation of  certain  rules  relating  to  international 
transportation  by  air,  signed  at  Warsaw  on  Oc- 
tober 12, 1929.  This  convention  sets  forth  the  con- 
ditions under  which  the  air-transport  operator  will 
be  liable  for  damages  to  persons  and  property  in 
international    transportation    and    permits    the 


operator  to  claim  a  limitation  of  his  liability  under 
tlie  conditions  set  forth  in  the  convention.  The 
convention  also  contains  detailed  provisions  as  to 
the  form  and  effect  of  air-transport  documents  con- 
sisting of  passenger  tickets,  baggage  checks,  and 
air  waybills.  The  United  States  and  many  other 
countries  are  pailies  to  this  convention.* 

During  the  CITEJA  sessions  in  Paris  in  Jan- 
uary 1946  the  Second  Commission  adopted  a  num- 
ber of  proposed  amendments  to  the  Warsaw  con- 
vention, most  of  which  were  of  a  clarifying  natui"e. 
The  CITEJA  referred  its  proposals  to  the  PICAO 
at  Montreal  for  the  consideration  of  the  First  In- 
terim Assembly  of  PICAO.  The  First  Assembly 
adopted  a  resolution  referring  the  CITEJA  pro- 
posals back  to  CITEJA  for  further  study  with  a 
view  to  considering  the  need  of  a  more  complete 
and  extensive  revision  of  the  convention.  One  of 
the  results  of  the  discussion  of  the  Warsaw  con- 
vention by  the  CITEJA  in  July  1946  was  the 
pi'eparation  of  a  questionnaire  containing  a  num- 
ber of  questions  to  be  answered  by  the  CITEJA 
experts  in  order  to  aid  the  reporter  for  this  subject 
in  preparing  a  text  for  consideration  by  CITEJA 
at  its  sessions  in  Cairo  in  November  1946.  The 
resolution  of  the  First  Interim  Assembly  regard- 
ing the  Warsaw  convention  provides  for  a  study  by 
the  Council  of  the  International  Civil  Aviation 
Organization  at  Montreal  of  any  proposals  for  the 
amendment  of  tlie  convention  that  might  be 
adopted  by  the  CITEJA  in  Cairo  in  November 
1946  and  of  any  comments  on  the  subject  which 
the  Interim  Council  of  PICAO  may  receive  from 
interested  govei'nments  and  other  sources,  with  a 
view  to  determining  the  extent  to  which  the  Coun- 
cil of  the  International  Civil  Aviation  Organiza- 


'  For  a  discussion  regarding  the  action  taken  on  the 
CITEJA  draft  at  the  Brussels  conference,  see  report  of 
the  American  Delegation  to  that  conference  (Department 
of  State  publication  1401,  Conference  Series  42,  p.  10). 
For  the  text  of  the  CITEJA  draft  which  was  before  the 
Brussels  conference,  see  the  Report  of  the  American  Dele- 
gation to  the  Fourth  International  C^onference  on  Private 
Air  Law,  p.  48.  This  was  a  diplomatic  conference  to 
which  the  various  governments  sent  oflicially  accredited 
delegates. 

'  Treaty  Series  876. 


881 


tion  may  be  disposed  to  submit  proposals  for  the 
revision  of  the  convention  to  the  meeting  of  the 
Assembly  of  that  organization  in  1947. 

At  the  July  1946  sessions  of  CITEJA  the  Fourth 
Commission  had  under  consideration  a  proposed 
convention  dealing  with  the  legal  status  of  the  air- 
craft navigating  personnel  and  of  the  aircraft  com- 
mander. In  1931  the  CITEJA  adopted  provision- 
ally a  proposed  convention  dealing  with  the  legal 
status  of  the  aircraft  commander.  Since  that  time, 
and  over  a  period  of  several  years,  it  has  given 
consideration  to  the  adoption  of  a  proposed  con- 
vention on  the  legal  status  of  the  aircraft  navigat- 
ing personnel.  As  directed  by  the  CITEJA  at  its 
sessions  in  January  1946,  the  reporter  prepared  for 
consideration  in  July  of  this  year  a  single  text  deal- 
ing with  both  the  navigating  personnel  and  the 
commander.  The  draft  submitted  by  the  reporter 
to  the  July  1946  sessions  of  the  CITEJA  so  far  as 
it  related  to  the  navigating  personnel  contained  the 
basic  principles  regarding  the  form  and  effect  of 
the  contract  of  employment  of  the  personnel  and 
the  conditions  under  which  they  would  be  entitled 
to  repatriation,  which  had  appeared  in  previous 
CITEJA  drafts.  The  portions  of  the  project  sub- 
mitted to  the  July  sessions  that  dealt  with  the  air- 
craft commander  contained  certain  basic  principles 
of  the  CITEJA  1931  draft  which  vested  the  com- 
mander with  certain  powers  of  safety,  discipline, 
and  authority  on  board  the  aircraft  and  set  forth 
the  conditions  under  which  he  could  bind  his  prin- 
cipal in  incurring  necessary  expenses  for  safe- 
guarding the  persons  and  property  carried  on  the 
aircraft. 

The  general  sentiment  among  the  members  of 
the  United  States  section  of  the  CITEJA  at  this 
time  is  to  favor  the  development  of  a  proposed 
convention  dealing  solely  with  the  status  of  the 
aircraft  commander.  The  United  States  members 
feel  that  the  combined  draft  presented  at  the 
July  1946  sessions  of  CITEJA  contains  provisions 
regarding  the  contract  of  employment  that  might 
interfere  with  the  freedom  of  contract  between 
the  members  of  the  navigating  personnel  and  the 
operators  of  aircraft.  The  members  of  the  United 
States  section  are,  therefore,  in  favor  of  having 
the  CITEJA  again  deal  with  the  general  subject 
on  the  basis  of  two  separate  drafts,  one  relating 


to  the  status  of  the  navigating  personnel  and  the 
other  to  the  status  of  the  commander  of  the  air- 
craft, so  as  to  facilitate  the  action  of  interested 
governments  in  becoming  a  party  to  one  of  the 
conventions  but  not  the  other,  if  they  so  desire. 
The  CITEJA  reporter  who  presented  the  combined 
draft  at  the  July  1946  sessions  of  the  CITEJA  has 
indicated  that  he  will  present  two  separate  drafts 
at  the  sessions  of  the  CITEJA  in  Cairo  in  No- 
vember of  this  year  if  the  CITEJA  then  decides 
to  have  this  done. 

The  discussions  at  the  July  1946  sessions  of  the 
CITEJA  were  devoted  chiefly  to  the  projects  of  the 
First,  Second,  and  Fourth  Commissions  described 
above.  Other  subjects  on  the  agenda  were  as  fol- 
lows :  relation  between  CITEJA  and  PICAO ;  ar- 
bitration functions  proposed  for  the  CITEJA; 
aviation  insurance ;  general  average  (similar  to  the 
maritime  doctrine  where  there  is  an  adjustment  of 
voluntary  sacrifices  of  property  on  board  for  the 
preservation  of  the  vessel) ;  hiring  and  charter- 
ing of  aircraft ;  postal  salvage ;  global  or  over-all 
limitation  of  liability  (accumulation  of  liability 
of  the  aircraft  operator  where  in  a  single  instance 
the  operator  may  be  found  to  be  liable  for  dam- 
ages under  two  or  more  conventions) ;  abandon- 
ment (similar  to  the  maritime  practice  where  a 
damaged  vessel  is  abandoned  by  the  owner  for  the 
benefit  of  creditors) ;  authority  of  foreign  judg- 
ments (involving  the  extent  to  which  courts  of 
the  various  countries  would  enforce  foreign  judg- 
ments obtained  under  the  provisions  of  private 
air-law  conventions) ;  and  tourist  aviation  (facili- 
tation of  tourist  traffic  by  privately  owned  air- 
craft). 

The  questions  which  were  on  the  agenda  for  the 
July  1946  sessions  of  the  CITEJA  have  been  given 
further  consideration  at  the  sessions  of  the 
CITEJA  in  Cairo  in  November  1946.  The  secre- 
tary general  of  CITEJA  announced  that  the  sub- 
jects which  would  be  given  priority  for  considera- 
tion when  the  CITEJA  met  in  plenary  session  at 
Cairo  on  November  14,  1946  are:  the  relations  be- 
tween CITEJA  and  PICAO;  the  revision  of  the 
Warsaw  convention  of  1929 ;  the  legal  status  of  the 
aircraft  navigating  persomiel  and  the  commander 
of  the  aircraft;  and  the  proposed  convention  re- 
lating to  the  recordation  of  title  to  aircraft  and 


882 


Department  of  State  Bulletin    •    November  17,  1946 


aircraft  mortgages.  It  is  expected  that  any  draft 
conventions  adopted  by  CITEJA  in  plenary  ses- 
sion at  Cairo  will  be  referred  to  the  PICAO  for 
consideration  at  the  next  Assembly  meeting  of 
the  International  Civil  Aviation  Organization. 

The  relation  between  CITEJA  and  PICAO  is 
a  matter  of  special  importance  in  that  it  relates 
to  Resolution  XXXI  of  the  First  Interim  Assem- 
bly at  Montreal  providing  for  the  organization  of 
a  permanent  committee  on  international  air  law 
to  be  established  on  the  authority  of  the  Assembly 
of  the  permanent  International  Civil  Aviation  Or- 
ganization (ICAO)  which  will  succeed  the 
PICAO  and  function  under  the  terms  of  the  con- 
vention on  international  civil  aviation  adopted  at 
Chicago  on  December  7,  1944,  after  that  conven- 
tion comes  into  force.  The  text  of  Resolution 
XXXI  of  the  First  Interim  Assembly  is  as  fol- 
lows: 

Means  by  which  PICAO  should,  in  future,  deal 
with  legal  problems 

Resolved: 

1.  That  in  setting  up  the  Permanent  Organiza- 
tion provision  should  be  made  for  the  establish- 
ment, on  the  authority  of  its  Assembly,  as  part  of 
the  Permanent  Organization,  and  responsible  to 
the  Council,  of  a  Permanent  Committee  on  Inter- 
national Air  Law  with  the  functions  to : 

(a)  study  and  prepare  draft  conventions  lead- 
ing progressively  to  the  unification  of  Interna- 
tional Air  Law ; 

(6)  advise  on  questions  relating  to  Inter- 
national Air  Law  submitted  to  it  by  the  Perma- 
nent Organization; 

((?)  collect  legislative,  administrative  and  legal 
information  concerning  International  Air  Law 
and  transmit  this  information  to  the  Secretariat 
of  the  Permanent  Organization  for  communica- 
tion to  member  States. 

2.  That  the  date  and  method  of  establishment 
of  the  Legal  Committee  and  its  functioning  be 
fixed  by  the  Council  after  consultation  with  the 
Secretary  General  of  the  CITEJA,  and  that  in  the 
fimctioning  of  this  Committee  with  respect  to  In- 
ternational Private  Air  Law  matters,  there  shall 
be    taken    into    account    the    experience    of    the 


CITEJA  in  its  formation,  organization  and  its 
Secretariat  in  order  that  the  advantages  thereof 
may  be  preserved. 

3.  That  any  member  State  so  desiring  shall  have 
the  right  to  appoint  one  or  more  representatives 
on  such  Committee  and  that  the  member  States 
whose  nominees  are  now  members  of  the  CITEJA 
be  requested  to  place  at  the  disposal  of  such  Com- 
mittee the  expert  personnel  previously  made  avail- 
able by  them  to  the  CITEJA  together  with  all 
reports  in  the  course  of  i^reparation  or  study  by 
such  expert  personnel. 

4.  That  the  CITEJA  be  invite<l  to  place  at  the 
disposal  of  the  said  Committee  its  records  and 
archives  and  any  secretarial  staff  suitable  for  em- 
ployment by  the  Organization. 

5.  That  the  Interim  Council  undertake  as  soon 
as  possible  the  necessary  planning  for  the  estab- 
lishment of  a  Legal  Committee  in  the  Perma- 
nent Organization,  and  to  that  end  that  the  In- 
terim Council  be  authorized  to  consult  with  the 
Secretary  General  of  the  CITEJA. 

6.  That,  in  view  of  the  above  decisions,  the 
Assembly  consider  that  no  action  is  required  con- 
cerning the  draft  conventions  mentioned  under 
No.  2  (f),  (g)  and  (h)  of  the  Agenda  of  Com- 
mission No.  4.° 

In  connection  with  the  November  1946  sessions 
of  CITEJA,  the  Secretary  General  of  CITEJA 
requested  the  CITEJA  experts  to  obtain  from 
their  governments  replies  to  three  questions  con- 
cerning the  future  status  of  CITEJA.  These 
questions  are  as  follows : 

1.  Does  your  government  consider  that,  in  con- 
formity with  the  resolution  adopted  by  the  Gen- 
eral Assembly  of  PICAO  on  June  8,  1946,  it  is 
necessary  to  accept  the  transfer  of  the  experts, 
reports,  archives  and  personnel  of  the  Secretariat 


°"(n  C1TEJ.\  draft  convention  on  the  status  of  the 
CITEJA  ; 

"(ff)  CITEJA  draft  convention  on  the  interpretation  by 
CITEJA  of  the  conventions  and  rules  on  Private  Air  Law ; 

"(h)  CITEJA  draft  convention  entrusting  CITEJA  with 
the  preparation  of  measures  to  implement  conventions  on 
Private  Air  Law." 

[Note.  Commission  No.  4  mentioned  in  paragraph  6  of 
Resolution  XXXI  of  the  First  Interim  Assembly  was  a 
commission  dealing  with  legal  questions  and  constituted 
a  part  of  the  organization  of  the  First  Interim  Assembly.] 


883 


General  of  CITEJA  to  the  committee  to  be  "estab- 
lished on  the  authority  of  the  General  Assembly  of 
PICAO,  as  part  of  PICAO,  and  responsible  to  the 
Council  of  PICAO",  which  will  be  called  the 
"Permanent  Committee  on  International  Air 
Law"? 

2.  Does  your  government  consider  that  the  con- 
clusions which  follow  from  the  above-cited  reso- 
lution as  it  was  adopted  by  PICAO  are:  the 
method  of  organization  of  the  committee,  of  assem- 
bling;, meeting  and  study,  now  in  effect  in  the 
CITEJA,  as  well  as  the  present  staff,  should  be 
preserved  by  the  "Permanent  Committee  on  Inter- 
national Air  Law"? 

3.  Given  the  very  delimited  and  strictly  defined 
field  of  activity  laid  down  by  the  above-mentioned 
resolution  for  the  Permanent  Committee  on  Inter- 
national Air  Law  as  follows : 

(a)  Preparation  of  draft  international  conven- 
tions on  air  law ; 

(b)  Advice  upon  and  answers  to  questions  sub- 
mitted by  the  PICAO; 

(c)  Collection  of  legislative,  legal  and  adminis- 
trative documents  concerning  international  aii- 
law; 

does  your  government  consider  that,  from  the 
practical  and  political  point  of  view,  it  would  be 
more  productive  and  financially  less  expensive  to 
allow  the  CITEJA  a  certain  functional  autonomy 
and,  consequently,  to  continue  the  headquarters 
of  the  CITEJA,  thus  transformed,  at  the  place 
fixed  by  unanimous  decision  of  the  governments 
twenty  years  ago? 

The  reply  of  the  Government  of  the  United 
States  to  the  three  questions  quoted  above,  as  com- 
municated to  the  Secretary  General  tlirough  the 
American  Embassy  at  Paris  and  as  covered  in  the 
instructions  given  by  the  Department  of  State  to 
the  chairman  of  the  United  States  delegation  to 
tlie  CITEJA  sessions  in  Cairo  in  November  of  this 
year,  follows: 


'  See  article  by  Mr.  Latchford  entitled  "Coordination 
of  CITEJA  With  the  New  International  Civil-Aviiition  Or- 
ganizations", BiTU-ETiN  of  Feb.  2.5,  1945,  p.  310.  See  also 
articles  by  Mr.  Latcliford  entitled  "Private  International 
Air  L;i\v",  Bulletin  of  Jan.  7,  1945,  p.  11,  and  "Private 
International  Air  Law:  14th  Plenary  Session  of  CITEJA" 
(a  de.scription  of  CITEJA  meetings  held  in  Paris  in  Jan- 
uary 1946),  Bulletin  of  May  19,  1946,  p.  835. 


"  ( 1 )  So  far  as  concerns  the  matter  of  the  trans- 
fer of  experts  to  the  new  Legal  Committee,  the 
attention  of  the  Secretary  General  is  invited  to 
paragraiA  3  of  Resolution  XXXI  of  the  First 
Assembly  of  PICAO  from  which  it  is  believed  to 
be  clear  that  States  members  of  the  International 
Civil  Aviation  Organization  will  be  free  to  ap- 
point either  CITEJA  members  on  the  new  Legal 
Committee  or  to  designate  other  experts.  So  far 
as  concerns  the  transfer  of  CITEJA  reports,  ar- 
chives, and  personnel  of  the  Secretariat  General  of 
CITEJA,  it  is  assumed  that  this  would  be  one  of 
the  details  entering  into  the  discussions  between 
the  Interim  Council  at  Montreal  and  the  Secretary 
General  of  CITEJA,  as  provided  for  in  paragraph 
6  of  Resolution  XXXI  of  the  First  Assembly  of 
PICAO.  However,  so  far  as  concerns  the  Govern- 
ment of  the  United  States,  it  would  interpose  no 
objection  to  such  transfer.  In  connection  with  the 
reply  to  question  1,  it  is  the  understanding  of  the 
Government  of  the  United  States  that  it  was  con- 
templated by  Resolution  XXXI  of  the  First  As- 
sembly of  PICAO  that  upon  the  organization  of 
the  new  Legal  Committee,  in  accordance  with  the 
terms  of  that  resolution  (pars.  2,  3  and  4),  the 
CITEJA  would  as  a  consequence  cease  to  exist. 

"(2)  The  answer  of  the  Government  of  the 
United  States  to  question  2  is  in  the  negative.  The 
attention  of  the  Secretary  General  of  CITEJA  is 
invited  to  paragraph  2  of  Resolution  XXXI  of 
the  First  Assembly  of  PICAO.  While  this  para- 
graph contemplates  that  the  experience  of  the 
CITEJA  in  its  formation,  organization  and  its 
Secretariat  should  be  taken  into  consideration  in 
the  functioning  of  the  new  Legal  Committee,  it 
does  not  necessarily  follow  that  the  present  organi- 
zation of  CITEJA  would  be  continued  within  the 
framework  of  the  new  Legal  Committee. 

"(3)  The  answer  of  the  Government  of  the 
United  States  to  question  3  is  in  the  negative.  In 
setting  forth  this  position,  the  Government  of  the 
United  States  feels  that  allowing  a  certain  degree 
of  autonomy  to  CITEJA  would  be  inconsistent 
with  the  provisions  of  Resolution  XXXI  of  the 
First  Assembly  of  PICAO  providing  for  the  set- 
ting up  of  a  Legal  Committee  to  deal  with  ques- 
tions within  the  fields  of  both  public  and  private 
international  air  law."** 


884 


Department  of  State  Bulletin    •    November  17,  1946 


INTERNATIONAL  CONTROL  OF  DANGEROUS  DRUGS 


Preview  of  Commission  on  Narcotic  Drugs 


hy  George  A.  Morloch 


The  Economic  and  Social  Council  of  the  United  Nations 
has  set  up  a  Commission  on  Narcotic  Drugs  in  order  to  pro- 
vide machinery  whereby  full  effect  may  te  given  to  the 
international  conventions  relating  to  narcotic  drugs  and  to 
provide  for  continuous  review  of  and  progress  in  the  inter- 
national control  of  such  drugs. 


The  first  session  of  the  Commission  on  Narcotic 
Drugs,  established  by  the  Economic  and  Social 
Council  of  the  United  Nations,  is  scheduled  to  be 
held  at  New  York  beginning  November  27,  1946. 
It  is  expected  that  the  representatives  of  15  gov- 
ernments will  be  present  to  review  the  world  situa- 
tion regarding  narcotic  drugs  and  to  report  to  the 
Economic  and  Social  Council  and  the  General 
Assembly  of  the  United  Nations  on  the  fulfilment 
by  the  parties  to  the  international  drug  conven- 
tions of  their  obligations  under  those  conventions.^ 
The  United  States  has  designated  Harry  J. 
Anslinger,  Commissioner  of  Narcotics,  Treasury 
Department,  to  serve  in  this  capacity. 

The  Commission  had  its  inception  when  the 
American  Delegation  to  the  United  Nations  Con- 
ference on  International  Organization  at  San 
Francisco  in  1945  made  the  following  declaration  ^ 
in  regard  to  the  organization  of  international 
cooperation  for  the  suppression  of  the  abuse  of 
narcotic  drugs : 

".  .  .  Experience  has  shown  that  drug  control 
raises  issues  which  can  best  be  met  not  by  an  in- 
ternational health,  economic  or  social  agency,  but 
by  the  type  of  specialized  agencies  now  function- 
ing so  successfully  in  this  field.    Everything  pos- 


sible should  be  done  to  safeguard  the  continued  op- 
eration of  these  agencies  and  services. 

"The  United  States  Delegation  wishes  to  go  on 
record  as  hoping  that  the  Organization  will  be  en- 
trusted with  supervision  over  the  execution  of  ex- 
isting or  future  international  agreements  with  re- 
gard to  the  control  of  the  legitimate  traffic  in  opi- 
um and  other  dangerous  drugs,  and  the  suppression 
of  illicit  traffic  in  and  abuse  of  such  drugs;  that 
there  shall  be  established  an  advisory  body  to  ad- 
vise directly  the  Economic  and  Social  Council  on 
these  matters ;  and  that  the  existing  agencies  be  re- 
garded as  autonomous  agencies  to  be  related  di- 
rectly to  the  Economic  and  Social  Council". 


'  For  article  on  "International  Bodies  for  Narcotics  Con- 
trol", by  Philip  M.  Burnett,  see  Bulletin  of  Oct.  14,  1945, 
p.  570.  For  article  on  "Limitation  of  tlie  Production  of 
Opium",  by  Mr.  Morlock,  see  Bulletin  of  Dec.  10,  1944, 
p.  723.  For  subsequent  excliange  of  notes  between  U.S. 
and  Afghanistan  concerning  proposed  convention  to  dis- 
cuss world  limitation  of  opium  production,  see  Bulletin 
of  Dec.  10,  1944,  p.  725 ;  for  similar  exchange  with  Mexico, 
see  Bulletin  of  May  13,  1945,  p.  911;  with  Turkey,  see 
Bulletin  of  July  8,  1945,  p.  63;  with  Soviet  Union,  see 
Bulletin  of  July  22,  1945,  p.  129;  with  United  Kingdom 
concerning  India,  see  Buli.etin  of  Feb.  17, 1946,  p.  237. 

'  Report  to  the  President  on  the  Results  of  the  San  Fran- 
cisco Conference,  p.  122. 


721403 — 46- 


The  American  Delegation  was  anxious  to  ar- 
range for  the  continued  functioning  of  the  princi- 
pal narcotics  control  bodies  after  the  dissolution 
of  the  League  of  Nations :  the  Permanent  Central 
Opium  Board  was  established  by  the  Geneva  drug 
convention  of  1925  to  watch  over  and  control  the 
course  of  the  legitimate  trade  in  narcotic  drugs; 
and  the  Drug  Supervisory  Body  was  established 
by  the  narcotics  limitation  convention  of  1931  to 
draw  up  an  annual  statement  of  the  requirements 
of  all  countries  and  territories  for  narcotic  drugs. 
These  bodies  would  normally  continue  to  exist 
after  the  liquidation  of  the  League  provided  they 
were  brought  into  relation  with  the  United  Na- 
tions. The  situation  of  the  Advisory  Committee 
on  Traffic  in  Opium  and  Other  Dangerous  Drugs, 
however,  was  different.  This  Committee,  usually 
referred  to  as  the  Opium  Advisory  Committee,  was 
established  by  a  resolution '  of  the  Assembly  of  the 
League  of  Nations  on  December  15,  1920,  for 
the  purpose  of  exercising  general  supervision 
over  the  execution  of  existing  and  future  nar- 
cotics conventions.  It  was,  therefore,  an  organ 
of  the  League  of  Nations  and  would  cease  to  exist 
simultaneously  with  the  League.  Although  the 
United  States  never  accepted  full  membership,  it 
sent  a  representative  to  the  sessions  of  the  Com- 
mittee after  1923,  who  served  in  an  expert  and  in  an 
advisoi"y  capacity.  The  United  States  regarded 
the  work  of  the  Committee  as  valuable  and  neces- 
sary t"  the  control  of  the  international  traffic  in 
narcotic  drugs.  The  American  Delegation  was 
accordingly  authorized  to  express  the  hope  that 
there  would  be  created  an  advisory  body  for  assist- 
ing the  Economic  and  Social  Coxmcil  on  matters 
relating  to  narcotics. 

The  Opium  Advisory  Committee  held  25  ses- 
sions, beginning  in  1921  and  ending  in  1940.  At 
each  session  important  recommendations  were 
made  regarding  the  control  of  the  legitimate  traffic 
and  the  suppression  of  the  illicit  traffic.  Listed 
below  are  some  of  the  more  outstanding  accom- 
plislunents  of  the  Committee: 

1.  It  induced  nearly  all  of  the  countries  of  the 
world  not  already  party  to  the  international  drug 
convention  signed  at  The  Hague  on  January  23, 
1912  to  adhere  to  that  convention. 


'  Assembly  Document  240,  Resolution  No.  18,  Dec.  15, 
1920. 


2.  It  urged  the  establishment  of  a  control  body 
and  worked  out  an  import-export  certificate  sys- 
tem to  be  applied  to  all  imports  and  exports  of 
opium  and  other  narcotic  drugs.  Together  they 
constitute  the  heart  of  the  control  machinery. 
These  recommendations  were  incorporated  into 
the  international  drug  convention  signed  at 
Geneva  on  February  19,  1925. 

3.  It  drew  up  a  model  code  and  recommended  it 
to  all  countries  of  the  world  for  their  guidance  in 
the  preparation  of  narcotic  laws  and  the  develop- 
ment of  control  organizations. 

4.  It  made  studies  concerning  the  problem  of 
the  limitation  of  the  manufacture  and  the  regula- 
tion of  the  distribution  of  narcotic  drugs  and 
recommended  a  control  system  based  on  estimates 
furnished  by  country  requirements,  which  was 
incorporated  into  the  narcotics  limitation  conven- 
tion signed  at  Geneva  on  July  13,  1931. 

5.  It  prepared  the  ground  for  the  convention  for 
the  suppression  of  the  illicit  traffic  in  dangerous 
drugs  which  was  signed  at  Geneva  on  June  26, 
1936.  This  convention  contains  many  important 
provisions  relating  to  the  prevention  and  punish- 
ment of  illicit  drug  trafficking. 

6.  It  prepared  a  draft  of  a  convention  for  lim- 
iting the  production  of  raw  opium  and  made 
studies  of  the  problem  of  limiting  the  produc- 
tion of  other  raw  materials  used  in  the  manu- 
facture of  narcotic  drugs. 

The  Permanent  Central  Opium  Board  and  the 
Drug  Supervisory  Body  were  created  also  as  a  re- 
sult of  the  recommendations  of  the  Committee,  and 
the  countries  of  the  world  were  requested  to  furnish 
estimates  to  the  Board  of  their  drug  requirements 
and  statistical  reports  on  imports,  exports,  con- 
sumption, production,  manufacture,  stocks,  and 
confiscations.  In  order  to  comply  with  the  pro- 
visions of  the  conventions,  countries  found  it  ad- 
visable to  improve  and  make  uniform  their  laws 
governing  the  control  of  narcotic  drugs.  The 
Committee  also  drew  up  a  form  of  annual  report 
to  be  submitted  by  governments  on  the  working  of 
the  narcotics  limitation  convention  in  their  terri- 
tories. Facts  and  figures  are  now  available  re- 
garding the  drug  traffic  where  none  existed  before. 

The  Preparatory  Commission  of  the  United  Na- 
tions, meeting  in  London  in  December  1945,  in 


886 


Department  of  State  Bulletin    •   November  17,  1946 


order  to  arrange  for  the  creation  of  a  successor 
to  the  Opium  Advisory  Committee  and  to  give  full 
effect  to  the  narcotics  conventions,  accepted  a  pro- 
posal presented  by  the  Chinese  Delegation,  which 
recommended  that  the  Economic  and  Social  Coun- 
cil of  the  United  Nations  establish  a  Commission 
on  Narcotic  Drugs.^ 

On  February  18, 1946  that  proposed  Commission 
was  created  by  the  Economic  and  Social  Coun- 
cil, after  adopting  the  following  resolution,^  which 
constitutes  the  terms  of  reference  of  the  Conunis- 
sion: 

1.  The  Economic  and  Social  Council,  in  order 
to  provide  machinery  whereby  full  effect  may  be 
given  to  the  international  conventions  relating 
to  narcotic  drugs,  and  to  provide  for  continuous 
review  of  and  progress  in  the  international  control 
of  such  drugs,  establishes  a  Commission  on  Nar- 
cotic Drug's. 

2.  The  Commission  shall: 

(a)  assist  the  Council  in  exercising  such 
powers  of  supervision  over  the  application  of 
international  conventions  and  agreements  deal- 
ing with  narcotic  drugs  as  may  be  assumed  by  or 
conferred  on  the  Council ; 

(b)  carry  out  such  functions  entrasted  to  the 
League  of  Nations  Advisory  Committee  on 
Traffic  in  Opium  and  other  Dangerous  Drugs  by 
the  international  conventions  on  narcotic  drugs 
as  the  Council  may  find  necessary  to  assume 
and  continue; 

(c)  advise  the  Council  on  all  matters  per- 
taining to  the  control  of  narcotic  drugs,  and  pre- 
pare such  draft  international  conventions  as 
may  be  necessary ; 

(d)  consider  what  changes  may  be  required 
in  the  existing  machinery  for  the  international 
control  of  narcotic  drugs  and  submit  proposals 
thereon  to  the  Council ; 

(e)  perform  such  other  functions  relating  to 
narcotic  drugs  as  the  Council  may  direct. 

3.  The  Commission  may  make  recommendations 
to  the  Council  concerning  any  subcommission 
which  it  considers  should  be  established. 

4.  The  Commission  shall  be  composed  of  fifteen 
Members  of  the  United  Nations,  which  are  impor- 
tant producing  or  manufacturing  countries  or 


countries  in  which  illicit  traffic  in  narcotic  drugs 
constitutes  a  serious  social  problem.  The  term  of 
office  of  members  is  three  years.  They  are  eligible 
for  reappointment. 

5.  The  Commission  is  authorized  by  the  Coiuicil 
to  appoint  in  a  consultative  capacity,  and  without 
the  right  to  vote,  representatives  of  bodies  created 
under  the  terms  of  international  conventions  on 
narcotic  drugs. 

6.  The  Council  requests  the  following  Govern- 
ments to  designate  one  representative  each  to  con- 
stitute the  Commission:  Canada,  China,  Egypt, 
France,  India,  Iran,  Mexico,  Netherlands,  Peru, 
Poland,  Turkey,  United  Kingdom,  United  States 
of  America,  Union  of  Soviet  Socialist  Republics, 
and  Yugoslavia. 

On  the  whole,  the  Commission  on  Narcotic 
Drugs  is  charged  with  functions  similar  to  those 
exercised  by  the  Opium  Advisory  Committee.  It 
is  composed  of  only  15  members,  representing  gov- 
ernments; the  Opium  Advisory  Committee  in  1939 
had  24  members.  The  members  of  the  present 
Commission  have  been  chosen  from  countries  which 
are  members  of  the  United  Nations. 

The  members  of  the  new  Commission  are  rep- 
resentative of  the  producers,  manufacturers,  and 
consumers  of  narcotic  drugs.  India,  Iran,  Turkey, 
the  Soviet  Union,  and  Yugoslavia  are  large  pro- 
ducers of  opium.  Peru  and  the  Netherlands  Indies 
produce  coca  leaves  from  which  cocaine  is  ex- 
tracted. Poland  produces  the  opium  poppy  for 
direct  conversion  into  morphine.  The  United 
Kingdom,  the  United  States,  the  Soviet  Union, 
France,  and  the  Netherlands  are  important  manu- 
facturing countries.  Canada,  China,  Egypt,  and 
the  United  States  are  victims  of  the  illicit  traffic. 
Mexico  is  forced  to  combat  considerable  illicit 
production  of  opium. 

Paragraph  5  of  the  terms  of  reference  of  the 
Commission,  authorizing  the  appointment  of  con- 
sultants from  among  the  members  of  the  Perma- 
nent Central  Opium  Board  and  the  Drug  Super- 
visory Body,  provides  for  a  forward  step.   Because 


'  Report  of  the  Preparatory  Commission  of  tlie  United 
Nations,  p.  38. 

'  Journal  of  the  Economic  and  Social  Council,  no  12  pp 
12&-130.  ■      ' 


887 


of  their  familiarity  with  and  close  study  of  the 
movement  of  drugs  and  world  requirements,  these 
members  will  be  able  to  give  valuable  advice  con- 
cerning many  i^hases  of  the  drug  traffic. 

In  accordance  with  paragraph  5  of  the  resolu- 
tion adopted  by  the  Economic  and  Social  Council 
on  February  16,  1946,  the  Commission  will  take 
action  regarding  the  issuance  of  invitations  to  the 
Permanent  Central  Opium  Board  and  the  Drug 
Supervisory  Body  to  name  representatives  to  sit 
on  the  Commission  without  the  privilege  of  voting. 
It  may  be  expected  that  the  Commission  will 
appoint  subcommittees  to  deal  with  the  following 
subjects:  agenda,  illicit  traffic,  limitation  of  the 
opium  poppy,  coca  leaves  and  Indian  hemp,  and 
drug  addiction. 

Tlie  countries  which  are  now  responsible  for  the 
reestablishment  of  narcotic  controls  in  Germany, 
Japan,  and  Korea  will  probably  be  requested  to 
report  on  the  situation  in  the  areas  under  their 
jurisdiction. 

In  compliance  with  the  resolution  ^  adopted  by 
the  Economic  and  Social  Council  on  September  26, 
1916,  the  Commission  will  give  consideration  to 
and  advise  the  Council  on  the  procedure  to  be  fol- 
lowed in  making  future  appointments  to  the  Per- 
manent Central  Opium  Board. 

The  subjects  which  will  engage  the  Commission 
for  many  days  are  the  analysis  of  the  world  nar- 
cotics situation,  the  problem  of  the  prohibition  of 
the  non-medical  use  of  narcotic  drugs,  and  the 
illicit  traffic. 

The  world  narcotics  situation,  because  of  the 
continued  functioning  throughout  the  war  of  the 
drug-control  bodies,  is  not  so  bad  as  was  antici- 
pated in  1939.  The  huge  accumulations  of  raw 
opium  then  in  storage  in  the  producing  countries 
have  been  almost  entirely  exhausted  by  the  war- 
time demands  by  the  military  forces.  At  the  pres- 
ent time  production  of  opium  in  Turkey,  the  Soviet 
Union,  and  Yugoslavia — the  principal  sources  of 
opium  for  conversion  into  alkaloids  for  medicinal 
and  scientific  purposes — is  hardly  sufficient  to 
meet  such  requirements.  Production  in  India  is 
almost  entirely  consumed  in  India  and  Burma. 
Afghanistan  in  1945  and  Iran  in  1946  have  pro- 
hibited the  cultivation  of  opium  poppies.    China 

'  U.N.  document  E/168/Kev.  2,  p.  4. 


also  prohibits  the  production  of  opium  and  is  mak- 
ing strenuous  efforts  to  enforce  its  laws.  The 
planting  of  opium  poppies  has  been  prohibited  in 
Japan  and  in  the  United  States  zone  in  Korea. 
Small  quantities  of  opium  continue  to  be  produced 
in  Siam  and  Burma.  Considerable  illicit  cultiva- 
tion of  opium  poppies  is  still  carried  on  in  Mexico. 
The  planting  of  poppies  for  direct  extraction  of 
morphine  from  poppy  straw  continues  in  Central 
Europe,  but  such  cultivation  has  undoubtedly  de- 
clined since  the  termination  of  the  war. 

During  the  past  two  years  important  develop- 
ments have  taken  place  regarding  the  use  of  smok- 
ing opium.  In  1945  and  1946  orders  were  issued 
closing  the  opium  monopolies  and  suppressing  the 
use  of  smoking  opium  in  Hong  Kong,  Borneo, 
Singapore,  and  the  Union  of  Malaya.  The  Colo- 
nial Government  of  Macao  issued  a  proclamation 
closing  all  opium-smoking  establishments  and 
prohibiting  all  traffic  in  opium,  effective  June  26, 
1946.  On  June  21,  1946  the  Government  of  Iran 
published  an  order  prohibiting  the  non-medical 
use  of  opium.  The  Federal  Government  of  Indo- 
china, on  June  12,  1946,  issued  an  ordinance  pro- 
hibiting the  use  of  opium  and  closing  all  opium 
shops  and  opium  smoking  dens. 

The  decreased  production  of  opium  and  poppy 
straM'  and  the  prohibition  of  the  use  of  smoking 
opium  have  had  a  far-reaching  effect  upon  the 
illicit  traffic.  Large  quantities  of  opiiun  are  no 
longer  available  for  smuggling  and  use  in  the 
manufacture  of  smoking  opium.  Small  quanti- 
ties of  opium,  however,  are  constantly  leaving  the 
producing  countries  and  are  making  their  way 
into  the  illicit  market  in  other  countries.  One  of 
the  most  difficult  tasks  before  the  Commission  on 
Narcotic  Drugs  is  the  study  of  the  illicit  traffic 
and  the  taking  of  measures  to  wipe  it  out  com- 
l^letely. 

It  is  expected  that  a  majority  of  the  members 
of  the  Commission  on  Narcotic  Drugs  will  be 
represented  by  men  experienced  in  the  adminis- 
tration of  narcotic  laws.  They  will  undoubtedly 
recommend  practical  measures  that  will  make  pos- 
sible in  the  near  future  the  eradication  of  the  pro- 
duction of  narcotic  raw  materials  except  for  medi- 
cal and  scientific  purposes.  They  will  deserve 
and  should  receive  the  support  of  the  people  of  the 
world. 


Department  of  State  Bulletin    •    November  17,  1946 


THE  UNITED  NATIONS 


Draft  Trusteeship  Agreement  for  the  Japanese  Mandated  Islands 


STATEMENT  BY  PRESIDENT  TRUMAN 


[Released  to  the  press  by  tbe  White  House  November  6] 

The  United  States  is  prepared  to  place  mider 
trusteeship,  with  the  United  States  as  the  admin- 
istering authority,  the  Japanese  Mandated  Islands 
and  any  Japanese  islands  for  which  it  assumes  re- 
sponsibilities as  a  result  of  the  second  World  War. 
Insofar  as  the  Japanese  Mandated  Islands  are 
concerned,  this  Government  is  transmitting  for 
information  to  the  other  members  of  the  Security 
Council  (Australia,  Brazil,  China,  Egypt,  France, 


Mexico,  the  Netherlands,  Poland,  the  Union  of 
Soviet  Socialist  Republics,  and  the  United  King- 
dom) and  to  New  Zealand  and  the  Philippines  a 
draft  of  a  strategic  area  trusteeship  agreement 
which  sets  forth  the  terms  upon  which  this  Gov- 
ernment is  prepared  to  place  those  islands  under 
trusteeship.  At  an  early  date  we  plan  to  submit 
this  draft  agreement  formally  to  the  Security 
Council  for  its  approval. 


TEXT  OF  DRAFT  AGREEMENT ' 


[Beleased  to  the  press  November  6] 


Preamble 


Whekeas  Article  75  of  the  Charter  of  the  United  Nations 
provides  for  the  establishment  of  an  international  trustee- 
ship system  for  the  administration  and  supervision  of 
such  territories  as  may  be  placed  thereunder  by  subse- 
quent agreements ;  and 

Whereas  under  Article  77  of  the  said  Charter  the  trus- 
teeship system  may  be  applied  to  territories  now  held 
under  mandate;  and 

Wheeeas  on  December  17,  1920  the  Council  of  the 
League  of  Nations  confirmed  a  mandate  for  the  former 
German  islands  north  of  the  equator  to  Japan,  to  be 
administered  in  accordance  with  Article  22  of  the  Cove- 
nant of  the  I/eague  of  Nations ;  and 


Wheeeas  Japan,  as  a  result  of  the  Second  World  War, 
has  ceased  to  exercise  any  authority  in  these  Islands ; 

Now,  Theeefore,  the  Security  Council  of  the  United  Na- 
tions, having  satisfied  itself  that  the  relevant  articles  of 
the  Charter  having  been  complied  vrith,  hereby  resolves 
to  approve  the  following  terms  of  trusteeship  for  the 
Pacific  Islands  formerly  under  mandate  to  Japan. 

Article  1 

The  Territory  of  the  Pacific  Islands,  consisting  of  the 
islands  formerly  held  by  Japan  under  mandate  in  accord- 


^This  draft  agreement  for  the  Japanese  Mandated 
Islands  has  been  transmitted  for  information  to  the 
members  of  the  Security  Council  of  the  United  Nations 
and  to  New  Zealand  and  the  Philippines  in  accordance 
with  President  Truman's  statement  of  Nov.  6,  1946. 


889 


THE  UNITED  NATIONS 

ance  with  Article  22  of  the  Covenant  of  the  league  of 
Nations,  is  hereby  designated  as  a  strategic  area  and 
placed  under  the  trusteeship  system  established  in  the 
Charter  of  the  United  Nations.  The  Territory  of  the 
Pacific  Islands  is  hereinafter  referred  to  as  the  trust 
territory. 

Article  2 

The  United  States  of  America  is  designated  as  the  ad- 
ministering authority  of  the  trust  territory. 

Article  3 

The  administering  authority  shall  have  full  powers 
of  administration,  legislation,  and  jurisdiction  over  the 
territory  subject  to  the  provisions  of  this  agreement  as 
an  integral  part  of  the  United  States,  and  may  apply  to 
the  trust  territory,  subject  to  any  modifications  which 
the  administering  authority  may  consider  desirable,  such 
of  the  laws  of  the  United  States  as  It  may  deem  appro- 
priate to  local  conditions  and  requirements. 

Article  4 

The  administering  authority,  in  discharging  the  obliga- 
tions of  trusteeship  in  the  trust  territory,  shall  act  in  ac- 
cordance with  the  Charter  of  the  United  Nations,  and  the 
provisions  of  this  agreement,  and  shall,  as  specified  in  Ar- 
ticle 83  (2)  of  the  Charter,  apply  the  objectives  of  the 
international  trusteeship  system,  as  set  forth  in  Article 
76  of  the  Charter,  to  the  people  of  the  trust  territory. 

Article  5 

In  discharging  its  obligations  under  Article  76  (a)  and 
Article  84,  of  the  Charter,  the  administering  authority 
shall  ensure  that  the  trust  territory  shall  play  its  part,  in 
accordance  with  the  Charter  of  the  United  Nations,  in  the 
maintenance  of  international  peace  and  security.  To  this 
end  the  administering  authority  shall  be  entitled: 

(1)  to  establish  naval,  military  and  air  bases  and  to 
erect  fortifications  in  the  trust  territory ; 

(2)  to  station  and  employ  armed  forces  in  the  terri- 
tory ;  and 

(3)  to  make  use  of  volunteer  forces,  facilities  and  as- 
sistance from  the  trust  territory  in  carrying  out  the  ob- 
ligations towards  the  Security  Council  undertaken  in 
this  regard  by  the  administering  authority,  as  well  as  for 
the  local  defense  and  the  maintenance  of  law  and  order 
within  the  trust  territory. 

Article  6 

In  discharging  its  obligations  under  Article  76  (b)  of  the 
Charter,  the  administering  authority  shall : 

(1)  foster  the  development  of  such  political  institutions 
as  are  suited  to  the  trust  territory  and  shall  promote  the  de- 


velopment of  the  inhabitants  of  the  trust  territory  toward 
self-government,  and  to  this  end  shall  give  to  the  inhabi- 
tants of  the  trust  territory  a  progressively  increasing 
share  in  the  administrative  services  in  the  territory ;  shall 
develop  their  participation  in  local  government ;  shall  give 
due  recognition  to  the  customs  of  the  inhabitants  in  pro- 
viding a  system  of  law  for  the  territory ;  and  shall  take 
other  appropriate  measures  toward  these  ends; 

(2)  promote  the  economic  advancement  and  self-suf- 
ficiency of  the  inhabitants  and  to  this  end  shall  regulate 
the  use  of  natural  resources ;  encourage  the  development 
of  fisheries,  agriculture,  and  industries;  protect  the  in- 
habitants against  the  loss  of  their  lands  and  resources; 
and  improve  the  means  of  transportation  and  communi- 
cation ; 

(3)  promote  the  social  advancement  of  the  inhabitants, 
and  to  this  end  shall  protect  the  rights  and  fundamental 
freedoms  of  all  elements  of  the  population  without  dis- 
crimination; protect  the  health  of  the  inhabitants;  con- 
trol the  traflic  in  arms  and  ammunition,  opium  and  other 
dangerous  drugs,  and  alcohol  and  other  spiritous  bever- 
ages; and  institute  such  other  regulations  as  may  be 
necessary  to  protect  the  inhabitants  against  social  abuses ; 
and 

(4)  promote  the  educational  advancement  of  the  inhabi- 
tants, and  to  this  end  shall  take  steps  toward  the  estab- 
lishment of  a  general  system  of  elementary  education; 
facilitate  the  vocational  and  cultural  advancement  of  the 
population ;  and  shall  encourage  qualified  students  to  pur- 
sue higher  education,  including  training  on  the  profes- 
sional level. 

Article  7 

In  discharging  its  obligations  under  Article  76  (c),  of 
the  Charter,  the  administering  authority,  subject  only  to 
the  requirements  of  public  order  and  security,  shall  guar- 
antee to  the  inhabitants  of  the  trust  territory  freedom  of 
speech,  of  the  press,  and  of  assembly;  freedom  of  con- 
science, of  worship,  and  of  religious  teaching ;  and  freedom 
of  migration  and  movement. 

Article  8 

1.  In  discharging  its  obligations  under  Article  76  (d)  of 
the  Charter,  as  defined  by  Article  83  (2)  of  the  Charter, 
the  administering  authority,  subject  to  the  requirements 
of  security,  and  the  obligation  to  promote  the  advance- 
ment of  the  inhabitants,  shall  accord  to  nationals  of  each 
Member  of  the  United  Nations  and  to  companies  and  asso- 
ciations organized  in  conformity  with  the  laws  of  such 
Member,  treatment  in  the  trust  territory  no  less  favorable 
than  that  accorded  therein  to  nationals,  companies  and 
associations  of  any  other  United  Nation,  except  the 
administering  authority. 


890 


Department  of  State  Bulletin    •    November  17,  1946 


THE  UNITED  NATIONS 


2.  The  administering  authority  shall  ensure  equal  treat- 
ment to  the  Members  of  the  United  Nations  and  their 
nationals  in  the  administration  of  justice, 

3.  Nothing  in  this  Article  shall  be  so  construed  as  to 
accord  traffic  rights  to  aircraft  flying  into  and  out  of  the 
trust  territory.  Such  rights  shall  be  subject  to  agreement 
between  the  administering  authority  and  the  state  whose 
nationality  such  aircraft  possesses. 

4.  The  administering  authority  may  negotiate  and  con- 
clude commercial  and  other  treaties  and  agreements  with 
Members  of  the  United  Nations  and  other  states,  designed 
to  attain  for  the  inhabitants  of  the  trust  territory  treat- 
ment by  the  Members  of  the  United  Nations  and  other 
states  no  less  favorable  than  that  granted  by  them  to  the 
nationals  of  other  states.  The  Security  Council  may  rec- 
ommend, or  invite  other  organs  of  the  United  Nations  to 
consider  and  recommend,  what  rights  the  inhabitants  of 
the  trust  territory  should  acquire  in  consideration  of  the 
rights  obtained  by  Members  of  the  United  Nations  in  the 
trust  territory. 

Article  9 

The  administering  authority  shall  be  entitled  to  consti- 
tute the  trust  territory  into  a  customs,  fiscal,  or  admin- 
istrative union  or  federation  with  other  territories  under 
United  States  jurisdiction  and  to  establish  common  serv- 
ices between  such  territories  and  the  trust  territory  where 
such  measures  are  not  inconsistent  with  the  basic  objec- 
tives of  the  International  Trusteeship  System  and  with 
the  terms  of  this  agreement. 

Article  10 

The  administering  authority,  acting  under  the  provi- 
sions of  Article  3  of  this  agreement,  may  accept  member- 
ship in  any  regional  advisory  commission,  regional  au- 
thority, or  technical  organization,  or  other  voluntary  as- 
sociation of  states,  may  cooperate  with  sjiecialized  inter- 
national bodies,  public  or  private,  and  may  engage  in 
other  forms  of  international  cooperation. 


Article  11 

1.  The  administering  authority  shall  take  the  necessary 
steps  to  provide  the  status  of  citizenship  of  the  trust  terri- 
tory for  the  inhabitants  of  the  trust  territory. 

2.  The  administering  authority  shall  afford  diplomatic 
and  consular  protection  to  inhabitants  of  the  trust  terri- 
tory when  outside  the  territorial  limits  of  the  trust  terri- 
toi-y  or  of  the  territory  of  the  administering  authority. 

Article  12 

The  administering  authority  shall  enact  such  legislation 
as  may  be  necessary  to  place  the  provisions  of  this  agree- 
ment in  effect  in  the  trust  territory. 

Article  13 

The  provisions  of  Articles  87  and  88  of  the  Charter 
shall  be  applicable  to  the  trust  territory,  provided  that 
the  administering  authority  may  determine  the  extent  of 
their  applicability  to  any  areas  which  may  from  time  to 
time  be  specified  by  it  as  closed  for  security  reasons. 

Article  14 

The  administering  authority  undertakes  to  apply  in  the 
trust  territory  the  provisions  of  any  international  conven- 
tions and  recommendations  which  may  be  appropriate  to 
the  particular  circumstances  of  the  trust  territory  and 
which  would  be  conducive  to  the  achievement  of  the 
basic  objectives  of  Article  6  of  this  agreement. 

Article  15 

The  terms  of  the  present  agreement  shall  not  be  altered, 
amended  or  terminated  without  the  consent  of  the  ad- 
ministering authority. 

Article  16 

The  present  agreement  shall  come  into  force  when  a.p- 
proved  by  the  Security  Council  of  the  United  Nations  and 
by  the  Government  of  the  United  States  after  due  con- 
stitutional process. 


United  States  Members  on  ECOSOC  Commissions 


[Released  to  the  press  by  the  White  House  November  6] 

The  President  has  appointed  the  following  per- 
sons as  the  United  States  members  of  various 
commissions  of  the  Economic  and  Social  Council 
of  the  United  Nations : 

Isador  Lubin,  Economic  and  Employment  Commission. 

Term — four  years 
Edward   F.   Bartelt,   Fiscal   Commission.    Term — two 

years 


Anna  Eleanor  Roosevelt,  Human  Rights  Commission. 
Term — four  years 

Philip  M.  Hauser,  Population  Commission.  Term — two 
years 

Stuart  A.  Rice,  Statistical  Commission.  Term — two 
years 

Dorothy  Kenyon,  Commission  on  Status  of  Women. 
Term — three  years 

Arthur  J.  Altmeyer,  Social  Commission.  Term — two 
years 

George  P.  Baker,  Transport  and  Communications  Com- 
mission.    Term — four  years 


891 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings 


In  Session  as  of  November  10, 1946 
Far  Eastern  Commission 


United  Nations: 

Security  Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

UNRRA  -  Intergovernmental  Committee  on  Refugees   (IGCR) : 
Joint  Planning  Committee 

General  Assembly 

Telecommunications  Advisory  Committee 


German  External  Property  Negotiations  with  Portugal  (Safehaven) . . 

PICAO: 

Interim  Council 

Regional 

Air  Traffic  Control  Committee,  European-Mediterranean  Region. 
Divisional 

Meteorological  Division 


International  Committee  on  Weights  and  Measures 

Permanent  Committee  of  the  International  Health  Office- 


FAO:     Preparatory    Commission    To    Study    World    Food    Board 
Proposals 

World  Health  Organization  (WHO):  Interim  Commission 

Council  of  Foreign  Ministers 

I ARA :   Meetings  on  Conflicting  Custodial  Claims 


International     Technical     Committee     of     Aerial     Legal     Experts 
(CITEJA) 

Scheduled  for  November  1946-January  1947 

International  Wool  Talks 

U.  S.-U.  K.  Meetings  on  Bizonal  Arrangements  for  Germany 


UNESCO: 

Preparatory  Commission. 
General  Conference 

"Month"  Exhibition 


ILO: 

Industrial  Committee  on  Textiles 

Industrial  Committee  on  Building,  Civil  Engineering  and  Public 

Works 


London 

Washington. 


Paris. 
Paris. 
Paris. 


Brussels 

Brussels. 


Washington 

February  26. 

Lake  Success 

Lake  Success 

Lake  Success 

Washington    and 
Lake  Success. 

Flushing  Meadows 

Lake  Success 

Lisbon . 

March  25. 
March  25. 
June  14. 
July  25. 

October  23. 
November  10. 

September  3. 

Montreal          .  . 

September  4. 

Paris 

October  28-November  6. 

Montreal  ..... 

October  29. 

Paris          ..... 

October  22-29. 

Paris 

October  23-31. 

Washington _. 

October  28. 

Geneva 

November  4, 

New  York     . 

November  4. 

Brussels 

November  6. 

Cairo 

November  6-19. 

November  11-16. 
November  12 

November  14-15. 
November  19. 
November. 

November  14-22. 
November     25-December 
3. 


Calendar  prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


Department  of  State  Bulletin    •    November  17,  1948 


Calendar  of  Meetings — Continued 


Second  Inter-American  Congress  of  Radiology . 

PICAO: 
Divisional 

Communications  Division 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  TraflSc  Control  Practices  Division 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division 

International  Whaling  Conference 

Rubber  Study  Group  Meeting 

United  Nations: 

Economic  and  Social  Council 

Commission  on  Narcotic  Drugs 

Statistical  Commission 

Inter- American  Commission  of  Women:  Fifth  Annual  Assembly 

Intergovernmental  Committee  on  Refugees  (IGCR) :  Sixth  Plenary 
Session 

Meeting  of  Medical  and  Statistical  Commissions  of  Inter-American 
Committee  on  Social  Security 

Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education 


Habana 

Montreal 

Montreal 

Montreal 

Montreal 

Montreal 

Washington. 

The  Hague- - 

Lake  Success 
Lake  Success 

Washington. 

London 

Washington. 

Caracas 

Caracas 


November  17-22. 


November  19. 
November  26. 
December  3. 
January  7. 
January  14. 

November  20. 

November  25. 


November  27. 
January  (tentative). 

December  2-12. 

December  16. 

January  6-11. 

January  12-24. 
January  12-24. 


Activities  and  Developments  » 


MEETING   OF  INTERIM   COMMISSION   OF  WHO 

[Released  to  the  press  November  5] 

Acting  Secretary  of  State  Acheson  announced 
on  November  5  that  Dr.  Tliomas  Parran,  Surgeon 
General,  United  States  Public  Health  Service,  and 
United  States  Kepresentative  on  the  Interim  Com- 
mission of  the  World  Health  Organization,  had 
left  to  attend  the  Second  Session  of  the  Interim 
Commission,  convening  this  week  at  Geneva,  Swit- 
zerland. Dr.  Parran  is  accompanied  by  the  al- 
ternate United  States  representative  on  the 
Interim  Commission,  Dr.  H.  Van  Zile  Hyde, 
Division  of  International  Labor,  Social  and  Health 
Affairs,  Department  of  State ;  Dr.  James  A.  Doull, 
chief,  Office  of  International  Health  Relations, 
United  States  Public  Health  Service;  and  Dr. 
Howard  B.  Calderwood,  public  health  consultant, 
Office  of  International  Health  Relations,  United 
States  Public  Health  Service. 


721403^6 


893 


ACTIVITIES  AND  DEVELOPMENTS 


Among  the  items  on  the  agenda  of  this  Second 
Session,  which  began  on  November  4,  will  be  a  con- 
sideration of  relationships  between  the  World 
Health  Organization  and  the  United  Nations,  the 
transfer  to  the  World  Health  Organization  of  the 
health  functions  of  other  international  agencies, 
the  League  of  Nations,  UNKRA,  and  the  Office 
International  d'Hygiene  Publique;  and  the  ap- 
pointment of  teclmical  committees  to  be  concerned 
with  epidemiology  and  quarantine,  health  in 
devastated  areas,  and  medical  nomenclature. 

U.  S.  DELEGATBON  TO  CITEJA 

Acting  Secretary  of  State  Acheson  announced 
on  November  5  that  the  following  members  of  the 
United  States  Section  of  the  International 
Technical  Committee  of  Aerial  Legal  Experts 
(CITEJA)  had  left  for  Cairo,  Egj'pt,  to  attend 
the  fifteenth  plenary  meeting  of  the  Committee 
which  began  on  November  6:  John  C.  Cooper, 
the  Institute  for  Advanced  Study,  Princeton, 
N.  J.;  Richard  E.  Elwell,  general  counsel,  Civil 
Aeronautics  Administration ;  Arnold  W.  Knauth, 
specialist  in  maritime  and  aviation  law,  De- 
partment of  Justice;  and  Emory  T.  Nunneley, 
general  counsel,  Civil  Aeronautics  Administra- 
tion. This  group,  which  will  be  headed  by  Mr. 
Nunneley,  is  accompanied  by  two  members  of  the 
Advisory  Committee  to  the  United  States  Section : 
Edward  C.  Sweeney,  editor.  Journal  of  Air  Law 
and  Com/merce,  Northwestern  University,  Chi- 
cago, 111. ;  and  Stuart  G.  Tipton,  general  counsel, 
Air  Transport  Association  of  America. 

U.  S.   DELEGATION  TO   INTERNATIONAL  WOOL 
TALKS 

[Released  to  the  press  November  4] 

The  Secretary  of  State  announced  on  November 
4  that  the  President  had  approved  the  composition 
of  the  United  States  Delegation  to  the  Interna- 
tional Wool  Talks,  scheduled  to  begin  in  London, 
England,  November  11, 1916.^ 

Representatives  of  the  governments  principally 
interested  in  wool,  either  as  producers  or  con- 
sumers, will  meet  for  a  joint  review  and  discussion 
of  the  world  situation  as  regards  clothing  wools. 


'  For  an  article  on  American  Wool  Import  Policy,  see 
BDUtETiN  of  Nov.  3,  1946,  p.  783. 


They  will  also  consider  the  possibilities  of  future 
wool  developments. 

The  members  of  the  Delegation  are : 

Chairman : 

Donald  Kennedy,  chief.  International  Resources 
Division,  Department  of  State 

Advisers : 

Floyd  Davis,  acting  head,  Division  of  Livestock 
and  Wool,  Office  of  Foreign  Agricultural  Rela- 
tions, Department  of  Agriculture 

Clarence  Nichols,  assistant  chief.  International 
Resources  Division,  Department  of  State 

Paul  Nyhus,  agricultural  attache,  American 
Embassy,  London 

Preston  Richards,  assistant  director.  Livestock 
Branch,  Production  and  Marketing  Administra- 
tion, Department  of  Agi-iculture 

Robert  Schwenger,  special  assistant  to  the  di- 
rector, Office  of  Foreign  Agricultural  Relations, 
Department  of  Agriculture 

AMERICAN  ADVISERS  TO  THE  GENERAL 
CONFERENCE  OF  UNESCO 

William  Benton,  Assistant  Secretary  of  State 
for  Public  Affairs,  announced  on  November  8  that 
the  following  persons  will  serve  as  advisers  to  the 
U.  S.  delegation  to  the  first  session  of  the  General 
Conference  of  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization  which  con- 
venes in  Paris  on  November  19  : 

A.  J.  Brumbaugli,  member,  Executive  Committee,  Com- 
mission on  International  Educational  Reconstruction,  and 
vice  president,  American  Council  on  Education 

Nelson  H.  Cruiksliank,  director.  Social  Insurance  Ac- 
tivities, American  Federation  of  Labor 

Kermit  Eby,  director  of  education  and  research.  Con- 
gress of  Industrial  Organization 

Monsignor  Frederick  G.  Hoctiwalt,  director,  Department 
of  Education,  National  Catholic  Welfare  Conference 

Kenneth  Holland,  assistant  director,  Office  of  Interna- 
tional Information  and  Cultural  Affairs,  Department  of 
State 

Walter  Kotschnig,  associate  chief,  Division  of  Interna- 
tional Organization  Affairs,  Department  of  State 

James  Marshall,  member,  Board  of  Education,  New 
York 

Richard  McKeon,  Dean  of  Humanities,  University  of 
Chicago 

Carl  H.  Milam,  executive  secretary,  American  Library 
Association 

W.  Albert  Noyes,  president,  American  Chemical  Society 


894 


Department  of  State  Bulletin    •    November  17,  1946 


ACTIVITIES  AND  DEVELOPMENTS 


Mrs.  Henry  Potter  Russell,  chairman,  Women's  Board, 
San  Francisco  Museum  of  Art,  and  president,  San  Fran- 
cisco Community  Chest 

Charles  A.  Thomson,  adviser,  OflBce  of  International 
Information  and  Cultural  Affairs,  Department  of  State 

Mrs.  Pearl  A.  Wanamaker,  State  Superintendent  of 
Public  Instruction,  State  of  Washington,  and  president 
of  the  National  Education  Association 

Mrs.  Louise  Wright,  executive  secretary,  Chicago  Coun- 
cil on  Foreign  Relations 

Mr.  Benton  stated:  "The  first  Session  of  the 
General  Conference  of  UNESCO  has  immense  po- 
tential significance.  It  will  lay  down  the  program 
of  the  new  Organization,  select  its  first  director 
general,  and  reach  agi-eements  on  budgetary  mat- 
ters. For  these  reasons,  great  pains  have  been 
taken  to  assure  that  the  United  States  will  be 
well  represented  at  Paris  in  many  branches  of 
UNESCO's  activities." 

The  Preparatory  Commission  of  UNESCO  will 
hold  its  final  meeting  in  Paris  on  November  14  and 
15.  The  United  States  will  be  represented  by  Dr. 
Esther  Brunauer,  assisted  by  her  alternates.  Dr. 
Harvard  Arnason  and  Dr.  Kichard  A.  Johnson.^ 

TWENTY  GOVERNMENTS  INVITED  TO 
INTERNATIONAL  WHALING  CONFERENCE 

[Released  to  the  press  November  7] 

The  Department  of  State  announced  on  No- 
vember 7  that  invitations  had  been  issued  to  20 
governments  to  participate  in  an  international 
whaling  conference  to  be  held  in  Washington, 
D.C.,  beginning  November  20,  1946.  The  follow- 
ing Governments  have  been  invited:  Argentina, 
Australia,  Brazil,  Canada,  Chile,  Denmark, 
France,  Ireland,  Iceland,  Mexico,  the  Netherlands, 
Newfoundland,  New  Zealand,  Norway,  Peru, 
Portugal,  Sweden,  the  Union  of  South  Africa, 
the  United  Kingdom,  and  the  Union  of  Soviet 
Socialist  Eepublics. 

The  objective  of  the  conference  is  to  amend  and 
codify  existing  international  regulations  govern- 
ing the  conduct  of  whaling,  with  a  view  to  con- 
serving and  developing  the  existing  stocks  of 
whales. 

It  is  also  anticipated  that  the  conference  will 
consider  means  for  facilitating  the  formulation 
and  adoption  of  future  amendments  to  the  regula- 
tions from  time  to  time,  as  conditions  may  require, 
without  the  necessity  of  calling  international  con- 
ferences as  has  been  the  practice  in  the  past. 


The  United  States  has  pai-ticipated  in  pre- 
vious intei-national  conferences  concerned  with, 
the  regulation  of  whaling,  commencing  with  the 
conference  convoked  by  the  League  of  Nations 
in  1931. 

The  body  of  regulations  which  have  been  drawn 
up  at  various  international  conferences  include 
restrictions  such  as  limitations  on  the  length  of 
the  whaling  season,  minimum  legal  length  of 
whales  taken,  closed  waters,  catch  limitations,  and 
prohibition  on  the  taking  of  certain  species. 

THIRD  MEETING  OF  THE  RUBBER  STUDY 
GROUPS 

The  Department  of  State  announced  on  Novem- 
ber 7  that  the  United  States  had  accepted  an  in- 
vitation from  the  Government  of  the  Netherlands 
to  participate  in  the  third  meeting  of  the  Rubber 
Study  Group. 

This  meeting  is  scheduled  to  take  place  at  The 
Hague  on  November  25, 1946  with  the  Netherlands 
Government  as  host.  Donald  D.  Kennedy,  Chief 
of  the  International  Resources  Division,  Depart- 
ment of  State,  will  be  the  United  States  delegate, 
with  William  T.  Phillips,  Special  Assistant  on 
Commodity  Policy,  International  Resources  Di- 
vision, Department  of  State,  as  alternate  delegate. 
In  addition,  Mr.  Kennedy  will  be  accompanied  by 
seven  advisers  representing  other  United  States 
Government  agencies  and  the  United  States  rub- 
ber industry  and  by  an  attache  of  the  American 
Embassy  at  London. 

Advisers  will  be  H.  C.  Bugbee,  attache.  United 
States  Embassy,  London ;  William  L.  Batt,  chair- 
man, Inter- Agency  Policy  Committee  on  Rubber ; 
Alan  L.  Grant,  president.  Rubber  Development 
Corporation;  George  M.  Tisdale,  chairman,  Com- 
bined Rubber  Committee ;  Everett  G.  Holt,  rubber 
adviser,  Department  of  Commerce ;  P.  W.  Litch- 
field, chairman,  Goodyear  Tire  and  Rubber  Com- 
pany; John  L.  Collyer,  president,  B.  F.  Goodrich 
Company ;  and  A.  L.  Viles,  president.  Rubber  Man- 
ufacturers Association,  Inc. 


'  See  BuiiEHN  of  Oct.  27,  1946,  p.  779,  and  of  Nov.  10, 
1946,  p.  842. 

'  Prepared  by  the  Division  of  International  Resources  in 
collaboration  with  the  Division  of  International  Con- 
ferences. 


ACTIVITIES  AND  DEVELOPMENTS 

The  Kubber  Study  Group  is  the  outgrowth  of 
the  exploratory  rubber  talks  held  by  representa- 
tives of  the  Netherlands,  United  Kingdom,  and 
the  United  States  in  London  during  early  August 
1944.1  ji^l  t,hat  meeting  the  representatives  ex- 
plored the  possible  post-war  rubber  supply  in  rela- 
tion to  post-war  demand.  The  participants  were 
aware  that  adequate  statistical  information  was 
not  readily  available  for  a  thorough  discussion. 
Consequently,  the  three  governments  agreed  to 
the  formation  of  an  informal  Rubber  Study  Group 
to  meet  periodically  for  the  purpose  of  presenting 
and  making  a  detailed  analysis  and  study  of  all 
the  statistical  data  available  to  each  member 
country  with  respect  to  the  common  problems 
arising  from  the  production,  manufacture,  or  use 
of  natural,  synthetic,  and  reclaimed  rubber. 

The  Group  is  not  authorized  to  formulate  and 
transmit  recommendations  to  the  participating 
governments.  However,  the  respective  govern- 
ments have  at  their  disposal  all  the  available  infor- 
mation of  the  proceedings  of  the  Rubber  Study 
Group. 

The  first  meeting  of  the  Rubber  Study  Group 
was  held  in  Washington  in  January  1945,  attended 
by  the  representatives  of  the  Netherlands,  the 
United  Kingdom,  and  the  United  States.  Each 
of  the  members  presented  a  study  of  rubber  prob- 
lems of  mutual  interest. 

The  second  meeting  was  held  during  November 
1945  in  London,  with  the  United  Kingdom  as  host 
Government.  At  that  meeting  France  was  iiivited 
to  participate  as  a  member,  and  its  representative 
joined  the  Netherlands,  the  United  Kingdom,  and 
the  United  States  in  attempting  to  re-appraise  and 
reconsider  the  rubber  situation  in  light  of  the  ces- 
sation of  hostilities  and  the  liberation  of  the  Far 
Eastern  rubber-producing  areas. 

At  the  coming  third  meeting  of  the  Rubber 
Study  Group  further  studies  of  common  rubber 
problems  will  be  made  on  the  basis  of  the  latest 
statistical  information  available.  Representa- 
tives plan  to  be  present  from  France,  the  Nether- 


^  See  Bulletin  of  June  2,  1946,  p.  932,  for  an  article  by 
Mr.  Phillips  on  "Rubber  and  World  Economy". 

'  Prepared  by  the  Division  of  International  Conferences 
of  the  Department  of  State  in  collaboration  with  the 
OflBce  of  International  Trade,  Department  of  Commerce. 


lands,  the  United  Kingdom,  and  the  United  States. 
The  meeting  is  expected  to  adjourn  by  November 
30, 1946. 

TOURIST  CONFERENCE  REVIVES 
INTERNATIONAL  COOPERATION  IN  TRAVEL  = 

Official  delegates  from  41  governments  met  at 
London,  October  1-7,  1946  for  the  purpose  of  re- 
viving and  expanding  international  cooperation  in 
promoting  travel  between  nations.  The  Govern- 
ment of  the  United  States  was  represented  at  the 
International  Tourist  Organizations  Conference 
by  George  Tait,  Consul  General  and  Counselor  of 
the  Embassy  at  London,  England,  and  Herbert  A. 
Wilkinson  of  the  Department  of  Commerce. 

Among  the  more  important  results  of  the  Con- 
ference were  the  following : 

1.  Contacts  between  the  governments  of  the  par- 
ticipating countries  for  the  interchange  of  infor- 
mation in  the  field  of  travel  were  developed ;  and 
the  attention  of  the  public,  of  the  several  govern- 
ments, and  of  the  United  Nations  was  directed  to 
the  necessity  of  eliminating  the  myriad  impedi- 
ments to  a  free  flow  of  travelers  between  countries. 

2.  Resolutions  pointing  out  the  importance  of 
travel  to  expanding  international  trade,  the  crea- 
tion of  foreign  exchange,  and  the  development  of 
mutual  understanding  of  cultural  and  intellectual 
activities  were  passed  unanimously. 

3.  Resolutions  urging  the  immediate  simplifica- 
tion of  frontier  formalities,  abolishment  of  cur- 
rency controls,  and  the  elimination  of  passport  and 
visa  impediments  were  adopted. 

4.  Formation  of  an  exploratory  committee,  of 
which  the  United  States  is  a  member,  to  recom- 
mend to  the  next  meeting  the  form  and  purpose  of 
an  expanded  international  travel  organization  and 
a  method  of  cooperation  with  the  United  Nations 
in  dealing  with  problems  of  encouraging  freedom 
of  travel. 

5.  Adoption  of  a  definition  of  "tourist"  wluch 
includes  commercial  travelers,  students,  trainees, 
businessmen,  and  public  officials,  in  addition  to 
visitors  traveling  for  personal,  recreational,  health, 
or  professional  reasons.  In  general,  this  defini- 
tion might  be  said  to  include  anyone  who  leaves 
the  country  of  his  residence  for  a  period  of  more 
than  24  hours  with  the  intention  of  returning. 


896 


Department  of  State  Bulletin    •    November  17,  1946 


ACTIVITIES  AND   DEVELOPMENTS 


Adoption  of  the  definition  by  the  participating 
governments  would  eliminate  the  discrimination 
against  commercial  travelers  that  currently  exists 
in  many  countries  in  the  form  of  the  imposition  of 
many  special  rules  and  irritating  formalities. 

6.  Formation  of  a  committee,  of  which  the 
United  States  is  a  member,  to  study  and  report  to 
the  next  travel  conference  on  methods  of  standard- 
izing international  tourist  statistics  and  facilitat- 
ing the  free  exchange  of  such  information. 


PAUL  T.  DAVID  APPOINTED  TO  PICAO 
COMMITTEE 

[Released  to  the  press  by  the  White  House  November  6] 

The  President  has  designated  Paul  T.  David  as 
United  States  representative  on  the  Air  Transport 
Committee  of  the  Provisional  International  Civil 
Aviation  Organization.  Mr.  David  will  serve  un- 
der the  general  direction  of  Maj.  Gen.  Laurence 
S.  Kuter,  United  States  representative  on  the  In- 
terim Council  of  PICAO. 


Caribbean  Regional  Air  Navigational  Meeting  of  PICAO 

An  Article 


The  Caribbean  Regional  Air  Navigation  Meet- 
ing of  the  Provisional  International  Civil  Avia- 
tion Organization  (PICAO),  which  met  at  Wash- 
ington from  August  26  through  September  13, 
1946,  was  the  third  in  a  series  of  regional  meetings 
called  under  the  auspices  of  PICAO  to  consider 
the  facilities  and  supplemental  standards,  prac- 
tices, and  procedures  necessary  for  the  safe  and 
expeditious  operation  of  international  air-trans- 
port services  in  ten  regions  throughout  the  world. 
These  PICAO  regional  meetings  will  go  far  to 
insure  common  operating  standards  and  practices 
for  international  air  carriers.  In  addition,  the 
meetings  are  highly  useful  as  educational  gather- 
ings where  information  pei'taining  to  installations 
as  weU  as  to  techniques  of  air  navigation  and 
ground  aids  to  air  transport  can  be  exchanged  to 
the  mutual  benefit  of  all  attending  nations. 

In  air-navigation  matters,  PICAO  has  been 
engaged  in  developing  recommended  standards, 
practices,  and  procedures  for  the  following  tech- 
nical fields:  air-traffic  control,  meteorology,  air- 
dromes and  ground  aids,  search  and  rescue,  com- 
munications, airworthiness  requirements,  operat- 
ing procedures,  accident  investigation,  personnel 
licensing,  and  aeronautical  maps  and  charts. 

As  regards  the  first  five  of  these  fields,  it  early 
became  apparent  that  the  standards  and  proce- 
dures developed  would  have  to  be  modified  and 
perhaps  supplemented  before  they  could  be  ap- 
plied to  the  varying  geographical  and  aeronautical 
conditions  throughout  the  world.    For  this  reason 


the  PICAO  Interim  Council  divided  the  world 
into  ten  regions  and  instituted  a  program  of 
regional  meetings  to  discuss  facilities  supporting 
five  fields  and  to  modify  or  supplement  the  stand- 
ards and  procedures  pertaining  to  them. 

The  first  regional  PICAO  air-navigation  meet- 
ing was  held  in  Dublin,  Ireland,  in  March  of  this 
year  to  consider  facilities  and  standards  of  opera- 
tion along  heavily  traveled  routes  in  the  North 
Atlantic  region.  The  Dublin  conference  estab- 
lished a  pattern  for  the  nine  other  regional  meet- 
ings planned  by  PICAO.  The  Dublin  pattern 
has  been  modified  and  improved  upon  only  slightly 
during  the  following  meetings.  The  Dublin  con- 
ference was  followed  in  late  April  and  early  May 
by  a  Paris  meeting  which  considered  technical 
problems  facing  international  civil  aviation  in  the 
combined  European-Mediterranean  region.  And 
the  recent  Caribbean  meeting  was  followed  in  Oc- 
tober by  the  Cairo  air-navigation  meeting  which 
covered  the  Middle  East  region.  With  six  addi- 
tional regional  meetings  scheduled  to  meet  imder 
the  auspices  of  PICAO  during  the  coming  year, 
it  appears  that  PICAO  has  planned  wisely  for 
regional  implementation  of  its  program  designed 
to  bring  about  imiformity  of  operating  pi-actices 
and  procedures  of  international  civil  air  carriers 
as  well  as  to  insure  that  air  navigation,  weather, 
commimications,  and  search  and  rescue  facilities 
in  each  region  are  sufficient  for  their  safe  opera- 
tion. 

At  each  of  the  regional  air-navigation  meetings 


897 


ACTIVITIES  AND   DEVELOPMENTS 


a  general  review  is  made  of  existing  facilities  with- 
in the  particular  region  for  air-traffic  control,  avia- 
tion communications,  aviation  meteorology,  search 
and  rescue,  and  airdromes,  air  routes,  and  ground 
aids.  Besides  reviewing  existing  facilities  in  each 
of  these  fields  for  their  adequacy  and  for  infor- 
mational purposes,  recommendations  are  made  as 
to  additional  facilities  needed,  and  proposals  are 
developed  with  respect  to  supplemental  technical 
standards,  practices,  and  procedures  which  con- 
form to  the  peculiarities  of  the  region  under  con- 
sideration. The  recommendations  are  then  re- 
viewed by  the  PICAO  Air  Navigation  Committee 
at  Montreal,  Canada,  prior  to  their  presentation 
to  the  PICAO  Interim  Council  for  approval. 
Once  approved  by  the  Council,  each  member  gov- 
ernment of  PICAO  is  obligated  to  use  its  best 
efforts  to  carry  out  the  recouunendations. 

With  such  a  diversity  of  technical  matters  be- 
ing discussed  and  with  the  obvious  interest  of 
American  flag  airlines  in  the  subject  matter  of  the 
meetings,  the  developing  of  a  well-rounded  United 
States  position  has  been  a  problem.  Pre-delega- 
tion  activities  of  the  United  States  delegations 
have  been  handled  through  the  medium  of  inter- 
dei^artmental  working  committees  established 
within  the  framework  of  the  Air  Coordinating 
Committee.  Representatives  of  American  flag  in- 
ternational airlines  as  well  as  the  Air  Transport 
Association  and  Aeronautical  Radio,  Inc.,  have 
actively  assisted  in  an  advisory  capacity.  Indus- 
try participation  in  the  working  committees  and 
in  the  delegations  themselves  has  been  thorough 
and  extremely  beneficial  to  both  goverimient  and 
industry.  It  is  safe  to  say  that  without  such  in- 
dustry advice  and  assistance  the  United  States 
could  not  possibly  have  taken  such  an  active  and 
leading  role  in  the  work  of  the  regional  meetings. 
The  interdepartmental  character  of  the  United 
States  delegation  is  made  obvious  by  listing  the 
Government  agencies  represented :  Departments  of 
State,  War,  and  Navy ;  the  Civil  Aeronautics  Ad- 
ministration and  the  Weather  Bureau  from  the 
Department  of  Commerce;  the  Civil  Aeronautics 

'  Observing  Governments. 

'  Non-member  states  of  PIOAO. 


Board ;  the  Coast  Guard ;  the  Federal  Communica- 
tions Commission;  and  the  Maritime  Commis- 
sion. All  have  taken  an  active  part  not  only  in 
formulating  pre-meeting  United  States  proposals 
but  also  in  the  work  of  the  United  States  delega- 
tions during  the  meetings  themselves. 

At  each  regional  air-navigation  meeting  the 
govermnents  of  countries  within  the  particular 
region  or  whose  airlines  operate  to  or  in  the  re- 
gion mider  consideration  are  issued  invitations  for 
full  participation.  Any  other  governments  which 
are  members  of  PICAO  may  send  observers  to  the 
meetings,  and,  in  addition,  representatives  of  in- 
ternational government  and  private  organizations 
interested  in  any  of  the  five  fields  listed  above  are 
issued  invitations  for  attendance  as  observers. 
Thus,  for  the  Caribbean  regional  meeting  the  fol- 
lowing Governments  and  organizations  were  pres- 
ent :  Argentina,  Australia,^  Brazil,  Canada,  Chile, 
China,^  Colombia,  Costa  Rica,^  Cuba,^  Czechoslo- 
vakia,^ Dominican  Republic,  El  Salvador,  France, 
Haiti,  Honduras,  Iraq,^  Mexico,  Netherlands, 
Nicaragaia,  Panama,^  Peru,  United  Kingdom, 
United  States,  Venezuela,  International  Air 
Transport  Association,  International  Meteorologi- 
cal Organization,  Inter- American  Radio  Office,  In- 
ternational Telecommunications  Union,  and,  of 
course,  the  Provisional  International  Civil  Avia- 
tion Organization. 

At  the  opening  session  of  the  Caribbean  meeting 
on  August  26,  1946  Charles  I.  Stanton,  chairman 
of  the  United  States  delegation,  was  elected  presi- 
dent of  the  meeting  and  chairman  of  the  General 
Committee.  This  General  Committee  was  com- 
posed of  the  heads  of  delegations  of  the  participat- 
ing governments,  and  its  task  was  to  review, 
modify,  and  finally  adopt  proposals  made  by  each 
of  the  five  conmiittees  formed  to  consider  problems 
arising  in  the  teclinical  fields  listed  above.  In  ad- 
dition, the  General  Committee  appointed  a 
Regional  Manual  Subcommittee  and  an  Operations 
Subcommittee. 

The  Regional  Manual  Subcommittee  accepted 
in  general  a  United  States  proposal  which,  in 
effect,  recommends  two  regional  publications: 
(a)  the  Caribhean  Supplementary  Procedu/res  for 


898 


Department  of  State  Bulletin   •   November  17,  1946 


ACTIVITIES  AND  DEVELOPMENTS 


Air  Navigation  Services,  to  contain  those  regional 
procedures  which  are  required  to  supplement 
PICAO  procedures  for  air-navigation  services. 
This  publication  is  designed  primarily  for  gi'ound 
personnel.  (&)  the  Caribhean  AirmerCs  Guide,  to 
contain  pertinent  information  concerning  air- 
navigation  procedures  and  facilities  within  the 
region.  This  publication  is  designed  primarily  for 
the  benefit  of  airmen.  The  manual  reports  which 
had  been  developed  earlier  at  the  Dublin  and  Paris 
meetings  were  consolidated  and  were  used  gener- 
ally as  a  basis  for  the  proposed  Caribbean  publica- 
tions as  regards  such  matters  as  style,  format,  and 
content.  The  manual  document  adopted  by  the 
Caribbean  meeting  is  believed  to  be  an  example  of 
the  type  of  airmen's  guide  required  in  any  region 
throughout  the  world. 

In  organizing  communication  centers  for  the 
handling  of  notices  to  airmen  (NOTAM),  the 
Manual  Subcommittee  was  confronted  with  the 
fact  that  there  are  many  small  states  within  the 
Caribbean  region,  the  majority  of  which  have  very 
few  aeronautical  facilities  within  the  territories. 
For  this  reason  a  proposal  was  adopted  recom- 
mending the  establishment  of  only  six  regional 
NOTAM  offices  instead  of  having  one  in  each 
country,  a  proposal  which  should  prove  a  worth- 
while saving  to  all  states  concerned.  The  plan  is 
to  have  the  regional  NOTAM  offices  report  to  a 
central  office  within  the  Caribbean  region  which  in 
turn  will  coordinate  its  information  with  central 
NOTAM  offices  in  other  regions. 

The  Operations  Subcommittee  had  several  con- 
troversial items  on  its  agenda.  One  of  particular 
interest  was  the  question  as  to  whether  the  metric 
or  the  English  system  of  measurement  should  be 
used.  The  General  Committee  adopted  a  recom- 
mendation that  the  unit  of  measure  in  horizontal 
distance  be  the  nautical  mile.  This  particular  item 
of  controversy  was  well  handled,  and  the  docu- 
ments submitted  to  the  General  Committee  for 
approval  reflected  the  fact  that  the  nations  work- 
ing together  had  an  understanding  of  each  other's 
problems  and  were  willing  to  compromise  in  order 
to  arrive  at  a  workable  solution. 
Another  problem  faced  by  the  Operations  Sub- 


committee was  that  of  devising  standard  instru- 
ment landing-approach  procedures  for  airdromes 
in  the  region.  The  United  States  proposed  a  for- 
mula, acce]3ted  by  the  meeting,  which  can  be  ap- 
plied to  any  airdrome  with  only  minor  changes  to 
be  made  where  physical  obstructions  require  a 
departure  from  normal  practices. 

The  Search  and  Rescue  Committee  of  the  region 
reviewed  existing  facilities  and  listed  supplemen- 
tary facilities  which  the  Committee  felt  were 
needed  for  adequate  search  and  rescue  operations 
within  the  region.  In  addition,  this  Committee 
conducted  a  study  of  operating  procedures  and 
instructions  for  the  coordination  of  search  and 
rescue  matters.  The  Committee  decided  that  the 
Caribbean  region  could  be  sei-ved  adequately  by 
the  same  procedures  which  had  been  developed  at 
the  previous  Dublin  and  Paris  meetings,  with  only 
minor  additions,  such  as  special  procedures  to  pro- 
vide for  contingencies  arising  as  a  residt  of 
hurricanes. 

Discussion  in  the  Air  Traffic  Control  Commit- 
tee revolved  around  a  United  Kingdom  proposal 
to  cover  the  entire  Caribbean  area  with  flight 
safety  regions  and  to  provide  only  a  limited  amount 
of  traffic  control.  The  United  States  suggested 
that  air-traffic  control  be  limited  to  those  places 
where  air  traffic  converged,  with  flight  safety  re- 
gions limited  to  those  areas  necessary  at  this  time. 
A  compromise  was  finally  developed  and  adopted 
by  the  General  Committee  whereby  clearly  defined 
air-traffic  control  areas  were  established  covering  a 
radius  of  approximately  150  miles  from  specified 
control  points.  Flight  safety  region  boundarie.s 
were  eliminated  entirely,  with  a  proviso  that  each 
control  point  will  supply  flight  information  service 
for  safety  purposes  beyond  its  control  area  to  the 
extent  of  its  ability.  Thus,  in  effect,  flight  safety 
regions  will  be  fluid  rather  than  defined. 

Other  major  accomplishments  of  the  Air  Traffic 
Control  Committee  included  unanimous  agreement 
on  a  plan  specifying  the  basic  meteorological  re- 
quirements for  adequate  air-traffic  control  and  a 
plan  specifying  the  basic  communications  require- 
ments to  fulfil  this  type  of  activity.  These  pro- 
posals are  considered  as  worthwhile  standards  for 
world-wide  application. 


899 


ACTIVITIES  AND  DEVELOPMENTS 


The  Communications  Committee  of  the  Carib- 
bean meeting  was  confronted  with  a  point  of 
major  interest  peculiar  to  this  region.  Unlike 
other  regions  of  the  world,  many  of  the  facilities 
used  for  communications  in  the  Caribbean  are 
owned  by  private  concerns  which  provide  services 
only  to  those  aeronautical  companies  responsible 
for  the  establishment  of  such  facilities.  Since  an 
increase  in  service  rendered  by  these  facilities 
would  entail  considerable  additional  expense,  the 
private  companies  could  not  commit  themselves  to 
making  these  facilities  available  to  all  prospective 
users.  The  countries  in  whose  territories  the  fa- 
cilities are  located  do  not  appear  to  be  financially 
or  technically  capable  of  providing  general  serv- 
ice at  the  present  time.  Since  one  objective  of 
PICAO  is  to  make  facilities  available  to  all  users 
on  a  non-discriminatory  basis,  this  subject  was 
discussed  at  considerable  length.  The  Communi- 
cations Committee  finally  decided  that  the  situa- 
tion would  gradually  be  worked  out  as  the  coun- 
tries involved  trained  their  own  technicians  and 
eventually  took  over  these  services. 

On  the  recommendation  of  the  United  Kingdom 
and  France,  the  General  Committee  adopted  the 
Communications  Committee  proposal  that  the 
basic  communications  procedures  developed  at  the 
Dublin  and  Paris  meetings  be  accepted  at  all  fu- 
ture regional  meetings.  It  was  felt  that  in  future 
meetings  only  the  procedures  peculiar  to  the  par- 
ticular region  under  discussion  needed  to  be  de- 
veloped for  publication  in  the  Regional  Supple- 
ment. 

The  Meteorological  Committee  was  confronted 
with  a  problem  similar  to  that  which  faced  the 
Communications  Committee,  since  many  mete- 
orological facilities  in  the  Caribbean  are  privately 
operated.  The  weather  reports  emanating  from 
such  facilities  are  available  only  to  the  owners  of 
those  facilities.  The  Meteorological  Committee 
recommended  that  PICAO  consider  all  weather 
observations  and  reports  made  by  qualified  ob- 
servers to  be  international  in  character  and  to  be 
made  available  to  government  meteorological  serv- 
ices on  a  non-discriminatory  basis. 

The  Meteorological  Committee  took  exception 


to  the  proposal  of  the  Operations  Subcommittee 
to  express  visibility  in  nautical  miles  and  recom- 
mended to  PICAO  that  the  statute  mile  be  used. 
This  recommendation  was  in  line  with  the  plans 
adopted  by  the  International  Meteorological  Or- 
ganization to  use  the  statute  mile  at  all  times. 

In  as  much  as  most  of  the  airdromes  within  the 
region  are  already  international  in  character,  the 
Committee  on  Airdromes  and  Ground  Aids  had 
little  difficulty  in  cari-ying  out  its  work.  This  Com- 
mittee found  that  substitutes  for  the  international 
landing  fields  now  being  used  in  the  region  were 
either  impractical  or  impossible. 

The  governments  participating  in  the  Washing- 
ton meeting  as  well  as  PICAO  itself  have  every 
reason  to  feel  that  the  Washington  meeting  was 
most  productive.  For  one  thing,  representatives 
of  the  United  States,  the  United  Kingdom,  Nether- 
lands, France,  and  most  of  the  international  or- 
ganizations have  been  present  at  all  of  the  regional 
air-navigation  meetings  held  so  far  and  have 
gained  valuable  experience  from  previous  meet- 
ings. The  problems  before  the  regional  meetings 
are  understood  much  more  completely  than  was 
the  case  before  the  PICAO  regional  program  was 
started.  Also,  the  delegates  representing  the  vari- 
ous governments,  having  worked  together  before 
at  regional  meetings  and  at  Montreal,  realized  that 
compromises  have  to  be  made  in  order  to  obtain 
practical  and  workable  recommendations  which 
can  be  applied  to  the  peculiarities  of  each  region 
under  consideration. 

The  basic  problems  confronting  PICAO  re- 
gional meetings  are  similar  in  nature  the  world 
over.  A  stable  foundation  for  the  work  of  such 
meetings  has  been  laid  and  is  now  generally  ac- 
cepted. Future  regional  meetings,  therefore, 
should  not  have  to  devote  time  to  basic  considera- 
tions in  the  technical  fields  of  air-traffic  control, 
search  and  rescue,  communications,  meteorology, 
and  airdromes  and  ground  aids.  At  future  meet- 
ings, once  the  task  of  reviewing  existing  facilities 
is  accomplished,  only  supplementary  procedures 
and  practices  peculiar  to  the  region  under  consid- 
eration will  have  to  be  added  to  the  basic  docu- 
ments developed  at  the  Dublin,  Paris,  and  Wash- 
ington PICAO  air-navigation  meetings. 


900 


Department  of  State  Bulletin    •   November  17,  1946 


PICAO  Conference  on  North  Atlantic  Ocean  Weather  Observation  Stations 


Article  hy  J.  Paul  Barringer 

The  conception  of  the  establishment  of  ocean 
weather  stations  was  first  advanced  in  the  scientific 
world  approximately  25  years  ago  by  the  Inter- 
national Meteorological  Organization.  However, 
no  action  was  taken  other  than  the  establishment, 
in  about  1937,  by  France,  of  a  vessel  equipped  for 
scientific  and  meteorological  exploration  ir,  the 
North  Atlantic.  During  the  war,  the  Govern- 
ments of  the  United  States  and  the  United  King- 
dom established  a  number  of  such  stations  for  the 
collection  of  meteorological  data  and  as  aids  to  air 
navigation  across  the  North  Atlantic.  At  one 
time  there  were  as  many  as  21  ocean  weather  sta- 
tions in  operation,  financed  by  the  individual  gov- 
ernments without  international  agreement.  Pro- 
cedures for  standardization  and  coordination  of 
observations  and  of  exchange  of  data  were  estab- 
lished between  the  military  authorities  of  allied 
nations.  Demobilization  and  shortage  of  man- 
power following  the  war  caused  most  of  the  sta- 
tions to  be  disbanded,  with  the  exception  of  four 
currently  being  operated  by  the  United  States. 
The  requirement  for  such  stations  had  become 
greatly  emphasized  by  the  increased  air  traffic 
between  North  America  and  Europe.  The  need 
for  the  establishment,  operation,  and  coordination 
of  these  stations  was  first  officially  recognized  at 
the  PICAO  North  Atlantic  Route  Service  Confer- 
ence, held  in  Dublin  on  March  4,  1946.  The 
Interim  Council  of  PICAO,  in  June  1946,  ap- 
proved the  recommendations  of  that  conference  to 
the  effect  that  PICAO  take  action  to  establish 
13  stations  in  the  North  Atlantic. 

The  Interim  Council  of  PICAO  received  the 
acceptance  of  the  Government  of  the  United  King- 
dom to  act  as  host  Government  to  the  conference ; 
it  convened  the  Conference  of  North  Atlantic  Sta- 
tions for  September  17,  1946  in  the  Auditorium 
of  the  Royal  Geographic  Society,  No.  1  Kensing- 


ton Gore,  London  S.  W.  7.  The  Governments 
invited  by  cable  on  August  26  and  by  letter  of 
invitation  on  August  27  were:  Belgium,  Canada, 
Denmark,  France,  Iceland,  Ireland,  Netherlands, 
Norway,  Portugal,  Spain,  United  Kingdom,  and 
United  States. 

A  list  of  the  delegates,  advisers,  and  observers 
follows : 

DELEGATIONS 

Belgium 

Lt.  Col.  J.  Verhaegen 

S/L  O.  Godart 

M.  G.  Timmermanns 

Canada 
A.  C.  McKim 
P.  D.  McTaggart  Cowan 

Denmark 
G.  E.  Teisen 
M.  Crone 
Commander  N.  Brammer  (adviser) 

Froftice 
R.  Massigli  (Ambassador  in  London) 
M.  Haguenau 
J.  E.  Le  Roy 
M.  Gauthiei'-Villars 
Capt.  A.  Gras 

Holland 

Dr.  W.  Bleeker 
Capt.  A.  S.  de  Bats 
M.  P.  de  Winter 
Dr.  A.  Treep 

Iceland 
M.  Eiridilnir  Benedikz 

Ireland 

D.  Herlihy 
Dr.  M.  Doporto 
P.  T.  McCarthy 

United  Kingdom 
Sir  Nelson  Johnson 

E.  G.  Bilham 
J.  Durward 
Commander  C.  Frankcom 


901 


ACTIVITIES  AND  DEVELOPMENTS 


R.  C.  Chilver 

W/C  L.  E.  Botting 

W.  L.  Shaw 

S.  P.  Peters  (alternate  to  J.  Durward) 

O.  G.  Gaines  (alternate  to  Mr.  CMlver) 

Experts 

S/Ii  T.  A.  Stewart 
S/L  C.  S.  Hawley 
S/L  D.  Wilson 
J.  E.  S.  Fawcett 

OJ)servers 
Capt.  J.  Fleming 
Capt.  H.  Quick 
N.  Bradbury 

United  States 
J.  P.  Barringer 

D.  M.  Little  (alternate) 

Maj.  Gen.  L.  S.  Kuter  (alternate) 

Advisers 
P.  T.  David 

Commander  G.  V.  Graves,  USCQ 
N.  R.  Hagen 

Capt.  R.  F.  Hickey,  USN 
Maj.  P.  H.  Huber 
C.  H.  Lample 
Capt.  H.  C.  Moore,  USCG 
C.  L.  Stanton 

Norway 
Dr.  S.  Petterssen 

B.  Grinde 
G.  O.  Moe 

C.  Lous 

L.  Cbristensen  (technical  adviser) 

Portugal 

Commander  A.  F.  Roriz 

Spain 

Col.  Don  C.  Sartorius 
Lt.  Col.  Don  C.  Gorozarri 

Sweden 
Dr.  H.  Berglund 
Dr.  A.  K.  Angstrom 

International  Meteorological  Organization 

E.  Gold 

PICAO 

Dr.  E.  Warner 
I.  H.  McClure 
E.  M.  Weld 
G/C.  F.  Entwistle 
T.  S.  Banes 
Col.  N.  D.  Vaughn 
Dr.  J.  A.  Fruin 
Dr.  J.  Dubsky 
Miss  V.  Vaughn 


International  Air  Transport  Association 
E.  C.  Terlske 
J.  MacDougall 
W.  Brook  Williams 

Acting  upon  the  invitation  of  the  Interim 
Council  of  PICAO  and  upon  PICAO  Memoran- 
dum, Doc.  1955,  dated  July  25,  1946,  which  thor- 
oughly reviewed  and  outlined  the  problem,  the  Air 
Coordinating  Committee  instructed  its  Subcom- 
mittee on  PICAO  Matters  to  select  the  member- 
ship of  an  American  delegation  to  the  conference 
and  to  formulate  instructions  for  this  delegation. 
The  specific  instructions  to  the  delegation,  as  to  the 
position  of  the  United  States  on  matters  to  be 
brought  before  the  conference,  were  prepared  by 
the  PICAO  Subcommittee  of  the  Air  Coordinating 
Committee  in  the  form  of  amiotations  to  the  pro- 
posed agenda  submitted  by  PICAO  Doc.  1955  and 
were  fully  reflected  in  the  final  agreement. 

The  conference  was  opened  on  September  17  by 
Dr.  Edward  Wai-ner,  president  of  the  Interim 
Council  of  PICAO,  acting  as  chairman.  An 
initial  address  of  welcome  to  the  delegates  on  be- 
half of  His  Majesty's  Government  was  delivered 
by  the  Kt.  Hon.  Geoffrey  de  Freitas,  M.P.,  Under 
Secretary  of  State  for  Air. 

The  conference  proceeded  directly  with  the  busi- 
ness of  organization,  adoption  of  rules  of  proce- 
dure, agenda,  and  other  initial  matters.  Upon 
motion  of  the  American  delegate.  Sir  Nelson 
Johnson  of  the  United  Kingdom  was  elected  chair- 
man of  the  conference.  Mr.  Anson  McKim,  the 
Canadian  delegate,  was  elected  vice  chairman. 
Dr.  Dubsky  of  the  PICAO  Secretariat  was  ap- 
2:)ointed  secretary  general  of  the  conference.  The 
following  Commissions  were  appointed  which,  in 
turn,  elected  chairmen  and  appointed  secretaries: 

Financial  Commission: 

Chairman Anson  McKim,  Canada 

Secretary E.  M.  Weld,  PICAO 

U.S.  representative J.  P.  Barringer 

U.S.  adviser P.  T.  David 

Technical  Commission: 

Chairman Dr.  S.  Petterssen,  Norway 

Secretary c/o  F.  Entwistle,  PICAO 

U.S.  representative D.  M.  Little 

U.S.  advisers Capt.  H.  C.  Moore 

Commander  0.  V.  Graves 
Maj.  P.  M.  Huber 
N.  R.  Hagen 


Department  of  State  Bulletin   •   November  17,  1946 


Drafting  Commission: 

Chairman J.  E.  S.  Fawcett,  U.K. 

Secretary Dr.  J.  A.  Fruin,  PICAO 

U.S.  representatives  ....    P.  T.  David 
N.  R.  Hagen 

The  conference  was  comparatively  small  and  it 
Tvas  therefore  possible  to  dispense  with  many  of 
the  usual  conmiittees,  such  as  nominations  and 
steering.  Several  ad  hoc  subcommittees  of  the 
Technical  Commission  were  created  for  reports  on 
specific  agenda  items  as  recorded  in  the  report  of 
that  Commission.  All  remarks  made  at  all 
plenary  sessions  and  Commission  proceedings  and 
all  documentation  were  recorded  in  English  and 
French,  the  official  languages  of  the  conference. 

The  Financial  Conmiission  met  in  four  sessions 
to  discuss  and  recommend  a  solution  of  the  main 
problem  of  the  conference — the  distribution  of  the 
economic  burden  of  the  project.  Other  agenda 
items  bearing  upon  this  problem  were  not  specifi- 
cally discussed  or  reported  upon,  but  they  were 
taken  into  consideration  in  general  discussions. 
In  the  deliberations  there  was  almost  immediate 
agreement  that  an  equitable  distribution  of  the 
burden  should  be  based  upon  the  general  prin- 
ciple of  contributions  in  services  and  in  kind, 
which  would  minimize  initial  and  recurring 
transfer  of  funds,  and  also  upon  the  universal  de- 
sire to  operate  weather-station  vessels  in  prefer- 
ence to  contributions  in  cash.  Discussions  in  the 
Commission  also  disclosed  that  the  application  of 
any  exact  mathematical  formula  was  impractical 
since  it  would  involve  variable  cost  figures,  inde- 
terminate, direct  and  collateral  contributions  and 
benefits,  and  in  the  end  substantial  transfer  of 
funds. 

The  general  formula  agreed  upon  as  a  guide 
placed  primary  emphasis  on  frequencies  of  trans- 
Atlantic  crossings,  both  military  and  civil.  Cur- 
rent frequencies  were  not  considered  desirable  for 
use  as  the  sole  criteria;  therefore,  all  representa- 
tives submitted  estimates  of  average  weekly 
round  trips,  both  military  and  civil,  proposed  for 
the  peak  months,  June  and  July  1947,  and  for  the 
year  ending  July  1948.  Such  estimates  were  con- 
sidered to  be  the  roughest  speculation  for  use  as  a 
starting  point  only. 


ACTIVITIES  AND   DEVELOPMENTS 

United  States  percentages  appeared  as  follows : 

Current 70  percent 

June  and  July  1947 65       " 

Year  ending  July  1948 75      " 

After  examination  of  all  factors  the  American 
delegation  agreed  to  recommend  that  the  United 
States  Government  assume  responsibility  for  pro- 
viding and  operating  seven  stations  and  an  eighth 
jointly  with  Canada,  only  if  European  states 
would  agree  to  operate  the  remaining  five.  The 
United  States  would  thus  assume  58  percent  of  the 
total  project.  This  proposal  was  advanced  only 
after  it  became  clear  that  an  offer  of  six  stations 
and  a  seventh  jointly  with  Canada  would  produce 
only  three  to  four  operated  by  the  European  states. 
Technical  advisers  were  unanimous  in  the  position 
that  a  program  of  13  stations  provided  minimum 
coverage  to  effect  the  desired  weather  observation. 

The  Commission  finally  agreed  to  recommend 
to  the  conference  that  states  provide  and  operate 
stations  as  follows : 

Number  of 
State  stations 

U.S       7 

U.K 2 

France 1 

U.S.  and  Canada,  50  percent  each 1 

Netherlands  and  Belgium,  50  percent  each     ....  1 
Sweden,  U.K.,  and  Norway,  43  percent,  35  percent, 

22  percent,  respectively,  Norway  to  operate    ...  1 

Total 13 

The  Technical  Commission  considered  all  tech- 
nical agenda  items,  i.e.,  location  of  stations,  types 
of  and  extent  of  services  to  be  given,  including 
meteorological,  air-sea  rescue,  air  navigational, 
and  incidental  services.  Because  of  the  variety 
of  technical  problems  requiring  study  and  rec- 
ommendation, several  subcommissions  were  ap- 
pointed. All  final  recommendations  were  incor- 
porated in  the  annexes  to  the  agi'eement. 

The  question  of  what  agency  should  coordinate 
the  entire  establishment  and  operation  of  the 
project  was  the  only  important  point  which  could 
not  be  resolved  in  the  deliberations  of  the  Com- 
mission. Discussion  therefore  reverted  to  plenary 
session,  in  which  a  determined  effort  on  the  part  of 


903 


ACTIVITIES  AND   DEVELOPMENTS 

one  delegation  to  establish  the  International 
Meteorological  Organization  as  the  sole  agency  for 
such  coordination  was  met  by  unanimous  disap- 
proval of  all  other  delegates. 

The  drafting  of  the  final  act  and  agreement  in 
Commission  and  their  consideration  by  the  con- 
ference in  plenary  session  was  marked  by  a  uni- 
versal desire  to  keep  the  documents  as  brief  and 
as  non-technical  as  possible.  It  was  generally 
agreed  that  all  individual  arrangements  among 
two  or  more  states  covering  the  joint  operation  of 
stations  and  all  agreements  of  a  technical  nature 
should  take  the  form  of  annexes  in  order  that 
minor  future  changes  could  be  made  without  revi- 
sion of  the  weather-station  agreement. 

The  final  act  reviewed  the  work  of  the  confer- 
ence in  briefest  terms,  listed  the  participating 
delegations  and  conference  officials,  stated  that  the 
agreement  had  been  established  with  annexes  as 
described,  listed  governments  intending  to  partici- 
pate in  the  financing  and  operation  of  the  stations, 
and  finally  bound  the  delegates  of  the  signatory 
governments  to  use  their  best  endeavors  to  secure 
early  acceptance  of  the  agreement  by  their  re- 
spective governments. 

The  international  agreement  on  North  Atlantic 
weather  observation  stations  consists  of  a  pre- 
amble, eight  articles,  a  signatory  paragi-aph,  and 
four  annexes.  It  provides  in  general  that  the 
Governments  of  Belgium,  Canada,  France,  Ire- 
land, Netherlands,  Norway,  Sweden,  United  King- 
dom, and  United  States,  being  members  of  PICAO, 
have  agreed. 

(1)  that  13  ocean  weather  stations  be  operated 
at  locations  in  the  North  Atlantic  specified  in 

Annex  I. 

(2)  that  meteorological,  search  and  rescue,  air 
navigational,  supplementary  air  traffic  control  and 
other  incidental  services  be  performed  as  detailed 

in  Annex  I. 

(3)  that  PICAO  shall  coordinate  the  project 
and  may  change  annexes  with  the  consent  of  gov- 
ernments affected. 

(4)  that  signatory  governments  shall  finance 
and  operate  the  stations. 

(5)  that  PICAO  shall  convene  a  conference  not 


later  than  April  1, 1949,  for  consideration  of  revi- 
sion and  renewal  of  the  agreement. 

(6)  that  the  agreement  come  into  effect  upon 
acceptance  by  all  the  signatory  governments,  all 
signatures  being  ad  refereTidvm,. 

The  conference  as  a  whole  was  marked  with  a 
universal  spirit  of  cooperation  and  an  enthusiasm 
on  the  part  of  all  delegates  and  advisers  which 
enabled  the  conference  to  complete  its  work  and 
to  approve  the  final  act  and  agreement  in  seven 
days  only.  The  conference  benefited  immeasurably 
from  the  constant  advice  and  guidance  of  the 
president  of  the  Interim  Council  of  PICAO,  Dr. 
Edward  Warner.  The  many  exploratory  discus- 
sions which  were  held  informally  between  various 
delegations  served  as  an  important  adjunct  to  the 
work  in  conference  and  resulted  in  the  final 
agreement. 

All  considerations  and  discussions  held  in  con- 
stant regard  the  fact  that  the  final  agreement 
might  establish  a  precedent  for  a  number  of  simi- 
lar international  agreements  among  groups  of 
governments  throughout  the  world  and  that  this 
agreement  might  conceivably  in  time  become  a 
part  of  a  much  larger  multilateral  agreement  cov- 
ering the  establishment  of  international  aids  to 
air  navigation.  For  this  reason  the  article  provid- 
ing for  the  calling  of  a  conference  of  participating 
governments  to  reexamine  and  renew  the  agree- 
ment made  no  provision  for  any  specific  criteria 
upon  which  future  participation  should  be  eval- 
uated. It  is  believed  that  this  conference  and  the 
resulting  final  act  and  agreement  will  prove  to  be 
a  major  step  forward  in  the  establishment  of  aids 
to  air  navigation  on  the  basis  of  international  co- 
operation and  agreement. 

All  interested  agencies  of  the  Executive  Branch 
of  the  Government  have  individually  and  through 
the  Air  Coordinating  Committee  supported  the 
agreement.  They  have  agreed  to  support  the 
Treasury  Department  on  behalf  of  the  United 
States  Coast  Guard  and  the  Department  of  Com- 
merce on  behalf  of  the  Weather  Bureau  in  their 
efforts  to  obtain  for  those  agencies  the  increased 
appropriations  necessary  to  carry  out  the  proposed 
obligation  of  the  United  States  Government  imder 
the  agi-eement. 


904 


Department  of  State  Bulletin    •   November  17,  1946 


International  Action  on  Agricultural  and  Nutrition  Problems 

FAO  COPENHAGEN  CONFERENCE  AND  FAO  PREPARATORY  COMMISSION 


Article  hy  Duncan  Wall 

Ways  and  means  of  achieving  healthful  diets 
for  the  world's  people  and  stable  prices  for  agri- 
cultural producers,  objectives  accepted  by  the 
Cojienhagen  Conference  of  the  United  Nations 
Food  and  Agriculture  Organization  held  from 
September  2  to  13,  1946,  are  being  currently  dis- 
cussed in  Washington  by  representatives  of  16 
member  countries  of  a  preparatory  commission 
created  at  Copenhagen  in  September.^ 

The  Copenhagen  Conference  left  wholly  to  the 
Preparatory  Commission  the  question  of  machin- 
ery to  achieve  these  objectives.  The  United 
States  took  no  position  on  how  the  goals  were  to 
be  reached. 

"These  aims  are  not  separate,"  said  Sir  John 
Boyd  Orr,  Director  General  of  FAO,  in  oiDening 
the  Preparatory  Commission's  meeting.  "They 
are  two  aspects  of  a  single  aim — a  healthy,  vigor- 
ous, world-wide  economic  expansion." 

Norris  E.  Dodd,  Under  Secretary  of  Agricul- 
ture and  United  States  member  of  the  Commis- 
sion, said  in  the  opening  plenary  sessions  of  the 
Commission  that  the  United  States  finnly  sup- 
ports these  objectives. 

Mr.  Dodd  pointed  out  that  the  United  States 
has  recently  put  forward  proposals  for  an  Inter- 
national Trade  Organization,  now  under  study  by 
another  preparatory  commission  in  London. 
These  proposals,  he  said,  also  are  aimed  at  ex- 
pansion of  employment,  production,  trade,  and 
consumption ;  there  is  also  a  chapter  on  intergov- 
ernmental commodity  arrangements. 

"It  is  the  considered  view  of  the  United  States 
Government  that  the  ITO  proposals  provide  a 
useful  starting  point  for  the  deliberations  of  this 
Commission,"  he  said.  He  also  suggested  that  the 
FAO  Commission  might  study  means  by  which 
nations,  by  consultation  and  cooperation,  could 
bring  into  better  coordination  their  individual, 
national,  agricultural,  and  nutritional  programs. 


The  creation  of  the  Preparatory  Commission 
grew  out  of  a  recommendation  made  by  FAO's 
Special  Meeting  on  Urgent  Food  Problems  held  in 
Washington  in  May  1946.  Although  the  Special 
Meeting  was  concerned  with  the  immediate  food 
emergency,  the  representatives  of  the  various  gov- 
ernments felt  that  even  after  1948  there  would  still 
be  acute  problems,  one  of  whicli  might  be  the  ac- 
cumulation of  surpluses  of  important  agricultural 
commodities.  The  Special  Meeting  requested  the 
Director  General  of  FAO  to  submit  proposals  to 
the  next  session  of  the  FAO  Conference  for  deal- 
ing with  such  problems. 

The  Proposals  for  a  World  Food  Board,  pub- 
lished by  FAO  on  July  5,  1946,  thus  took  their 
place  on  the  agenda  of  the  FAO  Conference  at 
Copenhagen,  which  was  advanced  a  month  in  order 
to  permit  the  representatives  of  the  member  na- 
tions to  consider  the  proposals  at  the  earliest  pos- 
sible moment. 

At  the  same  time  the  Conference  had  to  consider 
other  matters  of  gi-eat  practical  importance,  such 
as  admission  of  new  members,  budgets  and  finan- 
cial controls,  constitutional  and  organizational 
questions  such  as  relationships  to  other  United 
Nations  agencies,  and  non-governmental  interna- 
tional organizations.  The  Copenhagen  Confer- 
ence also  dealt  with  the  advancement  of  the  tech- 
nical work  of  FAO  in  the  fields  of  agricultural 
science  and  education,  improvement  in  nutrition, 
forestry  and  fisheries  questions,  economic  and  sta- 
tistical studies,  and  the  work  of  FAO  missions,  an 
activity  which  had  been  initiated  with  a  mission 
for  Greece. 

Member  countries  attending  the  Conference,  in- 
cluding those  admitted  at  this  session,^  were  Aus- 
tralia, Belgium,  Bolivia,  Brazil,  Canada,  Chile, 

'  The  Conimission  convened  at  Washington  on  Oct.  28. 
'  Those  admitted  at  this  session  are  indicated  by  an 
asterisk. 


905 


ACTIVITIES  AND  DEVELOPMENTS 

China,  Cuba,  Czechoslovakia,  Denmark,  Domini- 
can Republic,  Ecuador,  Egypt,  France,  Greece, 
Guatemala,  Haiti,  Hungary*,  Iceland,  India,  Ire- 
land*, Italy*,  Liberia,  Luxembourg,  Mexico,  the 
Netherlands,  New  Zealand,  Nicaragua.  Norway, 
Panama,  Paraguay,  Peru,  Poland,  Portugal*, 
Switzerland*,  Union  of  South  Africa,  United 
Kingdom,  United  States  of  America,  Uruguay, 
"Venezuela,  and  Yugoslavia.  In  addition,  observ- 
ers were  present  representing  Argentina,  Austria, 
Finland,  Rumania,  Siam,  Sweden,  and  Turkey. 
International  governmental  organizations  rep- 
resented were  the  Emergency  Economic  Com- 
mittee for  Europe,  International  Bank  for  Re- 
construction and  Development,  International 
Emergency  Food  Council,  International  Labor 
OfEce,  International  Monetary  Fund,  Office  Inter- 
national des  iSpizooties,  United  Nations,  United 
Nations  Educational,  Scientific  and  Cultural  Or- 
ganization, United  Nations  Relief  and  Rehabili- 
tation Administration,  and  the  World  Health  Or- 
ganization. 

Four  international  non-governmental  agencies 
attended  the  Conference,  as  follows :  International 
Cooperative  Alliance,  International  Federation  of 
Agricultural  Producers,  World  Federation  of 
Trade  Unions,  and  World  Federation  of  United 
Nations  Associations. 

The  United  States  Delegation  was  headed  by 
Norris  E.  Dodd,  Under  Secretary  of  Agriculture, 
as  U.S.  Member,  with  Leslie  A.  Wheeler,  Director 
of  the  Office  of  Foreign  Agricultural  Relations, 
Department  of  Agricidture,  as  alternate.^ 

The  Conference  organized  its  work  under  three 
commissions,  each  with  a  number  of  committees. 
Commission  A  on  technical  questions  included 
committees  on  agriculture,  nutrition,  forestry,  fish- 
eries, economics  and  statistics,  and  FAO  missions. 
Mr.  Watts  of  the  U.S.  Delegation  was  chairman  of 
the  Forestry  Committee. 

Commission  B  on  administration  had  committees 
on  constitution,  organization,  and  finance. 

Commission  C  on  world  food  policy  was  headed 
by  the  United  States  member  and  had  two  com- 
mittees— on  the  World  Food  Board  proposal  and 


'  Bulletin  of  Aug.  25,  1946,  p.  361. 
'  Document  78,  Report  of  Committee  I,  Commission  C, 
2d  Sess.   of  FAO   Conference   at   Copenhagen. 


on  the  World  Food  Board  appraisal  which  had 
been  submitted  by  the  FAO  Secretariat. 

The  United  States  Delegation  assigned  a  spokes- 
man, and  in  some  cases  other  persons  with  special 
representational  interests  or  responsibilities,  to 
each  committee  and  commission.  In  addition,  the 
United  States  member  served  as  a  member  of  the 
General  Committee  of  the  Conference,  and  of  the 
Nominations  Committee.  Mr.  Wlieeler  was  chosen 
a  member  of  the  Executive  Committee  for  a  three- 
year  term. 

The  report  of  the  World  Food  Board  Commit- 
tee, adopted  by  the  Conference,  stated :  ^ 

"1.  Having  examined  the  Director  General's 
Proposals  for  a  World  Food  Board  in  the  light  of 
the  discussion  in  the  Plenary  Meetings,  and  ac- 
cepting the  general  objectives  of  the  Proposals, 
namely : 

"(a)  developing  and  organizing  production, 
distribution  and  utilization  of  the  basic  foods  to 
provide  diets  on  a  health  standard  for  the  peoples 
of  all  countries ; 

"  ( 5 )  stabilizing  agi'icultural  prices  at  levels  fair 
to  producers  and  consumers  alike." 
It  is  agreed  that  international  machinery  is  neces- 
sary to  achieve  these  objectives  and  it  is  recom- 
mended that  a  Preparatory  Commission  be  estab- 
lished to  carry  the  proposals  further. 

"2.  The  terms  of  reference  of  the  Preparatory 
Commission  should  cover  the  following  matters: 
The  Director  General's  Proposals  and  any  alterna- 
tive proposals  which  may  be  submitted  to  it  and  to 
prepare  concrete  recoimnendations  and  proposi- 
tions for  international  action  for  achieving  the 
objectives  as  set  out  in  paragraph  1." 

The  accepted  committee  report,  continuing, 
recommended  that  the  Preparatory  Commission  be 
composed  of  16  member  nations,  with  invitations 
extended  to  Argentina  and  the  U.S.S.R.,  non- 
members,  and  that  Siam  be  invited  to  join  in  dis- 
cussions concerning  rice.  Any  FAO  member  na- 
tion, though  not  a  member  of  the  Preparatory 
Commission,  was  to  be  entitled  to  send  an  observer. 

The  16  Preparatory  Commission  member  Gov- 
ernments   were    named    as    Australia,    Belgium, 
Brazil,    Canada,    China,    Cuba,    Czechoslovakia) 
(Continued  on  page  915) 


906 


Department  of  State  Bulletin    •   November  17,  1946 


THE  RECORD  OF  THE  WEEK 


Announcement  of  Trade-Agreement  Negotiations 


SUMMARY  OF  INFORMATION  RELATED  TO  TRADE-AGREEMENTS  PROGRAM 


[Released  to  the  press  November  10] 

The  Acting  Secretary  of  State  on  November  9 
issued  formal  notice  of  intention  to  conduct  trade- 
agreement  negotiations  witli  Australia,  Belgium, 
Brazil,  Canada,  Chile,  China,  Cuba,  Czechoslo- 
vakia, France,  India,  Lebanon  (Syro-Lebanese 
Customs  Union),  Luxembourg,  Netherlands,  New 
Zealand,  Norway,  Union  of  South  Africa,  Union 
of  Soviet  Socialist  Republics,  the  United  King- 
dom, and  the  areas  for  which  these  countries  have 
authority  to  negotiate.  Invitations  to  most  of 
these  nations  were  announced  in  December  1945. 
The  negotiations  will  probably  begin  in  April 
1947. 

The  Acting  Secretary  also  made  public  a  list  of 
products  which  will  be  considered  for  the  possible 
granting  of  tariff  concessions  by  the  United  States 
in  these  negotiations.^ 

The  Committee  for  Reciprocity  Information 
simultaneously  issued  a  notice  fixing  the  dates  for 
submission  to  it  of  written  information  and  views 
about  the  projected  negotiations  and  of  applica- 
tions to  appear  at  public  hearings  before  the  Com- 
mittee. The  notice  sets  forth  the  time  and  place 
for  the  opening  of  these  hearings. 

The  announcement  marks  a  further  important 
step  in  the  program  of  international  economic  col- 
laboration begun  with  the  Atlantic  Charter.  This 
program  was  expanded  in  article  VII  of  the  our 
mutual-aid  agreements,  was  carried  forward  by 
our  participation  in  the  International  Bank  for  Re- 
construction and  Development,  the  International 


Monetary  Fund,  the  Food  and  Agriculture  Organ- 
ization, and  the  Economic  and  Social  Council  of 
the  United  Nations.  It  has  been  further  devel- 
oped in  the  United  States  Proposals  for  Expan- 
sion of  World  Trade  and  Employment  presented 
last  December  for  the  consideration  of  the  govern- 
ments and  peoples  of  the  world.  The  Proposals 
have  since  been  elaborated  in  detail  in  the  Sug- 
gested Charter  for  an  International  Trade  Organ- 
ization published  by  the  United  States  in  Septem- 
ber of  this  year. 

The  British  and  French  Governments  have  an- 
nounced their  full  agi'eement  with  all  important 
points  of  the  Proposals.  The  Economic  and  Social 
Council  of  the  United  Nations  has  voted  to  call 
an  international  conference  on  trade  and  employ- 
ment, and  has  appointed  a  Preparatory  Commit- 
tee to  prepare  the  agenda  for  that  conference. 

This  Preparatory  Committee  is  now  holding  its 
first  meeting  in  London.  It  has  accepted  the 
United  States  Suggested  Charter  as  a  basis  for 
study. 

To  be  fully  effective,  general  rules  for  inter- 
national commercial  and  trade  relations  such  as 
those  laid  down  in  the  Suggested  Charter  must  be 
supplemented  by  specific  action  to  reduce,  modify, 
or  eliminate  barriers  to  trade  such  as  tariffs,  quan- 
titative  restrictions,   and   discriminations.    The 


'  Printed  in  Department  of  State  publication  2672,  Com- 
mercial Policy  Series  96.  Refer  also  to  Schedule  A — Sta- 
tistical  Classiflcation  of  Imports  Into  the  United  States, 
U.  S.  Dept.  of  Commerce,  Sept.  1,  1946. 


907 


THE  RECORD  OF  THE  WEEK 


trade-agi-eement  negotiations  which  the  Depart- 
ment has  announced  are  one  of  the  principal  means 
by  which  the  nations  now  meeting  in  London 
(which  are  the  same  nations  included  in  the  pro- 
posed negotiations)  will  endeavor  next  spring  to 
achieve  this  end. 

This  is  the  largest  reciprocal  trade-agreement 
negotiation  yet  undertaken.  Nations  are  emerg- 
ing from  the  dislocations  of  the  war.  They  are 
now  making  crucial  decisions  as  to  the  nature  and 
direction  of  their  economic  activities.  There 
exists  a  major  opportunity  to  reduce  world  trade 
barriers  and  establish  desirable  patterns  of  future 
world  trade.  To  seize  this  opportunity,  the  trade- 
agreements -progi-am,  limited  during  the  war,  is 
now  being  resumed  on  a  broad  scale. 

In  the  past  years  the  United  States  and  the  other 
countries  participating  in  these  negotiations  have 
accounted  for  about  two  thirds  of  the  world's  trade. 
The  other  negotiating  countries  have  accounted 
for  about  the  same  proportion  of  United  States 
exports  and  imports.  The  list  of  products  on 
which  public  hearings  are  to  be  held  is  therefore 
extensive  and  includes  a  large  proportion  of  the 
important  products  in  United  States  import  trade, 
including  among  them  some  products  of  which 
Germany  and  Japan  were  formerly  principal 
sources  of  United  States  imports,  but  of  which  the 
negotiating  countries  are  likely  to  be  the  principal 
sources  under  post-war  conditions. 

It  is  intended  to  include  in  the  proposed  trade 
agreement  an  adequate  escape  clause,  along  the 
lines  of  that  appearing  in  our  trade  agreement 
with  Mexico,  under  which  a  concession  which,  as  a 
result  of  unforeseen  circumstances,  causes  serious 
injury  to  domestic  producers,  can  be  modified  or 
withdrawn. 

The  negotiations  will  be  a  two-way  process. 
The  United  States  will  make  requests  for  tariff 
and  other  concessions  by  the  other  countries  in 
favor  of  a  wide  range  of  products  covering  a  large 
proportion  of  our  total  export  trade.  Although 
no  list  of  the  export  items  on  which  concessions 
will  be  requested  is  to  be  published,  the  interde- 
partmental trade-agi'eements  organization  is  pre- 
paring a  very  extensive  list  of  such  requests,  and 
export  interests  are  urged  to  let  the  trade-agree- 


ments organization  know  at  the  public  hearings 
what  concessions  they  feel  should  be  requested  of 
the  other  countries  involved  in  the  negotiations. 

Information  is  also  solicited  about  other  trade 
barriers,  such  as  quantitative  restrictions  or  ad- 
ministrative regulations  which  have  stood  in  the 
way  of  United  States  export  trade  with  these 
countries,  and  as  to  any  discriminations  by  these 
countries  which  have  proved  detrimental  to 
United  States  exports. 

The  procedures  hitherto  followed  under  the 
Trade  Agreements  Act  will  continue  to  apply  in 
the  preparation  for  these  negotiations.  No  tariff 
concession  will  be  granted  by  the  United  States  on 
any  product  not  covered  by  the  present  or  a  sup- 
plementary public  list.  Inclusion  of  any  product 
in  the  public  list  does  not  necessarily  mean  that  a 
reduction  or  binding  of  duty  will  be  gi-anted. 
No  decision  to  offer  a  tariff  concession  will  be  made 
until  after  the  public  hearings,  and  the  final  de- 
cision as  to  what  concessions  will  be  granted  will, 
of  course,  depend  on  the  outcome  of  the  negotia- 
tions. Concessions  may  take  the  form  of  reduc- 
tions in  duty  (customs  duties  and  import  excise 
taxes)  or  may  simply  bind  existing  duties  or  duty- 
free treatment  or  processing  taxes. 

For  the  convenience  of  the  public,  the  present 
list  has  been  prepared  in  two  forms.  The  first 
form,  entitled  Statistical  List,  is  based  upon  the 
classifications  set  forth  in  Schedule  A — Statistical 
Classification  Of  Imports  Into  The  United  States, 
September  1,  1946,  published  by  the  Department 
of  Commerce.  Its  language  is  commercial  rather 
than  statutoiy  and  will  be  more  familiar  to  many 
of  those  interested  in  the  proposed  negotiations. 
The  second  form,  entitled  Statutory  List,  is  based 
upon  the  language  of  the  Tariff  Act  of  1930,  and 
contains  the  exact  legal  description  of  the  products 
on  which  concessions  will  be  considered.  It  is 
controlling. 

It  has  already  been  aimomiced  that  public 
hearings  will  be  held  at  a  date  to  be  announced  later 
on  the  Suggested  Charter  for  an  International 
Trade  Organization,  so  that  all  interested  United 
States  persons  and  groups  will  also  have  an  oppor- 
tunity to  express  their  views  as  to  the  general  rules 
under  which  international  trade  should  be  con- 
ducted. 


908 


Department  of  State  Bulletin    •    November  17,  1946 


THE  RECORD  OF  THE  WEEK 


STATEMENT  BY  THE  PRESIDENT 

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

The  Acting  Secretary  of  State  has  today  for- 
mally announced  the  intention  of  this  Government 
to  enter  into  concerted  trade-agreement  negotia- 
tions with  eighteen  other  principal  and  represent- 
ative trading  nations  for  the  reciprocal  reduction 
of  trade  barriers  and  substantial  elimination  of 
trade  discriminations  among  the  nations  partici- 
pating. 

It  is  important  that  the  people  of  the  United 
States  realize  the  true  significance  of  these  nego- 
tiations, for  us  and  for  the  woi'ld.  They  are  not 
solely  trade  bargains.  They  are  that ;  but  they  are 
much  more.  They  are  central  to  the  structure  of 
international  economic  cooperation  under  the 
United  Nations.  They  are  necessary  to  achieve  the 
objectives  of  the  Atlantic  Charter  and  of  Article 
VII  of  our  mutual-aid  agreements.  They  are 
necessary  to  strengthen  and  support  the  founda- 
tions of  the  International  Monetary  Fund  and  the 
International  Bank  for  Reconstruction  and  De- 
velopment and  to  pave  the  way  for  the  kind  of 
economic  world  envisaged  in  the  Suggested  Char- 
ter for  an  International  Trade  Organisation. 

The  substance  of  the  Suggested  Charter  is  now 
being  discussed  in  London  by  a  Committee  of  na- 
tions designated  by  the  Economic  and  Social 
Council  to  prepare  for  an  International  Confer- 
ence on  Trade  and  Employment  and  for  the  estab- 
lishment of  an  International  Trade  Organization. 
The  subsequent  trade-agreement  negotiations  an- 
nounced today  will  carry  forward  these  general 
principles  and  objectives  by  concrete  and  specific 
action  to  clear  the  channels  of  trade,  replacing 
trade  warfare  by  trade  cooperation  to  the  common 
benefit  of  all  countries.  Their  success  or  failure 
will  largely  determine  whether  the  world  will  move 
towards  a  system  of  liberal  international  trade, 
free  from  arbitrary  barriers,  excessive  tariffs,  and 
discriminations,  or  will  pay  the  heavy  costs  of 
narrow  economic  nationalism. 

I  am  confident  that  the  people  of  the  United 
States  will  give  these  negotiations  their  full  sup- 
port and  encouragement. 


PUBLIC  NOTICE  OF  THE  DEPARTMENT 
OF  STATE ' 

[Released  to  the  press  November  10] 

Pursuant  to  section  4  of  an  act  of  Congress  ap- 
proved June  12,  1934,  entitled  "An  Act  to  Amend 
the  Tariff  Act  of  1930",  as  extended  and  amended 
by  Public  Law  130,  79th  Congress,  approved  July 
5, 1945  (48  Stat.  945,  59  Stat.  411 ;  19  U.S.C.  Supp. 
V,  1354) ,  and  to  Executive  Order  6750,  of  June  27, 
1934,  as  amended  by  Executive  Order  9647,  of  Oc- 
tober 25, 1945  (3  CFR,  1945  Supp.,  ch.  II) ,  I  here- 
by give  notice  of  intention  to  conduct  trade-agree- 
ment negotiations  with  Australia,  Belgium,  Brazil, 
Canada,  Chile,  China,  Cuba,  Czechoslovakia, 
France,  India,  Lebanon  (including  negotiations  on 
behalf  of  the  Syro-Lebanese  Customs  Union), 
Luxembourg,  the  Netherlands,  New  Zealand,  Nor- 
way, the  Union  of  South  Africa,  the  Union  of 
Soviet  Socialist  Republics,  and  the  United  King- 
dom, including  areas  in  respect  of  which  these 
countries  have  authority  to  conduct  trade-agree- 
ment negotiations. 

All  presentations  of  information  and  views  in 
writing  and  applications  for  supplemental  oral 
presentation  of  views  with  respect  to  such  nego- 
tiations should  be  submitted  to  the  Committee  for 
Reciprocity  Information  in  accordance  with  the 
announcement  of  this  date  issued  by  that  Com- 
mittee concerning  the  manner  and  dates  for  the 
submission  of  briefs  and  applications,  and  the 
time  and  place  set  for  public  hearings. 

Dean  Acheson 
Acting  Secretary  of  State 
Washington,  D.C, 
Novemier  9, 19^6. 


PUBLIC  NOTICE  OF  THE  COMMITTEE  FOR 
RECIPROCITY  INFORMATION 

[Released  to  the  press  November  10] 

Closing  date  for  submission  of  briefs,  December 
21, 1946.  Closing  date  for  application  to  be  heard, 
December  21,  1946.  Public  hearings  open,  Janu- 
ary 13, 1947. 


'  11  Federal  Register  13447. 


909 


THE  RECORD  OF  THE  WEEK 

/Submission   of  Information   to   Committee   for 
Reciprocity  Information 

The  Committee  for  Reciprocity  Infonnation 
hereby  gives  notice  that  all  information  and  views 
in  writing,  and  all  applications  for  supplemental 
oral  presentation  of  views,  in  regard  to  the  trade- 
agreement  negotiations  with  the  countries  listed 
above  ^  (including  areas  for  which  these  countries 
have  authority  to  conduct  trade-agreement  ne- 
gotiations), in  respect  of  which  notice  of  inten- 
tion to  negotiate  has  been  issued  by  the  Acting 
Secretary  of  State  on  this  date,  shall  be  submitted 
to  the  Committee  for  Reciprocity  Information  not 
later  than  12  o'clock  noon,  Saturday,  December 
21,  1946.  The  Committee  office  will  remain  open 
to  receive  these  briefs. 

Such  communications  should  be  addressed  to 
*'The  Chairman,  Committee  for  Reciprocity  In- 
formation, Tariff  Commission  Building,  Eighth 
and  E  Streets,  Northwest,  Washington  25,  D.C." 

Public  hearings  will  be  held  before  the  Com- 
mittee for  Reciprocity  Information,  at  which  sup- 
plemental oral  statements  will  be  heard.  The 
first  hearing  will  be  at  10 :  00  a.m.  on  January  13, 
1947,  in  the  Department  of  Commerce  Auditorium 
in  the  Department  of  Commerce  Building  at  14th 
and  E  Streets,  Northwest,  Washington,  D.C. 
Witnesses  who  make  application  to  be  heard  will 
be  advised  regarding  the  time  and  place  of  their 
individual  appearances. 

Ten  copies  of  written  statements,  either  type- 
written or  printed,  shall  be  submitted,  of  which 
one  copy  shall  be  sworn  to.  Appearances  at  hear- 
ings before  the  Committee  may  be  made  only  by 
or  on  behalf  of  those  persons  who  have  filed  writ- 
ten statements  and  who  have  within  the  time  pre- 
scribed made  written  application  for  supplemental 
oral  presentation  of  views.  Statements  made  at 
the  public  hearings  shall  be  under  oath. 

Persons  or  groups  interested  in  unport  prod- 
ucts may  present  to  the  Committee  their  views 
concerning    possible    tariff    concessions    by    the 


'  The  countries  listed  were :  Australia,  Belgium,  Brazil, 
Canada,  Chile,  China,  Cuba,  Czechoslovakia,  France,  In- 
dia, Lebanon  (Syro-Lebanese  Customs  Union),  Luxem- 
bourg, the  Netherlands,  New  Zealand,  Norway,  the  Union  of 
South  Africa,  the  Union  of  SoTiet  Socialist  Republics,  the 
United  Kingdom. 


United  States  on  any  product,  whether  or  not  in- 
cluded in  the  list  of  Products  On  Which  Possible 
Tariff  Concessions  Will  Be  Considered  In  Recip- 
rocal Trade  Agreement  Negotiations  made  public 
by  the  Acting  Secretary  of  State  on  this  date. 
However,  no  tariff  concession  will  be  considered 
on  any  product  which  is  not  included  in  that  list 
or  in  a  supplementary  public  list. 

Persons  interested  in  export  items  may  present 
their  views  regarding  any  tariff  or  other  conces- 
sions that  might  be  requested  of  the  foreign  gov- 
ernments with  which  negotiations  are  being  con- 
ducted. 

Views  concerning  general  provisions  of  a  nature 
customarily  mcluded  in  trade  agreements  may  also 
be  presented. 

By  direction  of  the  Committee  for  Reciprocity 
Information  this  9th  day  of  November,  1946. 

Edwaed  Yakdley 

Secretary 

Washington,  D.C, 
November  9, 19^6. 

U.  S.-U.  K.  Discussions  on  Bizonal 
Arrangements  For  Germany 

[Released  to  the  press  November  5] 

The  Department  of  State  announced  on  Novem- 
ber 5  that  discussions  will  take  place  in  Washing- 
ton, beginning  on  November  12,  between  repre- 
sentatives of  the  British  and  United  States  Gov- 
ernments on  certain  financial  and  economic  ques- 
tions related  to  the  bizonal  arrangements  between 
the  British  and  American  zones  of  Germany. 

The  United  States  will  be  represented  by  the 
Departments  of  State  and  War,  with  assistance 
on  particular  issues  from  other  governmental 
agencies  such  as  the  Treasury  and  Commerce  De- 
partments and  the  Reconstruction  Finance  Cor- 
poration. Lt.  Gen.  Lucius  D.  Clay,  Deputy  Mili- 
tary Governor  of  the  American  zone  of  occupation, 
is  expected  to  arrive  in  Washington  from  Berlin 
in  time  to  participate  in  the  discussions. 

The  British  Government  is  sending  to  Wash- 
ington a  group  of  experts  to  assist  the  Embassy 
in  the  discussions,  including  Lieutenant  General 
Robertson,  Deputy  Military  Governor  of  the 
British  zone  of  occupation,  Germany,  and  repre- 

(Continued  on  next  page) 


910 


Department  of  State  Bulletin    •   November  17,  1946 


A  National  Bipartisan  Program  for  Foreign  Affairs 


STATEMENT  BY  THE  PRESIDENT  > 


I  shall  devote  all  my  energy  to  the  discharge 
of  my  duty  with  a  full  realization  of  the  responsi- 
bility which  results  from  the  present  state  of  af- 
fairs. I  do  not  claim  for  myself  and  my  associates 
greater  devotion  to  the  welfare  of  our  Nation  than 
I  ascribe  to  others  of  another  party.  We  take  the 
same  oath  of  office.  "We  have  at  one  time  or  an- 
other been  equally  willing  to  offer  our  lives  in  the 
defense  of  our  country.  I  shall  proceed,  therefore, 
in  the  belief  that  the  members  of  the  Congress  will 
discharge  their  duties  with  a  full  realization  of 
their  responsibility. 

Inevitably,  issues  will  arise  between  the  Presi- 
dent and  the  Congress.  When  this  occurs,  we  must 
examine  our  respective  positions  with  stern  and 
critical  analysis  to  exclude  any  attempt  to  tamper 
with  the  public  interest  in  order  to  achieve  per- 
sonal or  partisan  advantage. 

The  change  in  the  majority  in  the  Congress  does 
not  alter  our  domestic  or  foreign  interests  or  prob- 
lems. In  foreign  affairs  we  have  a  well-charted 
course  to  follow.  Our  foreign  policy  has  been  de- 
veloped and  executed  on  a  bipartisan  basis.  I  have 
done  my  best  to  strengthen  and  extend  this  prac- 
tice. Members  of  both  parties  in  and  out  of  the 
Congress  have  participated  in  the  inner  council  in 
preparing  and  in  actually  carrying  out  the  for- 
eign policies  of  our  Government.  It  has  been  a 
national  and  not  a  party  program.  It  will 
contiinie  to  be  a  national  program  insofar  as  the 
Secretary  of  State  and  I  are  concerned.  I  firmly 
believe  that  our  Republican  colleagues  who  have 


worked  intelligently  and  cooperatively  with  us  in 
the  past  will  do  so  in  the  future. 

My  concern  is  not  about  those  in  either  party 
who  know  the  seriousness  of  the  problems  which 
confront  us  in  our  foreign  affairs.  Those  who 
share  great  problems  are  united  and  not  divided 
by  them.  My  concern  is  lest  any  in  either  party 
should  seek  in  this  field  an  opportunity  to  achieve 
personal  notoriety  or  partisan  advantage  by  ex- 
ploitation of  the  sensational  or  by  the  mere  crea- 
tion of  controversy. 

We  are  set  upon  a  hard  course.  An  effort  by 
either  the  executive  or  the  legislative  branch  of 
the  Government  to  embarrass  the  other  for  partisan 
gain  would  bring  frustration  to  our  counti-y.  To 
follow  the  course  with  honor  to  ourselves  and  with 
benefit  to  our  comitry,  we  must  look  beyond  and 
above  ourselves  and  our  party  interests  for  the 
true  bearing. 

As  President  of  the  United  States  I  am  guided 
by  a  simple  formula:  to  do  in  all  cases,  from 
day  to  day,  without  regard  to  narrow  political 
considerations,  what  seems  to  me  to  be  best  for  the 
welfare  of  all  our  people.  Our  search  for  that 
welfare  must  always  be  based  upon  a  progressive 
concept  of  government. 

I  shall  cooperate  in  every  proper  manner  with 
members  of  the  Congress,  and  my  hope  and  prayer 
is  that  this  spirit  of  cooperation  will  be  recipro- 
cated. 

To  them,  one  and  all,  I  pledge  faith  with  faith, 
and  promise  to  meet  good-will  with  good-will. 


Letters  of  Credence 

AMBASSADOR  OF  CANADA 

The  newly  appointed  Ambassador  of  Canada, 
Humphrey  Hume  Wrong,  presented  his  creden- 
tials to  the  President  on  November  8.  For  texts 
of  the  Ambassador's  remarks  and  the  President's 
reply,  see  Department  of  State  press  release  792 
of  November  8, 1946. 


Bizonal  Arrangements — Continued  from  page  910 
sentatives  of  the  Foreign  Office,  Control  Office  for 
Germany  and  Austria,  and  Treasury. 

The  discussions  will  be  exclusively  concerned 
with  financial  and  economic  aspects  of  the  bizonal 
arrangements  which  have  not  been  worked  out  in 
Berlin  or  which  require  governmental  approval. 

^Excerpts  from  a  statement  made  to  press  and  radio 
correspondents  at  the  White  House  on  November  11,  1946 
and  released  to  the  press  on  the  same  date. 


911 


U.  S.  Position  on  Polish  Nationalization  Developments 


[Released  to  the  press  November  9] 
Text  of  a  note  of  Octoher  30^  19If6  on  nationaliza- 
tion, delivered  ly  Gerald  Keith,  counselor  of  the 
United  States  Embassy  in  Poland,  to  the  Polish 
Foreign  Office,  Octoher  31 

I  have  the  honor  to  inform  Your  Excellency  that 
I  have  been  instructed  by  my  Government  to  com- 
municate to  Your  Excellency's  Government  the 
following  observations  relative  to  the  steps  which 
have  recently  been  taken  by  the  Provisional  Gov- 
ernment of  National  Unity  with  a  view  to  im- 
plementing the  provisions  of  the  law  of  January 
3, 1946,  regarding  the  nationalization  of  the  basic 
branches  of  the  Polish  national  economy.^ 

1.  The  Government  of  the  United  States  de- 
sired to  recall  to  the  Government  of  Poland  the 
provisions  of  numbered  paragraphs  4  and  5  of  the 
notes  exchanged  between  the  two  Governments  at 
Washington  on  April  24,  1946,  which  specifically 
provide:  (a)  that  the  Government  of  the  United 
States  and  the  Provisional  Government  of  Poland 
will  make  both  adequate  and  effective  compensa- 
tion to  nationals  and  corporations  of  the  other 
country  whose  properties  are  requisitioned  or  na- 
tionalized, and  (5)  that  the  Provisional  Govern- 
ment of  Poland  and  the  Government  of  the  United 
States  agree  to  affox'd  each  other  adequate  oppor- 
tunity for  consultation  concerning  the  subjects 
touched  upon  in  the  exchange  of  notes,  and  includ- 
ing that  mentioned  under  {a)  above.^ 

2.  The  Government  of  the  United  States  desires 
once  again  to  bring  to  the  attention  of  the  Provi- 
sional Government  of  National  Unity  the  inade- 
quateness  of  the  time  allowed  in  paragraph  28  of 
the  order  of  the  Council  of  Ministers  of  April  11, 
1946,  for  foreigners  to  protest  the  nationalization 
of  their  property  or  to  file  claims  under  articles  2 
and  3  of  the  nationalization  law,  especially  in  view 
of  the  provisions  to  be  found  in  paragraph  75  of 
the  order  of  April  11,  1946,  which  require  the 
foreign  firm  or  person  concerned  to  choose  a  jilace 


'  For  an  article  on  the  Polish  Nationalization  Law  see 
BtTLLETiN  of  Oct.  13,  1946,  p.  651. 
'  Bulletin  of  May  5, 1946,  p.  761. 


of  residence  within  Polish  territory  for  the  receipt 
of  official  documents  or  to  appoint  an  attorney 
with  residence  in  Poland  and  in  view  of  the  fact 
that  many  weeks  will  unavoidably  be  required  to 
identify  and  notify  persons  or  firms  in  the  United 
States  owning  or  having  an  interest  in  undertak- 
ings in  Poland  affected  by  the  Polish  Govern- 
ment's nationalization  program. 

3.  The  Government  of  the  United  States  desires 
to  point  out  that  the  Polish  Government  has  not 
yet  announced  the  procedure  to  be  followed  in  the 
processing  of  claims  for  compensation  in  the  case 
of    properties    destined    for    nationalization    in 
accordance  with  the  provisions  of  article  3  of  the 
nationalization  law  of  January  3, 1946.     The  Gov- 
ernment of  the  United  States  wishes  in  this  con- 
nection to  bring  again  to  the  attention  of  the  Pro- 
visional Government  of  National  Unity  the  fact 
that  foreign  persons  and  firms,  whose  interests  are 
affected  by  the  operation  of  the  nationalization 
law  of  January  3, 1946,  will  require  sufficient  time 
and  the  accordance  of  adequate  facilities  to  enable 
them  to  prepare  and  to  present  their  claims  for 
compensation,  once  definite  notice  of  expropria- 
tion is  received.    The  Government  of  the  United 
States  feels  certain  that  the  Polish  Government 
will  agree  that  a  proper  valuation  can,  in  most 
instances,  only  be  determined  after  a  thorough 
examination  of  the  property  in  question,  and  that, 
to  prepare  the  data  necessary  to  such  a  proper 
valuation,  adequate  tune  is  needed  for  the  actual 
physical  examination  of  the  property,  together 
with  complete  freedom  of  access  to  all  of  the  plans 
and   records.     The   Government   of   the   United 
States  desires  to  emphasize  the  reasonableness  of 
its  views  in  this  respect,  and  to  insist  upon  the 
granting  of  all  examination  privileges  which  the 
representatives  of  the  American  interests  affected 
may  find  necessary  to  enable  them  to  arrive  at  a 
proper  valuation  of  the  property  concerned. 

4.  The  Government  of  the  United  States  refers 
to  the  proposal  contained  in  the  note  of  January 
17,  1946,  from  its  Embassy  in  Warsaw  relative  tc 
the  establishment  of  a  mixed  commission,  com- 


912 


Department  of  State  Bulletin    •   November  17,  194& 


THE  RECORD  Of  THE  WEEK 


posed  of  an  equal  number  of  representatives  of 
each  Government,  with  a  view  to  reaching  a  deci- 
sion concerning  which  assets,  of  those  subject  to 
nationalization  under  the  j^rovisions  of  the  nation- 
alization law  of  January  3,  1946,  are  owned  by 
nationals  of  the  United  States,  the  amount  of  the 
compensation  to  be  paid  for  each  such  holding 
nationalized  by  the  Government  of  Poland,  the 
means  by  which  the  compensation  is  to  be  paid,  and 
concerning  such  related  matters  as  may  mutually 
be  agreed  upon  between  the  two  Governments. 
The  Government  of  the  United  States  wishes  to 
reiterate  the  proposal  contained  in  the  note  of 
January  17,  1946,  to  which  reference  has  just  been 
made,  and  to  state  that  it  regards  it  as  of  the 
gi'eatest  importance  that  the  mixed  commission  be 
appointed  at  an  early  date  to  the  end  that  agree- 
ments may  be  j-eached  in  principle  on  the  various 
subjects  within  its  competence  before  properties 
in  which  there  is  an  American  interest  have  been 
nationalized.  The  Government  of  the  United 
States  recalls  that,  in  the  note  which  the  Polish 
Embassy  in  Washington  addressed  to  the  Depart- 
ment of  State  on  April  24,  1946,  the  Polish 
Government  expressed  its  willingness  to  begin  dis- 
cussions such  as  those  referred  to  in  the  note 
addressed  to  the  Ministry  of  Foreign  Affairs  by 
the  American  Embassy  in  Warsaw  on  January  17, 
1946,  although  it  held  that  the  time  for  such  dis- 
cussions was  then  somewhat  premature.^  The 
Government  of  the  United  States,  in  the  light  of 
the  steps  recently  taken  by  the  Polish  Government 
looking  toward  the  realization  of  its  nationaliza- 
tion program,  feels  that  the  Provisional  Govern- 
ment of  National  Unity  may,  since  April  of  1946, 
have  made  such  progress  in  its  reconstruction 
planning  that  the  holding  of  such  discussions  as 
those  proposed  in  the  note  of  January  17,  1946, 
may  now  be  regarded  as  opportune.  I  should  be 
grateful  if  Your  Excellency  would  be  so  good  as  to 
inform  me  as  soon  as  may  be  possible,  in  view  of 
the  urgency  of  the  matter  under  discussion,  of  the 
views  of  the  Polish  Government  with  respect  to 
the  observations  contained  herein  so  that  I  may,  in 
turn,  inform  my  Government  in  Washington. 
I  avail  [etc.] 


'  Bulletin  of  Apr.  21, 1946,  p.  670. 


American  Mission  to  Albania 
Withdrawn 

[Released  to  the  presa  November  8] 

The  proposal  made  by  the  United  States  Govern- 
ment on  November  10, 1945  to  recognize  the  Alba- 
nian regime  headed  by  Col.  Gen.  Enver  Hoxha 
specified  as  a  condition  that  the  Albanian  authori- 
ties affirm  the  continuing  validity  of  all  ti-eaties 
and  agreements  in  force  between  the  United  States 
and  Albania  as  of  April  7,  1939,  the  date  of  the 
Italian  invasion  of  Albania.  The  requirement  of 
such  an  assurance  from  the  Albanian  regime  as  a 
prerequisite  to  United  States  recognition  is  in 
accord  with  the  established  practice  of  this 
Government  to  extend  recognition  only  to  those 
Governments  which  have  expressed  willingness  to 
fulfil  their  international  obligations.  The  Alba- 
nian regime  on  August  13,  1946,  after  a  delay  of 
nine  months,  indicated  its  acceptance  of  the  multi- 
lateral treaties  and  agreements  to  which  both  the 
United  States  and  Albania  are  parties,  but  it  has 
failed  to  affirm  its  recognition  of  the  validity  of 
bilateral  instruments  between  the  United  States 
and  Albania. 

In  view  of  the  continued  unwillingness  of  the 
present  Albanian  regime  to  assume  these  bilateral 
commitments  and  obligations,  which  are  in  no  in- 
stance of  an  onerous  character  and  concern  such 
customary  subjects  as  arbitration  and  conciliation, 
naturalization,  extradition,  and  most-favored-na- 
tion treatment  (see  the  appended  list),  the  United 
States  Government  has  concluded  that  the  Ameri- 
can Mission  can  no  longer  serve  any  useful  purpose 
by  remaining  in  Albania.  This  decision  has  been 
notified  to  General  Hoxha  by  the  Acting  American 
Representative  in  Tirana,  George  D.  Henderson,  in 
a  letter  of  November  5,  the  text  of  which  is  as  fol- 
lows: 

Since  arriving  in  Tirana  on  May  8,  1945  to  sur- 
vey conditions  in  Albania  in  connection  with  the 
question  of  United  States  recognition  of  the  ex- 
isting Albanian  regime,  the  informal  United  States 
Mission  has  sought  to  bring  about  mutual  under- 
standing and  the  establishment  of  diplomatic  re- 
lations between  the  Governments  of  the  United 
States  and  Albania.    Despite  United  States  en- 


913 


THE  RECORD  OF  THE  WEEK 

deavors  in  this  regard,  and  in  the  absence  of  a  sat- 
isfactory response  from  the  Albanian  Government 
to  the  offer  of  recognition  which  was  tendered  by 
the  United  States  Government  in  November  1945, 
the  Mission  has  been  unable  to  achieve  the  pur- 
poses for  which  it  was  originally  sent  to  Albania. 

In  the  circumstances,  although  my  Government 
retains  its  sentiment  of  warm  friendship  for  the 
Albanian  people,  it  does  not  feel  that  there  is  any 
further  reason  for  the  Mission  to  remain  in  Al- 
bania. The  United  States  Mission  is  accordingly 
being  withdrawn. 

Bilateral    Treaties    and   Agreements   Between   the 
United  States  and  Albania 

ArMtration  treaty 

Signed  at  Washington,  Oct.  22,  1928.  Katifica- 
tions  exchanged  Feb.  12, 1929 ;  proclaimed  Feb.  12, 
1929.    Effective  Feb.  12,  1929. 

Conciliation  treaty 

Signed  at  Washington,  Oct.  22,  1928.  Ratifica- 
tions exchanged  Feb.  12, 1929 ;  proclaimed  Feb.  12, 
1929.    Effective  Feb.  12,  1929. 

Naturalization  treaty 

Signed  at  Tirana,  Apr.  5,  1932.  Eatifications 
exchanged  July  22, 1935 ;  proclaimed  July  29, 1935. 
Effective  July  22,  1935. 

Extradition  treaty 

Signed  at  Tirana,  Mar.  1,  1933.    Eatifications 
exchanged  Nov.   14,   1935;  proclaimed  Nov.  19, 
1935.    Effective  Nov.  14, 1935. 
Agreement  relating  to  most- favored-nation  treat- 
ment and  other  matters 

Signed  at  Tirana,  Jmie  23  and  25, 1922.  Effec- 
tive July  28,  1922. 

Agreement  effected  ly  exchange  of  notes  for  the 
waiver  of  passport  visa  fees  for  non-immigrants 

Signed  at  Tirana,  May  7,  1926.    Effective  June 
1,  1926. 
Money  order  convention 

Signed  Apr.  13  and  June  18,  1932.  Effective 
July  1,  1933. 


'  Bulletin  of  Nov.  3,  1946,  p.  826. 


914 


Provisions  for  Payment  of  National 
Solidarity  Tax  on  American  Assets  in 
France 

[Released  to  the  press  November  8] 

Text  of  statement  released  in  Paris  on  November 
7, 19Jf6  ly  Jefferson  Gaffery,  American  Ambassador 
to  France 

In  pursuance  of  conversations  between  officials 
of  the  French  Government  and  those  of  the  Ameri- 
can Embassy,  the  French  Minister  of  Finance  has 
made  the  following  decision  regarding  the  national 
enrichment  tax)." 

"1.  American  citizens,  domiciled  outside  of 
France,  have  until  December  31,  1946  in  which  to 
file  their  declarations  for  the  impost  of  national 
solidarity,  and  until  February  28,  1947  in  which 
to  pay  the  first  two  installments  regardless  of  the 
date  on  which  they  receive  their  tax  bills. 

"2.  American  assets  in  France,  which  by  their 
nature  would  have  been  transferable  under  the 
terms  of  avis  numbers  35  and  53  of  the  Ministry  of 
Finance  but  which  had  not  been  transferred  on 
June  4,  1945  owing  to  circumstances  beyond  the 
control  of  the  creditors,  will  not  be  subject  to  the 
impost  of  national  solidarity  (capital  levy  and 
enrichment  tax) ." 

The  two  avis  mentioned  in  the  preceding  para- 
graph appeared  respectively  in  the  Journal  Officiel 
of  April  15,  1945  and  of  October  5,  1945. 

Immigration   Visas  for   Estonian 
Refugees 

STATEMENT  BY  THE  PRESIDENT 

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

On  October  24  I  annoimced  that  I  had  directed 
that  all  avenues  be  explored  toward  enabling  the 
48  Estonian  refugees  who  recently  entered  the 
United  States  without  immigration  visas  to  re- 
main here,  if  they  so  desired,  so  that  they  might 
eventually  become  citizens  of  this  country.^ 

I  am  pleased  to  announce  that  as  a  result  of 
the  joint  efforts  of  the  Secretary  of  State  and  the 
Attorney  General,  these  refugees  will  definitely 
not  be  deported  and  will  in  due  course  be  given 
immigration  visas  which  will  enable  them  to 
remain  in  this  country. 

Department  of  State  Bulletin   •   November  17,  1946 


THE  RECORD  OF  THE  W£EK 


Property  Tax  on  Czechoslovak  Holdings 

[Released  to  the  press  November  8] 

The  Department  of  State  has  been  informed  by 
the  American  Embassy  at  Praha  that  the  Czecho- 
slovak capital  levy  and  war  profits  tax,  on  the  in- 
crease in  the  value  of  property  between  January 
1, 1939  and  November  15, 1945,  imposed  by  law  no. 
134  of  May  15,  1946,  has  been  declared  effective 
September  30,  1946.  Tax  returns  must  be  submit- 
ted prior  to  November  30, 1946. 

On  the  basis  of  the  information  currently  avail- 
able, the  Department  understands  that  United 
States  citizens  owning  real  estate,  commercial  en- 
terprises, currency,  bank  accounts,  securities,  in- 
surance policies,  valuable  metals,  precious  stones, 
jewelry,  objects  of  art,  antiques,  and  coin,  stamp, 
and  other  collections,  located  in  Czechoslovakia 
should  file  returns  in  the  tax  district  in  which  the 
property  is  located.  The  law  now  requires  returns 
also  to  be  filed  by  United  States  citizens  who  hold 
claims  in  Czechoslovakia.  Such  claims  may  arise 
in  connection  with  confiscation  of  property  during 
the  occupation  as  a  result  of  racial  or  other  legisla- 
tion, war  damage  to  property,  nationalization  of 
property  by  the  Czechoslovak  Government,  patent 
rights,  and  insurance  policies. 

The  Department  suggests  that  all  United  States 
citizens  holding  such  property  or  claims  who  have 
authorized  agents  in  Czechoslovakia  communicate 
with  such  agents  immediately  to  insure  that  the 
returns  will  be  filed  for  them  by  the  latter  and 
that  those  who  do  not  have  agents  in  Czechoslo- 
vakia make  arrangements  immediately  for  the  fil- 
ing of  such  returns. 

Radio  Broadcast  on  UNESCO 

On  November  9  the  Assistant  Secretary  of  State 
for  Public  Affairs,  William  Benton,  and  the 
deputy  chairman  of  the  American  delegation  to 
the  General  Conference  of  UNESCO,  Archibald 
MacLeish,  discussed  with  Sterling  Fisher,  director 
of  the  NBC  University  of  the  Air,  the  question, 
"Can  UNESCO  Help  To  Prevent  a  Third  World 
War?"  This  program  was  one  in  a  series  entitled 
"Our  Foreign  Policy",  presented  by  NBC.  For 
a  complete  text  of  the  radio  program,  see  Depart- 
ment of  State  press  release  799  of  November  9, 
1946. 


Duncan  Wall — Continued  from  page  906 

Denmark,  Egypt,  France,  India,  the  Netherlands, 
the  Kepublic  of  the  Philippines,  Poland,  the 
United  Kingdom,  and  the  United  States. 

In  addition,  the  Economic  and  Social  Council 
was  invited  to  send  two  representatives,  one  to 
speak  especially  for  the  ITO  Preparatory  Com- 
mission, and  the  following  specialized  intergov- 
ernmental agencies  one  representative  each: 
International  Labor  Organization,  World  Health 
Organization,  International  Bank  for  Kecon- 
struction  and  Development,  International  Mone- 
tary Fund.  These  agency  representatives  were 
not  to  be  entitled  to  vote,  but  to  participate  in 
discussions  as  advisers. 

The  Preparatory  Commission  was  directed  to 
make  its  report  to  the  Director  General,  to  be 
circulated  to  member  governments  of  FAO  and 
to  international  agencies  concerned.  Then  the 
report  is  to  be  considered  by  an  FAO  Conference, 
and  passed  on  with  the  FAO  recommendations  to 
the  United  Nations  through  appropriate  channels. 

Formally  opening  the  Conference,  His  Majesty, 
King  Christian  X,  of  Denmark,  said :  "I  wish  the 
leaders  and  delegates  of  this  Conference  every 
success  in  meeting  the  great  difficulties  and  tasks 
which  face  them,  in  order  that  this  Conference 
may  contribute  to  mutual  understanding  among 
nations,  to  the  progress  of  mankind,  and  to  the 
improvement  of  the  life  of  all  who  are  suffering 
from  hunger  and  want." 

In  the  closing  session  of  the  Conference,  Sir 
John  Boyd  Orr,  Director  General  of  FAO,  said, 
"I  am  sure  that  all  members  of  the  delegations 
will  go  away  from  this  Conference  feeling  that  a 
beacon  light  in  international  relations,  illumi- 
nating afresh  the  common  objectives  of  the  United 
Nations,  has  been  shed  from  here." 

Agriculture  in  the  Americas 

The  following  article  of  interest  to  readers  of  the 
Bulletin  appeared  in  the  December  issue  of  Agricul- 
ture in  the  Americas,  a  publication  of  the  Depart- 
ment of  Agriculture,  copies  of  which  may  be  obtained 
from  the  Superintendent  of  Documents,  Government 
Printing  Office,  for  10  cents  each  : 

"Pineapples  in  Northeast  Brazil",  by  Bentley  B. 
Macliay,  agricultural  adviser,  American  Consulate, 
Pernambuco  (Eecife),  Brazil. 


915 


United  States  Exports  of  Housing  Materials 


BY  PAUL  H.  NiTZE< 


Many  people  believe  that  large  quantities  of 
housing  materials,  particularly  lumber,  are  being 
exported  from  the  United  States  to  the  detriment 
of  the  Veterans  Emergency  Housing  Program.  I 
am  grateful,  therefore,  to  the  American  Legion  and 
to  its  special  Committee  on  Housing  for  this  op- 
portunity to  correct  this  impression. 

Before  discussing  the  exports  of  building  ma- 
terials in  detail,  I  should  like  to  make  some  gen- 
eral observations. 

The  United  States  entered  the  war  and  emerged 
from  the  war  with  the  conviction  that  the  Ameri- 
can system  of  free  enterprise  was  indispensable  and 
that  American  leadership  in  working  for  eco- 
nomic health  in  the  rest  of  the  world  was  essential 
to  our  continued  security. 

An  active  and  large  export  trade  is  indispensable 
in  carrying  out  these  policies.  If  exports  were 
prohibited,  we  could  hardly  expect  to  obtain  from 
foreign  countries  the  many  commodities  in  which 
the  United  States  is  deficient  and  which  we  need  for 
our  industry.  This  country  certainly  could  not 
achieve  or  maintain  high  levels  of  income  and  em- 
ployment or  continuing  prosperity  without  an  ac- 
tive and  large  international  trade.  Our  aims,  both 
before  and  since  the  war,  in  the  field  of  commercial 
policy  have  been  to  promote  as  vigorously  as  pos- 
sible an  expansion  of  world  trade  and  employment 
through  the  reduction  of  those  barriers  and  dis- 
criminations which  developed  in  the  period  before 
the  war  and  still  threaten. 

Although  this  country  is  notably  well  equipped 
with  natural  resources  and  production  facilities 
of  most  kinds,  we  nevertheless  depend  upon  heavy 
importations  for  a  great  many  materials  basic  in 
our  industrial  structure.  Everyone  knows  that  in 
the  United  States  we  do  not  have  resources  of  tin. 


'  Address  made  before  the  National  Housing  Conference 
of  tlie  American  Legion  in  Wasliington  on  Nov.  7  and  re- 
leased to  the  press  on  the  same  date.  Mr.  Nitze  is  Acting 
Director,  Office  of  International  Trade  Policy,  Depart- 
ment of  State. 


Everyone  knows  that  we  do  not  produce  natural 
rubber.  Wliat  is  often  overlooked  is  that  a  num- 
ber of  materials  are  needed  in  our  industry — 
needed  even  in  the  construction  of  houses — which, 
although  produced  to  some  extent  in  the  United 
States,  are  not  produced  in  adequate  quantities  to 
satisfy  all  our  needs.  I  have  in  mind  commodities 
such  as  copper  of  which  we  shall  have  to  import 
something  like  one  fourth  to  one  third  of  our  total 
consumption.  I  have  in  mind  asbestos  of  which  we 
must  import  the  preponderance  of  our  consump- 
tion. I  have  in  mind  lead  which  at  present  is  in 
short  supply  everywhere  and  of  which  again  we 
must  import  a  very  substantial  part  of  our  total 
consumption.  I  have  in  mind  even  lumber,  about 
which  I  shall  have  more  to  say  later,  which  we 
have  imported  and  must  continue  to  import  in  con- 
siderable quantities.  I  have  in  mind  nickel,  not 
produced  at  all  in  the  United  States  but  indispen- 
sable in  the  manufacture  of  a  thousand  and  one 
items  used  in  the  construction  of  houses  and  house- 
hold equipment.  One  could  go  on  with  this  land 
of  listing.  One  could  add  various  other  basic 
industrial  materials,  also.  One  could  add  such 
foodstuffs  as  coffee,  sugar,  cocoa,  and  even  pepper. 
What  I  am  emphasizing  is  the  importance  of  in- 
ternational trade  in  maintaining  active  industry 
and  adequate  provisions  for  consumers  in  this 
country. 

Veterans  need  housing.  There  is  no  question 
but  that  the  present  need  is  particularly  acute 
while  we  are  still  in  the  transition  from  war  to 
peace.  That  need  has  been  recognized  by  the  gov- 
ernment to  a  greater  extent  than  any  other  im- 
mediate post-war  need.  Measures  taken  in  order 
to  promote  the  availability  of  materials  needed  for 
the  production  of  houses  have  been  vigorous.  We 
have  recognized  the  need  to  provide  for  a  housing 
program  in  our  policy  with  respect  to  trade  con- 
trols. The  Department  of  State,  as  a  matter  of 
broad  policy,  recognizes  that  during  the  emergency 
period  of  transition  to  a  full  peacetime  economy 


916 


Department  of  State  Bulletin    •    November  17,  1946 


THE  RECORD   OF  TH£  WEEK 


nearly  all  nations  occasionally  may  have  to  employ 
controls  over  items  in  short  supply  to  facilitate 
reconstruction  and  rehabilitation.  A  recent 
presidential  proclamation  suspends  the  duty  on 
certain  housing  materials  made  from  lumber  dur- 
ing the  housing  emergency.  Also,  there  have  been 
in  effect  for  some  time  export  controls  over  mate- 
rials and  products  needed  for  the  carrying  out  of 
the  Veterans  Emergency  Housing  Program. 

Exports  of  housing  materials  are  limited  by 
agreement  between  the  National  Housing  Agency, 
Civilian  Production  Administration,  and  the  De- 
partment of  Commerce.  The  three  agencies  act- 
ing in  consultation  determine  what  the  export 
quota  shall  be  for  a  particular  housing  item.  The 
Department  of  Commerce  then  issues  export  li- 
censes within  the  limits  of  the  export  quota.  All 
applications  for  export  licenses  are  screened  care- 
fully by  the  Department  of  Conmierce.  The  end 
use  of  each  item  is  scrutinized  and  the  size  of  each 
shipment  considered.  The  total  foreign  request 
for  United  States  lumber  in  1945  was  1  billion,  200 
million  board  feet.  This  request  was  scaled  down 
in  the  screening  process  and  only  395  million  board 
feet  were  actually  exported — about  one  thii'd  of 
the  quantity  requested.  "We  feel  that  exports  have 
been  limited  to  an  irreducible  minimum. 

Exports  of  lumber,  one  of  the  principal  mate- 
rials used  in  housing,  are  being  limited  in  1946  to 
600  million  board  feet,  or  less  than  2  percent  of 
the  total  production  in  the  United  States,  which  is 
expected  to  be  33  billion  board  feet.  Approxi- 
mately twice  as  much  lumber  was  exported  per 
year  in  the  pre-war  yeai-s  1935  to  1939  as  is  now 
exported. 

Exports  of  housing  materials  other  than  lumber 
are  small,  also,  in  comparison  with  domestic  pro- 
duction. Exports  of  bathtubs  are  being  restricted 
in  1946  to  1.7  percent  of  domestic  production; 
closet  bowls  and  water  closets,  3.6  percent ;  asbestos 
roofing,  1  percent;  gypsum  board  and  lath,  0.4 
percent ;  stoves,  2.2  percent ;  furnaces,  0.5  percent ; 
nails,  2.3  percent ;  linoleum,  1  percent ;  and  stand- 
ard Portland  cement,  1.6  percent.  Figures  for 
practically  all  housing  items  show  that  exports  are 
small  compared  with  domestic  production. 

How  do  exports  of  housing  items  compare  with 
exports  of  other  items?    Wliereas  exports  of  lunis- 


ing  items  generally  amount  to  less  than  3  percent 
of  the  housing  items  produced,  total  exports 
amount  to  9  percent  of  the  domestic  production  of 
all  movable  goods  in  the  United  States. 

Despite  the  foregoing,  you  may  ask,  "Why  ex- 
port any  building  materials?"  I  anticipated  this 
question  in  my  preliminary  remarks,  and  I  shall 
elaborate  it  further  here. 

The  United  States  imports  from  two  to  three 
limes  as  much  lumber  as  it  exports.  In  1945  the 
United  States  imported  more  than  1  billion  board 
feet  of  lumber  and  exported  only  395  million  board 
feet.  Most  of  our  lumber  imports  came  from 
Canada  which  is  also  one  of  our  chief  countries 
of  destination  for  lumber  exports. 

Of  the  395  million  board  feet  of  lumber  exported 
in  1945,  approximately  30  to  35  percent  was  soft- 
wood in  timber  sizes.  These  timbers  are  made 
principally  by  tidewater  mills  on  the  Pacific  Coast 
and  generally  the  mills  are  not  equipped  to  make 
other  kinds  of  lumber.  The  timbers  are  not  nor- 
mally used  in  home  construction  but,  instead,  are 
exported  for  use  in  heavy  construction  such  as  port 
facilities,  railroads,  shipbuilding,  mining,  petro- 
leum, and  other  forms  of  industrial  construction. 

Another  30  percent  of  the  1945  exports  was 
hardwood  lumber.  Only  a  small  part  of  this  hard- 
wood was  suitable  for  use  in  housing. 

Thus,  the  balance,  or  only  from  30  to  40  pei'cent 
of  the  United  States  exports  of  lumber  in  1945, 
was  suitable  for  housing,  whereas  from  70  to  75 
percent  of  the  lumber  impoi-ted  was  satisfactory 
for  this  use. 

The  construction  of  a  one-family  frame  house 
requiies  an  average  of  14,000  board  feet  of  lumber. 
On  this  basis,  in  1945,  we  had  a  net  import  of  the 
lumber  equivalent  of  44,000  houses. 

If  the  United  States  restricted  further  the  ex- 
ports of  lumber  or  other  building  materials,  it 
might  bring  retaliation  from  other  countries. 
This  country  cannot  afford  to  jeopardize  its  im- 
ports. It  should  be  borne  in  mind  that  imports  of 
many  materials  used  in  housing  are  substantial, 
such  as  logs,  lumber,  plywood,  shingles,  copper, 
nickel,  asbestos,  and  lead. 

The  United  States  is  obliged  to  share  its  scarce 
commodities  with  the  other  American  republics 
and  Canada  for  the  duration  of  the  war  emer- 
gency.   During  the  war,  Canada  and  the  Ameri- 


917 


THE  RECORD  OF  THE  WEEK 

can  republics  signed  international  agreements  at 
Hyde  Park,  Mexico  City,  and  Kio  de  Janeiro  by 
which  tliey  committed  themselves  to  share  scarce 
items  with  each  other.^  This  country  fulfils  its 
obligations,  and  it  has  not  forgotten  that  during 
the  conflict  many  of  the  countries  south  of  our 
borders  supplied  us  with  rubber  for  use  in  tires  on 
ordnance  vehicles;  Ecuador  supplied  us  with  balsa 
wood  for  use  in  airplanes  and  life  jackets;  several 
countries  supplied  us  with  mahogany  for  use  in 
P-T  boats;  Mexico  supplied  us  with  lead  for  use 
in  aviation  gasoline,  bullets,  and  batteries;  Bolivia 
supplied  us  with  tin  for  use  in  food  containers; 
Brazil  supplied  us  with  quartz  crystals  for  use  in 
radios;  and  Canada  supplied  us  with  lumber  for 
use  in  Army  camps  and  shipyards,  asbestos  fiber 
for  use  in  brake  linings  and  clutch  facings  on  ord- 
nance vehicles,  and  nickel  for  use  in  projectiles 
and  armor  plate. 

Limited  quantities  of  housing  materials  are 
exported  to  Europe  and  the  Orient  for  use  in 
reconstruction  and  rehabilitation.  These  ship- 
ments are  made  in  accordance  with  the  President's 
announced  policy  of  assisting  these  areas.  Avail- 
able information  indicates  that  the  war-devastated 
countries  of  Europe  will  receive  from  all  sources 
only  53  percent  of  their  1946  lumber  requirements. 
The  quantity  of  lumber  which  these  countries  will 
receive  will  be  only  45  percent  of  the  quantities 
that  they  received  in  1937.  The  United  States,  on 
the  other  hand,  with  no  war  devastation,  will  have 
more  lumber  available  in  1946  for  its  own  use  than 
in  any  of  the  pre-war  years,  1935-1939  inclusive. 
In  1937,  a  peak  year,  the  United  States  had  28  bil- 
lion board  feet  of  lumber  available  for  its  own  use, 
compared  with  an  expected  33  billion  board  feet  in 
1946.  These  figures  are  arrived  at  by  adding 
imports  to  domestic  production  and  then  deduct- 
ing exports.  Thus,  the  United  States  in  1946 
should  have  available  for  its  own  use  about  120 
percent  of  the  quantity  which  it  had  in  1937,  com- 
pared with  45  percent  for  the  European  countries 
previously  mentioned. 

To  sum  up,  the  facts  clearly  indicate  that  the 

'  Bulletin  of  Apr.  26,  1041,  p.  494;  Report  of  the  Dele- 
gation of  the  United  States  of  America  to  the  Inter-Amer- 
ican Conference  on  Problems  of  War  and  Peace  (Depart- 
ment of  State  publication  2497,  Conference  Series)  ;  BtJi> 
LETiN  of  Feb.  7,  1942,  p.  117. 


volume  of  exports  of  housing  materials  is 
extremely  small.  Exports  represent  the  rock- 
bottom  minimum  of  building  materials  needed  to 
meet  the  requirements  of  foreign  countries.  Fur- 
ther curtailment  of  exports  is  likely  to  be  detri- 
mental rather  than  lielpful  to  the  Veterans  Emer- 
gency Housing  Program.  In  periods  of  shortages 
such  as  we  are  now  passing  through,  our  refusal  to 
sell  to  other  countries  the  things  they  badly  need 
may  result  in  a  decrease  in  the  imports  of  the 
materials  we  want  for  our  domestic  program. 

I  know  that  you  veterans  are  not  building  for 
today  alone.  You  have  your  eyes  on  the  future. 
When  you  keep  your  eye  steadily  on  the  things 
that  you  want  your  Government  to  do  in  order 
to  make  a  better  and  more  peaceful  world  to  live 
in,  you  see  that  the  issue  we  are  discussin,g  today 
broadens  and  merges  into  the  terms  on  which  we 
can  trade  all  kinds  of  goods  with  all  countries. 
We  all  want  to  build  an  economic  world  of  increas- 
ing production,  of  full  employment,  and  of  high 
levels  of  world  trade.  That  is  the  kind  of  world 
this  Government  is  trying  to  bring  about  by  its 
economic  foreign  policy. 

Commerce  Over  Alaska  Highway 
Authorized 

[Released  to  the  press  November  7] 

It  was  announced  on  November  7  in  Washington 
and  Ottawa  that  authorization  has  been  given  for 
the  shipment  of  goods  in  bond  from  points  in  the 
United  States  to  points  in  Alaska,  and  from  points 
in  Alaska  to  points  in  the  United  States  over  the 
Alaska  Highway  and  connecting  roads.  This  ac- 
tion has  been  taken  in  implementation  of  under- 
takings of  the  Canadian  Government  which  were 
made  at  the  time  authorization  was  given  to  the 
United  States  Government  to  construct  the  Alaska 
Highway. 

Although  construction  of  the  Alaska  Highway 
system,  including  the  so-called  Haines  Cut-off,  was 
undertaken  solely  for  military  reasons,  its  post- 
war utility  for  civilian  traffic  was  foreseen,  and 
provision  was  made  for  the  use  of  the  system  by 
United  States  traffic  on  the  same  terms  as  Cana- 
dian traffic.  The  United  States,  by  an  exchange  of 
notes  of  March  17-18, 1942,  agreed  that  at  the  con- 
clusion of  the  war  that  part  of  the  Highway  which 


918 


Department  of  State  Bulletin    •    November  17,  1946 


THE  RECORD  OF  THE  WEEK 


lies  in  Canada  should  become  in  all  respects  an 
integral  part  of  the  Canadian  Highway  system.^ 
In  return,  Canada  agreed  that  United  States 
civilian  traffic  could  use  the  Alaska  Highway  on 
the  same  conditions  as  Canadian  traffic  and 
undertook  specifically  "to  waive  import  duties, 
transit,  or  similar  charges  on  shipments  originat- 
ing in  the  United  States  and  to  be  transported  over 
the  Highway  to  Alaska  or  originating  in  Alaska 
and  to  be  transported  over  the  Highway  to  the 
United  States". 

By  a  further  exchange  of  notes  of  November  28- 
December  7,  1942,  it  was  agi'eed  that  the  so-called 
Haines  Cut-off  should  be  considered  an  integral 
part  of  the  Alaska  Highway  and  in  all  applicable 
respects  subject  to  the  agreement  reached  in  the 
exchange  of  notes  of  March  17-18,  1942.'  There 
was  a  further  and  clarifying  exchange  of  letters  of 
April  10,  1943,  which  assured  United  States 
civilian  traffic  adequate  access  to  the  southern 
terminus  of  the  Alaska  Highway.^  The  post-war 
rights  made  available  to  the  United  States  civilian 
traffic  under  these  exchanges  of  notes  have  not 
previously  been  made  available,  as  the  road  has 
continued  to  be  a  military  highway  not  open  to 
general  public  use.  The  Canadian  military  au- 
thorities, continuing  the  practice  inaugurated  by 
the  United  States  militaiy  authorities  during  the 
war  period,  have  heretofore  permitted  civilian 
traffic  by  individual  permit  only,  and  only  where 
such  traffic  was  able  to  proceed  with  the  limited 
facilities  available  along  the  route.  Under  these 
regulations  United  States  civilian  traffic  has  been 
permitted  on  the  same  terms  as  Canadian  traffic. 

The  Alaska  Highway  system  is  not  now  in  a 
condition  which  would  permit  general  civilian 
traffic  and  it  is  not  anticipated  that  it  will  be  pos- 
sible to  use  the  road  without  restriction  for  some 
time  to  come.  However,  the  Canadian  Govern- 
ment has  been  taking  active  measures  to  improve 
and  increase  facilities  along  the  Highway,  and  as 
the  situation  has  improved  it  has  permitted  in- 
creased traffic.  The  action  now  taken  in  author- 
izing— so  far  as  facilities  are  available — transit- 
in-bond  of  goods  originating  in  the  United  States 
and  to  be  transported  over  the  Highway  to  Alaska 
or  originating  in  Alaska  and  to  be  transported 
over  the  Highway  to  the  United  States,  is  taken  in 


anticipation  of  the  time  when  the  facilities  on  the 
Highway  will  be  such  as  to  warrant  opening  the 
road  to  general  civilian  traffic. 

Suitable  regulations  fer  shipment  of  goods  in 
bond  on  the  Highway  will  be  issued  as  a  matter 
of  course  by  the  Minister  of  National  Revenue 
of  Canada.  The  following  Canadian  frontier 
ports  of  entry  and  exit  have  been  designated: 
Kingsgate,  British  Columbia,  opposite  Eastport, 
Idaho;  Coutts,  Alberta,  opposite  Sweetgrass, 
Montana;  and  Snag  Creek,  Yukon  Territory. 

With  further  improvement  of  the  Alaska  High- 
way and  connecting  roads,  consideration  will 
be  given  in  the  future  to  the  designation  of  fur- 
ther Canadian  ports  of  entry  and  exit  as  condi- 
tions warrant. 

Special  Ambassador  to  Mexican 
Presidential  Inauguration 

[Released  to  the  press  November  7] 

President  Truman  has  appointed  as  Special 
Ambassador  for  the  inauguration  of  the  new 
President  of  Mexico  on  December  1,  Walter  Thurs- 
ton, Ambassador  of  the  United  States  to  Mexico. 
On  December  1  President-elect  Miguel  Aleman 
is  to  be  inaugurated  as  the  new  President  of 
Mexico,  to  serve  for  a  period  of  six  years.  Am- 
bassador Thurston  will  be  the  head  of  the  offi- 
cial mission  which  will  represent  the  United 
States  at  the  inauguration.  The  mission  will  com- 
prise the  following  jjersons:  Walter  Thurston, 
Special  Ambassador;  Gen.  Jonathan  M.  Wain- 
wright.  Commander  of  the  Fourth  Army  at  Fort 
Sam  Houston;  Lt.  Gen.  John  K.  Cannon,  Com- 
mander of  the  Army  Air  Forces  at  Barksdale 
Field,  Louisiana;  Rear  Admiral  J.  Cary  Jones, 
U.  S.  N.,  representative  of  the  United  States  on 
the  Joint  Mexican-United  States  Defense  Board; 
and  Guy  Ray,  Chief  of  the  Division  of  Mexican 
Affairs,  Department  of  State.  The  mission  will 
probably  also  include  the  political  counselor,  the 
economic  counselor,  and  the  first  secretary  of  the 
American  Embassy  at  Mexico  City. 

As  a  gesture  of  respect  and  friendship  for  the 
Mexican  people,  the  War  Department  plans  to 


'  Executive  Agreement  Series  246. 
'  Executive  Agreement  Series  382. 
•  Executive  Agreement  Series  362. 


919 


THE   RECORD   OF   THE   WEEK 

send  on  the  occasion  of  the  forthcoming  inaugura- 
tion in  Mexico  City  an  air-demonstration  group 
which  will  include  squadrons  of  each  of  the  fol- 
lowing types  of  planes :  Shooting  Stars,  Mustang 
fighters,  and  attack  bombers. 

The  Navy  Department  also  plans  to  send  four 
squadrons  which  will  be  composed  of  about  36 
two-motor  planes  to  take  part  in  the  inauguration. 
Both  these  Army  and  Navy  planes  will  arrive 
at  Mexico  City  not  later  than  November  30  and 
will  probably  remain  through  December  4,  when 
the  officers  and  members  of  the  crews  will  take 
part  in  ceremonies  to  be  arranged  by  the  Mexican 
military  authorities. 

The  Mexican  Ambassador  in  Washington  has 
expressed  to  the  Department  of  State,  on  behalf 
of  his  Government,  appreciation  of  the  gesture  of 
the  War  and  Navy  Departments  in  sending  these 
planes  to  Mexico  City  for  the  inauguration. 

Caribbean  Commission  and  Auxiliary 
Bodies  Established 

[Released  to  the  press  bv  the  Caribbean  Commission, 
Secretary-General's  Office,  October  30] 

An  agreement  for  the  establishment  of  the 
Caribbean  Commission  was  signed  at  the  Depart- 
ment of  State  on  October  30  on  behalf  of  the  Gov- 
ernments of  France,  the  Netherlands,  the  United 
Kingdom,  and  the  United  States.  The  agreement 
was  signed  for  France  by  Henri  Bonnet,  Ambas- 
sador of  France;  for  the  Netherlands  by  Dr.  A. 
Loudon,  Ambassador  of  the  Netherlands ;  for  the 
United  Kingdom  by  Lord  Inverchapel,  British 
Ambassador;  and  for  the  United  States  by  Charles 
W.  Taussig,  Chairman,  United  States  Section, 
Caribbean  Commission. 

The  agreement  formally  establishes  the  Carib- 
bean Commission,  together  with  its  auxiliary 
bodies,  the  Caribbean  Research  Council  and  the 
West  Indian  Conference,  as  an  international  ad- 
visory body  to  the  four  signatoiy  Governments, 
each  of  which  has  territories  in  the  Caribbean  area. 

The  agreement  provides  for  the  establishment  of 
a  permanent  secretariat  in  the  Caribbean  area. 
Following  the  formulation  of  the  terms  of  the 
agreement  in  July  1946,  Lawrence  W.  Cramer  was 
appomted  Secretary-General.     Two  other  senior 


members  of  his  staff  also  have  been  appointed,  and 
further  staff  is  being  recruited  in  the  Caribbean 
area.  A  suitable  building  has  been  acquired  in 
Port-of-Spain,  Trinidad,  to  accommodate  the 
secretariat. 

The  purposes  of  the  agreement  are  set  forth  in 
the  preamble,  which  reads  in  part  as  follows : 

Being  desirous  of  encouraging  and  strengthen- 
ing cooperation  among  themselves  and  their  terri- 
tories with  a  view  toward  improving  the  economic 
and  social  well-being  of  the  peoples  of  those  terri- 
tories, and 

Being  desirous  of  promoting  scientific,  techno- 
logical, and  economic  development  in  the  Carib- 
bean area  and  facilitating  the  use  of  resources  and 
concerted  treatment  of  mutual  problems,  avoiding 
duplication  in  the  work  of  existing  research  agen- 
cies, surveying  needs,  ascertaining  what  research 
has  been  done,  facilitating  research  on  a  coopera- 
tive basis,  and  recommending  further  research, 
and 

Having  decided  to  associate  themselves  in  the 
work  heretofore  undertaken  by  the  Anglo- Ameri- 
can Caribbean  Commission,  and 

Having  agreed  that  the  objectives  herein  set 
forth  are  in  accord  with  the  principles  of  the 
Charter  of  the  United  Nations. 

Pan  American  Union  Elects  Chairman 
of  Governing  Board 

[Released  to  the  press  November  71 

The  annual  elections  for  chairman  and  vice 
chairman  of  the  Governing  Board  of  the  Pan 
American  Union  were  held  at  the  regular  meet- 
ing of  November  6.  Before  the  Mexico  City  con- 
ference in  1945,  the  permanent  chairman  had  been 
the  United  States  Secretary  of  State.  Resolution 
IX  of  Mexico  City  provided  that  the  chairman 
should  be  elected  annually  and  should  not  be 
eligible  for  immediate  reelection.  A  subsequent 
Governing  Board  decision  provided  that  elections 
for  both  chairman  and  vice  chairman  should  be 
held  at  the  first  meeting  in  November  of  every  year, 
that  there  should  be  no  nominations,  that  the  ballot 
should  be  secret,  and  that  a  two-thirds  majority 
should  be  required  for  election.  Failing  a  two- 
thirds  majority,  however,  a  special  meeting  of  the 


920 


Department  of  State  Bulletin    •    November  17,  1946 


THE  RECORD   Of  THE   WEEK 


Governing  Board  would  be  held  at  which  a  simple 
majority  would  suffice. 

The  November  G  elections  were  the  first  held 
under  the  new  rules.  On  the  first  ballot,  the  Hon- 
orable Spruille  Braden,  United  States  Assistant 
Secretary  of  State,  was  elected  by  a  vote  of  17  to  1 
(18  members  being  pi-esent  and  voting  and  Mr. 
Braden  casting  his  vote  for  the  representative  of 
Colombia) .  Mr.  Braden,  expressing  his  gi'atitude 
for  the  honor,  nevertheless  stated  to  the  Board 
upon  the  conclusion  of  this  election  that  he  felt 
obliged  to  decline  it  having  in  mind  the  basic  prin- 
ciple of  sovereign  equality  before  the  law  among 
the  American  republics,  which  had  been  given  ex- 
I)ression  at  Mexico  City  in  the  decision  to  provide 
for  rotation  of  the  chairmanship.  He  pointed  out 
that  until  very  recently  his  Government  had  en- 
joyed the  honor  of  the  chairmanship.  Conse- 
quently, he  felt  that  in  the  spirit  of  Mexico  City 
the  election  should  go  to  some  other  member  of 
the  Board.  As  a  consequence,  another  vote  was 
taken  at  which  Dr.  Antonio  Rocha,  Special  Ajn- 
bassador  of  Colombia  to  the  Pan  American  Union, 
was  elected  chairman  by  a  vote  of  17  to  1.  No  vice 
chairman  was  elected  in  view  of  the  failure  of  any 
candidate  to  receive  the  necessary  two-thirds 
majority. 

Joint  American-Philippine  Financial 
Commission 

[Released  to  the  press  November  4] 

The  Department  of  State  announced  on 
November  4  that  President  Truman  and  Presi- 
dent Roxas  had  agreed  to  establish  a  joint  Ameri- 
can-Philippine Financial  Commission  to  study  the 
financial  and  budgetary  problems  and  needs  of  the 
Philip2:)ine  Government. 

The  Joint  Commission  will  consider  the  entire 
range  of  Philippine  budgetary  and  financial 
problems  and  report  its  findings  and  recommenda- 
tions to  both  the  United  States  and  Philippine 
Governments. 

Under  the  terms  of  the  agreement,  the  Commis- 
sion will  consist  of  three  Americans  and  three 
Filipinos  to  be  appointed  by  the  respective  heads 
of  Government.'  There  will  be  two  co-chairmen, 
a  Filipino  and  an  American.  The  American  mem- 
bership is  expected  to  be  composed  of  a  representa- 


tive of  the  State  Department,  a  representative  of 
the  Treasury  Department,  and  a  representative  of 
the  Board  of  Governors  of  the  Federal  Reserve 
System.  The  Commission  will  do  its  work  pri- 
marily in  Manila. 

President  Roxas  stated  that  he  was  very  happy 
to  welcome  this  further  evidence  of  the  interest 
of  the  United  States  Government  in  the  welfare  of 
the  Philippines. 

THE  CONGRESS 

Problems  of  American  Small  Business :  Hearings  Before 
the  Special  Committee  To  Study  and  Survey  Problems  of 
Small  Business  Knterprises,  United  States  Senate,  Sev- 
enty-ninth Congress,  second  session,  pursuant  to  S.  Res. 
28  (79th  Congress)  (Extending  S.  Res.  298— 76th  Con- 
gress), a  resolution  to  appoint  a  special  committee  to  study 
and  survey  problems  of  American  small  business  enter- 
prises. Part  95,  World  Food  Supplies  in  Relation  to 
Small  Business:  IV,  June  14  and  15,  1946.  v,  101  pp. 
[Department  of  State,  pp.  10771-1077,5]. 

Pearl  Harbor  Attack :  Hearings  Before  the  Joint  Com- 
mittee on  the  Investigation  of  the  Pearl  Harbor  Attack, 
Congress  of  the  United  Statas,  Seventy-ninth  Congress, 
second  session,  pursuant  to  S.  Con.  Res.  27  (as  extended 
by  S.  Con.  Res.  49,  79th  Congress),  a  concurrent  resolu- 
tion authorizing  an  investigation  of  the  attack  on  Pearl 
Harbor  on  December  7,  1941,  and  events  and  circumstances 
relating  thereto.    In  39  parts. 

International  Abolition  of  Conscription  :  Hearings  Be- 
fore the  Committee  on  Military  Affairs,  House  of  Repre- 
sentatives, Seventy-ninth  Congress,  second  session,  on 
H.  Res.  325,  a  resolution  urging  an  immediate  international 
agreement  to  eliminate  compulsory  military  service  from 
the  policies  and  practices  of  all  nations.  February  27 
and  28,  1946.     iii,  83  pp. 

Accounting  Practices  of  the  War  Shipping  Administra- 
tion and  United  States  Maritime  Commission:  Hearings 
Before  the  Committee  on  the  Merchant  Marine  and  Fish- 
eries, House  of  Representatives,  Seventy-ninth  Congress, 
second  session,  pursuant  to  the  authority  of  H.  Res.  38, 
a  resolution  authorizing  an  investigation  of  the  national 
defense  program  as  it  relates  to  the  Committee  on  the 
Merchant  Marine  and  Fisheries.  P.ii-t  1.  July  17,  22,  and 
24.  1946.     iii,  4,55  pp. 

International  Court  of  Justice.  Senate  Resolution  l!i6 
as  passed  by  the  Senate  on  August  2,  1946,  together  with 
the  Report  of  the  Committee  on  Foreign  Relations  sub- 
mitted by  Mr.  Thomas  of  Utah  on  July  25,  1946  relative 
to  proposed  acceptance  of  compulsory  jurisdiction  of  In- 
ternational Court  of  Justice  by  United  States  Government. 
Presented  by  Mr.  Thomas  of  Utah,  August  2  (legislative 
day,   July   29),   1946.     S.    Doc.   2.59,    79th   Cong.     13  pp. 

'  Concluded  by  an  exchange  of  notes  on  Sept.  13  and  17, 
1946  at  Manila. 


921 


Publications 

of  the  DEPARTMENT  OF  STATE 

For  sale  hy  the  Superintendent  of  Documents,  Ooveifiment 
Printing  Of/ice,  Washington  25,  D.C.  Address  requests  di- 
rect to  the  Superintendent  of  Documents,  except  in  the 
case  of  free  <publications,  which  may  he  obtained  from  the 
Department  of  State. 

The  United  Nations  Conference  on  International  Organ- 
ization. San  Francisco,  California,  April  25-June  26, 
1945.  Selected  Documents.  Conference  Series  83.  Pub. 
2490.     992  pp.  $2.75  (buckram). 

Documents  of  the  San  Francisco  conference  of  gen- 
eral interest,  including  a  section  on  amendments  to 
and  comments  on  the  Dumbarton  Oaks  Proposals, 
verbatim  minutes  of  plenary  sessions,  reports  of  com- 
mittees, and  literal  prints  of  final  documents. 

Transition  From  League  of  Nations  to  United  Nations. 

Article  by  Henry  ReifiC.  United  State.s-United  Nations 
Information  Series  5.     Pub.  2542.     18  pp.     IQt 

An  article  outlining  the  tran.sfer  to  the  United  Na- 
tions of  functions,  activities  and  assets  of  tlie  League 
of  Nations.  Texts  of  documents  are  given  in  the 
appendix. 

The   United   Nations   for   Peace   and   World   Progress. 

United  States-United  Nations  Information  Series  9.  Pub. 
2593.    Poster.    Free. 

Shows    the    organization    and    goals    of    the    United 

Nations. 

Organizing  the  United  Nations.  A  series  of  articles  from 
the  Department  of  State  Bulletin.  United  States-United 
Nations  Information   Series  6.     Pub.  2573.     57  pp.     25(}. 

An  address  by  John  G.  Winant,  U.  S.  Member  of  the 
Economic  and  Social  Council,  and  articles  by  officers 
of  tlie  Department  of  State  on  political,  economic, 
social,  and  legal  functions  of  the  United  Nations  and 
its  organs. 

The  Economic  and  Social  Council  of  the  United  Nations. 

The  United  States  and  the  United  Nations  Report  Series  3. 
Pub.  2600.     74  pp.     20(<. 

Report  to  the  Secretary  of  State  by  Jolin  G.  Winant, 
U.  S.  Meml)er  on  the  Council,  July  15,  1946.  Includes 
background  information  on  the  Council,  a  discussion 
of  its  functions,  and  reports  of  its  commissions. 

Foreign  Affairs  Outline  No.  6 — Understanding  Among 
Peoples — How  Can  We  Increase  It?  United  States- 
United  Nations  Information  Series  8.  Pub.  2589.  4  pp. 
Free. 

An  explanation  of  vphat  the  United  Nations  and  the 
United  States  are  doing  for  the  advancement  of  un- 
derstanding among  peoples. 


Foreign  Affairs  Outline  No.  7 — The  International  Trade 
Organization — How  Will  It  Work?  Commercial  Policy 
Series  92.    Pub.  2597.    8  pp.    Free. 

An  explanation  of  the  U.  S.  Proposals  for  Expansion 
of  World  Trade  and  Emploiiment.  With  charts  illus- 
trating U.  S.  foreign  economic  policy  and  the  purpose 
of  the  proposed  international  trade  organization. 

Foreign  Affairs  Outline  No.  8 — Goals  for  the  United 
Nations — Political  and  Security.  United  States-United 
Nations  Information  Series  10.     Pub.  2623.    4  pp.     Free. 

An  explanation  of  what  has  been  done  and  what  re- 
mains to  be  done  for  the  attainment  of  political  sta- 
bility and  international  security. 

Foreign  Affairs  Outline  No.  9 — Goals  for  the  United  Na- 
tions— Economic  and  Social.  United  States-United 
Nations  Information  Series  11.     Pub.  2631.    4  pp.     Free. 

Outlining  the  goals  for  the  upbuilding  of  economic 
and  social  conditions  among  nations. 

Guide  to  the  United  States  and  the  United  Nations. 

(Coverpiece  for  Foreign  Affairs  Outlines  8  and  9). 
United  States-United  Nations  Information  Series  12. 
Pub.  2634.    8  pp.    Free. 

A  chronology  of  the  relation  of  the  United  States  to 
the  United  Nations.  With  charts,  list  of  officials,  and 
bibliography. 

Foreign  Affairs  Outline  No.  10 — Occupation — Why? 
What?    Where?     Pub.  2627.    4  pp.     I-Yee. 

An  explanation  of  U.  S.  occupation  of  defeated  and  of 
liberated  countries  as  a  part  of  our  foreign  policy. 

Foreign  Affairs  Outline  No.  11 — What  We  Are  Doing  in 
Germany — And  Why.  European  Series  14.  Pub.  2621. 
4  pp.     Free. 

A  definition  of  U.  S.  policy  in  occupied  Germany  and 
a  description  of  current  problems. 

Foreign  Affairs  Outline  No.  12— What  We  Are  Doing  in 
Japan— And  Why.  Far  Eastern  Series  15.  Pub.  2633. 
4  pp.     Free. 

Demilitarization  and  democratization  listed  as  the 
objectives  of  the  U.  S.  and  its  Allies  in  occupied  Japan. 

Activities  of  the  Interdepartmental  Committee  on  Scien- 
tific and  Cultural  Cooperation,  June  30,  1946.  Inter- 
American  Series  31.    Pub.  2622.    45  pp.    15(*. 

A  report  on  the  background  and  current  activities  of 
the  Committee  in  its  cooperation  with  the  govern- 
ments of  the  other  American  republics. 

Suggested  Charter  for  an  International  Trade  Organi- 
zation of  the  United  Nations.  September  1946.  Com- 
mercial Policy  Series  93.     Pub.  2598.    47  pp.     15#. 


922 


Department  of  State  Bulletin    •    November  17,  1946 


THE   RECORD  Of  THE  WEEK 


An  elaboration  of  the  United  States  Proposals  for 
Expansion  of  World  Trade  and  Employment  prepared 
by  a  technical  staff  within  the  Government  of  the 
United  States  and  presented  as  a  basis  for  public 
discussion. 

Jew  Horizons  for  World  Trade.  Commercial  Policy 
Series  00.     Pub.  2591.     12  pp.     Free. 

A  discussion  of  the  four  basic  problems  of  interna- 
tional trade  dealt  with  in  the  U.S.  Proposals  for  Ex- 
pansion of  World  Trade  and  Employment. 

Suilding  a  New  World  Economy.  Commercial  Policy 
Series  94.     Pub.  2618.     10  pp.     Free. 

An  account  of  U.S.  foreign  economic  jwlicy,  aiming  to 
expand  and  liberalize  trade  throughout  the  world. 

nternational  Trade  and  the  British  Loan.  Commercial 
'olicy  Series  91.     Pub.  2595.     10  pp.     10^. 

A  group  of  eight  charts  with  annotations. 

'rivate  Enterprise  in  the  Development  of  the  Americas. 

nter-American  Series  32.     Pub.  2640.     14  pp.     10^. 

Address  by  Assistant  Secretary  Braden  on  the  par- 
ticipation of  U.S.  private  enterprise  in  the  develop- 
ment of  the  other  American  republics. 

lestatement  of  U.S.  Policy  on  Germany.  Address  by  the 
Secretary  of  State.  Delivered  in  Stuttgart,  Germany, 
September    6,    1946.     European    Series    13.     Pub.    2616. 

L7  pp.     5^. 

The   Distribution   of  Reparation   From   Germany.     The 

Paris  Agreement  on  Reparation  from  Germany ;  the  Inter- 
Allied  Reparation  Agency  ;  the  Final  Act  of  the  Paris  Con- 
ference on  Reparation.  European  Series  12.  Pub.  2584. 
11  pp.     10<!. 

Includes  articles  by  John  B.  Howard,  Special  Adviser 
lo  James  W.  Angell,  U.S.  Representative  on  the  Allied 
Commission  on  Reparations  for  Germany  and  U.S. 
Delegate  to  the  Paris  Conference  on  Reparation. 

The  Present  Status  of  German  Youth.  By  Henry  J. 
Kellermann.     European    Series    11.     Pub.    2583.     25    pp. 

m. 

A  description  of  the  problems  of  German  youth  after 
the  collapse  and  the  policies  pursued  by  the  several 
occupying  jwwers  in  meeting  these  problems. 

Report  of  United  States  Education  Mission  to  Japan. 
Far  Eastern  Series  11.     Pub.  2579.    62  pp.    20^. 

Summary  of  report  submitted  to  General  MacArthur, 
SOAP.  Covers  child  and  adult  education  and  teacher 
training  and  recommends  a  drastic  reform  of  the 
Japanese  written  language. 

Trial  of  Japanese  War  Criminals.  Documents:  (1)  Open- 
ing Statement  by  Joseph  B.  Keenan,  Chief  of  Counsel,  (2) 
Charter  of  the  International  Military  Tribunal  for  the  Far 


East,  (3)  Indictment.  Par  Eastern  Series  12.  Pub.  2613. 
104  pp.     200. 

The  Textile  Mission  to  Japan — Report  to  the  War  De- 
partment and  to  the  Department  of  State,  January-March 
1946.    Far  Eastern  Series  13.     Pub.  2619.     39  pp.     150. 

A  survey  of  Japan's  textile  capacity  and  operational 
problems.     With  tables. 

Report  of  the  Mission  on  Japanese  Combines.  Part  I. 
Analytical  and  Technical  Data.  Far  Eastern  Series  14. 
Pub.  2628.     Processed  material.     230  pp.     IH- 

Report  to  Department  of  State  and  War  Department 
concerning  the  oligarchy  (Zaibatsu)  which  controlled 
the  economic  structure  of  Japan. 

Provisional  Administration  of  Venezia  Guilia.  Agree- 
ment Between  the  United  States  of  America,  the  United 
Kingdom  of  Great  Britain  and  Northern  Ireland,  and 
Yugoslavia — Signed  at  Belgrade  June  9,  1945.  Executive 
Agreement  Series  501.  Pub.  2562.     2  pp.     50. 

Agreement  on  the  area  in  Venezia  Guilia  to  be  under 
the  command  and  control  of  the  Supreme  Allied 
Commander,  and  provisions  for  administration. 
With  map. 

Voluntary  War  Relief  During  World  War  II.  A  Report 
to  the  Pre.sident  by  the  President's  War  Relief  Control 
Board.     Pub.  2566.     73  pp.     150. 

An  account  of  the  activities  ot  the  President's  War 
Relief  Control  Board  from  July  1942  to  May  1946. 
With  a  tabulation  of  contributions  collected  and 
disbursed  from  September  1930  to  December  1945. 

Report  of  the  West  Indian  Conference,  Second  Session, 
St.  Thomas,  Virgin  Islands,  United  States  of  America, 
February  21  to  March  13,  1946.  Conference  Series  88. 
Pub.  2615.     86  pp.     Free. 

Reports  of  committees  and  texts  of  principal  addresses. 

8th  Report  to  Congress  on  Operations  of  UNRRA.  Under 
the  Act  of  March  28, 1944.  As  of  June  30,  1946.  Pub.  2617. 
68  pp.     150. 

The  President's  letter  of  transmittal  to  Congress  and 
quarterly  report.  The  appendixes  contain  tables  on 
(1)  the  U.  S.  contribution  and  (2)  over-all  UNRRA 
operations. 

Foreign  Service  List,  July  1,  1946.  Pub.  2629.  151  pp. 
Subscription  price  500  a  year,  650  foreign ;  single  copy  200. 

A  quarterly  li.st  of  officers  in  the  American  Foreign 
Service,  their  classification  and  assignment  as  of  July 
1,  1946.  With  a  description  of  consular  districts  and 
tariff  of  U.  S.  Foreign  Service  fees. 

A  cumulative  list  of  the  puUications  of  the  Department  of 
State,  from  Oct.  1, 1929  to  July  1,  J9J,G  (Pub.  2609),  may  he 
obtained  from  the  Department  of  State. 


General  Policy  Page 

A  National  Bipartisan  Program  for  Foreign 

Affairs.  Statement  by  the  President  .  911 
Letters  of  Credence:  Ambassador  of  Canada.  911 
Immigration    Visas   for    Estonian    Refugees. 

Statement  by  the  President      914 

Special  Ambassador  to  Mexican  Presidential 

Inauguration 919 

Pan    American    Union    Elects    Chairman   of 

Governing  Board 920 

Economic  Affairs 

Private  International  Air  Law  Developments. 

Article  by  Stephen  Latehford 879 

Meeting  of  Interim  Commission  of  WHO  .    .        893 

U.S.  Delegation  to  CITEJA 894 

U.S.  Delegation  to  International  Wool  Talks  .       894 
Twenty    Governments    Invited    to    Interna- 
tional Whaling  Conference 895 

Third  Meeting  of  the  Rubber  Study  Group    .        895 
Tourist     Conference    Revives    International 

Cooperation  in  Travel 896 

Paul  T.  David  Appointed  to  PICAO  Com- 
mittee            897 

Caribbean  Regional  Air  Navigational  Meeting 

of  PICAO.     An  article 897 

PICAO  Conference  on  North  Atlantic  Ocean 
Weather  Observation  Stations.      Article 

by  J.  Paul  Barringer 901 

International  Action  on  Agricultural  and 
Nutrition  Problems:  FAO  Copenhagen 
Conference  and  FAO  Preparatory  Com- 
mission. Article  by  Duncan  Wall  .  .  .  905 
U.  S.  Position  on  Polish  Nationalization  De- 
velopments         912 

Provisions  for  Payment  of  National  Solidar- 
ity Tax  on  American  Assets  in  France  .    .       914 
Property  Tax  on  Czechoslovak  Holdings    .    .       915 
United  States  Exports  of  Housing  Materials. 

By  Paul  H.  Nitze 916 


The  United  Nations  paga 

International   Control  of  Dangerous  Drugs. 

Article  by  George  A.  Morlock      ....  885 

U.S.  Members  on  ECOSOC  Commissions  .  891 
American  Advisers  to  General  Conference  of 

UNESCO 894 

Radio  Broadcast  on  UNESCO 915 

Occupation  Matters 

U.S. -U.K.  Discussions  on  Bizonal  Arrange- 
ments for  Germany 910 

International  Organizations  and  Conferences 

Calendar  of  Meetings 892 

Treaty  Information 

Draft  Trusteeship  Agreement  for  the  Japan- 
ese Mandated  Islands: 
Statement  by  President  Truman      ....       889 

Text  of  Draft  Agreement 889 

Announcement  of  Trade-Agreement  Negotia- 
tions: 
Summary  of  Information  Related  to  Trade- 
Agreements  Program 907 

Statement  by  the  President      909 

Public     Notice     of     the     Department     of 

State 909 

Public  Notice  of  the  Committee  for  Reci- 
procity Information       909 

American  Mission  to  Albania  Withdrawn  .  .  913 
CommerceOver AlaskaHighwayAuthorized  .  918 
Caribbean  Commission  and  Auxiliary  Bodies 

Established 920 

Joint    AmericaD-PhOippine    Financial    Com- 
mission             921 

Publications 

Agriculture  in  the  Americas 915 

Publicationsof  the  Department  of  State  .    .    .       922 

The  Congress 921 


U.  S,  SOVERNMEhT  PRIHTIHS   OFFICE;  I94» 


iJn^  ^eha^i^meTti/  ,€^ tjta^e^ 


THE    FOREIGN     SERVICE    OF    TOMORROW    .    By 

Assistant  Secretary  Russell 947 

UNITED    STATES    INTERESTS    IN    WORLD    FOOD 

PROBLEMS  .  Article  by  James  A.  Stillwell 927 

UNITED  STATES  FOREIGN  ECONOMIC  POLICY     . 

By  Under  Secretary  Clayton 950 

PROSECUTION  OF  MAJOR  NAZI  WAR  CRIMINALS  . 

Report  From]  Francis  Biddle  to  President  Truman   .      .      •        954 


For  complete  contents  see  back  cover 


Vol.  XV,  No.  386 
November  24,  1946 


^  S.  SUP£ft„. 


■-'IMPUTE 


Vi«»»  o» 


'atis  »' 


M,e  Q)e/iayyeryie^ ^/ y^ate    JOULllGllii 


Vol.  XV,  No.  386    •    Poblication  2697 
November  24,  1946 


For  sale  by  the  Superintendent  of  Documents 

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Subscription: 

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Tlie  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  of 
the  Government  with  information  on 
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partment of  State  and  the  Foreign 
Service.  The  BULLETIN  includes 
press  releases  on  foreign  policy  issued 
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ment, and  statements  and  addresses 
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Publications  of  the  Department,  cu  - 
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national relations,  are  listed  currently. 


UNITED  STATES  INTERESTS  IN  WORLD  FOOD  PROBLEM 


hy  James  A.  Still  well 


We  readily  recognize  what  extreme  food  shortages  would 
mean  to  our  own  economy,  but  feiv  of  us  realise  the  depend- 
ence of  our  best  interests  upon  solution  of  food  problems  in 
other  parts  of  the  world.  Yet  our  sincere  consideration 
should  be  given  to  making  available  enough  food  so  that 
people  of  the  destitute  areas  can  regain  the  health  and  peace 
of  mind  necessary  to  achieve  international  understanding 
and  lasting  peace. 


The  most  immediate  and  urgent  problem  we 
face  is  one  of  continuing  the  fight  to  prevent  mass 
starvation  in  the  devastated  areas  of  the  world 
and  to  fiiad  a  way  of  making  available  enough 
food  so  that  the  people  of  the  war-torn  areas  can 
regain  the  health  and  strength  necessaiy  to  revive 
their  own  economies.  Shipments  of  food  from 
the  United  States  to  the  war-torn  areas  will  di- 
minish as  rapidly  as  those  areas  can  replace  them 
with  food  grown  at  home  and  with  the  purchases 
of  food  which  they  are  able  to  make  in  other  parts 
of  the  world  as  their  foreign-exchange  position 
improves.  Our  most  urgent  concern  should  be 
with  making  available  enough  food  so  that  the 
people  of  the  destitute  areas  can  regain  the  health, 
vigor,  and  peace  of  mind  essential  to  meet  the  tre- 
mendous task  of  achieving  international  coopera- 
tion and,  ultimately,  an  everlasting  peace  for  the 
world. 

It  is  appropriate  to  review  the  events  which  led 
us  through  one  of  the  gravest  emergencies  we 


have  had  to  face  in  this  century,  and  then  to  out- 
line just  one  of  the  problems  of  world  economy 
which  must  be  faced  and  solved  in  the  immediate 
future  if  we  expect  mankind  to  seek  peaceful  solu- 
tions to  all  other  economic  and  political  ills. 

During  the  long  war  years  in  Europe  and  in  the 
Far  East,  the  diet  of  civilians  became  painfully 
limited,  not  only  in  quantity  but  also  in  variety. 
Although  the  Axis-dominated  countries  of  both 
Europe  and  Asia  were  forced  to  produce  large 
quantities  of  food,  a  major  portion  of  that  produc- 
tion was  confiscated  by  the  occupying  powers  to 
feed  their  vast  armies  and  industrial  workers  pro- 
ducing military  equipment.  At  the  end  of  the 
war  in  Europe,  as  well  as  in  Asia,  normal  supply 
lines  immediately  broke  down  and  the  depleted 
local  stocks  of  food  quickly  disappeared  before 
the  Allied  forces  and  the  new  govei-nments  of  the 
liberated  countries  had  an  opportunity  to  estab- 
lish distribution  systems.  When  the  first  new 
crops  were  harvested  the  long-sufl'ering  people  nat- 
urally began  to  eat  as  much  as  they  could  obtain. 


927 


Tlie  newly  formed  governments  in  the  liberated 
areas  were  not  strong  enough  to  maintain  the  strict 
rations  that  would  have  been  required  to  conserve 
and  spread  properly  the  meager  supply  of  food 
throughout  the  year.  It  is  not  surprising  then 
that  the  losses  of  potential  food  stocks  resulting 
from  the  disastrous  drought  and  locust  plagues 
in  southern  Eurojje  and  in  many  parts  of  Asia 
immediately  created  what  was  perhaps  the  worst 
world-wide  famine  condition  ever  witnessed.  Ap- 
proximately two-thirds  of  the  world's  population 
faced  starvation  during  the  winter  months  of 
1945-46.  Had  it  not  been  for  the  tremendous 
efforts  and  the  generosity  of  the  American  people 
and  the  people  of  the  other  surplus  areas  of  the 
world,  many  millions  would  have  starved. 

Fortunately,  during  the  war,  miracles  of  food 
jjroduction  had  been  wrought  by  American  agri- 
culture. With  only  15  percent  of  the  nation's 
labor  forces  in  their  ranks,  the  farmers  of  the 
United  States  brought  food  production  30  percent 
above  the  pre-war  level  and  held  it  there.  For- 
tunately, this  production  was  not  only  maintained 
at  that  high  level  but  was  also  slightly  increased 
during  the  first  crop-year  after  the  war.  This 
tremendous  food  production  in  the  United  States 
played  a  major  part  in  averting  mass  starvation, 
for  the  enormous  demands  made  by  the  starving 
nations  fell  in  a  large  measure  upon  the  American 
people. 

Once  the  facts  were  laid  before  the  public,  and 
the  Famine  Emergency  Committee  entered  the 
fight  in  the  conservation  of  food  in  our  own  do- 
mestic economy,  the  job  was  successfully  accom- 
plished. From  January  of  this  year  through  July 
15,  we  exported  more'  than  225  million  bushels  of 
grain,  and  from  July  1945  to  July  1946  this  coun- 
try exported  417  million  bushels  of  wheat  as  well 
as  huge  quantities  of  fats  and  oils,  meats,  dairy 
products,  and  other  foods.  It  was  truly  a  colossal 
job  which  never  could  have  been  accomplished  had 
it  not  been  for  the  full  cooperation  of  consumers, 
farmers,  the  trades,  civic  organizations,  the  press, 
and  tlie  radio. 

Although  actual  mass  starvation  has  been 
averted,  we  have  accomplished  an  emergency  job 
in  an  emergency  fashion.  It  must  be  remembered 
that  many  millions  of  people  in  Europe  and  Asia 
have  been  forced  to  subsist  on  diets  of  less  than 


1,500  calories  a  person  a  day.  Of  that  limited 
diet,  60  to  80  percent  consisted  of  grain  or  grain 
products.  Several  millions  of  people  in  both 
Europe  and  Asia  received  1,000  calories  or  less  a 
day  for  the  last  three  or  four  months  preceding 
the  new  harvest. 

Such  diets  certainly  do  not  develop  peaceful 
minds.  The  result  of  such  pitifully  inadequate 
diets  is  destructive  malnutrition  which  nourishes 
only  disease,  unrest,  and  hate.  We  must  face  this 
problem  immediately. 

Once  more  fortune  has  smiled  on  our  farms  and 
fields.  Our  new  grain  crop  has  set  a  new  all-time 
record.  The  Canadian  grain  crop  is  also  one  of 
the  largest  ever  produced  in  that  country.  Crops 
throughout  Europe  have  tremendously  improved. 
IMost  of  the  countries  of  Europe  will  realize  grain 
production  of  from  70  to  80  percent  of  pre-war 
normal.  The  prospects  for  the  rice  crops  in  India 
and  the  Far  East,  which  are  currently  being  har- 
vested, are  estimated  to  be  near  pre-war  normal. 
This  is  a  very  encouraging  picture.  But  the 
famine  crisis  has  not  ended.  Let  us  briefly  examine 
the  facts. 

Carry-over  stocks  in  many  of  the  countries  of 
Europe  and  Asia  had  been  depleted  to  almost  zero 
by  the  time  the  new  crops  were  harvested.  The 
carry-over  stocks  in  the  four  major  grain-surplus 
areas  were  450  million  bushels  less  on  July  1,  1946 
than  on  July  1  of  last  year.  The  carry-over  stock 
in  the  United  States  was  down  to  the  level  of  100 
million  bushels — one  of  the  lowest  in  20  years. 
During  the  war  years  our  carry-over  stock  was 
as  higli  as  600  million  bushels,  and  we  considered 
it  only  a  reasonably  good  reserve  against  the  war- 
time demands  of  our  military  forces  and  our 
fighting  Allies. 

It  is  to  be  expected  that  all  of  the  famine  coun- 
tries must  increase  their  rations  during  the  cur- 
rent year  if  they  are  to  maintain  a  healthy  working 
population.  Since  they  cannot  look  forward  to 
increases  in  meats,  fats  and  oils,  and  sugar,  the 
major  portion  of  any  increase  must  come  from 
bread  grains.  Even  with  their  greatly  increased 
production  they  will  not  be  able  to  meet  the  re- 
quirements. They  must  look  primarily  to  the 
United  States  and  Canada.  If  demands  caimot  be 
met  by  these  two  countries,  they  will  have  to  look 
elsewhere. 


928 


Department  of  State  Bulletin    •    November  24, 1946 


Officials  of  the  Department  of  Agriculture  tell 
us  that  we  must  look  forward  to  exporting  400 
million  bushels  of  bread  gi'ains  during  this  crop 
year  and  even  that  amount  will  be  considerably 
less  than  the  demands  placed  upon  us.  If  we  meet 
these  demands  and  if  we  build  up  our  reserves  so 
that  the  carry-over  next  July  is  not  dangerously 
low,  as  it  was  this  year,  there  will  be  no  grain  for 
us  to  waste.  There  will  not  be  enough  to  go 
around  if  we  eat  it,  feed  it,  and  use  it  up  at  the  rate 
we  did  in  1943,  1944,  and  1945.  The  President 
recognized  this  situation  in  a  letter  which  he  re- 
cently addressed  to  three  of  his  Cabinet  membere. 
In  that  letter  he  directed  the  establishment  of  a 
Cabinet  subcommittee  to  maintain  a  continuous 
review  of  the  world  food  situation  and  to  recom- 
mend action  which  must  be  taken  by  this  Govern- 
ment to  fulfil  its  responsibilities  in  meeting  world 
demands  for  food.  He  pointed  out  that,  in  spite 
of  the  record  grain  crops  in  other  areas  of  the 
world,  the  carry-over  stocks  were  so  vei^  short 
that  there  was  an  urgent  need  for  developing  a 
coordinated  program  to  conserve  grains  and  other 
essential  foods.  He  directed  the  Cabinet  subcom- 
mittee to  study  immediately  the  problem  of  setting 
up  export  goals  and  to  pi'esent  all  of  the  essential 
facts  necessary  to  keep  the  American  people  fully 
and  accurately  informed  of  the  changes  in  the 
world  food  situation  and  of  the  steps  which  this 
Government  will  take  to  fulfil  its  responsibilities. 

Although  we  have  had  many  shipping  difficul- 
ties in  the  past  they  have  always  been  sufficiently 
overcome  to  meet  emergency  situations.  We  again 
face  a  tremendous  problem  of  transporting  and 
handling  the  amount  of  grain  and  other  supplies 
which  the  deficit  areas  of  the  world  need  so  badly 
from  the  United  States.  Because  of  the  growing 
demand  upon  our  inland  transportation  from  the 
increased  industrial  activity  in  this  country  our 
railroads  are  now  handling  car  loadings  at  an  un- 
precedented weekly  rate.  They  are  handling  ap- 
proximately 920  to  940  thousand  freight-car  load- 
ings a  week.  This  includes  raw  material;  semi- 
finish  materials,  such  as  the  materials  needed  in 
the  housing  program;  and  the  greatly  increased 
production  of  consumer  products ;  but  the  demand 
for  movement  of  such  supplies  has  grown  so  tre- 
mendously in  recent  weeks  that  the  car  loading 
should  reach  well  over  a  million  cars  a  week.    The 


railroads  simply  do  not  possess  the  equipment  to 
handle  such  demands. 

It  would  require  less  than  nine  percent  of  the 
total  weekly  car  loadings  to  transport  the  grain 
supplies  necessary  to  meet  the  schedule  of  our  ex- 
port demands,  but  because  of  the  tremendous  do- 
mestic demands  upon  our  railway  systems  less 
than  half  of  the  required  quantity  of  grain  is  be- 
ing moved  weekly. 

With  the  world  so  urgently  in  need  of  the  maxi- 
mum quantity  of  bread  grains  which  can  be  sup- 
plied from  the  United  States  it  would  be  tragic 
irony  if  these  supplies,  readily  available  through- 
out this  country,  cannot  be  transported  over  our 
inland-transportation  systems. 

Much  discussion  has  taken  place  during  the  past 
several  weeks  concerning  the  announced  termina- 
tion of  UNRRA's  work  in  Europe  at  the  end  of 
this  year  and  in  the  Far  East  early  next  year.  The 
officials  of  this  Government  believe  that  emergency 
relief  through  UNERA  can  soon  be  terminated. 
Natural  recovery  which  comes  through  revival  of 
international  trade  must  be  encouraged.  The 
emphasis,  therefore,  should  be  placed  on  assistance 
of  a  more  permanent  and  productive  nature  in  the 
form  of  industrial  reconstruction  and  develop- 
ment. 

Tlie  progress  of  relief  and  rehabilitation  lead- 
ing toward  reconstruction  is  as  variable  as  the 
many  countries  which  have  suffered  from  the  ter- 
rific destruction  of  World  War  II.  Some  of  the 
liberated  countries  have  made  tremendous  strides 
toward  the  revival  of  a  normal  economy.  These 
countries  were  fortunate  in  that  they  possessed 
more  money  in  terms  of  foreign  exchange  or  pos- 
sessed raw  materials  or  other  products  which 
could  be  quickly  converted  to  foreign  exchange. 

With  the  inception  of  UNRRA,  several  of  the 
liberated  countries  expressed  the  desire  to  handle 
their  own  emergency  relief  and  rehabilitation 
problems.  Five  of  the  liberated  countries  of 
northwest  Europe  preferred  not  to  accept  any  ma- 
terial aid  from  UNRRA.  Although  their  bal- 
ances of  foreign  exchange  were  by  no  means  ade- 
quate to  procure  all  of  the  commodities  essential 
to  the  revival  of  a  normal  economy  and  at  the 
same  time  adequately  provide  the  basic  items  of 
relief,  it  was  sufficient — they  reasoned — to  handle 


929 


the  most  essential  jobs  first  and  at  the  same  time 
slowly  but  surely  rehabilitate  the  industries.  One 
of  the  principal  factors  leading  to  this  decision, 
however,  was  the  spirit  of  national  pride  which 
is  common  to  all  of  the  countries  of  the  world. 
The  less  fortunate  countries  of  the  war-torn  areas 
were  just  as  proud  and  just  as  anxious  to  handle 
their  own  problems  of  emergency  relief  as  the  five 
countries  of  northwest  Europe,  but  they  did  not 
possess  the  means  to  accomplish  this  tremendous 
task.  It  was  to  these  counti'ies,  therefoi'e,  that 
UNRRA  offered  its  material  aid.  At  the  begin- 
ning it  was  unanimously  agreed  that  UNRRA's  aid 
to  the  devastated  countries  would  be  of  an  emer- 
gency nature;  it  was  UNRRA's  task  to  procure 
and  ship  the  civilian  supplies  required  to  main- 
tain a  minimum  economy  in  those  countries  and 
to  assist  them  in  developing  fair  and  adequate  dis- 
tribution systems.  It  was  never  contemplated 
that  UNRRA's  activities  would  be  carried  on  into 
the  period  of  economic  reconstruction. 

UNRRA's  task  in  each  of  the  countries  was  tre- 
mendously aided  by  the  relief  activities  carried  on 
by  the  Allied  military  forces  during  the  war.  The 
United  States,  the  United  Kingdom,  and  Canada 
began  delivering  civilian  supplies  almost  simul- 
taneously with  the  first  landing  in  North  Africa. 
From  that  time  on  with  each  new  invasion  the 
Allied  military  forces  carried  as  a  component  part 
of  their  operations  the  supplies  essential  to  sustain 
civilian  life  and  to  prevent  the  spread  of  disease 
and  unrest.  By  the  end  of  the  war,  the  United 
States,  the  United  Kingdom,  and  Canada  had  de- 
livered over  13  million  tons  of  civilian  supplies  to 
the  liberated  countries. 

UNRRA  has  also  accomplished  a  tremendous 
job  in  a  most  creditable  fashion.  That  Adminis- 
tration lias  delivered  a  total  of  over  13  million 
tons  of  supplies  and  will  deliver  another  6  to  8 
million  tons  before  the  program  has  been  com- 
pleted— 21  or  22  million  tons  of  supplies.  That  is 
equal  to  over  2,000  full  cargoes.  This  accomplish- 
ment not  only  prevented  mass  starvation  in  the 
war-torn  areas,  but  it  also  proved  the  practical 
worth  of  international  cooperation. 

The  size  of  this  job  is  without  comparison  with 
anything  ever  before  attempted  in  the  field  of  or- 
ganized relief.  The  emphasis,  however,  must 
now  be  shifted  from  direct  relief  to  helping  each 


country  to  help  itself.  Most  of  the  countries  re- 
ceiving aid  through  UNRRA  have  progressed  to 
the  point  where  industrial  reconstruction  and  de- 
velopment is  the  primai-y  problem  and  relief  op- 
erations can  be  taken  over  by  the  governments. 
Few  countries  will  require  continued  outside  aid. 
The  problems  of  these  countries  are  not  ones  which 
can  be  solved  through  international  emergency  re- 
lief. They  require  a  more  direct  and  fundamental 
rebuilding  of  each  country's  national  economy. 

It  is  not  expected  that  the  activities  of  UNRRA 
will  be  terminated  abruptly  according  to  the  cal- 
endar. Most  of  the  available  31/^  billion  dollars 
will  have  been  spent  by  the  end  of  this  year,  but 
the  supplies  may  not  all  be  shipped  before  well 
into  1947. 

Most  of  the  countries  are  anxious  to  procure  and 
direct  the  handling  of  their  own  relief  supplies. 
They  have  been  materially  aided  in  starting  their 
own  internal  relief  activities  by  operations  of 
UNRRA.  Each  of  the  countries  which  have  been 
receiving  aid  from  UNRRA  has  built  up  i-evolving 
funds  from  the  sale  of  UNRRA  supplies.  With 
these  funds  they  have  been  carrying  on  direct  in- 
digent relief  programs.  The  experience  gained 
will  help  these  countries  take  over  the  direct  relief 
job  on  their  own.  In  this  task  and  in  the  field 
of  social  welfare  work  the  voluntary  agencies  of 
this  and  other  countries  will  no  doubt  continue 
their  fine  work. 

At  the  recent  meeting  of  the  UNRRA  Council 
in  Geneva,  Switzerland,  a  resolution  was  passed 
instructing  the  Director  General  to  present  the 
problem  of  actual  financial  needs  of  the  various 
countries  to  the  next  session  of  the  United  Nations. 
That  resolution  recommended  that  the  United 
Nations  immediately  appoint  a  competent  group 
of  financial  experts  to  analyze  the  financial  posi- 
tion of  each  of  the  governments  formerly  receiv- 
ing aid  through  UNRRA.  If  that  group  finds 
that  some  of  these  countries  cannot  possibly  take 
over  the  emergency  relief  job  without  outside 
financial  aid,  further  consideration  should  be  given 
to  their  problem  by  the  member  nations  who  are 
in  a  position  to  help.  The  governments  requir- 
ing direct  financial  aid  will,  no  doubt,  present  their 
problems  directly  to  the  countries  from  whom  they 
wish  to  secure  supplies. 


930 


Department  of  State  Bulletin    •     November  24, 1946 


In  the  meantime,  this  Government  is  doing 
everything  within  its  jjower  to  foster  and  estab- 
lish international  trade  practices  which  will  bring 
about  tlie  most  beneficial  expansion  of  world  trade 
and  a  better  balancing  of  foreigii-exchange  posi- 
tions. It  is  for  this  reason  that  it  is  lending  full 
supjDort  to  the  early  establishment  of  an  Interna- 
tional Trade  Organization  of  the  United  Nations, 
whose  purpose  will  be  to  bring  about  multilateral 
trade  arrangements  and  help  to  do  away  with  the 
innumerable  trade  barriers  which  develop  from 
the  restrictions  imposed  by  bilateral  trade  agree- 
ments. 

These  long-range  problems  cannot  be  over- 
looked for  a  moment,  but  they  are  so  complex  that 
immediate  solution  is  impossible.  Among  these 
are  such  problems  as  whether  China  and  India, 
with  their  combined  populations  of  890  million, 
straining  at  the  limits  of  food  resources,  must  al- 


ways live  perilouslj^  close  to  the  borderline  of 
famine,  or  whether  new  and  greater  sources  of 
supply  can  be  developed;  the  problem  of  re- 
habilitation of  the  soil  in  far-flung  areas  of 
Europe  and  Asia ;  that  of  rehabilitation  and  even 
improvement  in  machinery,  labor  techniques,  and 
the  general  agricultural  economy.  In  the  latter 
category  we  must  consider  not  only  further  utili- 
zation of  unpi'oductive  areas  in  this  country  but 
also  the  continued  improvement  in  production 
techniques  and  in  soil  conservation  and  restora- 
tion. In  the  past  century  the  world's  population 
has  grown  from  1  billion  to  over  2  billion — within 
another  hundred  years  it  may  well  be  4  billion — 
and  remember  that  there  are  only  4  billion  acres 
of  arable  land  in  the  world.  These  problems  and 
their  complexities  will  be  an  ever-continuing  chal- 
lenge to  the  rate  of  human  progress  and  advance- 
ment. 


UNRRA  PROGRAM  OF  SHIPMENTS  THROUGH  DECEMBER  31,  1946 

(Thousand  tons) 


Food 

Clothing, 
textiles  & 
footwear ' 

Medical  and 
sanitation 

Agricultural 
rehabilitation 

Industrial 
rehabilitation! 

Unclassified  ' 

Total 

Greece 

1,306 

1,084 

67 

806 

608 

1,844 

365 

72 

209 

1,094 

57 

27 

73 

3 

80 

40 

105 

4 

6 

19 

155 

90 

9 

20 

2 

27 

24 

14 

1 

1 

2 

37 

5 

287 

161 

17 

386 

267 

410 

164 

44 

41 

558 

6 

693 

695 

42 

493 

404 

7,238 

47 

22 

112 

907 

4 

727 

352 

25 

3,049 

Yugoslavia 

2,385 

Albania 

156 

Poland 

1,792 

Czechoslovakia .... 

1,343 

Italy 

9,611 

177 

758 

Byelorussia. 

145 

383 

China* 

2,751 

Other  Proerams         

34 

196 

Tola' 

7,512 

602 

142 

2,341 

10,  657 

1,315 

22,  569. 

'  Includes  textile  raw  materials. 

2  Includes  coal  and  all  raw  materials  except  textile  raw  materials. 

'  Military  shipments  and  items  awaiting  specification. 

*  Througii  31  March  1947. 

Source:    Economic   Recovery  in  the  Countries  Assisted   by  UNRRA. 
UNRRA  to  the  Secretary-General  of  the  United  Nations. 


Report  presented  by  the  Director  General  of 


931 


THE  UNITED  NATIONS 


Report  on  The  Third  Session  of  Economic  and  Social  Council 


LETTER  OF  TRANSMITTAL  FROM  U.  S.  REPRESENTATIVE 
TO  THE  SECRETARY  OF  STATE 


November  7,  1946. 
Sir: 

On  July  15,  1946, 1  transmitted  to  you  a  Report 
on  the.  first  two  sessions  of  the  Economic  and  So- 
cial Council.^  The  Report  on  the  Third  Session 
which  is  transmitted  herewith  completes  tlie  rec- 
ord of  the  first  year's  work,  which  lias  been  com- 
pressed into  nine  months  because  of  the  two  meet- 
ings of  the  General  Assembly  in  January  and  in 
October  uf  this  first  year. 

In  this  period,  the  Economic  and  Social  Council 
has  completed  the  major  organizational  aspects 
of  its  work,  and  has  made  a  good  start  on  the  sub- 
stantive tasks  for  which  it  was  established.  It 
is  natural  that  this  transition  to  problems  of  sub- 
stance should  have  given  rise  to  a  greater  diversity 
of  views  among  members  of  the  Council  than  at- 
tended the  purely  procedural  and  constitutional 
tasks  of  the  earlier  sessions.  Wliat  I  find  most 
impressive,  however,  is  not  these  differences,  but 
the  common  desire  evident  in  all  members  to  make 
the  Council  an  effective  instrument  for  achieving 
real  and  tangible  results  for  the  benefit  of  the 
peoples  of  all  countries.  The  Council  has  been 
feeling  its  way  into  an  extraordinarily  complex 
and  extensive  field  of  human  activity.     I  believe 

'  Department  of  State  publication  2600. 


that  a  review  of  the  first  year  of  the  Council  in- 
dicates that  it  has  built  solidly  and  already  has 
a  very  substantial  measure  of  accomplishment  to 
its  credit. 

The  Economic  and  Social  Council  has  devoted 
more  time  to  the  question  of  refugees  and  displaced 
persons  than  to  any  other  subject.  It  has  now 
completed  the  task  given  to  it  by  the  General  As- 
sembly and  has  presented  to  that  body  detailed 
recommendations  for  an  International  Refugee 
Organization,  as  well  as  recommendations  for  the 
finances  of  the  Organization  and  recommendations 
for  interim  arrangements  before  the  Organization 
comes  into  full  operation. 

It  has  asked  the  General  Assembly  to  create  an 
International  Cliildren's  Emergency  Fund  for  the 
benefit  of  children  and  adolescents  of  all  comitries 
which  were  the  victims  of  aggression.  It  has 
initiated  action  looking  to  the  continuation  of 
certain  of  the  welfare  activities  of  UNRRA  after 
that  organization  ceases  to  exist. 

Another  problem  of  immediate  urgency  is  the 
reconstruction  of  devastated  countries.  The 
Council  has  laid  the  groundwork  for  the  considera- 
tion of  this  subject  by  the  General  Assembly  and 
for  further  work  by  the  Council  itself.  In  recog- 
nition of  the  importance  of  inland  transport  to 


932 


Department  of  State  Bulletin 


November  24, 1946 


THE  UN/TED  NATIONS 


he  restoration  of  the  European  economy  the 
]!ouncil  has  recommended  a  conference  of  all 
nterested  states  on  questions  of  freedom  of  traffic 
in  the  Danube. 

Under  the  auspices  of  the  Council,  an  Interna- 
ional  Health  Conference  was  held  whicli  com- 
)leted  the  Constitution  of  the  World  Health 
Organization.  Provision  has  been  made  for  the 
ransfer  to  this  Organization  of  the  functions  and 
ictivities  of  the  League  of  Nations  in  this  field 
md  for  the  integration  into  the  new  Organization 
if  other  international  health  bodies,  particularly 
he  Offlce  International  cfHygiene  Puhlique. 

The  Preparatory  Committee  for  an  Interna- 
ional  Conference  on  Trade  and  Employment, 
stablished  at  the  First  Session  of  the  Council, 
las  now  l)egun  its  work  in  London. 

The  suggestion  of  the  President  of  the  United 
States  that  the  Council  convene,  in  1947,  a  Scien- 
ific  Conference  on  Resource  Conservation  and 
Jtilization  was  received  after  the  Third  Session 
lad  started.  A  number  of  Delegations  were  un- 
tble  to  obtain  instructions  in  time  to  take  posi- 
ions  on  the  subject  at  this  Session.  Accordingly 
he  item  will  be  discussed  at  the  next  session.  In 
he  meantime,  the  Secretary  General  is  to  consult 
vith  Members  of  the  United  Nations  and  the 
rarious  bodies  concerned.  The  results  of  these 
.•onsultations  should  facilitate  the  Council's  con- 
iideration  of  this  subject  at  the  Fourth  Session. 

In  addition,  the  Third  Session  of  the  Council 
;ompleted  a  number  of  i-esidual  organizational 
natters.  It  established  a  Fiscal  Commission  and 
I  Population  Commission  and  elected  the  members 
)f  all  of  the  Commissions.  It  took  further  steps 
;o  provide  the  machinery  for  carrying  out  its  task 
af  coordinating  the  activities  of  specialized  agen- 
cies. It  concluded  an  Agreement  with  the  Inter- 
lational  Civil  Aviation  Organization  to  bring  that 
Organization  into  relationship  with  the  United 
N'ations  as  contemplated  by  the  Charter.  The 
Council  has  transmitted  this  Agreement,  together 
with  those  previously  negotiated  with  the  Inter- 
national Labour  Organization,  the  Food  and  Agri- 
culture Organization,  and  the  United  Nations 
Educational,  Scientific,  and  Cultural  Organization 
to  the  General  Assembly  for  final  approval.  The 
Council   also    completed   the   arrangements   for 


enabling  non-governmental  organizations  to  con- 
sult with  the  Council. 

All  of  these  items  are  fully  covered  in  the 
attached  report  and  I  shall  not,  therefore,  discuss 
them  at  length  here. 

The  deliberations  of  the  Economic  and  Social 
Council  have  reflected  not  only  the  natural  diffi- 
culties of  reconciling  different  opinions  and  dif- 
ferent approaches  to  common  problems,  but  also 
have  to  some  extent  reflected  differences  which  are 
being  even  more  vigorously  expressed  in  other 
bodies  and  meetings.  The  substantial  list  of  ac- 
complishments enumerated  above  is  in  itself  evi- 
dence that  these  difficulties  have  not  proved  in- 
superable in  the  Economic  and  Social  Council. 
The  growing  pains  of  this  body  are  becoming  less 
as  its  members  become  more  accustomed  to  work- 
ing with  each  other  and  as  they  come  to  understand 
each  other  better. 

The  United  States  is  entitled  to  feel  a  particular 
satisfaction  in  this  beginning.  The  proposal  for 
an  Economic  and  Social  Council,  which  had  no 
counterpart  in  the  League  of  Nations,  was  con- 
tained in  the  papers  submitted  by  this  Govern- 
ment to  the  Dumbarton  Oaks  Conference.  A  sub- 
stantial part  of  the  work  of  the  Council  up  to  now 
has  resulted  from  initiative  taken  by  the  United 
States  Delegation;  this  has  been  particularly  im- 
portant during  the  period  in  which  the  Secretariat 
was  being  recruited  and  organized. 

I  must  take  this  opportunity  to  record  again  my 
appreciation  of  the  able  and  effective  teamwoi'k 
of  the  United  States  Delegation  at  this  past  Ses- 
sion. More  members  than  ever  before  were  drawn 
into  active  participation  in  the  various  commit- 
tees and  the  meetings  of  the  Council  itself.  This 
fact  and  the  arrangements  which  have  been  made 
for  continuing  liaison  between  the  Department 
of  State  and  the  other  departments  and  agencies 
of  the  Government  will,  I  feel  certain,  prove  most 
effective  in  promoting  consistency  throughout  all 
our  economic  and  social  policies  and  in  broadening 
and  strengthening  the  contribution  which  the 
United  States  can  and  is  expected  to  make  to  the 
work  of  the  Council. 

Sincerely  yours, 

John  G.  Winant 


721999- 


933 


Meeting  of  the  General  Assembly 


U.S.  POSITION  ON  REGULATION  AND  REDUCTION  OF  ARMAMENTS 


By  the  Senior  Representative  of  U.  S.  Delegation  ^ 

At  the  outset  of  what  I  have  to  say  to  the  Gen- 
eral Assembly  I  must  refer  briefly  to  the  address 
made  yesterday  by  the  Representative  of  the  Union 
of  Soviet  Socialist  Republics. 

Mr.  Molotov's  speech  indicated  distrust  and 
misunderstanding  of  the  motives  of  the  United 
States  and  of  other  members  of  the  United  Na- 
tions. I  do  not  believe  that  recriminations  among 
nations  allied  in  war  and  in  peace  promote  that 
unity  which  Mr.  Molotov  so  rightly  points  out  is 
essential  to  the  success  of  the  United  Nations. 

In  war  we  gave  to  our  Allies  all  the  help  and 
cooperation  a  great  nation  could.  In  peace  the 
"United  States  will  support  the  United  Nations 
with  all  the  resources  we  possess." 

Our  motives  in  war  and  peace  we  leave  to  the 
judgment  of  history.  We  fought  for  freedom  side 
by  side  without  recrimination.  Can't  we  fight  for 
peace  side  by  side  without  recrimination?  That 
closes  the  sad  chapter  so  far  as  we  are  concerned. 

I  shall  not  participate  in  any  exchange  of 
recriminations. 

We  welcome  the  confidence  expressed  by  Mr. 
Molotov  that  unanimous  agreement  among  all  the 
nations  both  large  and  small  can  be  achieved  on 
such  vital  matters  as  the  control  of  atomic  energy 
and  on  steps  to  lighten  the  burden  of  armaments 
and  military  expenditures  which  still  rests  so 
heavily  upon  the  peoples  of  the  world. 

The  United  States  urges  disarmament. 

The  United  States  believes  that  Mr.  Molotov's 
proposal  should  be  placed  on  our  agenda  and  fully 
considered  and  discussed. 


I 


'  Excerpts  from  an  address  delivered  by  the  U.S.  Dele- 
gate, Warren  R.  Austin,  before  the  General  Assembly  of 
the  United  Nations  at  Lake  Success,  N.Y.,  on  Oct.  30  and 
released  to  the  press  by  the  U.S.  Delegation  to  the  General 
Assembly  on  the  same  date. 


The  initiative  of  the  Soviet  Union  in  this  matter 
is  ajDpropriate  because  of  its  mighty  armies,  just 
as  the  initiative  of  the  United  States  was  appro- 
priate in  proposing  measures  to  prevent  the  manu- 
facture and  use  of  atomic  weapons. 

In  November  1945  the  United  States  took  the 
initiative  for  outlawing  the  atomic  bomb,  in  the 
conversations  at  Washington  among  President 
Truman,  Prime  Minister  Attlee,  and  Prime  Min- 
ister MacKenzie  King.  At  ^loscow  in  December 
1915,  the  following  month,  conversations  were 
held  between  Mr.  Bj'rnes,  Mr.  Molotov,  and  INIr. 
Bevm  on  this  subject.  In  this  Assembly  last  Jan- 
uary the  resolution  creating  the  Atomic  Energy 
Conunission  and  establishing  its  terms  of  refer- 
ence was  unanimously  adopted.  Since  then  in  the 
Commission  itself  the  distinguished  United  States 
Representative,  Mr.  Bernard  M.  Baruch,  pre- 
sented pi"oposals  expressing  the  policy  of  the  Pres- 
ident of  the  United  States. 

The  United  States  goes  further.  As  President 
Truman  emphasized  again  last  week,  it  attaches  the 
greatest  importance  to  reaching  agreements  that 
will  remove  the  deadly  fear  of  other  weapons  of 
mass  destruction  in  accordance  with  the  same  res- 
olution passed  by  this  Assembly. 

So  far  as  Mr.  Molotov's  resolution  concerns  the 
regulation  and  reduction  of  other  armaments,  the 
whole  world  knows  where  the  United  States  stands 
and  has  always  stood.  For  20  years  before  the 
war  and  in  the  15  months  since  the  fighting 
stopped,  the  United  States  has  consistently  bf;cn 
in  the  forefront  of  those  striving  to  reduce  the 
burden  of  armaments  upon  the  peoples  of  the 
world.  Since  the  end  of  the  war  in  Europe  and 
the  Pacific  the  United  States  has  progressively 
and  rapidly  reduced  its  military  establishment. 

After  the  last  war  we  made  the  mistake  of  dis- 
arming unilaterally.  We  shall  not  repeat  that 
mistake. 

The  United  States  is  prepared  to  cooperate  fully 


934 


Department  of  State  Bulletin 


November  24, 1946 


THE  UNITED  NATIONS 


with  all  other  members  of  the  United  Nations  in 
disarmament.  It  advocates  effective  safeguards 
by  -way  of  inspection  and  other  means  to  protect 
complying  states  against  the  hazards  of  violation 
and  evasion. 

We  cannot  reduce  armaments  merely  by  talking 
about  the  "regulation  of  armament  and  possible 
disai-mament",  or  the  "heavy  economic  burden 
caused  by  excessive  expenditures  for  armaments". 
We  cannot  achieve  it  without  positive  acts  which 
will  establish  the  "peaceful  post-war  conditions" 
to  which  Mr.  JNIolotov  also  referred. 

Nor  can  a  system  for  the  regulation  of  arma- 
ments and  possible  disarmaments  as  contemplated 
in  articles  11,  26,  and  47  of  the  Charter  be  effec- 
tively planned  except  in  relation  to  progress  in  the 
negotiation  of  the  armed-forces  agreements  called 
for  by  article  43.  At  the  beginning  of  April,  four 
of  the  five  members  of  the  Military  Staff  Com- 
mittee made  specific  proposals  concerning  the  prin- 
ciples which  should  govern  the  negotiation  of 
these  agreements.  In  September  the  Soviet 
Union  submitted  for  the  first  time  a  statement 
of  its  views  on  the  problem. 

I  am  happy  to  note  that  Mr.  Molotov  referred 
to  the  work  of  the  Military  Staff  Committee.  I 
hope  it  will  now  be  possible  for  this  Committee  to 
make  rapid  progress.  The  conclusion  of  these 
agreements,  providing  the  Security  Council  with 


peace  forces  adequate  to  prevent  acts  of  aggression, 
is  essential  to  carrying  out  the  objectives  of  Mr. 
Molotov's  resolution  for  the  reduction  of  arma- 
ments. 

Mr.  Molotov  also  referred  to  article  43  in  con- 
nection with  the  Soviet  proposal  concerning  the 
presence  of  armed  forces  of  the  United  Nations  on 
foreign  territories.  He  said,  "In  this  connection 
it  is  natural  that  the  Security  Council  should  know 
the  actual  situation,  namely,  where  and  what 
armed  forces  of  the  United  Nations  are  situated 
at  present  outside  the  confines  of  their  coun- 
tries. .  .  .  For  its  part  the  Soviet  Union  is 
prepared  to  submit  this  information  to  the  Secur- 
ity Council." 

The  Government  of  the  United  States  under- 
stands Mr.  Molotov's  statement  to  mean  that  the 
Soviet  Union  is  fully  prepared  to  report  on  its 
aimed  forces  in  ex-enemy  states  as  well  as  in  other 
foreign  territories.  Therefore,  the  United  States 
urges  prompt  fulfilment  of  this  policy.  The 
United  States  has  nothing  to  hide  with  regard  to 
our  armed  forces  at  home  or  abroad.  The  United 
States  will  promptly  fulfil  that  policy.  In  no  case 
are  the  United  States  forces  in  friendly  countries 
except  with  the  consent  of  those  countries. 

It  is  our  opinion  that  the  proposed  inquiry 
should  include  all  mobilized  armed  forces,  whether 
at  home  or  abroad. 


U.  S.  Position  on  International  Refugee  Organization 

STATEMENT  BY  REPRESENTATIVE  OF  THE  U.S.  DELEGATION  TO  THE  UNITED  NATIONS  « 


To  begin  with,  Mr.  Chairman,  I  should  like  to 
state  very  briefly  the  position  of  the  United  States 
on  this  International  Refugee  Organization,  which 
will  care  for  and  help  to  rehabilitate  nearly  a 
million  people  from  Europe  and  the  Far  East. 
As  long  as  they  are  refugees  and  displaced  per- 
sons they  constitute  a  threat  to  peace  and  good 
relations  among  governments. 

The  maintenance  in  camps  of  these  persons  leads 
to  deterioration  among  them  as  human  beings  and 
is  an  economic  waste  for  all  the  nations  of  the 
world.    We,  in  the  United  States,  feel  this  most 


keenly,  since  from  practically  all  the  countries 
where  they  come  from  we  have  received  citizens 
who  have  built  up  our  nation.  Therefore,  the 
United  States  supports  the  principles  of  the  Gen- 
eral Assembly  resolution  of  February  12,  1946 
namely : 

(a)   The  problem  is  international  in  character. 


^  Made  by  the  U.S.  representative,  Mrs.  Eleanor  Boose- 
velt,  before  Committee  3  of  the  General  Assembly  at  Lake 
Success  on  Nov.  8  and  released  to  the  press  by  the  U.S. 
Delegation  to  the  United  Nations  ou  the  same  date. 


935 


THE  UNITED  NATIONS 

(&)   There  shall  be  no  compulsory  repatriation. 

(c)  Action  taken  by  IRO  must  not  interfere 
with  existing  international  arrangements  for  ap- 
prehension of  war  criminals,  Quislings,  and  trai- 
tors. This  is  being  done  by  military  occupation 
forces  and  is  not  the  responsibility  of  this  new 
organization. 

As  a  consequence  we  support  the  draft  constitu- 
tion of  the  IKO  which  rellects  the  foregoing  prin- 
ciples. 

The  United  States  has  supported  the  principles 
advocated  by  my  colleague  from  the  U.  S.  S.  R. 
which  is  proved  by  the  numbers  of  people  that 
have  been  repatriated  from  the  United  States  zone. 
However,  it  would  be  foreign  to  our  conception  of 
democracy  to  force  repatriation  on  any  human 
being.  Three  and  one-half  million  persons  have 
been  repatriated  from  the  United  States  zone,  but 
our  people  will  always  believe  in  the  right  of 
asylum  and  complete  freedom  of  choice. 

The  Pilgrims,  the  Huguenots,  and  the  Germans 
of  1848  came  to  us  in  search  of  political  and  re- 
ligious freedom  and  a  wider  economic  opportun- 
ity.   They  built  the  United  States. 

These  people  now  in  displaced-persons  camps 
are  kin  to  those  early  settlers  of  ours,  and  many 
of  them  might  have  relatives  in  the  United  States. 

My  Government  urges  the  participation  in  the 
IRO  as  members  by  all  peace-loving  nations. 
There  is  no  question  but  that  this  participation 
will  entail  financial  sacrifices  by  all  participating 
governments.  For  a  time  it  will  be  a  heavy  burden, 
but  in  the  long  run  it  will  be  an  economy  and  well 
worth  the  cost. 

The  finances  of  our  organization  will  be  con- 
sidered in  committee  5,  where  the  financial  burden 
will  be  allotted  to  the  participating  governments, 
so  that  the  cost  will  be  equitably  shared  by  all,  and 
each  government  will  pay  according  to  the  stand- 
ards laid  down  by  committee  5. 

In  the  interest  of  brevity  I  shall  comment  at 
this  time  only  on  some  of  the  essential  points  in 
Mr.  Vyshinsky's  speech  of  Wednesday,  leaving 
other  points  for  comment  when  we  discuss  the 
draft  constitution  article  by  article. 

First  of  all  I  should  like  to  say  that  Mr.  Vy- 
shinsky's view  that  no  assistance  should  be  given 
to  those  who  for  valid  reasons  decide  not  to  return 


to  their  countries  of  origin  is  inconsistent  with  the 
unanimous  decision  of  the  General  Assembly  in 
the  resolution  on  displaced  persons  of  February 
12,  1946.  That  clearly  provides  that  these  per- 
sons shall  become  the  concern  of  the  International 
Refugee  Organization. 

Mr.  Vyshinsky  says  that  this  problem  is  very 
simple.  It  can  be  solved  by  repatriating  all  the 
displaced  persons.  In  fact,  those  who  do  not  wish 
to  be  repatriated  must  fall  into  this  category.  I 
think  this  point  of  view  fails  to  take  into  con- 
sideration the  facts  of  political  change  in  coun- 
tries of  origin  which  have  created  fears  in  the 
minds  of  the  million  persons,  who  remain,  of  such 
a  nature  that  they  choose  miserable  life  in  camps 
in  preference  to  the  risks  of  repatriation. 

Our  colleague  from  Poland  mentioned  that  since 
arrangements  had  been  made  to  give  people  food 
allowances  after  their  return  home  the  numbers 
going  home  had  increased.  I  think  he  is  quite 
right  that  the  fear  of  an  economic  situation  has 
deterred  a  number  of  people  from  taking  the  risk 
of  repatriation,  but  not  all  of  them  are  actuated 
by  consideration  of  the  economic  situation  in  their 
country  of  origin. 

Seven  million  people  have  already  been  re- 
patriated; repatriation  is  still  proceeding.  One 
thousand  Poles  are  leaving  the  U.S.  zones  of  Ger- 
many and  Austria  daily.  The  military  adminis- 
tration which  accomplished  this  result  can  hardly 
be  held  solely  responsible  for  the  failure  of  the 
last  million  to  return. 

It  was  a  new  point,  I  think,  which  Mr.  Vyshinsky 
raised  when  he  presented  his  position  that  those 
who  do  not  choose  to  return  to  their  countries  of 
origin  shall  not  be  resettled,  shall  receive  no  aid 
towards  settling  somewhere  else.  This  leaves  them 
with  the  prospect  of  spending  the  rest  of  their 
lives  in  assembly  centers  as  long  as  the  IRO  sup- 
ports them  or  else  of  facing  starvation.  They 
obviously  cannot  be  left  in  assembly  centers  to  their 
own  devices.  They  would  continue  as  an  irritant 
in  good  relations  between  friendly  governments 
and  contribute  to  delay  in  the  restoration  of  peace 
and  order  which  is  the  concern  of  all  governments. 
There  is  no  reason  why  they  should  become  wan- 
derers if  instead  they  can  be  given  an  opportunity 
for  resettlement  in  some  country  which  has  a  future 
to  offer  them. 


936 


Department  of  State  Bulletin 


November  24, 1946 


THE  UNITED   NATIONS 


By  another  provision  of  the  General  Assembly 
resolution  of  February  1916,  which,  I  think,  Mr. 
Vysliinsky  must  have  forgotten,  no  action  taken 
shall  be  of  such  a  character  as  to  interfere  in  any 
■way  with  the  surrender  and  punishment  of  war 
criminals,  Quislings,  and  traitors  in  conformity 
with  international  arrangements  or  agreements. 
Tliese  arrangements,  however,  are  the  responsi- 
bility of  other  government  bodies,  including  the 
military  authorities. 

I  can  tell  you  very  briefly  how  arrangements 
for  the  apprehension  of  Quislings  works  out  under 
the  U.S.  occupational  authorities.  U.S.  officials 
are  continuously  engaged  in  screening  the  refugee 
personnel  to  locate  Quislings  or  those  who  for 
other  reasons  are  not  entitled  to  be  given  asylum. 
Wlien  special  complaints  are  received  from  other 
governments  they  are  made  by  the  governments' 
liaison  officers  with  the  United  States  Forces, 
European  Theater.  USFET  thereupon  makes  an 
investigation  through  Army  channels.  If  the 
investigation  appears  to  substantiate  the  com- 
plaint, the  case  goes  before  a  board  of  officers, 
which  makes  the  final  determination.  This 
method  of  procedure  has  in  general  been  satisfac- 
tory; but  it  must  be  emphasized  that  tliis  commit- 
tee here  is  not,  and  should  not,  be  the  forum  for 
debate  as  to  its  effectiveness.  It  is  not  our  func- 
tion here  to  discuss  the  adequacy  of  these  arrange- 
ments or  the  performance  under  them.  We  are 
concerned  with  final  decisions  on  the  draft  of  the 
constitution  of  IRO.  This  draft  clearly  excludes 
from  the  benefits  of  the  organization  war  crim- 
inals. Quislings,  and  traitors.  We  can  hope  that 
such  persons  will  be  entirely  eliminated  by  the 
tinie  the  IRO  begins  to  function. 

Mr.  Vyshinsky  spoke  of  members  of  various 
military  groups.  The  military  character  of  differ- 
ent groups  and  their  members,  we  think,  has  been 
greatly  exaggerated.  They  are  the  concern  of  the 
military  authorities,  however,  and  will  be  handled 
by  them.  Those  who  fought  with  the  Germans  and 
collaborated  with  them  are  clearly  excluded  from 
assistance  from  tlie  IRO  in  the  constitution  before 
us.  I  have  asked  that  the  U.  S.  military  authori- 
ties supply  me  with  a  report  on  each  of  the  inci- 
dents complained  of  by  Mr.  Vyshinsky  where  the 
U.  S.  is  concerned,  and  I  shall  report  these  findings 


in  writing  to  the  committee,  if  it  so  desires,  as 
soon  as  they  are  available. 

Now  we  come  to  the  point  which  Mr.  Vyshinsky 
made  that  all  propaganda  should  be  suppressed  in 
the  camps.  He  challenges  us  on  the  point  that 
under  the  guise  of  freedom  of  expression  propa- 
ganda hostile  to  the  countries  of  origin  is  toler- 
ated. On  this  point  I  am  afraid  we  hold  very 
different  ideas.  But  this  does  not  preclude  cooper- 
ation between  us.  We,  in  the  United  States,  toler- 
ate opposition  provided  it  does  not  extend  to  the 
point  of  advocacy  of  the  overthrow  of  government 
by  force.  Unless  the  right  of  opposition  is  con- 
ceded, it  seems  to  me  that  there  is  very  little  possi- 
bility that  countries  with  differing  conceptions  of 
democracy  can  live  together  without  friction  in 
the  same  world.  Much  progress  has  been  made  to 
date  in  dealing  with  this  problem  of  propaganda, 
within  the  framework  of  these  divergent  views. 
With  patience  and  understanding  we  can  achieve 
still  further  progress  in  this  direction. 

Mr.  Vyshinsky  objects  to  the  inclusion  of  cer- 
tain categories  of  refugees  and  displaced  persons. 
One  group  consists  of  those  who,  as  a  result  of 
events  subsequent  to  the  outbreak  of  the  second 
World  War,  are  unable  or  unwilling  to  avail  them- 
selves of  the  protection  of  the  government  of  their 
countries  of  nationality  or  of  former  nationality. 
This  paragraph  covers  those  who  for  political 
reasons,  territorial  changes,  or  changes  of  sover- 
eignty are  unable  to  return  to  their  country.  That 
paragraph  is  in  annex  1,  part  1,  section  A,  para- 
graph 2.  I  regret  that  Mr.  Vyshinsky  camiot  con- 
firm the  agreement  reached  at  the  last  session  of 
the  Economic  and  Social  Council  on  this  point. 
We  consider  it  essential  that  the  paragraph  be  re- 
tained. But  since  he  asked  who  these  people  are, 
I  should  like  out  of  my  own  experience  to  men- 
tion a  few.  I  visited  two  camps  near  Frankfurt, 
where  the  majority  of  people  had  come  fi-om  Es- 
tonia, Latvia,  and  Lithuania.  I  have  received  in- 
numerable petitions.  My  mail  today  carried  three 
from  people  in  different  countries,  who,  because 
changes  had  come  in  the  types  of  government  in 
their  countries,  felt  that  they  did  not  wish  to  re- 
turn. That  does  not  mean  that  they  do  not  love 
their  country;  it  simply  means  that  they  prefer 
the  country  as  it  was  before  they  left  it.     That 


937 


THE  UNITED  NATIONS 


country  they  feel  no  longer  belongs  to  them.  I 
gather  that  Mr.  Vyshinsky  felt  that  anyone  who 
did  not  wish  to  return  under  the  present  form  of 
government  must  of  necessity  be  Fascist.  I  talked 
to  a  great  many  of  these  people  who  do  not  strike 
me  as  Fascist,  and  the  assumption  that  people  do 
not  wish  to  return  to  the  country  of  their  origm  be- 
cause those  countries  are  now  under  what  is  called 
a  democratic  form  of  government  does  not  seem  to 
allow  for  certain  differences  in  the  imderstanding 
of  the  word  democracy.  As  Mr.  Vyshinsky  uses  it, 
it  would  seem  that  democracy  is  sjTionymous  with 
Soviet,  or  at  least  a  fairly  similar  conception  of 
political  and  economic  questions.  Under  that  for- 
mula I  am  very  sure  that  he  would  accept  some 
of  the  other  nations  in  the  world  who  consider 
themselves  democracies  and  who  are  as  willing  to 
die  for  their  beliefs  as  are  the  people  of  the  Soviet 
Union. 

Mr.  Vyshinsky  also  objected  to  certain  excep- 
tions to  the  general  rule  that  those  who  had  volun- 
tarily assisted  the  enemy  are  excluded  from  the 
concern  of  the  IRO.  The  intent  of  the  exemp- 
tions is  to  cover  those  who  were  forced  to  perform 
slave  labor  or  who  may  have  rendered  humanitar- 
ian assistance,  such  as  assistance  to  wounded  civil- 
ians. Mr.  Vyshinsky  proposes  to  exclude  all  those 
who  assisted  in  any  manner.  Under  such  language 
those  merely  present  in  any  occupied  area  forced 
by  necessity  of  survival  to  perform  any  form  of 
work  or  service  within  the  German  economy  would 
be  considered  to  have  assisted  the  enemy  and 
would  thus  be  excluded.  This  would  result  in 
cruel  hardsliip  on  many.  We  can,  however,  dis- 
cuss the  point  at  greater  length  later. 

I  sincerely  regiet  having  to  speak  in  opposition 
to  some  of  Mr.  Vyshinsky 's  views.  But  he  will 
recall  that  in  London  there  were  some  things 
which  because  of  the  fundamental  beliefs  I  hold, 
I  had  to  stand  on.  I  felt  strongly  about  them 
then  and  I  still  do.  This  does  not  mean  that  Mr. 
Vyshinsky  cannot  hold  to  his  basic  beliefs  as  well 
and  still  achieve  with  us  a  solution.  This  solu- 
tion can  be  reached  if  we  are  both  willing  in  these 
fields  to  try  for  a  spirit  of  cooperation  and  a 
realistic  approach  to  our  problems.  It  is  essential 
to  the  peace  of  the  world  that  we  wipe  out  some  of 


our  resentments  as  well  as  our  fears.  I  hope  that 
as  time  goes  on  our  two  great  nations  may  grow  to 
understand  each  other  and  to  accept  our  different 
viewpoints  on  certain  questions. 

American  Chemical  Society's  Gift  to 
UNESCO 

[Released  to  the  press  November  13] 

The  Department  of  State  has  been  informed  by 
the  American  Chemical  Society  that  its  board  of 
directors  has  offered  a  contribution  of  $25,000  to 
UNESCO  (the  United  Nations  Educational, 
Scientific  and  Cultural  Organization),  it  was 
announced  on  November  13  by  Assistant  Secretary 
of  State  Benton. 

The  gift  is  offered  for  the  payment  of  expenses 
in  this  country  of  foreign  chemists  and  chemical 
engineers  who  wish  to  engage  in  advanced  study 
and  who  could  not  make  the  trip  without  such  aid. 
The  persons  to  receive  the  grants  are  to  be  desig- 
nated by  UNESCO. 

This  is  believed  to  be  the  first  contribution 
offered  to  UNESCO  by  any  non-governmental 
organization,  according  to  Mr.  Benton.  Com- 
menting on  the  gift,  Mr.  Benton  pointed  out  that 
the  Director  General  of  UNESCO  is  authorized  to 
receive  "gifts,  bequests  and  contributions  directly 
from  govenmients,  public,  private,  institutions, 
associations,  and  private  persons."  Such  contri- 
butions, he  said,  may  well  prove  to  be  an  important 
resource  for  UNESCO  in  carrying  out  its  func- 
tions.    Mr.  Benton  also  said: 

"In  its  long-range  program,  I  hope  that 
UNESCO  will  come  to  be  regarded  as  an  appro- 
priate instrument  for  contributions  from  many 
organizations  and  individuals,  all  over  the  world, 
who  wish  to  contribute  to  education  for  peace 
through  understanding. 

"The  coming  meeting  of  the  General  Conference 
of  UNESCO,  to  open  at  Paris,  November  19,  will 
determine  the  main  outlines  of  a  program  for 
UNESCO.  The  program  there  agreed  upon  will 
include  many  projects  worthy  of  financial  support 
over  and  above  the  regular  annual  contributions 
of  the  member  governments." 

(Oontinued  on  page  953) 


938 


Department  of  State  Bulletin 


November  24, 1946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings  ^ 


In  Session  as  of  November  17, 1946 

Far  Eastern  Commission 


United  Nations: 

Security  Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

UNRRA  -  Inter-governmental  Committee    on    Refugees    (IGCR) 
Joint  Planning  Committee 

General  Assembly 

Telecommunications  Advisory  Committee 


German  External  Property  Negotiations  with  Portugal  (Safehaven)  . 

PICAO: 

Interim  Council 

Divisional 

Meteorological  Division 

Special  Radio  Technical  Division 

International  Conference  on  Trade  and  Employment,  First  Meeting 
of  the  Preparatory  Committee 

Inter-Allied  Trade  Board  for  Japan 

FAO:  Preparatory  Commission  To  Study  World  Food  Board  Pro- 
posals. 

World  Health  Organization  (WHO):  Interim  Commission 

Council  of  Foreign  Ministers 

lARA:   Meetings  on  Conflicting  Custodial  Claims 


International     Technical     Committee     of     Aerial     Legal     Experts 
(CITEJA): 

Meetings  of  Four  Commissions 

Fifteenth  Plenary  Session 


ILO:  Industrial  Committee  on  Textiles 

Second  Inter-American  Congress  of  Radiology   .    . 

Scheduled  for  November  194&-January  1947 

UNESCO: 

General  Conference 

"Month"  Exhibition 


ILO;  Industrial    Committee    on    Building,    Civil  Engineering  and 
Public  Works. 


Washington 

February  26 

Lake  Success 

Lake  Success 

Lake  Success 

Washington 

Lake  Success 
Flushing   Meadows  .    . 
Lake  Success 

March  25 
March  25 
June  14 
July  25 

October  23 
November  10 

Lisbon 

September  3 

Montreal 

September  4 

Montreal 

Montreal 

October  29 

October  30-November  23 

London   

October     15-November 
23 

Washington 

October  24 

Washington 

October  28 

Geneva    

November  4-13 

New  York 

November  4 

Brussels 

November  6 

Cairo 

Cairo 

November  6-13 
November  14-19 

Brussels 

November  14-22 

Habana  

November  17-22 

Paris 

Paris 

November  19 
November-December 

Brussels 

November    25 -Decem- 
ber 3 

'  Calendar  prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


Calendar  of  Meetings—Continued 


PICAO: 
Divisional 

Communications  Division 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division.    . 

Personnel  Licensing  Division  ...  

Aeronautical  Maps  and  Charts  Division 

International  Whaling  Conference 

Rubber  Study  Group  Meeting 

United  Nations: 

Economic  and  Social  Council 

Commission  on  Narcotic  Drugs 

Statistical  Commission 

Postal  Experts  Meeting 

Inter-American  Commission  of  Women:  Fifth  Annual  Assembly    . 

Intergovernmental  Committee  on  Refugees  (IGCR):  Sixth  Plenary 
Session 

Meeting  of  Medical  and  Statistical  Commissions  of  Inter-American 

Committee  on  Social  Security 

Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education 


Montreal. 
Montreal 
Montreal 
Montreal 
Montreal 


Lake  Success  . 
Lake  Success  . 
Lake  Success . 

Washington    . 

London   .    .    . 


Washington , 

Caracas  .    . 
Caracas  .    . 


November  19 
November  26 
December  3 
January  7 
January  14 


Washington November  20 

The  Hague November  25-30 


November  27 
January  27  (tentative) 
December  10  (tentative) 

December  2-12 

December  16 

January  6-11 

January  12-24 
January  12-24 


Activities  and  Developments  » 


U.  S.-U.  K.  MEETINGS  ON  BIZONAL 
ARRANGEMENTS  FOR  GERMANY 


Statement  by  Acting  Secretary  Acheson  < 

The  present  meeting  is  an  outgrowtli  of  a  con- 
versation of  Mr.  Bevin  with  Secretary  Byrnes 
during  tlie  recent  conferences  in  Paris,  concern- 
ing plans  for  the  economic  and  financial  union  of 
the  British  and  American  zones  of  occupation  in 
Germany.^ 

The  resulting  conferences  in  Washington,  of 
which  this  is  the  first  meeting,  are,  so  far  as  the 
United  States  representation  is  concerned,  under 
the  joint  auspices  of  the  Departments  of  State  and 
War.  Gen.  John  H.  Hilldring,  Assistant  Secre- 
tary of  State  for  Occupied  Areas,  will  preside  at 
the  forthcoming  discussions  on  matters  of  bizonal 
interest.    Mr.  Howard  C.  Petersen,  the  Assistant 


'  Made  at  the  opening  session  at  2 :  30  p.m.  on  Nov.  13, 
1946,  and  released  to  the  press  on  the  same  date. 
"  BuxLETiN  of  Aug.  11,  1946,  p.  266. 


940 


Department  of  State  Bulletin     •     November  24, 1946 


ACTIVITIES  AND   DEVELOPMENTS 


Secretary  of  War,  and  General  Clay,  Deputy  Mili- 
tary Governor  (U.S.),  Germany,  will  head  the 
representatives  of  the  War  Department  and  the 
Military  Government  (U.S.),  Germany,  during 
the  meetings  with  the  members  of  the  British  Em- 
bassy and  of  the  British  Delegation,  wlio  have  just 
arrived  in  Washington  to  assist  the  Embassy  in 
tliese  discussions  relating  to  the  establishment  of 
bizonal  union.  T  extend  a  cordial  welcome  to  our 
British  friends  with  whom  we  are  happy  to  have 
an  opportunity  of  discussing  important  matters 
of  mutual  interest. 

It  is  envisaged  that  the  discussions  of  the  pres- 
ent conferees  will  be  limited  to  those  bizonal  ar- 
rangements which  need  be  settled  only  at  govern- 
mental level. 

These  meetings  are  a  definite  step  forward  in 
line  with  policy  relative  to  Germany,  as  expressed 
by  Secretary  of  State  Byrnes,  in  conformity  with 
the  Potsdam  Agreement,  in  his  discussions  with 
the  Foreign  Ministers  of  the  other  occupying  pow- 
ers. British  agreement  with  the  position  taken 
resulted.  Subsequently,  Secretary  Byrnes,  in  his 
Stuttgart  address,  said,  in  part,  the  United 
States — 

".  .  .  has  formally  announced  that  it  is  its 
intention  to  unify  the  economy  of  its  own  zone 
with  any  or  all  of  the  other  zones  willing  to  par- 
ticipate in  the  unification. 

"So  far  only  the  British  Government  has  agreed 
to  let  its  zone  participate.  We  deeply  appreciate 
their  cooperation.  Of  course,  this  policy  of  unifi- 
cation is  not  intended  to  exclude  the  governments 
not  now  willing  to  join.  The  unification  will  be 
open  to  t'lem  at  any  time  they  wish  to  join. 

"We  favor  the  economic  unification  of  Germany. 
If  complete  unification  cannot  be  secured,  we  shall 
do  everything  in  our  power  to  secure  the  maximum 
possible  unification." 

U.  S.  Representatives 

[Released  to  the  press  November  12] 

Following  is  a  list  of  United  States  representa- 
tives and  advisers  to  the  joint  United  States- 
United  Kingdom  meetings  on  bizonal  arrange- 
ments for  Germany: 
Department  of  State 

Under  Secretary  of  State  Dean  Acheson  (Opening 
Meeting) 


Assistant  Secretary  for  Occupied  Areas,  John  H. 
Hilldring 

Ambassador  Robert  D.  Murphy 

H.  J.  Henenian,  Office  of  Assistant  Secretary  Hilldring 

C.  C.  Hilliard,  Office  of  Assistant  Secretary  Hilldring 

Phillip  P.  Claxton,  Office  of  Assistant  Secretary 
Hilldring 

C.  P.  Kindleberger,  Division  of  German  and  Austrian 
Economic  Affairs 

J.  C.  deWilde,  Division  of  German  and  Austrian  Eco- 
nomic Affairs 

W.  A.  Salant,  Division  of  German  and  Austrian  Eco- 
nomic Affairs  (alternate  for  Mr.  deWikle) 

J.  W.  Riddleberger,  Division  of  Central  European 
Affairs 

War  Department 

Assistant  Secretary  of  War  Howard  C.  Petersen 
Col.  J.  R.  Gilchrist,  Civil  Affairs  Division 
Col.  R.  M.  Cheseldine,  Civil  Affairs  Division 
E.  A.  Hough,  Civil  Affairs  Division 
O.  J.  Baldwin,  Civil  Affairs  Division 
Tracy  Vorhees,  Office  of  the  Secretary  of  War 
Gen.  George  J.  Richards,  Budget  Office  of  War  De- 
partment 

Gen.  Vernon  Evans,  Budget  Office  of  War  Department 
(alternate  for  General  Richards) 

Lt.  Col.  P.  A.  Feyereisen,  Budget  Office  of  War  Depart- 
ment  (alternate  for  General  Richards) 

Office  of  Military  Government,  U.  S. 

Gen.  Lucius  D.  Clay 
Col.  Hugh  Barker  Hester 
Col.  Lawrence  Wilkinson 
Don  D.  Humphrey 
Theodore  H.  Ball 
Roy  J.  Bullock 
Edward  A.  Tenenbaum 

Reconstruction  Finance  Corporation,  U.  S.  Com- 
mercial Company 

George  Allen 
John  Goodloe 
DeWitt  Schieck 

Treasury  Department 

Andrew  Overby,  adviser 
Depart7nent  of  Commerce 

Arthur  Paul,  adviser 

Murray   Marker,    (alternate) 

Department  of  Agriculture 

Francis  A.  Flood,  adviser 
Department  of  Labor 

Assistant  Secretary  D.  A.  Morse,  adviser 
Bureau  of  the  Budget 

E.  R.  Baker,  observer 


721999 — 46- 


941 


ACTIVITIES  AND  DEVELOPMENTS 


STATEMENT    BY    HEADS    OF    DELEGATIONS    TO 
INTERNATIONAL  WOOL  TALKS 

[Released  to  the  press  November  15] 

1.  During  the  past  week  delegations  represent- 
ing Argentina,  Australia,  Belgium,  Canada, 
China,  France,  India,  Italy,  New  Zealand,  Soutli 
Africa,  United  Kingdom,  United  States,  and  Uru- 
guay have  been  engaged  in  an  examination  of  pres- 
ent and  prospective  world  apparel  wool  situation. 

2.  There  has  been  a  full  and  frank  exchange  of 
views.  Producing  and  consuming  countries  were 
in  full  agreement  about  desirability  of  avoiding 
as  far  as  possible  excessive  price  fluctuations  and 
of  securing  expansion  of  world  consumption  of 
wool. 

3.  Kepresentatives  of  UK/Dominion  Wool  Dis- 
posal, Ltd.  (tliis  is  organization  established  by 
UK,  Australia,  New  Zealand,  and  South  African 
Governments  to  dispose  of  large  wartime  surplus 
of  wool)  were  present  at  invitation  of  conference, 
and  chairman  made  a  statement  about  itis  organiza- 
tion and  aims.  He  reaflufmed  intention  to  con- 
tribute to  stability  in  international  trade  in  wool 
by  means  of  orderly  marketing  of  surpluses  to- 
gether with  current  clips  at  prices  reasonable  to 
grower  and  at  a  level  to  encourage  consmnption. 
He  emphasized  also  desirability  of  extending  range 
of  types  of  wool  used.  Use  of  a  narrow  range  of 
types  led  to  scarcity  and  high  prices  of  those  types. 
Organization  was  prepared  to  supplement  offer- 
ings to  meet  demand  so  far  as  shortages  of  certain 
particular  types  and  difficulties  of  handling  and 
transport  allowed.  This  conference  has  provided 
an  opportunity  for  the  various  countries  to  study 
operation  of  this  wool-disposal  organization. 

4.  Conference  has  considered  also  present  sta- 
tistical position  as  regards  world  stocks  production 
and  consumption  and  has  reviewed  prospects  for 
1946-47.  It  is  ajiparent  that  there  has  been  a 
heavy  transfer  of  stocks  from  government  to  pri- 
vate hands  since  end  of  hostilities,  and  there  has 
also  been  an  encouragingly  rapid  recovery  of  con- 
sxmiption  in  many  countries.  Nevertheless  total 
world  stocks  of  apparel  wool  at  30  June  1946  are 
estimated  at  some  5,000  million  pounds  of  which 
over  half  is  still  in  hands  of  governmental  organi- 


zations. Stocks  in  government  hands  alone 
amounted  approximately  to  one  year's  production, 
and  it  is  clear  that  absorption  of  this  quantity  into 
final  consumption  alongside  new  clips  of  1946-47, 
and  later  seasons  must  still  present  a  formidable 
problem. 

5.  Conference  has  also  reviewed  possibilities  for 
continuing  intergovernmental  consideration  of 
wool  matters. 

Text  of  conference  resolution  follows : 

(a)  Having  made  a  survey  of  prospective  world 
position  of  wool  conference  is  agreed  on  desir- 
ability in  interests  of  producers  and  consumers  of 
situation  being  kept  under  intergovernmental 
review. 

(h)  Representatives  of  all  governments  par- 
ticipating in  this  conference  accordingly  agree  to 
recommend  to  their  governments  that  an  inter- 
national wool  study  group  should  be  established. 

(c)  Conference  agrees  that  UK  Govenmient 
should  be  invited  to  obtain  by  February  1,  1947 
from  governments  which  received  invitations  to 
conference  their  decisions  regarding  establishment 
of  a  wool  study  group  and  to  arrange  for  a  first 
meeting  of  study  group. 

6.  Conference  was  agreed  that  it  would  be  im- 
portant that  proposed  study  group  should  main- 
tain close  liaison  with  existing  organizations  in 
wool  field  with  a  view  to  taking  full  advantage  of 
information  collected  by  these  organizations. 

U.S.  DELEGATION  TO  ILO  TEXTILES  INDUS- 
TRIAL COMMITTEE 

The  Secretary  of  State  announced  on  November 
13  that  the  President  has  approved  the  composi- 
tion of  the  United  States  Delegation  to  attend  the 
meeting  of  the  Textiles  Industrial  Committee  of 
the  International  Labor  Organization.  These 
nominations  were  submitted  by  the  Secretary  of 
State  upon  the  recommendation  of  the  Secretary 
of  Labor,  Lewis  B.  Schwellenbach.  Tliis  meet- 
ing was  held  in  Brussels,  Belgium,  November 
14^22,  1946. 

The  composition  of  the  United  States  Delega- 
tion is  as  follows : 


942 


Department  of  State  Bulletin     •     November  24, 1946 


ACTIVITIES  AND   DEVELOPMENTS 


Go\t;knment  Representatives 

ilemhers 

Robert  J.  Myers,  Manpower  Division,  Office  of  Mili- 
tary Government  for  Germany  (U.S.)  ;  assistant 
commissioner  designate,  Bureau  of  Labor  Statistics, 
U.S.  Department  of  Labor,  Washington,  D.C. 

Bene  Lutz,   economic   analyst.   Leather   and   Textile 
Division,  U.S.  Department  of  Commerce,  Washing- 
ton, D.C. 
Adi^isers 

Verl  E.  Roberts,  chief  of  the  Minimum  Wage  Deter- 
mination Section  of  the  Economics  Branch,  Wage 
and  Hour  and  Public  Contracts  Division,  U.S.  De- 
partment of  Labor,  New  York,  N.Y. 

Murray  Ross,  assistant  chief.  International  Labor 
Organizations   Branch,    Division    of    International 


Labor,  Social  and  Health  Affairs,  U.S.  Department 
of  State,  Washington,  D.C. 

Emplo:st;rs'  Representatives 

Members 

Edwin  Wilkinson,  assistant  to  the  president.  National 

Association  of  Wool  Manufacturers,  New  York,  N.  Y. 
Herbert  H.  Schell,  president,  Sidney  Blumenthal  and 

Company,  Inc.,  New  York,  N.Y. 

Workers'  Representatives 

Members 

Lloyd    Klenert,    secretary-treasurer.    United    Textile 

Workers  of  America,  Washington,  D.C. 
John  Vertente,  Jr.,  executive  council  member,  United 

Textile  Workers  of  America,  New  Bedford,  Mass. 


Moscow  Telecommunications  Conference 


BY  FRANCIS  COLT  DE  W0LF> 


This  is  a  report  of  a  successful  mission  to  Mos- 
cow— a  telecommunications  mission.  First  of  all 
it  might  be  well  to  try  to  clarify  in  our  minds  just 
what  we  mean  by  telecommujucations.  It  was  as 
recently  as  1932,  at  the  Madrid  International 
Radio  Conference,  that  the  term  telecommunica- 
tions was  first  officially  adopted.  It  is  defined  as 
follows  in  the  International  Radio  Regulations: 

Telecommunication:  Any  telegraph  or  tele- 
phone communication  of  signs,  signals,  writings, 
images,  and  sounds  of  any  nature,  by  wire,  radio, 
or  other  systems  or  processes  of  electric  or  visual 
(semaphore)  signaling. 

Or,  to  put  it  in  another  way,  your  telephone,  your 
radio  receiver  on  which  you  are  now  hearing  me, 
your  telegraph,  your  submarine  cable,  your  tele- 
vision set,  your  walkie-talkie,  your  radiotelegraph 
between  New  York  and  London  or  between  an  air- 
port and  a  plane  circling  above  it — all  are  included 
in  the  term  telecomm,unications.  And  now  to 
come  back  to  our  Moscow  conference ;  it  all  began 
this  way. 

In  1944,  in  Chicago,  there  was  held  a  world  avia- 
tion conference  at  which  most  of  the  countries  of 
the  world  were  present,  with  the  important  ex- 


ception of  the  Union  of  Soviet  Socialist  Republics. 
This  conference  set  up  a  Provisional  International 
Civil  Aviation  Organization  which  has  come  to 
be  known  as  PICAO  and  which,  ever  since  its 
creation,  has  been  most  active  in  the  promotion  of 
international  civil  aviation  interests.  It  is  now  a 
going  concern,  with  its  seat  at  Montreal,  and  has 
a  Council  and  an  Assembly  somewhat  modeled  on 
the  organization  of  the  United  Nations.  The 
U.S.S.R.  is  as  yet  not  a  member  of  PICAO. 

In  the  same  year  of  1944  there  was  held  in  Wash- 
ington a  meeting  known  as  the  Dumbarton  Oaks 
conference,  of  five  powers — the  U.S.A.,  the 
U.S.S.R.,  the  U.K.,  France,  and  China.  Its  pur- 
pose was  to  prepare  an  outline  for  a  new  world 
organization.  At  San  Francisco,  in  1945,  a  con- 
ference of  all  the  United  Nations  took  place, 
wliich  perfected  the  plans  for  the  Charter  of  a 
United  Nations  organization,  which  as  you  all 
know  is  now  a  going  concern.  The  U.S.S.R.  par- 
ticipated both  in  the  Dumbarton  Oaks  conference 

'  Address  delivered  over  the  Columbia  Broadcasting 
System  from  Washington,  D.  C,  on  Nov.  9,  1946  and  re- 
leased to  the  press  on  tlie  same  date.  Mr.  de  Wolf  is  Chief 
of  the  Telecommunications  Division,  Office  of  Transport 
and  Communications,  Department  of  State. 


943 


ACTIVITIES  AND  DEVELOPMENTS 


and  in  the  San  Francisco  conference  and  is  now 
one  of  tlie  leading  members  of  the  United  Nations 
organization. 

At  a  Telecommunications  Conference  held  in 
Bermuda  in  the  fall  of  1945  to  settle  certain  out- 
standing questions  between  the  United  States  and 
the  British  Commonwealth  of  Nations,  it  was  in- 
formally agreed  that  it  would  be  helpful  to  hold  a 
Preliminary  Five-Power  Telecommunications 
Conference,  somewhat  modeled  on  the  Dumbarton 
Oaks  conference,  to  consider  a  basic  reorganiza- 
tion of  the  existing  International  Telecommunica- 
tions Union.  I  should  explain  that  the  Inter- 
national Telecommunications  Union,  which  was 
first  established  at  Paris  in  1865  under  the  name 
of  the  International  Telegraph  Union,  unlike  the 
new  Provisional  International  Civil  Aviation 
Organization  (PICAO)  and  the  United  Nations, 
has  no  permanent  bodies  which,  in  the  interval 
between  international  telecommunications  confer- 
ences, can  effectively  dispose  of  international  tele- 
communications problems  that  may  arise  during 
such  periods.  Both  the  American  and  British 
Delegations  at  Bermuda  felt  the  imperative  need  of 
creating  a  new  Telecommunications  Union  which 
would  be  resi:)onsive  to  the  ever-increasing  prob- 
lems in  the  field  of  telecommunications;  and  it 
was  further  felt  that  the  success  of  a  union  required 
the  active  participation  of  the  U.S.S.R.,  it  being 
realized  that,  while  such  participation  in  the  avia- 
tion field  was  useful,  it  was  absolutely  essential  in 
the  field  of  telecommunications.  I  might  explain 
here  that  one  of  the  most  important  functions  of 
the  Union  is  to  provide  mechanisms  whereby  inter- 
ference between  radio  stations  is  eliminated  or  at 
least  greatly  minimized.  While  such  elimination 
obviously  is  essential  to  your  enjoyment  of  radio 
programs,  it  is  a  matter  of  life  and  death  when  it 
comes  to  the  question  of  communications  with 
ships  at  sea  and  even  more  so  with  planes  in  the 
air. 

At  the  Bermuda  telecommunications  conference 
it  was  consequently  informally  agreed  that  either 
the  preparatory  or  the  main  world  conference 
should  take  place  in  Moscow  and  the  other  in  the 
United  States.  The  Soviet  Government  was  then 
approached  and  indicated  a  willingness  to  follow 
such  a  program,  expressing  a  preference  for  the 


holding  in  Moscow  of  the  preliminary  conference 
and  the  convening  in  the  United  States  of  a  world 
conference. 

On  September  24  of  this  year  an  American 
Delegation,  composed  of  26  representatives  of 
Government  agencies  and  of  private  American 
companies  and  organizations,  left  Washington  by 
plane  and  flew  to  Berlin,  where  a  Soviet  plane 
transported  it  directly  to  Moscow.  At  the  Moscow 
airport  the  Delegation  was  met  by  the  Soviet 
Deputy  Minister  of  Communications,  Mr.  Fortus- 
henko.  The  latter  proved  himself  to  be  an  able 
and  forceful  representative  of  his  country  and  one 
who  on  practically  all  issues  was  willing  to  meet 
the  other  delegations  half  way.  He  had  the  great 
advantage  of  being  able  to  speak  and  understand 
the  English  language.  In  ten  minutes'  talk  at  the 
airport  we  agreed  on  the  general  conduct  of  the 
conference.  The  next  day,  September  28,  the  con- 
ference formally  opened  and  continued  for  the 
following  three  weeks. 

In  his  instruction  to  the  chairman  of  the  Dele- 
gation the  Secretary  of  State  had  said,  among  other 
things,  "The  purpose  of  the  meeting  at  Moscow  is 
to  hold  informal  preliminary  discussions  prior  to 
the  proposed  Woi'ld  Telecommunications  Con- 
ference." The  Secretary  of  State  further  in- 
structed the  Delegation  at  no  time  to  give  the  ap- 
pearance of  becoming  a  party  to  a  five-nation  bloc. 
Before  outlining  briefly  the  results  of  the  Moscow 
telecommunications  conference,  I  think  it  worth- 
while to  stress  that  one  of  the  outstanding  facts  of 
the  conference  was  the  harmonious  relations  ex- 
isting between  the  five  delegations  and  the 
friendly  spirit  in  which  all  matters  were  debated. 
Another  interesting  factor  was  the  willingness  of 
the  Soviet  Delegation  to  work  in  close  coopera- 
tion with  the  American  Delegation  and  to  make 
reasonable  accommodations  in  its  position.  It 
was  evident  that  the  Soviet  Delegation  had  devoted 
considerable  time  and  effort  in  pi'eparing  its  pro- 
posals for  consideration  at  the  Moscow  conference 
and  that  the  Soviet  Government  desired  to  par- 
ticipate fully  and  actively  in  future  international 
telecommunications  arrangements.  I  might  point 
out,  in  this  connection,  that  at  telecommunications 
conferences  a  large  number  of  the  delegates  are 
known  to  each  other  since  they  have  participated 


944 


Department  of  State  Bulletin     •     November  24, 1946 


ACr/V/7/£S  AND   DEVELOPMENTS 


in  previous  conferences.  As  a  matter  of  fact,  at 
these  conferences  national  lines  are  often  for- 
gotten since  it  is  not  unusual  to  see  broadcasting 
interests  of  various  countries  align  themselves  to- 
gether to  present  a  common  front  to,  let  us  say, 
aeronautical  radio  interests.  Eadio  waves  have 
a  way  of  ignoring  man-made  boundaries  and  of 
being  very  indifferent  to  political  ideologies.  And 
now  as  to  what  was  accomplished  at  Moscow. 

The  conference  decided  that  the  next  world  tele- 
communications meeting  should  take  place  be- 
ginning July  1,  1947,  at  which  time  the  telecom- 
munications convention  of  Madrid  would  be  re- 
vised to  provide  for  an  entirely  new  structure  of 
the  International  Telecommunications  Union.  At 
the  present  time  the  Union  consists  merely  of 
meetings  taking  place  every  five  years  and  of  a 
permanent  bureau  set  up  in  Bern  under  the  gen- 
eral administration  of  the  Swiss  Government. 
This  bureau,  however,  has  no  powers  whatever 
and  for  all  intents  and  purposes  is  merely  a  regis- 
try office  of  radio  frequencies  and  a  publisher  of 
service  documents.  All  delegations  present  at  the 
Moscow  conference  agreed  that  the  new  Union 
sliould  have  an  administrative  council,  composed 
of  15  persons,  a  permanent  secretariat,  and  a  cen- 
tral frequency  registration  board.  It  was  also 
agreed  that  the  ITU  should  be  affiliated  with  the 
United  Nations  organization  and  should  become 
what  is  known  in  the  Charter  of  the  United  Na- 
tions as  a  "specialized  agency".  The  Interna- 
tional Telecommunications  Union,  however,  would 
retain  its  autonomous  character  and  would  be  ad- 
ministered by  its  own  council.  The  Central  Fre- 
quency Registration  Board  (CFRB)  is  an  Ameri- 
can invention.  As  far  as  that  goes,  most  of  the 
other  suggestions  adopted  by  tlie  Moscow  confer- 
ence were  based  on  American  proposals.  For  the 
last  three  years  preparatory  committees  in  Wash- 
ington have  been  working  on  proposals  for  the 
complete  reorganization  of  the  international  tele- 
communications administrative  structure.  The 
American  proposal  for  the  creation  of  a  central 
frequency  registration  board,  wliicli  was  adopted 
unanimously  by  the  Moscow  conference,  may  be 
described  briefly  as  follows.  In  the  past,  when  a 
country  wislied  to  use  a  frequency  for  a  particular 
radio  station,  it  merely  notified  the  Bern  bureau 


of  the  fact  and  the  latter  then  published  the  in- 
formation in  what  is  known  as  a  frequency  list. 
It  made  no  difference  whether  the  proposed  fre- 
quency would  interfere  with  other  radio  stations 
in  the  rest  of  the  world.  Under  the  proposed  set- 
up, a  new  procedure  would  be  followed.  Let  us 
assume,  for  instance,  that  the  United  States  wished 
to  build  a  short-wave  radio  station  in  Washington, 
with  a  power  of  50  kilowatts  and  a  frequency  of 
15,000  kilocycles.  This  information  would  be  for- 
warded to  the  central  frequency  board,  on  which 
would  sit  five  impartial  and  competent  radio  tech- 
nicians. They  would  examine  the  application  of 
the  United  States  to  determine  whether  the  pro- 
posed station  would  cause  any  interference  to  ex- 
isting stations.  If  it  did  not,  the  frequency  would 
be  registered  and  would  thereafter  be  protected 
from  interference  from  any  other  stations  in  any 
other  countries.  If,  on  the  other  hand,  the  board 
was  of  the  opinion  that  the  new  station  with  its 
proposed  frequency  would  cause  serious  interfer- 
ence to  one  or  more  other  stations  situated  in  other 
countries,  it  would  so  inform  the  Government  of 
the  United  States  and  suggest  that  the  latter  select 
some  other  frequencies.  However,  if  the  United 
States  should  insist  on  using  the  frequency  in  ques- 
tion, it  would  so  inform  the  board.  The  latter 
would  take  note  of  this  fact  and  publish  the  in- 
formation given  by  the  American  Government  in 
a  column  entitled  "Notification".  In  these  circum- 
stances, however,  no  protection  whatever  would  be 
given  to  the  station  by  other  countries  and  if  tlie 
.  new  station  suffered  interference  it  could  not  seek 
any  remedy  from  any  of  the  other  members  of 
the  Telecommunications  Union.  This  is  obviously 
a  step  in  the  right  direction,  although  it  should  be 
obvious  that  it  still  leaves  quite  a  lot  of  latitude  to 
the  various  governments  since  the  board  does  not 
have  the  power  to  forbid  the  use  of  a  frequency 
which  it  considers  would  cause  interference  to 
other  stations  in  other  countries. 

The  Moscow  conference  also  agreed  that  there 
should  be  called  in  the  fall  of  1947  a  world  high- 
frequency  broadcasting  conference  whose  purpose 
would  be,  in  the  first  place,  to  assign  frequencies  to 
short-wave  stations  all  over  the  world  and,  in  the 
second  place,  to  establish  a  new  world  high-fi-e- 
quency  broadcasting  organization  whose  purpose 


945 


ACTIVITIES  AND   DEVELOPMENTS 


would  be  to  facilitate  in  every  way  the  interchange 
of  short-wave  broadcast  programs  between  coun- 
tries and  eliminate  causes  of  interference  and  in 
other  ways  improve  the  existing  working  of  this 
important  phase  of  telecommunications. 

Finally,  a  personal  woi'd.  During  its  whole 
stay  in  Moscow,  the  American  Delegation  was 
treated  with  the  utmost  courtesy  aiid  hospitality  by 
the  Soviet  communication  officials.  It  was  given 
an  opportunity  to  visit  the  Kremlin — a  favor 
rarely  bestowed,  even  on  high  foreign  diplomatic 
officials  in  Moscow.  It  was  invited  frequently  to 
the  Moscow  Opera,  whose  performances  were 
magnificent.  Technicians  on  the  Delegation  were 
afforded  an  opportunity  to  visit  the  telephone, 
telegraph,  television,  and  broadcasting  facilities 
of  the  Soviet  Government  in  Moscow.  A  car  was 
placed  at  the  disposition  of  the  members  of  the 
Delegation,  who  thus  had  an  opportunity  to  visit 
the  countryside  around  Moscow  as  well  as  the  city 
itself.  Every  effort  was  made  to  make  the  stay  of 
the  American  Delegation,  and  of  the  other  delega- 
tions in  Moscow,  comfortable  and  pleasant. 

And  so,  both  from  the  professional  and  personal 
point  of  view,  we  all  came  back  from  the  Soviet 
Union  with  a  feeling  that  the  Moscow  conference 
had  been  a  success  and  had  accomplished  the  task 
with  which  it  had  been  entrusted. 

FIFTH  ASSEMBLY  OF  THE  INTER-AMERICAN 
COMMISSION  OF  WOMEN  > 

The  Fifth  Assembly  of  the  Inter- American  Com- 
mission of  Women  will  be  held  at  the  Pan  Amer- 
ican Union,  Washington,  D.C.,  December  2-12, 
1946.  The  Fourth  Assembly  was  held  in  Wash- 
ington in  April  1944.^  Sessions  of  the  Assembly 
will  be  restricted  to  members ;  however,  on  Friday, 
December  13,  the  Inter-American  Commission  of 
Women  has  invited  women's  organizations  of  the 
United  States  and  of  the  other  American  republics 

Among  the  important  items  on  the  agenda  of 


'  Prepared  by  the  Division  of  International  Conferences 
of  the  Department  of  State  in  collaboration  with  the  De- 
partment of  Labor. 

=  Bulletin  of  Apr.  8,  1944,  p.  32ri. 

'  Prepared  by  the  Division  of  International  Conferences 
in  collaboration  vpith  the  Civil  Aeronautics  Administra- 
tion. 


to  participate  in  a  forum  on  "The  Role  of  Women 
in  the  World  Today". 

the  Assembly  are :  ( 1)  the  report  on  the  position  of 
women  in  the  American  republics  which  the  Inter- 
American  Commission  of  Women  will  present  to 
the  forthcoming  Ninth  International  Conference 
of  American  States  scheduled  to  be  held  in  1947 ; 

(2)  the  recommendations  of  the  Commission  to  the 
conference  for  the  women  of  the  Americas;  and 

(3)  the  statute  and  bylaws  which  will  give  the 
Commission  its  permanent  status. 

The  Inter- American  Commission  of  Women  is 
an  official  organization  which  was  created  by  the 
Sixth  International  Conference  of  American 
States  held  at  Habana  in  1928,  continued  at  the 
Seventh  Conference  at  Montevideo  in  1933,  and  es- 
tablished on  a  permanent  basis  by  the  Eighth  Con- 
ference which  took  place  at  Lima  in  1938.  There 
are  twenty-one  members,  with  one  official  delegate 
appointed  by  each  of  the  American  republics.  The 
United  States  Delegate  to  the  Inter-American 
Commission  of  Women  is  Miss  Mary  M.  Cannon, 
who  was  appointed  by  President  Roosevelt  in 
April  1944.  Miss  Cannon  is  chief  of  the  Interna- 
tional Division  of  the  Women's  Bureau,  United 
States  Department  of  Labor. 

From  its  beginning,  the  Commission  has  worked 
to  secure  civil  and  political  rights  for  women.  Its 
duties  were  enlarged  by  the  Lima  conference,  when 
it  was  charged  with  the  permanent  study  of  all  the 
problems  concerning  American  women  and  asked 
to  report  to  the  Governing  Body  of  the  Pan  Amer- 
ican Union  before  each  International  Conference 
of  American  States,  on  problems  concerning 
women  which  in  its  judgment  should  be 
considered. 

TWENTY-NINTH  SESSION  OF  THE  INTERNA- 
TIONAL   COMMISSION    FOR    AIR    NAVIGATION' 

The  Twenty-ninth  Session  of  the  International 
Commission  for  Air  Navigation  (ICAN  or 
CINA)  was  held  at  Dublin,  Ireland,  from  October 
28  to  October  30,  1946.  Twenty -one  of  the  thirty- 
three  member  states  participated. 

Glen  A.  Gilbert,  consultant  to  the  Administra- 
tor of  the  Civil  Aeronautics  Administration,  at- 
tended the  session  as  a  United  States  observer. 
(Continued  on  page  963) 


946 


Department  of  State  Bulletin     •     November  24, 1946 


THE  RECORD  OF  THE  WEEK 


Effective  Date  of  the  Foreign  Service  Act 


STATEMENT  BY  THE  SECRETARY  OF  STATE' 


I  am  happy  to  say  that  our  Ambassadors  and 
Ministers  abroad  are  today  getting  their  first  pay 
raise  since  1855.  This  is  but  one  of  the  improve- 
ments in  our  Foreign  Service  made  possible  by  the 
Foreign  Service  Act  of  1946,  which  was  passed  by 
the  Congress  three  months  ago  and  which  be- 
comes effective  today. 

This  measure  provides  a  framework  for  the 
better  Foreign  Service  which  must  represent  this 


country  abroad.  It  is  very  encouraging  to  me  that 
this  act  was  passed  by  the  unanimous  consent  of 
l)oth  Houses  and  that  Republicans  and  Democrats 
alike  contributed  to  its  provisions. 

The  Service  has  already  established  a  tradition 
of  non-partisan  activity  in  the  execution  of  a  na- 
tional foreign  policy.  The  broad  base  on  which 
the  new  act  i-ests  sustains  my  belief  that  it  will 
continue  in  that  tradition. 


The  American  Foreign  Service  of  Tomorrow 


BY  ASSISTANT  SECRETARY  RUSSELL  ^ 


Tomorrow  a  major  change  comes  over  the  For- 
eign Service  of  the  United  States.  The  Congress, 
fully  aware  of  the  importance  of  our  foreign  rela- 
tions, passed,  without  a  dissenting  vote,  in  its  last 
session  an  act  which  not  only  reorganizes  that 
Service  but  goes  far  to  revitalize  it  and  make  it  a 
more  powerful  instrument  of  our  national  will. 
That  act  becomes  effective  tomorrow  morning.' 

The  Foreign  Service  of  the  United  States  is  to- 
day an  organization  of  some  11,000  persons  who 
serve  their  country  in  evei-y  foreign  land.  Al- 
though the  members  of  the  Foreigii  Service  are 
most  widely  kno^vn  for  the  diplomatic  aspects  of 
their  work,  in  actual  fact  they  try  to  be  all  things 
to  all  Americans  abroad.     The  good  Foreign  Serv- 


ice officer  must  be  a  combination  of  diplomat, 
attorney,  judge,  minister,  newspaperman,  editor, 
salesman,  businessman,  farmer,  sailor,  and  econo- 
mist. He  is  the  man  to  whom  all  Americans  turn 
for  help  in  facing  the  endless  problems  which  arise 
in  foreign  lands. 

Here  at  home  many  goverimiental  and  private 
agencies  perform  varied  services  for  the  American 
people.     Abroad  where  our  citizens  nuist  depend 


'  Made  on  the  occasion  of  the  coming  Into  effect  of  the 
Foreign  Service  Act  of  1946  on  Nov.  13,  1046  and  released 
to  the  press  on  the  same  date. 

'  Address  made  over  the  Columbia  Broadcasting  System 
from  Washington,  D.  C.  on  Nov.  12,  1946  and  released  to 
the  press  on  same  date. 

'  Bulletin  of  Aug.  18,  1946,  p.  333. 


947 


THE  RECORD   Of  THE  WEEK 


much  more  on  our  Government's  representatives 
almost  all  the  services  are  combined  in  the  Foreign 
Service  of  the  United  States.  When  there  is  a 
mutiny  on  an  American  ship,  when  an  American 
citizen  runs  afoul  of  foreign  laws,  when  an  Amer- 
ican is  born  overseas,  or  when  he  wants  to  get 
married,  it  is  our  Foreigii  Service  that  is  always 
ready  to  protect  his  rights  or  to  help  solve  his 
problems.  When  a  foreign  government  or  its  pri- 
vate citizens  want  to  know  about  our  agriculture, 
our  literary  development,  our  latest  aircraft,  our 
mines,  or  our  business  firms,  again  the  Foreign 
Service  provides  the  answers.  It  is  this  universal 
quality  of  the  Service  which  makes  it  so  fascinat- 
ing but  at  the  same  time  so  complex.  The  ideal 
Foreign  Service  is  something  we  shall  aspire  to 
but,  with  only  human  material,  may  never  fully 
achieve. 

The  Foreign  Service  of  the  past  has  in  my  opin- 
ion done  an  excellent  job.  Despite  insufficient 
funds  and  inadequate  personnel  it  has  contributed 
much  to  our  national  welfare. 

The  Foreign  Service  of  coming  years,  however, 
must  shoulder  a  much  heavier  burden  and  must 
do  it  well  if  our  national  heritage  is  to  be  pre- 
served. Today,  as  never  before  in  our  history, 
the  fate  of  our  people  depends  on  a  solid  foreign 
policy  and  on  efficient  execution  of  that  policy 
abroad. 

American  foreign  policy  is  not  determined  by 
the  Foreign  Service.  Much  of  the  raw  material  of 
that  policy,  however,  is  provided  by  the  Service 
in  its  flow  of  reports  to  the  various  departments 
of  the  Government.  This  flow  of  intelligence 
from  overseas  is  the  grist  for  the  policy  mill  of 
our  Government.  The  policy  itself  is,  of  course, 
basically  determined  by  the  American  people,  but 
the  issues  are  clarified  and  the  problems  resolved 
in  Washington  with  the  help  of  the  reports  and 
evaluations  from  the  Foreign  Service. 

It  is  in  the  execution  of  our  foreign  policy  that 
the  Foreign  Service  plays  its  major  role.  Our 
Foreign  Service  officers  serving  as  Ministers  and 
Ambassadors,  Counselors,  Secretaries  of  Em- 
bassy, Consuls,  Vice  Consuls,  and  Attaches,  are 
largely  responsible  for  the  successful  application 
of  that  policy  throughout  the  world.  On  high 
levels  such  as  the  Council  of  Foreign  Ministers  or 
the  Security  Council  of  the  United  Nations,  the 


Secretary  of  State  or  the  members  of  Congress 
may  participate  in  policy  implementation,  but  the 
great  bulk  of  the  work  in  its  far-reaching  detail 
is  done  in  the  field  by  the  professional  Service. 
If  this  world-wide  Service  performs  its  function 
well,  if  it  represents  our  national  will  and  skilfully 
executes  our  foreign  policy,  it  may  do  much  to 
bring  us  through  the  anxious  years  ahead  without 
conflict  and  with  the  friendship  and  support  of  the 
nations  of  the  world. 

If  on  the  other  hand  the  Foreign  Service  bun- 
gles its  job,  if  we  clumsily  make  enemies  in  small 
things  as  well  as  large,  we  may  find  ourselves  again 
facing  a  major  war. 

Fortunately  the  cost  of  a  fine  Foreign  Service 
is  not  great  from  a  monetary  point  of  view.  A 
single  day  of  the  last  war  cost  $245,000,000.  One 
day  of  such  a  war  could  have  operated  the  Foreign 
Service  for  years.  I  do  not  think  I  have  to  em- 
phasize the  point  that  the  dollars  spent  on  such 
a  service  are  an  investment  if  that  service  can  help 
to  make  a  war  unnecessary.  Even  if  it  cost  a 
great  deal  more,  I  am  sure  all  would  agree  that 
it  is  worth  it  to  have  the  reality  of  peace  and 
prosperity  in  this  world  brought  nearer.  The 
Foreign  Service  is  but  one  of  several  major  tools 
to  achieve  this  end  but  a  very  important  one. 

Tomorrow  a  great  change  comes  over  our  Serv- 
ice, a  change  that  has  been  long  due  and  long  hoped 
for.  Tlianks  to  the  Foreign  Service  Act  of  1916 
we  will  be  able  to  pay  our  personnel  overseas  sal- 
aries on  which  they  can  live  and  do  their  jobs.  In 
the  past  our  representatives  abroad  have  often 
had  to  pay  their  own  expenses.  As  a  consequence 
it  has  sometimes  been  necessary  for  us  to  select 
men  with  a  view  to  personal  wealth.  This  has  re- 
sulted in  some  instances  in  the  man  best  fitted  for 
the  job  not  being  available.  With  the  salaries  now 
authorized  and  the  allowances  which  we  hope  the 
next  Congress  will  appropriate,  this  unfortunate 
situation  will  largely  be  a  thing  of  the  past.  We 
are  still  not  as  generous  to  our  Foreign  Service 
personnel  as  some  other  nations,  but  from  tomor- 
row almost  all  of  our  representatives  abroad  will 
be  able  to  live  and  work  on  their  government  sal- 
aries and  allowances. 

Tomorrow  another  anachronism  is  abolished: 
a  professional  Foreign  Service  officer  will  be 
able  to  accept  the  job  of  Minister  or  Ambassador 


948 


Department  of  State  Bulletin 


November  24, 1946 


THE   RECORD  OF  THE  WEEK 


without  withdrawing  from  the  Service.  Oddly 
enough  in  the  past  such  an  appointment  required 
resignation  from  the  Service.  It  was  as  if  a  col- 
onel were  required  to  resign  from  the  Army  to  be- 
come a  general. 

But  we  cannot  be  content  with  the  existing  mer- 
its of  the  personnel,  for  it  is  only  through  growth 
and  weeding  out  that  the  Service  can  attain  the 
highly  tempered  efficiency  for  which  we  strive. 
There  are  always  some  who  fall  by  the  wayside, 
who  fail  to  live  up  to  the  promise  of  younger  years, 
who  cease  to  develop.  These  men  must  go  if 
there  is  to  be  a  continual  development  and  ad- 
vancement of  the  Service  as  a  whole.  To  achieve 
this  end  we  will  put  into  effect  a  promotion-up  or 
selection-out  program  in  some  ways  similar  to  that 
of  the  Navy.  Foreign  Service  officers  who  fail  to 
gain  promotion  after  a  given  period  of  time  will 
be  retired  from  the  Service  to  be  replaced  by  those 
who  are  continuing  to  grow  in  stature.  This  will 
be  hard  on  many  men  who  have  and  will  perform 
valuable  services,  but  it  is  essential  if  the  counti-y 
is  to  have  representation  abroad  of  the  caliber  it 
requires  today. 

To  carry  on  the  development  of  Foreign  Service 
personnel  throughout  their  careers,  a  Foreign 
Service  training  program  is  now  under  way. 
Here  we  have  borrowed  from  the  sister  services, 
the  Army  and  the  Navy,  the  concept  of  continuous 
in-service  training  throughout  a  man's  career. 
We  visualize  our  future  representative  abroad  as 
having  the  benefit  of  several  tours  of  duty  at  a 
Foreign  Service  Institute  specifically  designed  to 
increase  that  man's  value  to  the  Service.  We  also 
hope,  as  part  of  this  program,  to  enable  officers 
to  spend  some  time  at  leading  universities  broad- 
ening their  backgrounds  and  expanding  their 
interests.  As  a  climax  to  the  training  of  the 
future  Ambassador  or  Minister,  attendance  at  the 
National  War  College  is  envisaged.  Already  we 
have  11  officers  taking  the  first  course  to  be  given 
by  that  highest-level  Governmental  educational 
organization. 

In  a  further  effort  to  broaden  the  base  of  the 
Sei'vice  and  to  give  it  flexibility  a  Foreign  Serv- 
ice Reserve  Corps  is  being  created.  This  will  be 
composed  of  individuals  of  unusual  skills  and 
professions  who  will  serve  as  officers  overseas  for 
short  periods  of  time,  and  will  give  to  the  Ameri- 


can representation  the  benefit  of  their  specialized 
training  and  background. 

Another  basic  change  that  comes  over  the  Serv- 
ice tomorrow  lies  in  the  nature  of  its  top  direc- 
tion, the  Board  of  the  Foreign  Service.  In  the 
past  the  Department  of  State  has  had  only  limited 
advice  and  assistance  from  the  other  departments 
of  the  Government  in  the  supervision  of  the  Serv- 
ice which  represents  all  national  interests  abroad. 
The  new  organization,  the  Board  of  Directors,  so 
to  speak,  is  made  up  of  representatives  of  the 
Departments  of  Labor,  Agriculture,  Commerce, 
and  State,  with  other  governmental  agencies  sit- 
ting in  when  matters  of  concern  to  them  are  being 
considered.  We  feel  that  this  joint  supervision 
will  reflect  more  clearly  than  in  the  past  the  true 
balance  of  our  varied  interests  abroad.  For  in  the 
broad  picture  our  Service  represents  no  one  branch 
of  our  Government  but  our  entire  community  of 
effort,  and  the  broader  the  base  of  our  guidance 
the  sounder  should  be  our  actions. 

I  look  forward  to  a  tremendous  improvement  in 
the  quality  of  our  Service  as  well  as  to  an  increase 
in  its  strength.  An  increase  from  11,000  to  17,000 
membei-s  of  the  Service  may  not  sound  great  in 
terms  of  other  Government  agencies,  but  we  feel 
that  it  will  take  us  out  of  the  unhappy  situation 
of  just  getting  by  with  the  job  and  into  the  solid 
position  of  doing  the  job  thoroughly  and  well. 
One  of  the  interesting  aspects  of  this  expansion, 
which  is  already  under  way,  is  the  number  of 
veterans  of  the  recent  war  who  are  entering  the 
Service.  Among  the  Army,  Navy,  and  Marine 
officers  and  men  who  fought  World  War  II  there 
has  developed  a  keen  sense  of  the  importance  of 
international  relations.  They  have  seen  war,  and 
they  don't  want  to  see  another.  The  Service  is 
most  fortunate  to  be  able  to  draw  these  men  into 
its  ranks,  and  we  now  estimate  that  within  a  year 
40  percent  of  the  Foreign  Service  officers  who  will 
be  serving  abroad  will  be  veterans.  They  are 
bringing  to  our  Service  a  valuable  background — 
experience  in  the  most  rugged  i-ealities  of  life  that 
will  temper  the  Service  in  all  its  aspects. 

Thus  strengthened  and  revitalized  the  Foreign 
Service  of  tomorrow  will  more  truly  represent 
America  and  the  ideals  in  which  we  believe.  It 
may  be  one  of  the  principal  agencies  for  bringing 
about  that  world  peace  for  which  we  all  strive. 


949 


The  Foreign  Economic  Policy  of  the  United  States^ 

BY  UNDER  SECRETARY  CLAYTON 


Time  and  science  having  mastered  those  physi- 
cal phenomena  which  served  as  the  chief  bulwark 
of  the  isolationists,  the  American  people  are  now 
settling  down  to  their  responsibilities  as  full  part- 
ners in  world  aflairs  and  appear  to  like  it.  At 
least  one  would  judge  so  from  the  attention  which 
the  subject  receives,  particularly  in  the  press  and 
on  the  radio.  The  emphasis  so  far  having  been 
on  the  political  aspects  of  our  foreign  policy,  I 
wish  to  direct  your  attention  this  evening  to  its 
economic  aspects.  The  two  are  closely  tied 
together. 

The  objective  of  the  foreign  economic  policy 
of  the  United  States  Government  is  to  lay  the 
foundation  for  peace  by  an  expansion  in  world 
economy,  that  is,  by  an  increase  in  the  pi-oduction, 
distribution,  and  consumption  of  goods  through- 
out the  world,  to  the  end  that  people  everywhere 
may  have  more  to  eat,  more  to  wear,  and  better 
homes  in  which  to  live. 

Sounds  very  simple,  doesn't  it?  And  it  is  sim- 
ple. It  is  only  in  the  formulation  of  measures  to 
achieve  our  objective  that  we  run  into  some 
opposition  and  some  difficulties. 

But  let  us  first  examine  the  objective  itself. 

As  we  have  said  it  is  a  simple  objective.  We  do 
not  claim  for  it  any  altruistic  motives.  There  is, 
however,  nothing  inconsistent  in  the  protection  of 
enlightened  self-interest  with  a  due  regard  for  the 
rights  and  interests  of  others.  Indeed,  the  two 
almost  invariably  go  hand  in  hand. 

So,  let  us  admit  right  off  that  our  objective  has 
as  its  background  the  needs  and  interests  of  the 
people  of  the  United  States. 

We  have  here  a  large  and  growing  population 
with  the  highest  standard  of  living  and  the  great- 
est productive  capacity  in  the  world.     Indeed, 


'  Address  delivered  before  the  Thirty-Third  National 
Foreign  Trade  Convention  in  New  York,  N.  ¥.,  on  Nov.  13, 
1946  and  released  to  the  press  on  the  same  date.  Mr. 
Clayton  is  Under  Secretary  for  Economic  Affairs,  Depart- 
ment of  State. 


our  productive  capacity  of  many  important  com- 
modities exceeds  that  of  the  rest  of  the  world  com- 
bined. That  capacity,  however,  is  geared  to  the 
production  of  much  more  of  some  things  than  our 
people  require.  Likewise,  we  require  of  many 
other  things  much  more  than  we  can  produce. 

Thus,  the  efficient  operation  of  our  productive 
machine  leaves  us  with  great  deficits  and  great 
surpluses,  which  we  must  trade  out  with  the  rest 
of  the  world. 

We  need  markets — big  markets — around  the 
world  in  which  to  buy  and  sell.  We  ask  no  special 
privileges  in  any  of  these  markets.  We  hope  that 
others  will  neither  ask  nor  be  granted  special 
privileges. 

In  the  Atlantic  Charter,  and  again  in  the  mutual 
aid  agreements,  we  laid  down  the  principle  of  free 
and  equal  access  by  all  countries  to  the  trade  and 
raw  materials  of  the  world.  We  are  devoted  to 
that  principle.  It  is  basic.  It  doesn't  mean  free 
trade.    It  means  non-discriminatory  trade. 

So  much  for  the  policy.  Now  how  is  it  to  be 
put  into  effect  ? 

Measures  for  implementing  this  policy  fall  into 
two  general  categories: 

The  first  relates  to  financial  assistance  to  coun- 
tries faced  with  problems  of  relief,  reconstruction, 
and  development. 

Since  the  end  of  the  war  the  United  States  Gov- 
ernment has  made  available  as  grants  for  emer- 
gency relief  and  rehabilitation  abroad  about  three 
billions  of  dollars.  In  addition,  it  has  made 
available  as  credits  for  reconstruction  and  develop- 
ment in  foreign  countries,  for  the  purchase  of  sur- 
plus property,  and  for  the  financing  of  lend-lease 
pipe-lines,  inventories,  etc.,  a  total  of  about  17 
billions  of  dollars.  A  gi'and  total  of  about 
20  billions  of  dollars.  Nearly  half  of  this  sum 
represents  contributions  of  the  United  States  Gov- 
ernment to  international  organizations  to  which 
other  governments  have  also  contributed  substan- 
tially. It  will  take  some  time  to  lend  and  spend 
this  money.    Without  this  help  and  the  hope  which 


950 


Department  of  State  Bulletin 


November  24, 1946 


THE  RECORD  OF  THE  WEEK 


it  has  revived  in  the  hearts  of  millions  of  people, 
chaos  would  have  followed  the  end  of  the  war  in 
some  countries  and  world  recovery  would  undoubt- 
edly have  been  retarded  for  many  years. 

The  second  measure  designed  to  promote  the 
achievement  of  our  objectives  relates  to  the  elimi- 
nation of  discriminations  and  the  reduction  of 
tariffs  and  other  barriers  which  restrict  world 
trade  and  limit  the  production  and  consumption 
of  goods. 

The  United  States  Government  is  moving  on  a 
broad  front  in  this  field. 

In  the  summer  of  1945  the  Hull  Keciprocal 
Trade  Agreements  Act  was  renewed  by  Congress 
for  the  fourth  time,  and  with  broadened  powers. 

About  a  year  ago  the  Government  issued  its 
Proposals  for  the  Expansion  of  World  Trade  and 
Employment. 

These  proposals  deal  with  such  problems  as  re- 
ductions in  trade  barriers,  elimination  of  discrim- 
inations in  international  trade,  prevention  of  re- 
striction of  international  commerce  by  the  action 
of  cartels  and  combines,  intergovernmental  com- 
modity arrangements  for  dealing  with  the  prob- 
lem of  surpluses,  the  adoption  of  a  common  code 
to  govern  the  regulation  of  international  com- 
merce by  governments,  and  the  creation  of  an  In- 
ternational Trade  Organization  under  the  Eco- 
nomic and  Social  Council  to  administer  such  a 
code. 

Nearly  a  year  ago,  the  Government  of  the 
United  Kingdom  announced  its  full  agreement  on 
all  important  points  in  these  proposals  and  its 
acceptance  of  the  proposals  as  a  basis  for  inter- 
national discussion. 

Subsequently,  the  French  Government  made  a 
similar  announcement. 

Since  October  15,  representatives  of  our  Govern- 
ment have  been  meeting  in  London  with  spokes- 
men from  17  other  countries  as  members  of  a  pre- 
paratory committee  of  the  United  Nations  Con- 
ference on  Trade  and  Employment  to  discuss  plans 
for  a  broad  international  agreement  on  the  con- 
ditions of  trade  and  a  suggested  charter  of  an 
International  Trade  Organization.  This  Con- 
ference was  called  by  the  Economic  and  Social 
Council  of  the  United  Nations. 

Next  spring  we  shall  meet  again  with  the  same 
countries  to  negotiate  specific  reductions  in  tariffs, 


the  elimination  of  discriminations  in  international 
trade,  and  to  reach  more  definite  agreement  on  the 
charter. 

Then,  next  summer  or  autumn,  we  expect  that 
there  will  be  a  world  conference  under  United  Na- 
tions auspices  to  which  most  of  the  countries  of  the 
world  will  be  invited  for  the  purpose  of  discussing, 
and  we  hope  accepting,  the  draft  charter  gf  an  in- 
ternational trade  organization  worked  out  by  the 
Preparatory  Committee. 

Out  of  this  process  should  come  agreement  on 
reciprocal  reductions  of  trade  barriers  and  elimi- 
nation of  discriminatory  practices;  a  code  of 
foreign  trade  policy  dealing  with  governmental 
trade  barriers,  restrictive  practices  by  private 
business,  and  intergovernmental  commodity  agree- 
ments; and  a  constitution  for  an  international 
trade  organization. 

Our  objective  is  always  an  expansion  in  world 
economy  through  an  increase  in  the  production, 
distribution,  and  consumption  of  goods. 

Our  method — international  agreement. 

Formerly,  nations  acted  unilaterally  in  matters 
affecting  their  international  trade;  in  doing  so, 
they  usually  hurt  their  neighbors,  the  neighbors 
retaliated,  and,  in  the  end,  everybody  was  hurt  and 
everybody  was  mad.  Hereafter,  we  expect  that 
actions  affecting  other  countries  will  only  be 
taken  after  consultation,  through  the  machinery  of 
the  proposed  International  Trade  Organization. 

I  do  not  need  to  argue  before  this  audience  the 
merits  of  measures  designed  to  increase  the  ex- 
change of  goods  and  services  between  nations. 
The  purpose  of  our  attack  on  excessive  barriers  to 
such  exchange  is  to  bi'ing  about  a  rising  standard 
of  living  for  our  people  and  for  all  peoples. 

Although  this  alone  cannot  guarantee  peace,  the 
realization  of  higher  living  standards  everywhere 
will  create  a  climate  conducive  to  the  preservation 
of  peace  in  the  world. 

We  know  from  experience  that  the  kind  of  eco- 
nomic warfare  waged  by  most  nations  in  the  inter- 
war  period  sows  the  seeds  of  discord  and  renders 
improbable  any  effective  international  agi-eement 
on  the  essential  elements  of  peace. 

Now,  the  principal  criticism  we  hear  of  our  pro- 
gram is  this :  that  we  are  following  the  course  pur- 
sued after  the  first  World  War  in  the  stimulation 
of  exports  through  foreign  lending,  and  in  the  end 


951 


THE  RECORD   Of  THE  WEEK 


that  the  results  will  be  the  same:  an  unhealthy 
expansion  in  production  followed  by  a  collapse 
■when  the  lending  stops,  inability  to  collect  the 
sums  loaned  abroad,  getting  ourselves  called 
"Uncle  Shylock",  and,  in  the  end,  making  enemies 
and  not  friends. 

Well,  I  am  afraid  this  does  describe  what  hap- 
pened Etfter  the  first  "World  War  but  it  tells  only 
part  of  the  story.  In  that  war,  we  ran  debts 
against  our  Allies  for  the  billions  of  dollars  of 
munitions  and  supplies  which  we  furnished  them 
and  wliich  they  shot  away  at  our  common  enemies. 
This  time  we  knew  better.  We  have  not  asked  our 
Allies  to  return  in  kind  or  in  money  things  con- 
sumed or  destroyed  in  our  common  defense.  We 
knew  they  could  never  be  returned.  ' 

Following  the  first  World  War,  it  is  true  that 
much  American  capital  was  loaned  and  invested 
abroad.  It  is  also  true  that  while  this  was  going 
on  Congress  piled  one  high  tariff  on  top  of  an- 
other, making  it  extremely  difficult  for  foreigners 
to  repay. 

In  spite  of  this,  while  there  have  been  some 
extremely  bad  spots,  our  investors  abroad  have 
not  fared  badly  on  the  whole. 

A  study  by  the  Department  of  Commerce  shows 
that  on  an  aggregate  investment  abroad  of  ap- 
proximately 13  billion  dollars.  United  States  in- 
vestors received  during  the  21-year  period  1920- 
1940,  approximately  12  billion  dollars  in  interest 
and  dividends.  At  the  end  of  1940  their  foreign 
investments  were  still  estimated  to  be  worth  nearly 
10  billion  dollars.  Put  another  way,  American  in- 
vestors got  practically  3  percent  per  annum  on 
their  money  invested  abroad  for  21  years  plus  the 
return  of  30  percent  of  their  capital,  with  the  re- 
maining 70  percent  estimated  to  be  worth  100 
cents  on  the  dollar. 

Investors  in  American  railway  bonds  and  Amer- 
ican real  estate  bonds,  for  example,  did  not  fare 
so  well. 

This  time  we  know  better  than  to  raise  tariffs. 
On  the  contrary,  we  propose  to  make  reciprocal, 
selective  reductions  in  tariffs  and  to  clear  away 
other  impediments  to  the  international  exchange 
of  goods  in  order  that  our  debtors  may  have  an 
opportunity  to  repay  us,  may  continue  to  buy  our 
surpluses,  and  in  order  that  our  standard  of  liv- 
ing and  theirs  may  be  raised,  not  lowered. 


But,  the  critics  are  saying:  "That  is  all  very 
well.  Your  policy  will  be  very  popular  while  the 
j^roceeds  of  your  loans  are  being  spent  with  result- 
ant increase  in  exports,  in  production  and  em- 
ploj'ment,  but  just  wait  until  the  borrowers  start 
paying  back  by  the  shipment  of  goods  into  the 
United  States  in  competition  witli  our  own  pro- 
duction, then  you  will  see  what  will  happen;  pro- 
duction here  will  drop,  unemployment  will  set  in, 
and  the  dej^ression  will  be  on." 

This  view  fails  to  take  account  of  important 
changes  in  our  domestic  economy  in  the  past  de- 
cade. 

With  a  substantial  increase  in  population  ac- 
companied by  a  50  percent  expansion  in  domestic 
economy,  we  need  more  of  foreign  goods  of  all 
kinds.  Much  larger  imports  of  raw  materials  are 
required  to  feed  our  greatly  expanded  facilities  for 
the  manufacture  of  producer  and  capital  goods. 
Our  productive  facilities  in  the  consumer  goods 
field  have  shown  comparatively  little  increase  in 
the  past  decade ;  hence,  our  need  to  import  larger 
quantities  of  such  goods  to  satisfy  the  demands  of 
a  prosperous  and  growing  population. 

It  will  require  less  than  a  billion  dollars  a  year 
for  25  years  to  completely  amortize  all  the  foreign 
credits  made  available  by  our  Government  since 
the  end  of  the  war,  including  our  contributions  to 
the  International  Bank  and  the  International 
Monetary  Fund.  After  a  few  years,  this  sum 
should  be  provided  by  the  annual  expenditures  of 
American  tourists  alone. 

Many  people  still  look  upon  the  United  States 
as  nearly  self-sufficient.  As  a  matter  of  fact,  this 
was  never  true  by  any  modern  standard  and  it  is 
much  less  true  today  than  ever  before. 

Due  to  the  serious  depletion  of  our  natural  re- 
sources during  the  war,  we  must  now  import  many 
metals  and  minerals  which  before  the  war  we  even 
sometimes  exported,  such  as  copper,  lead,  and  zinc. 
Today  we  must  annually  import  150  to  200  million 
dollars  worth  of  copper  alone,  whereas  before  the 
war,  we  sometimes  exported  copper. 

Indeed  we  are  today  net  importers  of  practi- 
cally all  the  important  metals  and  minerals  except 
two — coal  and  oil.  Wlio  knows  how  long  we  can 
go  without  importing  oil? 

In  the  past,  the  emphasis  in  our  foreign  trade 
has  been  on  exports ;  within  the  near  future  it  will 


952 


Department  of  State  Bulletin 


November  24, 1946 


THE  RECORD  OF  THE  WEEK 


probably  be  on  imports.  This  is  true  because  of 
our  shift  from  debtor  to  creditor,  because  of  the 
depletion  in  our  natural  resources,  and  because  of 
the  wants  of  a  growing  and  prosperous  popula- 
tion. 

No  nation  in  modern  times  can  long  expect  to 
enjoy  a  rising  standard  of  living  without  in- 
creased foreign  trade. 

Because  of  our  dependence  upon  imports  of 
strategic  metals  and  minerals,  what  happens  to 
American-owned  reserves  of  such  materials  abroad 
is  a  matter  of  national  concern.  We  ask  no  special 
privileges.  American  enterprises  in  the  foreign 
field  require  only  equitable  treatment,  and  the 
right  of  the  free  flow  of  their  products  to  market. 

The  rights  of  all  legitimate  enterprises  estab- 
lished by  U.S.  nationals  abroad  are  of  concern  to 
the  Government.  They  are  dealt  with  in  treaties  of 
friendship,  commerce,  and  navigation  similar  to 
the  treaty  which  we  signed  with  China  last  week. 
We  are  actively  at  work  on  a  major  program  for 
negotiating  treaties  of  this  character  with  many 
governments.  The  program  is  designed  to  modern- 
ize and  extend  the  coverage  of  existing  treaties, 
some  of  which  are  more  than  a  century  old.  These 
instruments  determine  the  basic  treaty  rights  of 
American  nationals,  corporations,  goods,  and  ves- 
sels in  foreign  countries.  In  most  respects  they 
are  completely  mutual,  assuring  the  other  country 
the  same  rights  as  are  obtained  by  the  United 
States.  They  complement  the  provisions  of  the 
draft  charter  of  the  International  Trade  Organi- 
zation with  respect  to  trade  barriers. 

Now,  these  plans  and  programs  which  we  have 
been  discussing  this  evening  would  have  little 
meaning  in  these  times  if  they  did  not  tie  right  into 
the  problem  of  world  peace.  Not  all  wars  have 
had  their  origins  in  economic  causes  but  most  of 
them  have.  This  is  recognized  in  the  organiza- 
tion of  the  United  Nations  where  the  Economic 
and  Social  Council  is  a  principal  organ  along  with 
the  Security  Council. 

Our  program  for  expansion  of  world  economy 
and  the  promotion  of  economic  peace  among  na- 
tions, which  will  always  be  associated  with  the  be- 
loved name  of  Cordell  Hull,  has  become  a  national 
program  endorsed  by  leaders  of  both  parties,  sup- 
ported by  labor,  agriculture,  and  industry,  and 


opposed  only  by  special  interests  seeking  the  pres- 
ervation of  a  high  protectionist  policy.  The  Na- 
tional Foreign  Trade  Council  has  always  been  in 
the  forefront  of  the  supporters  of  this  program. 

Our  objective  can  be  finally  achieved  only 
through  the  constant  watchfulness  and  support  of 
the  American  people.  An  abandonment  of  the 
program  is  unthinkable  because  it  would  be  a  step 
backward  with  serious  consequences  for  the  peace 
of  the  world. 

There  are  only  two  economic  roads  open  to  us. 
One  leads  backward  to  the  tragic  mistakes  all  of 
us  made  following  the  first  World  War.  The 
other  leads  forward  to  prosperity  and  peace. 

Which  road  shall  we  take  ? 

The  answer  depends  on  you  and  me  and  140 
million  other  Americans. 

Chemical  Society  Gift — Continued  from  page  938 

The  text  of  the  resolution  approved  by  the  board 
of  directors  of  the  American  Chemical  Society  is 
as  follows: 

"It  was  moved,  seconded,  and  carried  that  a  sum 
not  to  exceed  twenty-five  thousand  dollars  ($25,- 
000)  be  appropriated  for  the  payment  of  expenses 
in  this  country  of  foreign  chemists  and  chemical 
engineers  who  wish  to  engage  in  advanced  study 
and  who  could  not  make  the  trip  without  such  aid, 
the  persons  to  be  designated  by  the  Secretariat  of 
the  United  Nations  Educational,  Scientific  and 
Cultural  Organization,  provided  that  those  chem- 
ists and  chemical  engineers  selected  agree  to  return 
to  the  country  of  their  origin  for  a  period  of  not 
less  than  two  years  after  completion  of  their  work 
in  this  country,  and  further  provided  that  ade- 
quate funds  for  this  purpose  have  not  been  pro- 
vided to  UNESCO  by  the  participating  nations, 
and  further  provided  that  the  Division  of  Natural 
Sciences  of  UNESCO  is  organized  in  a  manner 
which  the  American  Chemical  Society  Board  of 
Directors  believes  adequate  to  accomplish  its  pur- 
pose; and  that  the  Treasurer  be  and  is  hereby 
authorized  and  instructed,  upon  certification  by  the 
Secretary  of  the  Society  that  the  conditions  herein 
specified  have  been  met,  to  make  the  necessary 
expenditures  from  funds  not  otherwise  appropri- 
ated." 


953 


Prosecution  of  Major  Nazi  War  Criminals 

REPORT  FROM  FRANCIS  BIDDLE  TO  PRESIDENT  TRUMAN  > 


[Released  to  the  press  by  the  White  House  November  12] 

Text  of  letter  sent  hy  the  President  on  November  12 
to  Francis  Biddle,  United  States  Member  of  the 
International  Military  Tribwrwd 

Dear  Judge  Biddle  : 

I  am  profoundly  impressed  by  your  report, 
which  I  have  studied  with  careful  attention. 

Wlien  the  Niiniberg  Tribunal  was  set  up,  all 
thoughtful  persons  realized  that  we  were  taking 
a  step  that  marked  a  departure  from  the  past. 
That  departure  is  emphasized  in  the  verdict  and 
the  execution  of  the  Nazi  war  criminals  and  in  your 
recommendations  for  the  guidance  of  nations  in 
dealing  with  like  problems  in  the  future.  An 
undisputed  gain  coming  out  of  Niimberg  is  the 
formal  recognition  that  there  are  crimes  against 
humanity. 

Your  report  is  an  historic  document.  It  is 
encouraging  to  know  that  the  dissent  of  the  USSR 
was  not  on  the  fundamental  principle  of  inter- 
national law  but  over  the  inferences  which  should 
be  drawn  from  conflicting  evidence. 

I  am  impressed  by  the  change  in  point  of  view 
of  the  defendants  and  their  lawyers  from  indif- 
ference and  skepticism  at  the  outset  to  a  determi- 
nation to  fight  for  their  lives.  The  fact  that  you 
and  your  colleagues  could  bring  about  this  change 
in  attitude  is  in  itself  a  tribute  to  the  judicial  spirit 
and  objectivity  of  the  Tribunal. 

I  am  satisfied  that  the  defendants  received  a  fair 
trial.  I  hope  we  have  established  for  all  time  the 
proposition  that  aggressive  war  is  criminal  and 
will  be  so  treated.  I  believe  with  you  that  the 
judgment  of  Niirnberg  adds  another  factor  tending 
toward  peace. 

That  tendency  will  be  fostered  if  the  nations 
can  establish  a  code  of  international  criminal  law 
to  deal  with  all  who  wage  aggressive  war.  The 
setting  up  of  such  a  code  as  that  which  you  recom- 


'  Judge  Biddle  was  United  States  Member  of  the  Inter- 
national Military  Tribunal.  For  further  Information,  see 
Report  of  Justice  Jackson,  Bulletin  of  Oct.  27,  1&46,  p. 
771. 


mend  is  indeed  an  enormous  undertaking,  but  it 
deserves  to  be  studied  and  weighed  by  the  best 
legal  minds  the  world  over.  It  is  a  fitting  task  to 
be  undertaken  by  the  governments  of  the  United 
Nations.  I  hope  that  the  United  Nations,  in  line 
with  your  proposal,  will  reaffinn  the  principles  of 
the  Niirnberg  Charter  in  the  context  of  a  general 
codification  of  offenses  against  the  peace  and 
security  of  mankind.  All  of  these  recommenda- 
tions bring  into  special  prominence  the  importance 
of  the  decisions  which  lie  in  the  future. 

Since  your  work  is  completed  I  accept  as  of  to- 
day your  resignation  as  United  States  Member  of 
the  International  Military  Tribunal.  You  have 
been  part  of  a  judicial  proceeding  which  has  blazed 
a  new  trail  in  international  jurifej^rudence  and  may 
change  the  course  of  history. 

To  your  work  you  brought  experience,  great 

learning,  a  judicial  temperament  and  a  prodigious 

capacity  for  work.     You  have  earned  my  thanks 

and  the  thanks  of  the  Nation  for  this  great  service. 

Very  sincerely  yours, 

Harry  S.  Truman 

Text  of  Judge  Biddle's  report  to  the  President 

Washington,  D.  C. 

November  9, 1946. 
Dear  Mr.  Presdoent  : 

You  will  remember  that  when  I  conferred  with 
you  after  my  return  from  Niirnberg  you  asked  me 
to  make  a  report  to  you  on  The  International  Mili- 
tary Tribunal  for  the  punishment  of  the  major 
Nazi  war  criminals,  and  to  make  reconnnendations 
for  further  action.  This  report  and  these  recom- 
mendations I  now  have  the  honor  to  submit  to  you. 

When  you  appointed  me,  a  little  over  a  year  ago, 
as  the  American  Member  of  the  Tribunal  you  ex- 
pressed your  abiding  interest  in  this,  the  first 
serious  attempt  to  try  those  leaders  of  Germany 
who  had  been  responsible  for  launching  the  war 
and  who  were  the  prime  cause  of  the  appalling 
atrocities  which  followed  in  the  wake  of  that  war. 


954 


Department  of  State  Bulletin    •    November  24, 1946 


THE  RECORD   OF  THE  WEEK 


You  were  particularly  anxious,  I  remember, 
that  no  disagreement  should  arise  among  the  four 
great  nations  who  on  August  7,  1945,  had  signed 
the  London  Agreement  and  Charter  providing  for 
the  trial,  formulating  the  law  and  establishing  the 
practice,  a  disagreement  which  might  prevent  or 
obstruct  this  significant  experiment  in  the  field  of 
international  justice.  It  was  your  hope  that 
Niirnberg  might  serve  as  a  working  example  for 
the  world  of  how  four  nations  could  achieve  re- 
sults in  a  specific  field  of  endeavor.  You  recalled 
the  failures  in  trying  war  criminals  after  the  first 
World  War,  and  were  fully  aware  oi  the  difficul- 
ties that  would  be  encountered.  There  were  four 
different  systems  of  law  and  practice  to  be  recon- 
ciled, with  their  varying  points  of  view  and  pro- 
cedures. International  law — the  law  and  practice 
of  nations — was  indeed  a  base  and  a  background, 
but  had  in  its  practical  application  become  some- 
what sterile  and  academic.  Language  difficulties 
were  presented,  the  whole  thing  was  in  a  tentative 
and  uncertain  state. 

It  is  not,  of  course,  for  me  to  say  whether  jus- 
tice was  done  by  the  Judgment  of  Nui-nberg. 
That  Judgment  is  now  being  discussed  by  the  in- 
formed public  opinion  of  the  United  States  and 
of  the  world.  But  I  think  I  can  say  that  the  unity 
of  action  that  you  hoped  for  among  the  four  na- 
tions a  year  ago  has  been  well  realized.  The  fun- 
damental principles  of  international  law  enunci- 
ated by  the  Judgment  of  Niirnberg  were  stated 
unanimously  in  the  opinion  of  the  Tribunal  by 
the  four  member  nations,  the  United  States,  United 
Kjngdom,  Republic  of  France,  and  the  U.S.S.R. 

This  unity  resulted  from  a  willingness  by  all 
four  nations  to  compromise  on  inevitable  and  de- 
sirable differences  in  points  of  view.  This  give 
and  take,  the  essence  of  the  democratic  process, 
could  not  have  been  accomplished  over  night. 
Many  weeks  went  by  before  mutual  confidence 
between  the  members,  an  essential  condition  to 
prompt  and  effective  work,  was  established.  We 
were  not  interrupted  by  other  engagements.  We 
did  not  adjourn.  We  stayed  in  Niirnberg  for  a 
year,  until  finally  the  job  was  done.  And  this 
stability,  this  day-to-day  relationship,  made 
easier  the  development  of  a  habit  of  cooperation. 
The  Tribimal,  for  instance,  sat  in  public  session  for 
six  hours  every  day. 


Parenthetically  I  should  like  to  add  a  word 
about  the  dissent  of  the  U.S.S.R.  The  comments 
I  have  made  about  the  unanimity  at  Niirnberg  are 
not  affected  by  the  dissent  on  certain  individual 
defendants,  as,  indeed,  the  judges  of  the  U.S.S.R. 
were  careful  to  point  out.  The  dissent  did  not 
express  any  disagreement  with  the  fundamental 
principles  of  international  law,  in  which  General 
Nikitchenko  full}'  joined ;  in  fact  it  was  on  those 
principles  that  he  based  the  reasoning  for  his 
dissent.  The  dissent  in  a  word  was  over  the  in- 
ferences which  should  be  drawn  from  conflicting 
evidence.  I  personally  believe  that  this  dif- 
ference— on  the  facts  and  not  on  the  law — was 
extremely  healthy. 

At  the  beginning  we  established  a  rule  that  no 
member  of  the  Tribunal  should  talk  to  the  press 
or  give  interviews.  This  was  rigidly  adhered  to. 
Any  announcements  were  made  through  the  Gen- 
eral Secretary,  and  were  announcements  of  the 
Tribunal,  not  of  any  individual  member.  Very 
soon  we  found  that  less  constraint  existed  if  our 
conferences  were  not  minutely  recorded.  We 
therefore  kept  only  a  brief  record  in  our  minutes 
of  the  decisions.  On  rare  occasions  a  member 
would  record  his  disagreement,  giving  the  rea- 
sons. These  private  sessions  were  held  two  or 
three  times  a  week  so  as  to  deal  currently  with  the 
constant  flow  of  motions  and  applications. 

Wlien  I  use  the  word  members  I  mean  to  include 
the  alternates.  Except  in  the  actual  voting  in 
decisions,  which  was  the  responsibility  of  the 
members  under  the  Charter,  tlie  alternates  took 
as  active  a  part  at  the  private  sessions.  And  I 
should  like  here  to  express  my  gratitude  to  my 
associates — the  fairness  and  courtesy  of  the  Brit- 
ish ;  the  patience  and  cooperation  of  the  represent- 
atives of  the  U.S.S.R. ;  the  French  sense  of  logic 
coupled  witli  a  warm  feeling  for  human  justice. 
The  long  judicial  experience  and  sound  common 
sense  of  my  alternate.  Judge  Parker,  were  of  the 
greatest  assistance  to  me,  and,  indeed,  to  all  of  us. 

It  was  interesting  to  feel — what  all  of  us  so 
keenly  felt — the  change  in  the  point  of  view  of 
the  defendants  and  their  lawyers  as  the  trial 
progressed.  At  first  they  were  indifferent,  skep- 
tical, hostile.  But  very  soon,  as  the  Tribunal 
ruled  on  the  merits  of  the  motions  that  arose,  fre- 
quently against  the  prosecution,  and  went  to  great 


955 


THE   RECORD  OF  THE  WEEK 


pains  to  obtain  witnesses  and  documents  even  re- 
motely relevant  to  the  defendants'  case,  this  atti- 
tude changed :  the  defendants  began  to  fight  for 
their  lives.  And  what  had  threatened  to  be  a 
sounding  board  for  propaganda  or  a  stage  for 
martyrdom,  turned  into  a  searching  analysis  of 
the  years  that  felt  Hitler's  rise  to  power  and  his 
ultimate  destruction — the  objective  reading  of  this 
terrible  chapter  of  History.  This  change  was  in 
itself  an  instinctive  tribute  to  our  concept  of 
Justice. 

What,  basically,  did  Niirnberg  accomplish? 
Within  a  year  and  a  half  after  the  war  ended  the 
major  war  criminals  were  tried  and  punished.  Al- 
though the  judges  were  selected  from  the  victor- 
ious allies,  the  trial  was  fair.  This  has  been  uni- 
versally recognized.  But  of  greater  importance  for 
a  world  that  longs  for  peace  is  this :  tlie  Judgment 
has  formulated,  judicially  for  the  first  time,  the 
proposition  that  aggressive  war  is  criminal,  and 
will  be  so  treated.  I  do  not  mean  that  because  of 
this  interpretation  men  with  lust  for  conquest  will 
abandon  war  simply  because  the  theory  of  sover- 
eign immunity  cannot  be  invoked  to  protect  them 
when  they  gamble  and  lose ;  or  that  men  will  ever 
be  discouraged  from  enlisting  in  armies  and  fight- 
ing for  their  country,  because  military  orders  no 
longer  can  justify  violations  of  established  inter- 
national law.  Such  a  conclusion  would  be  naive. 
But  the  Judgment  of  Niirnberg  does  add  another 
factor  to  those  which  tend  towards  peace.  War  is 
not  outlawed  by  such  pronouncements,  but  men 
learn  a  little  better  to  detest  it  when  as  here,  its 
horrors  are  told  day  after  day,  and  its  aggressive 
savagery  is  thus  branded  as  criminal.  Aggressive 
war  was  once  romantic;  now  it  is  criminal.  For 
nations  have  come  to  realize  that  it  means  the  death 
not  only  of  individual  human  beings,  but  of  whole 
nations,  not  only  with  defeat,  but  in  the  slow  deg- 
radation and  decay  of  civilized  life  that  follows 
that  defeat. 

The  conclusions  of  Niirnberg  may  be  ephemeral 
or  may  be  significant.  That  depends  on  whether 
we  now  take  the  next  step.  It  is  not  enough  to  set 
one  great  precedent  that  brands  as  criminal  ag- 
gressive wars  between  nations.  Clearer  definition 
is  needed.  That  this  accepted  law  was  not  spelled 
out  in  legislation  did  not  preclude  its  existence  or 
prevent  its  application,  as  we  pointed  out  in  some 


detail  in  the  Judgment.  But  now  that  it  has  been 
so  clearly  recognized  and  largely  accepted,  the 
time  has  come  to  make  its  scope  and  incidence  more 
precise.  Thus  in  1907  the  Rules  of  Land  Warfare 
adopted  by  the  Hague  Convention  did  not  so  much 
create  new  law  as  formulate  for  more  effective  ap- 
jjlication  a  definition  of  those  practices  which  had 
been  already  outlawed  for  many  generations  by 
most  civilized  nations.  These  practices  were  not 
specifically  termed  criminal  by  the  Convention. 
But  thereafter  they  have  always  been  punished  as 
crimes. 

In  short,  I  suggest  that  the  time  has  now  come 
to  set  about  drafting  a  code  of  international  crim- 
inal law.  To  what  extent  aggressive  war  should 
be  defined,  further  methods  of  waging  war  out- 
lawed, penalties  fixed,  procedure  established  for 
the  punishment  of  offenders  I  do  not  here  consider. 
Much  thought  would  have  to  be  given  to  such  mat- 
ters. But  certain  salutary  principles  have  been  set 
forth  in  the  Charter,  executed  by  four  great  pow- 
ers, and  adhered  to,  in  accordance  with  Article  5  of 
the  Agreement  by  19  other  governments  of  the 
United  Nations.  Aggressive  war  is  made  a  crime — 
"planning,  preparation,  initiation  or  waging  of  a 
war  of  aggression."  The  official  position  of  de- 
fendants in  their  governments  is  barred  as  a  de- 
fense. And  orders  of  the  government  or  of  a  supe- 
rior do  not  free  men  from  responsibility,  though 
they  may  be  considered  in  mitigation. 

For,  as  we  pointed  out  in  the  Judgment,  criminal 
acts  are  committed  by  individuals,  not  by  those 
fictitious  bodies  known  as  nations,  and  law,  to  be 
effective,  must  be  applied  to  individuals. 

I  suggest  therefore  that  immediate  considera- 
tion be  given  to  drafting  such  a  code,  to  be  adopted, 
after  the  most  careful  study  and  consideration,  by 
the  governments  of  the  United  Nations. 

The  Charter  of  the  United  Nations  provides  in 
Article  13  that  "the  General  Assembly  shall  initi- 
ate studies  and  make  recommendations  for  the 
purpose  of  .  .  .  encouraging  the  progressive  de- 
velopment of  international  law  and  its  codifica- 
tion." Pursuant  to  this  Article  the  United  States 
has  already  taken  the  initiative  in  placing  upon 
the  Agenda  of  the  General  Assembly  meeting  in 
New  York  the  question  of  appropriate  action.  The 
time  is  therefore  opportune  for  advancing  the 
proposal  that  the  United  Nations  as  a  whole  re- 


956 


Department  of  State  Bulletin 


November  24, 1946 


THE   RECORD  OF  THE  WEEK 


affirm  the  principles  of  the  Niirnberg  Charter  in 
the  context  of  a  general  codification  of  offences 
against  the  peace  and  security  of  mankind.  Such 
action  would  perpetuate  the  vital  principle  that 
war  of  aggression  is  the  supreme  crime.  It  would, 
in  addition,  afford  an  opportunity  to  strengthen 
the  sanctions  against  lesser  violations  of  interna- 
tional law  and  to  utilize  the  experience  of  Niirn- 
berg in  the  development  of  those  permanent  pro- 
cedures and  institutions  upon  which  the  effective 
enforcement  of  international  law  ultimately  de- 
pends. 


I  am  taking  this  opportunity  to  resign  as  the 
United  States  member  of  The  International  Mili- 
tary Tribunal  and  am  asking  that  you  make  my 
resignation  immediately  effective.  I  want  to 
thank  you  for  the  honor  of  being  appointed,  for 
the  admirable  and  intelligent  help  given  us  by 
the  United  States  Army  of  Occupation  in  Ger- 
many which  your  orders  made  immediately 
available. 

With  warm  personal  regards,  believe  me, 
Respectfully  yours, 

Francis  Biddue 


Recommendations  by  Ambassador  Pauley  on  Japanese  Reparations 


[Released  to  the  press  Novembor  17] 

The  Acting  Secretary  of  State  announced  on 
November  17  that  Ambassador  Edwin  W.  Pauley, 
United  States  Reparations  Representative,  had 
that  day  submitted  to  the  President  a  compre- 
hensive report  on  JajUnese  reparations  compiled 
after  an  exhaustive  study  of  Japanese  industries 
by  a  mission  of  American  experts  under  his 
direction. 

Ambassador  Pauley's  report  recommends  com- 
plete removal  of  all  plants  devoted  to  the  making 
of  arms,  ammunition,  and  implements  of  war 
(other  than  those  subject  to  destruction  or  scrap- 
ping by  the  military),  and  all  plants  making  syn- 
thetic rubber,  aluminum,  and  magnesium. 

It  recommends  substantial  removals  of  facilities 
in  these  categories :  electric  power,  iron  and  steel, 
iron  ore  and  ferro-alloy  minerals,  copper,  machine 
tools,  chemicals,  heavy  electrical  machinery,  indus- 
trial explosives,  communications  and  communica- 
tions equipment,  railroad  equipment  and  rolling 
stock,  shipbuilding  and  merchant  shipping. 

The  Pauley  report  proposes  immunity  from  rep- 
arations for  the  following  industries :  handicrafts 
(including  pearl  culture),  silk,  leather,  fisheries, 
light  electrical  appliances,  cement  and  building 
materials,  food  processing,  lumber  and  sawmill 
equipment,  ceramics,  coal,  crude  petroleum,  crude- 
rubber  processing,  mining  of  gold  and  silver,  and 
refining  of  zinc,  lead,  tin,  sulphur,  and  pyrite. 

It  leaves  for  later  determination  the  decisions 


as  to  woolen  textile  machinery,  synthetic  fiber, 
cotton,  paper,  and  pulp. 

The  report  was  completed  in  April  and  was 
submitted  to  the  Department  of  State  for  review 
by  the  State-War-Navy  Coordinating  Committee 
before  presentation  to  the  President. 

In  submitting  his  report  to  the  President,  Am- 
bassador Pauley  said : 

"The  present  report  is  intended  to  develop  fur- 
ther the  principles  and  recommendations  of  my 
interim  report,  submitted  to  the  President  on  De- 
cember 19, 1945. 

"In  that  report,  I  emphasized  the  importance 
of  an  immediate  program  of  deliveries  to  the 
nations  entitled  to  reparations.  I  have  reaffirmed 
that  emphasis  in  the  present  report  because  my 
observations  and  those  of  my  staff  indicate  the 
rapid  deterioration  of  a  great  deal  of  material 
in  Japan,  owing  to  exposure  to  the  elements  and 
to  packing  difficulties." 

In  his  interim  report.  Ambassador  Pauley  also 
pointed  out  that  the  recommended  interim  re- 
movals would  probably  be  below  the  total  sum 
which  the  Allied  governments  would  eventually 
allocate  to  reparations.  In  the  present  report,  in 
a  number  of  instances,  he  recommended  greater 
reductions  of  Japanese  plants  and  facilities  but  in 
other  instances  he  recommended  some  increases  in 
plant  capacity  to  be  allowed  to  remain  in  Japan. 

Concerning  potential  effects  upon  Japan's  econ- 


957 


THE  RECORD  OF  THE  WEEK 


omy,  Ambassador  Pauley  said  that  "in  every  in- 
stance, my  recommendations  follow  the  principle 
of  severity  combined  with  fairness  in  order  to 
effect  the  industrial  disarmament  of  Japan,  but, 
at  the  same  time,  to  make  it  possible  for  the 
Japanese  people  to  establish  a  reasonable  econ- 
omy under  which  they  can  live  at  peace  with 
all  nations  and  especially  with  the  nations 
against  which  they  so  recently  aggressed."  He 
continued : 

"In  this  report,  I  have  not  dealt  specifically  or 
separately  with  Japanese  industrial  assets  in 
countries  or  territories  foi'merly  ruled  or  over- 
run by  Japan.  In  respect  to  all  such  countries 
and  territories,  I  feel  strongly  that  the  Ameri- 
can policy  should  not  be  to  remove  Japanese- 
owned  industrial  assets.  On  the  contrary,  the 
Japanese  physical  assets  should  remain  in  coun- 
tries in  which  they  are  located  and  their  value 
entered  against  the  reparations  claims  of  those 
countries. 

"Furthermore,  American  policy  should  concern 
itself  with  determining  what  Japanese  plants 
and  equipment  in  Japan  proper,  formerly  used 
to  exploit  the  raw  materials  and  human  re- 
sources of  a  territory  subject  to  Japanese  rule  or 
control,  can  advantageously  be  transferred  to  help 
round  out  an  independent  economy  for  that  terri- 
tory and  its  people." 

In  his  report,  Ambassador  Pauley  strongly  rec- 
ommended against  four  kinds  of  reparations: 
labor  reparations,  reparations  from  current  pro- 
duction or  recurrent  reparations,  reparations  out 
of  stocks  and  materials  on  hand,  and  the  taking  of 
stocks  and  bonds  of  commercial  enterprises  in 
Japan  as  reparations. 

"Generally  speaking",  he  said,  "the  nations 
which  are  entitled  to  reparations  from  Japan  have 
a  surplus  of  labor  themselves,  and  I  believe  that 
the  exportation  of  Japanese  labor  as  reparations 
would  delay  the  raising  of  the  standards  of  labor 
and  of  living  which  are  so  urgently  needed 
throughout  eastern  Asia. 

"As  to  recurring  reparations,  I  oppose  them  be- 
cause they  could  only  be  achieved  by  expanding 
the  industry  of  Japan.  The  result  would  be  to 
leave  Japan,  after  the  reparations  program  had 
been  completed,  both  with  a  surplus  capacity  con- 


vertible to  war  potential  and  with  a  competitive 
potential  in  export  markets  which  would  delay 
the  industrialization  of  neighboring  countries." 

As  to  reparations  from  existing  inventories, 
stocks  and  materials  on  hand,  except  gold  and 
other  precious  metals,  Ambassador  Pauley  ex- 
pressed the  belief  that  such  surpluses  will  be 
needed  for  commercial  export  during  the  tran- 
sitional period  to  enable  Japan  to  purchase  mini- 
mum necessary  imports. 

The  effort  to  take  reparations  in  stocks  and 
bonds,  he  commented,  "is  not  only  inconsistent 
with  our  whole  policy  of  taking  reparations,  'in 
kind',  but  would  lead  us  to  build  up  Japanese 
industry." 

Describing  the  responsibility  of  his  mission,  the 
Ambassador  stated : 

"The  mandate  under  which  my  mission  has 
worked  is  to  formulate  policy.  In  order  to  exe- 
cute that  mandate,  I  have  directed  members  of 
my  mission  to  work  with  the  kind  of  information 
which  relates  to  broad  categories  of  economic 
activity  and  to  the  relative  orders  of  magnitude 
of  those  categories  of  economic  activity  most  per- 
tinent to  reparations.  I  have  therefore  felt  under 
no  compulsion  to  require  verification  in  minute 
detail  of  the  accuracy  of  inventory  and  other  data 
from  Ja23anese  sources  furnished  to  my  mission 
either  directly  or  through  the  Supreme  Com- 
mander for  the  Allied  Powere. 

"All  members  of  my  mission  share  the  convic- 
tion that  eventually  the  Japanese  must  be  called 
on  to  furnish  complete  and  accurate  information 
in  full  detail.  They  can  be  constrained  to  do  so 
by  relatively  simple  programs  of  inventory  and 
licenses,  with  appropriate  penalties — such  as  con- 
fiscation— for  misinformation  or  concealment  of 
information." 

Ambassador  Pauley  emphasized  that  "even  the 
most  conscientious  formulation  of  policy  neces- 
sarily leaves  a  number  of  marginal  problems  which 
must  eventually  become  part  of  the  responsibility 
of  the  executive  agency  which  is  charged  with  the 
implementation  of  policy." 

"For  instance,  through  disarmament  and 
through  rej)arations  Japanese  industry  will  even- 
tually be  unable  to  operate  with  some  of  the  im- 
ported supplies  that  it  formerly  used,  or  to  con- 


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November  24, 1946 


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tinue  to  manufacture  a  number  of  commodities 
which  it  formerly  exported.  In  terms  of  broad 
categories,  such  contingencies  can  be  foreseen  and 
allowed  for  in  the  formation  of  policy;  but  it  is 
impossible  to  foresee  and  allow  for  all  contin- 
gencies. 

"It  is  possible,  however,  to  foresee  that  because 
of  marginal  industrial  idleness  arising  from  the 
effects  of  the  reparations  policy  as  a  whole,  a  fur- 
ther surplus  of  equipment  may  become  available 
either  for  reparations  or  for  conversion  to  ap- 


proved uses.  In  such  cases,  it  is  advisable  that  the 
Allied  Powers  should  be  in  a  position  to  authorize 
prompt  decisions." 

The  Acting  Secretary  of  State  wishes  to  take 
this  opportunity  to  express  the  appreciation  of 
the  State  Department  for  the  contribution  which 
this  report  and  the  other  reports  which  Ambas- 
sador Pauley  and  his  staff  have  prepared  on  Japa- 
nese reparations  have  made  to  the  United  States 
policy  on  this  subject. 


American  Business  With  the  Far  East 


BY  JOHN  CARTER  VINCENT 


American  business  with  the  Far  East  began  1G2 
years  ago.  The  Empress  of  China,  out  of  New 
York,  put  into  Canton  on  August  30,  1784  after 
making  a  tortuous  six-months'  voyage  around  the 
Cape  of  Good  Hope.  The  vessel's  cargo,  made 
up  of  furs,  cotton,  lead,  and  ginseng,  was  ex- 
changed at  Canton  for  tea,  silk,  and  chinaware. 
The  total  investment  in  the  venture  was  $120,000. 
The  promoters  cleared  $30,000.  This  was  good 
business;  it  was  private  enterprise;  and  it  was 
mutually  beneficial.  I  hasten  to  say  here  that  I 
do  not  actually  know  how  much  the  Chinese  made 
out  of  the  furs,  cotton,  lead,  and  ginseng,  but  hav- 
ing had  some  knowledge  of  Chinese  businessmen, 
I  still  think  I  am  safe  in  saying  that  the  benefit 
was  mutual. 

In  the  course  of  the  nineteenth  century  Ameri- 
can business  with  the  Far  East  expanded.  Gradu- 
ally our  trade  extended  to  other  portions  of  the 
Far  East:  Japan,  Korea,  the  Philippines,  Siam, 
and  adjoining  areas  of  Southeast  Asia.  Through- 
out this  period  American  trade  with  the  Far  East 
was  based  on  sound  business  considerations.  We 
asked  for  no  concessions  or  special  rights,  nor 
were  our  business  dealings  based  upon  exploita- 
tion associated  with  political  privilege  or  pressure. 

During  the  nineteenth  century  the  basic  factor 
in  our  close  ties  with  the  Far  East  was  trade.  Our 
early  treaties  with  China  and  Japan  were  framed 
largely  with  American  business  in  mind.    After 


the  Spanish-American  War  and  our  assumption 
of  territorial  responsibilities  in  the  Pacific,  notably 
in  the  Philippines,  political  and  strategic  factors 
gained  weight,  but  on  into  the  twentieth  century 
commercial  and  cultural  considerations  were  still 
to  the  fore  in  shaping  our  policies  toward  the  Far 
East.  Our  enunciation  of  the  "Open  Door"  and 
our  insistence  on  non-discriminatory  and  most- 
favored-nation  treatment  were  motivated  largely 
by  a  desire  to  promote  American  business  and  ex- 
pand international  trade  relations. 

In  his  radio  address  last  month  Secretary  Byrnes 
gave  voice  to  traditional  American  trade  policy  in 
the  following  words : 

"The  United  States  has  never  claimed  the  right 
to  dictate  to  other  countries  how  they  should  man- 
age their  own  trade  and  commerce.  We  have  sim- 
ply urged  in  the  interest  of  all  peoples  that  no 
country  should  make  trade  discriminations  in  its 
relations  with  other  countries."  ^ 

By  1936  our  foreign  trade  or  business  with  the 
Far  East  was  valued  at  close  to  one  billion  dollars. 
In  the  20-year  period  from  1915-35  the  Far  East's 
share  of  our  total  exports  increased  from  5  percent 


^Address  delivered  before  the  thirty-third  convention 
of  the  National  Foreign  Trade  Council  in  New  York,  N.  Y., 
on  Nov.  12,  1946  and  released  to  the  press  on  the  same 
date.  Mr.  Vincent  is  Director  of  the  Office  of  Far  Eastern 
Affairs,  Department  of  State. 

"  BuixBTiN  of  Oct.  27,  1946,  p.  743. 


959 


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to  16  percent.  In  1936  our  total  direct  investments 
in  the  Far  East  amounted  to  roughly  $335,000,000. 

In  making  this  brief  sketcli,  I  have  in  mind  a 
recent  tendency  toward  taking  an  unbalanced  view- 
point of  our  role  in  the  Far  East.  Political  and 
military  considerations,  as  important  as  they  are, 
seem  to  me  to  occujiy  a  disproportionate  share  of 
present  public  attention.  It  is  accepted  that  an 
all-important  objective  of  our  policies  is  to  provide 
for  the  security  of  the  United  States  and  the 
maintenance  of  international  peace,  but  I  think 
we  also  have  another  objective  of  equal  importance, 
that  is,  to  bring  about  in  the  relations  between  our- 
selves and  other  states  mutually  beneficial  commer- 
cial and  cultural  exchanges  which  will  promote 
international  welfai'e  and  understanding. 

These  are  interrelated  objectives.  I  feel  strongly 
that  we  cannot  be  successful  in  achieving  the  kind 
of  security  we  want,  or  in  maintaining  the  kind 
of  peace  we  want,  unless  we  take  an  active  and 
leading  part  in  international  commercial  and  cul- 
tural life.  I  will  go  further  and  say  that  a  strong 
element  in  our  security,  and  in  the  maintenance 
of  peace,  will  be  the  development  of  commercial 
and  cultural  ties  with  other  peoples. 

At  the  same  time,  it  is  my  conviction  that  a 
strong  national  defense  is  essential  to  the  pursuit 
of  our  broader  objective  of  developing  commercial 
and  cultural  relations.  We  must  be  equal  to  the 
task  of  encouraging  and  supporting  democracy 
and  progress.  There  may  be  times  and  occasions 
when,  in  the  short  view,  it  will  seem  advantageous 
to  our  security  to  throw  our  weight  or  influence 
on  the  side  of  the  statii.s  quo,  on  the  side  of  those 
forces  calculated  to  bring  about  immediate  or  early 
stability.  But  history,  I  believe,  will  show  that 
strength  lies  on  the  side  of  progress. 

In  Chicago  last  April  the  President  said : 

"In  the  Far  East,  as  elsewhere,  we  shall  encour- 
age the  growth  and  the  spread  of  democracy  and 
civil  liberties  .  .  .  The  roots  of  democracy, 
however,  will  not  draw  much  nourishment  in  any 
nation  from  a  soil  of  poverty  and  economic  dis- 
tress. It  is  a  part  of  our  strategy  of  peace,  there- 
fore, to  assist  in  the  rehabilitation  and  develop- 
ment of  the  Far  Eastern  countries."  ^ 


"  Bulletin  of  Apr.  14,  1946,  p.  623. 
*  Bulletin  of  Oct.  27,  1946,  p.  753. 


Today  we  are  faced  with  the  problem  of  a  re- 
turn of  American  business  to  the  Far  East  under 
conditions  which  are,  to  state  it  mildly,  uninviting. 
Japan  is  a  defeated  country  whose  economy  must 
perforce  remain  under  Allied  control  for  some 
time  to  come.  Korea  is  a  liberated  country  split 
in  half  at  parallel  38  between  us  and  the  Russians. 
In  China  internal  strife  seriously  retards  steps 
toward  economic  recovery.  In  the  independent 
Philippine  Republic  we  are  faced  with  a  new  situa- 
tion to  which  we  must  adjust  ourselves.  In  Indo- 
china and  Indonesia  a  return  to  normal  trade  con- 
ditions awaits  a  solution  of  problems  presented  by 
the  self-governing  aspirations  of  the  peoples  in 
those  countries.  In  Siam — well,  Siamese  in  Wash- 
ington tell  me  that  they  will  be  glad  to  do  busi- 
ness with  any  or  all  of  you  who  will  show  an  in- 
terest in  their  country. 

But  the  over-all  picture  is  not  encouraging  and 
it  is  not  my  intention  to  dress  it  up  in  attractive 
colors.  In  the  brief  time  allotted  me  I  want  to  say 
something  of  what  we  are  doing  in  the  various 
areas  of  the  Far  East  to  brighten  the  outlook. 

General  MacArthur  has  demilitarized  Japan, 
but  it  is  impossible  to  proceed  with  plans  for  post- 
war Japanese  economy  until  some  decision  is 
reached  with  regard  to  the  amount  and  types  of  in- 
dustry that  Japan  will  be  allowed  to  retain  and 
the  amount  that  is  subject  to  removal  as  repara- 
tions. We  have  reason  to  hope  that  a  decision  on 
the  problem  of  reparations  will  be  reached  before 
the  end  of  this  year.  Our  main  purpose  shall  be 
to  achieve  a  healthy  balance  in  Far  Eastern  econ- 
omy for  the  benefit  of  commerce  in  the  Far  East 
and  at  the  same  time  to  insure  the  effective  indus- 
trial disarmament  of  Japan. 

As  you  know,  Japanese  overseas  trade  is  con- 
trolled on  a  government-to-government  basis.  An 
Inter- Allied  Trade  Board  for  Japan  was  recently 
established  by  the  Far  Eastern  Commission  at  the 
request  of  the  United  States.*  Its  purpose  is  to 
advise  on  the  disposition  of  Japanese  exports  and 
on  sources  of  imports. 

Among  the  present  obstacles  to  a  change-over 
to  private  trading  are  an  inflated  and  unstable  cur- 
rency and  the  inadequacy  of  transport  and  com- 
munications facilities.  Although  it  is  not  possible 
to  say  how  soon  these  obstacles  can  be  overcome, 
I  might  hazard  the  guess  that  a  resumption  of 


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Department  of  State  Bulletin 


November  24, 1946 


THE   RECORD   Of  THE  WEEK 


private  trade  with  Japan  will  be  possible  some 
time  during  the  latter  half  of  next  year,  possibly 
sooner. 

In  Korea,  we  are  now  estopped  from  putting  into 
operation  an  over-all  economic  plan  by  the  inabil- 
ity of  the  Kussians  and  ourselves  to  reach  agree- 
ment on  a  unified  administration  for  the  country. 
We  want  a  united  Korea  and  we  want  to  assist  the 
Koreans  toward  self-government  and  independ- 
ence. But  while  we  continue  our  efforts  to  bring 
about  a  resumption  of  discussions  in  the  Joint 
Soviet-American  Commission,  we  cannot  mark 
time.  Therefore,  we  are  taking  measures  to  im- 
prove economic  conditions  in  southern  Korea  and 
to  bring  Koreans  more  and  more  directly  into  the 
administration  of  their  country.  In  doing  so,  how- 
ever, we  do  not  lose  sight  of  the  fact  that  a  united 
self-governing  Korea  is  the  goal  we  are  deter- 
mined to  achieve. 

From  what  I  have  said  it  will  be  apparent  to 
you  wliy  private  trading  in  Korea  is  not  now 
feasible.  But  the  development  of  a  healthy  trade 
relationship  between  Korea  and  Allied  nations  is 
our  aim,  and  consideration  is  now  being  given  to 
measures  which  may  soon  make  possible  limited 
trade  relations  between  Korea  and  private  busi- 
ness concerns.  We  hope  that  American  business 
will  take  an  active  interest  in  Korea. 

Foremost  among  the  problems  facing  the  Phil- 
ippines is  reconstruction.  Congress  has  approved 
two  measures :  the  "Philippine  Rehabilitation  Act" 
and  the  "Philippine  Trade  Act  of  1946". 

The  rehabilitation  act  authorizes  a  grant  of 
$620,000,000  for  the  payment  of  war  claims  of  pri- 
vate property-holders,  for  various  rehabilitation 
and  truining  projects,  and  for  purchase  of  surplus 
property.  In  addition.  Congress  has  authorized 
a  loan  of  $75,000,000  to  the  Philippine  Govern- 
ment to  enable  it  to  meet  a  sei-ious  budgetary 
situation. 

The  "Philippine  Trade  Act"  provides  that  the 
Philippines  shall  continue  to  enjoy  free  trade  with 
this  country  for  a  period  of  eight  years,  after 
which  a  graduated  tariff  will  apply  mitil  full  du- 
ties are  levied  at  the  end  of  20  years. 

We  expect  to  cooperate  with  the  new  Republic 
in  meeting  the  manifold  problems  facing  it  as  an 
independent  state.  It  may  be  anticipated  that, 
with  a  return  to  more  normal  conditions,  the  Phil- 


ippines will  again  represent  a  substantial  and 
expanding  market  for  American  products. 

From  the  standpoint  of  business,  the  areas  of 
Southeast  Asia  have  been  of  interest  to  the  United 
States  primarily  as  a  source  of  supply  for  such 
products  as  rubber,  tin,  and  petroleum.  Because 
of  our  large  purchases  of  these  items  our  pre-war 
trade  was  in  a  chronic  state  of  imbalance,  our 
sales  in  most  years  being  only  about  one  tenth 
of  our  purchases. 

You  may  recall  a  recent  press  statement  by  the 
Under  Secretary  of  State  for  Economic  Affairs, 
Mr.  Will  Clayton,  to  the  effect  that  the  United 
States  should  give  gi-eater  support  to  foreign  in- 
vestments of  its  nationals  in  strategic  minerals  that 
are  in  short  supply.  This  statement  has  a  special 
application  to  the  countries  of  Southeast  Asia, 
and  the  Far  East  generally,  as  sources  of  supply 
of  a  number  of  strategic  and  critical  materials. 
Investment  along  the  lines  proposed  by  Mr.  Clay- 
ton should  have  the  effect  of  increasing  the  im- 
portation of  American  materials  into  the  areas 
concerned. 

Last  but  far  from  least  we  have  China. 

We  have  signed  with  China  a  comprehensive 
"treaty  of  friendship,  commerce  and  navigation". 
Most-favored-nation  treatment  is  provided  for  in- 
dividuals and  corporations. 

The  treaty  is  somewhat  broader  in  scope  than 
existing  United  States  commercial  treaties  in  a 
number  of  respects.  For  instance,  article  19  pro- 
vides for  fair  and  equitable  treatment  as  regards 
the  application  of  exchange  controls,  and  article 
20  embodies  certain  commitments  with  regard  to 
monopolies.  It  is  designed  to  meet  the  needs  of 
present-day  commercial  relations  with  China. 

China  is  expected  to  collaborate  in  the  estab- 
lishment of  the  projDosed  International  Trade  Or- 
ganization and  is  one  of  the  "nuclear"  countries 
which  have  agreed  to  negotiate  for  the  reduction 
of  trade  barriers.  China  will  also  be  urged  to 
enter  into  other  multilateral  economic  conven- 
tions having  as  their  objectives  a  promotion  of  in- 
ternational trade  and  the  solution  of  interna- 
tional commercial  j^roblems  through  consultation 
and  collaboration.  Constant  effort  is  being  made 
to  discourage  other  countries,  including  China, 
from  adopting  temporary  measures  in  the  fields 
of  tariffs,  trade  barriers,  and  other  domestic  legis- 


961 


THE   RECORD   OF  THE  WEEK 


lation  of  a  type  which  might  jeopardize  the  suc- 
cessful attainment  of  this  long-range  economic 
collaboration. 

Restoration  of  stability  and  direction  in  Chi- 
nese economy  is  retarded  by  the  unhappy  politico- 
military  situation.  The  press,  I  feel,  has  made 
abundantly  clear  to  you  the  ups  and  downs  of 
General  Marshall's  mission.  The  National  As- 
sembly is  scheduled  to  meet  in  Nanking  today 
for  the  purpose  of  considering  a  constitution  and 
reaching  certain  political  decisions  in  regard  to 
goverimient  organization.  General  Marshall 
hopes,  and  so  do  we,  that  wise  counsels — the  wis- 
dom of  China — will  prevent  the  disaster  of  con- 
tinued civil  discord.  Chinese  economy  and  the 
Chinese  people  are  already  suffering  acutely  from 
the  ravages  of  eight  years  of  Japanese  aggres- 
sion and  occupation.  They  cannot  stand  much 
more  adversity. 

Premier  Soong  has  been  reported  recently  as 
stating  that  upwards  of  80  percent  of  China's  ex- 
penditures are  diverted  to  military  purposes. 
Because  of  the  wide  gap  between  revenues  and 
expenditures  China  has  had  to  resort  to  large 
note  issues  with  the  inevitable  result  of  accelerat- 
ing inflation  and  a  progressive  rise  in  prices.  The 
foreign  exchange  that  might  normally  be  ex- 
pected to  accrue  from  exports  has  been  negligible 
in  relation  to  outgo  for  imports.  Consequently 
China's  current  balance-of-payments  position  has 
continued  to  deteriorate. 

The  exchange  and  foreign-trade  regulations 
adopted  by  China,  UNRRA's  relief  and  rehabili- 
tation program,  and  surplus  sales  and  enemy- 
property  disposals  are  only  temporary  palliatives. 
The  Chinese  must  resolve  the  the  present  political 
impasse  before  any  substantial  improvement  can 
be  expected  in  China's  economic  situation. 

In  this  connection  I  think  it  worthwhile  to 
mention  what  I  feel  has  been  in  some  quarters 
a  misinterpretation  of  General  Marshall's  mission 
as  being  solely  political  in  its  objective.  Chinese 
economy  is  in  a  vicious  circle.  General  Marshall 
is  fully  aware  of  this  state  of  affairs  and  it  has 
been  his  purpose  to  encourage  the  Chinese  to  break 
the  vicious  circle  by  reaching  a  political  settle- 
ment that  would  result  in  a  cessation  of  civil 
strife  and  make  possible  a  revival  of  economic 


activity.  Sooner  or  later  this  must  be  done,  and 
be  done  by  the  Chinese. 

Military  measures  will  not  accomplish  an  en- 
during settlement.  That  is  why  General  Marshall 
has  advocated  with  such  persistency  settlement  by 
the  democratic  method  of  negotiation  and  agree- 
ment. 

In  making  this  brief  sketch  of  current  condi- 
tions in  the  Far  East  I  cannot  be  accused  of  op- 
timism. But  I  do  think  the  potentialities  of  an 
expanding  American  business  with  the  Far  East 
exist  and  can  be  developed  if  we  go  about  it  in  the 
right  way.  This  brings  me  to  a  thouglit  which  I 
would  like  to  express  and  emphasize.  Wlien  I  use 
the  term  American  business  I  have  in  mind  all 
American  business  irrespective  of  whether  it  has 
a  private,  semi-official,  or  official  character.  I  do 
not  believe  that  we  can  have  one  standard  for 
private  business  and  another  standard  for  official 
business. 

A  recent  editorial  in  the  New  York  Times  states 
that  our  Government  should  base  a  loan  policy 
upon  the  important  principle  "that  loans  are  not 
gifts,  and  that  any  country  applying  for  a  loan 
must  furnish,  like  any  prospective  private  bor- 
rower, convincing  proof  that  by  virtue  of  its  politi- 
cal, economic  and  trade  policies  it  is  a  good  credit 
risk". 

Generally  speaking,  what  is  unsound  for  private 
capital  is  unsound  for  government  capital,  that  is, 
for  the  taxpayers'  money.  I  believe  it  is  unsound 
to  invest  private  or  public  capital  in  countries 
where  there  is  wide-spread  corruption  in  business 
and  official  circles,  where  a  government  is  wasting 
its  substance  on  excessive  armament,  where  the 
threat  or  fact  of  civil  war  exists,  where  tendencies 
toward  government  monopolization  exclude  Amer- 
ican business,  or  where  undemocratic  concepts  of 
government  are  controlling. 

In  expressing  the  foregoing  views,  I  do  not  of 
course  ignore  the  advantages  of  cooperation  be- 
tween government  finance  and  private  trade  or 
the  fact  that  there  are  fields  for  the  investment  of 
government  capital  into  which  it  is  not  feasible 
or  attractive  for  private  capital  to  venture.  I  have 
in  mind  large-range  and  long-term  projects  which 
are  basic  in  character  and  are  fundamentally  sound 
from  the  standpoint  of  the  economy  of  the  country. 

Assistant  Secretary  of  State  Spruille  Braden 


962 


Department  of  State  Bulletin     •     November  24, 1946 


THE  RECORD  Of  THE  WEEK 


stated  some  weeks  ago  in  Chicago  that  "the  purpose 
of  lending  should  be  to  create  a  net  increment  to 
the  economy  of  a  borrowing  country.  Therefore," 
he  went  on  to  say,  "loans  should  not  be  made 
if  they  enable  another  government  to  acquire  or 
displace  existing  efficient  free  enterprises,  whether 
they  be  American  in  ownership  or  not." 

In  stressing  the  economic  and  trade  features  of 
our  position  in  the  Far  East,  I  do  not  wish  to  give 
the  impression  that  I  am  overlooking  other  factors. 
In  this  complicated  world  in  which  we  are  living 
we  must  give  full  consideration  to  the  interrela- 
tion of  the  political,  cultural,  economic,  and  se- 
curity factors  in  our  foreign  policy.  For  our 
policy  to  be  effective  there  must  be  harmony  among 
all  these  factors — the  teamwork  we  find  in  a  good 
basketball  team  or  a  fine  string  quartet. 

The  President,  in  establishing  the  Conunittee 
for  Financing  Foreign  Trade,  said:  ".  .  .  lam 
anxious  that  there  shall  be  fullest  cooperation  be- 
tween governmental  agencies  and  private  industry 
and  finance.  Our  common  aim  is  return  of  our 
foreign  commerce  and  investments  to  private  chan- 
nels as  soon  as  possible." 

I  look  upon  this  statement  as  a  recognition  of 
and  a  challenge  to  American  business.  I  am  in 
Washington  to  do  my  part  in  carrying  out  the 
cooperation  of  which  the  President  speaks.  Please 
call  on  me  if  I  can  be  of  help  to  you  in  meeting  the 
challenge. 

Air  Navigation  Meeting — Continued  from  page  946 

The  more  significant  actions  taken  by  the  Com- 
mission are  contained  in  the  resolutions  quoted 
below : 

1.  The  Commission, 

taking  into  consideration  the  possibility  of  an  early 
entry  into  force  of  the  International  Civil  Aviation 
Convention  done  at  Chicago  on  7th  December  1944 
and  the  consequential  denunciations  of  the  Paris 
Convention  by  member  States, 

decides : 

that  each  member  State  shall  be  at  liberty  to  declare 
that  it  will  cease  to  give  effect  in  its  territories  to  all 
or  any  of  the  provisions  of  Annexes  A  to  G  of  the 
Paris  Convention  dated  13th  October,  1919  as  from 
a  date  or  dates  to  be  notified  not  less  than  30  days 
In  advance  by  the  State  concerned  to  the  General 
'  Secretary  of  the  Commission,  who  shall  inform  the 

other  member  States 
and  recommends: 


that  each  member  State  shall  give  effect  in  its  terri- 
tories to  the  corresponding  provisions  approved  by 
the  Council  of  PICAO  as  fully  and  as  quickly  as 
possible. 

2.  Tlie  Commission, 

taking  into  consideration  the  possibility  of  an  early 

entry  into  force  of  the  Convention  on  International 

Civil  Aviation  di'awn  up  in  Chicago  on  7th  December 

1944  and  the  consequential  denunciation  of  the  Paris 

Convention, 

and   deeming  it  desirable   to   prepare   now  for   the 

eventual  liquidation  of  the  ICAN, 

decides  to  set  up  a  Liquidation  Committee  charged 

to  study  and  recommend  the  measures  to  be  adopted 

for  this  liquidation. 

3.  The  Commission, 

taking  into  consideration  the  suspension  of  the  work 
of  its  sub-commissions  by  reason  of  the  possible 
liquidation  in  the  near  future  of  the  ICAN, 
decides  not  to  renew  the  appointment  of  its  sub- 
commissions  and  committees  with  the  exception  of 
the  Legal  Sub-Commission. 

The  terms  of  reference  of  the  Liquidation  Com- 
mittee were  agreed  upon  as  follows:  (a)  to  pre- 
pare a  plan  of  liquidation  for  submission  by  the 
General  Secretary  to  the  member  states  for  their 
acceptance;  (&)  and  if  the  liquidation  plan  is  ac- 
cepted unanimously,  to  place  it  into  effect  on  April 
1,  1947  or  on  the  date  of  the  coming  into  force  of 
the  convention  on  international  civil  aviation 
signed  at  Chicago  on  December  7, 1944,  whichever 
is  later.  In  case  of  opposition  to  the  liquidation 
plan,  the  Secretary  General  was  instructed  to  con- 
vene a  plenary  session  of  the  Conmoission,  prefer- 
ably at  the  same  time  and  place  as  the  first  assembly 
of  the  International  Civil  Aviation  Organization. 
It  was  recommended  that  the  Commission  be  com- 
pletely liquidated  by  December  31, 1947. 

Foreign  Commerce  Weekly 

The  following  articles  of  interest  to  readers  of 
the  Bulletin  appeared  in  the  November  2  issue  of 
Foreign  Commerce  Weekly,  a  publication  of  the  De- 
partment of  Commerce,  copies  of  which  may  be  ob- 
tained from  the  Superintendent  of  Documents,  Gov- 
ernment Printing  Ofl3ce,  for  10  cents  each : 

"Philippine  Tobacco  Operations  at  Low  Levels", 
based  on  reports  from  C.  A.  Boonstra,  agricultural 
attach^,  American  Embassy,  Manila. 

"Cuba's  Avocado  Output — Air  Shipments  Loom 
Large",  based  on  a  report  from  Philip  M.  Davenport, 
second  secretary  and  vice  consul,  American  Em- 
bassy, Habana. 


963 


United  States  Philippine  Training  Program 


STATEMENT  BY  ACTING  SECRETARY  ACHESON 


[Released  to  the  press  November  14] 

The  primary  purpose  of  the  Philippine  Training 
Program  under  the  Philippine  Kehabilitation  Act 
is  to  provide  technical  training  by  various  U.S. 
Government  agencies  so  that  the  people  of  the 
Philippines  may  be  enabled  to  rehabilitate  them- 


selves from  the  ravages  of  a  war  in  which  they 
gave  so  much  to  hasten  final  victory.  It  is  my 
sincere  hope  that  this  purpose  may  be  fulfilled  and 
also  that  closer  cooperation  and  greater  under- 
standing may  result  between  the  peoples  of  the 
Republic  of  the  Philippines  and  of  the  United 
States  of  America. 


U.S.  PARTICIPATION  IN  PROGRAM 


[Released  to  the  press  November  14] 

In  a  joint  announcement  on  November  14  by  the 
Government  of  the  United  States  and  the  Gov- 
ernment of  the  Republic  of  the  Philippines,  it  was 
stated  that  plans  are  virtually  completed  for  the 
initiation  of  the  Philippine  Training  Program, 
which,  under  the  provisions  of  the  Philippine 
Rehabilitation  Act  passed  by  the  79th  U.S.  Con- 
gress, provides  for  the  training  of  850  citizens  of 
the  Republic  of  the  Philippines  by  eight  agencies 
of  the  United  States  Government  during  the  next 
few  years.  The  act  provides  that  all  trainees  shall 
be  designated  by  the  President  of  the  Philippines. 

The  Department  of  State  has  been  charged  with 
the  responsibility  for  the  coordination  of  the 
PhilipiDine  Training  Program  and  will  utilize  for 
this  purpose  the  facilities  of  the  Interdepartmental 
Committee  on  Scientific  and  Cultural  Coopera- 
tion, which  has  had  seven  years'  experience  with 
similar  programs  carried  out  in  cooperation  with 
the  American  republics. 

The  eight  United  States  Government  agencies 
authorized  to  provide  the  training,  and  which  will 
work  in  close  cooperation  with  appropriate  agen- 
cies of  the  Philippine  Government,  are  listed  be- 
low: 

Public   Roads   Administration   of   tlie   Federal   Worlis 

Agency 


Corps  of  Engineers  of  the  U.S.  Army 

Public  Health  Service  of  the  Federal  Security  Agency 

U.S.  Maritime  Commission 

Civil  Aeronautics  Administration 

Weather  Bureau  and 

Coast  and  Geodetic  Survey  of  the  Department  of  Com- 
merce 

Fish  and  Wildlife  Service  of  the  Department  of  the 
Interior 

The  Commissioner  of  Public  Roads  is  authorized 
to  provide  training  for  a  maximum  of  10  engineers 
from  the  regularly  employed  staff  of  the  Philip- 
pine Public  Works  Department  in  the  construc- 
tion, maintenance,  and  highway  traffic  engineering 
and  control  necessary  for  the  continued  mainte- 
nance and  for  the  efficient  and  safe  operation  of 
highway  transport  facilities. 

The  Chief  of  Engineers  of  the  Army  is  author- 
ized to  provide  training  for  a  maximum  of  10 
engineers  from  among  the  engineer  officers  of  the 
Pliilippine  Army  and  the  regularly  employed  staff 
of  the  Philippine  Public  Works  Department,  in 
the  construction,  improvement,  and  maintenance 
of  i)ort  facilities  and  other  works  of  improvements 
on  rivers  and  harbors. 

The  Public  Health  Service  may  at  any  time 
prior  to  January  1, 1948  provide  one  year  of  train- 


964 


Department  of  State  Bulletin     •     November  24, 1946 


THE   RECORD  OF  THE  WEEK 


ing  in  appropriate  schools  or  colleges  in  the 
United  States  to  not  more  than  100  Philippine 
citizens  in  public-health  methods  and  administra- 
tion. 

The  U.S.  Maritime  Commission  is  authorized 
to  train  a  maximirai  of  50  Philippine  citizens  each 
year  prior  to  July  1,  1950  in  the  Merchant  Marine 
Cadet  Corps  and  at  a  United  States  Merchant 
Marine  Academy.  These  trainees  will  be  subject 
to  the  same  rules  and  regulations  as  the  regularly 
enrolled  cadets  of  the  two  schools. 

The  Civil  Aeronautics  Administration  will  pro- 
vide training  for  not  more  than  50  Philippine 
citizens  each  year  before  July  1,  1950  in  air-traffic 
conti'ol,  aii'craft  communications,  maintenance  of 
air-navigation  facilities,  and  such  other  airman 
functions  as  are  deemed  necessary  for  the  mainte- 
nance and  operation  of  aids  to  air  navigation  and 
other  services  essential  to  the  orderly  and  safe 
operation  of  air  traffic. 

The  Weather  Bureau  is  authorized  to  provide 
training  for  50  Philijjpine  citizens  in  the  first  year 
and  not  to  exceed  25  in  each  succeeding  year  prior 
to  July  1,  1950.  Their  training  will  include 
meteorological  observations,  analyses,  forecasting, 
briefing  of  pilots,  and  such  other  meteorological 
duties  as  are  deemed  necessary  in  maintenance  of 
general  weather  service,  including  weather  infor- 
mation required  for  air  navigation  and  the  safe 
operation  of  air  traffic. 

The  Fish  and  Wildlife  Service  will  offer  one 
year's  training  at  any  time  prior  to  July  1,  1950 
to  not  more  than  125  Philippine  citizens  in 
methods  of  deep-sea  fishing  and  in  other  techniques 
necessary  to  the  development  of  fisheries. 

The  Coast  and  Geodetic  Survey  is  authorized  to 
provide  training  for  a  maximum  of  20  Philippine 
citizens  each  year  prior  to  July  1,  1950  in  order 
that  tliey  may  be  qualified  to  take  over  and  con- 
tinue the  survey  work  interrupted  by  the  war  and 
resumed  under  provisions  of  the  Philippine 
Rehabilitation  Act. 

The  necessary  preparations  are  now  being  made 
by  the  two  Governments  to  inaugurate  this  pro- 
gram with  all  possible  speed.  Information  on 
procedures  to  be  followed  and  specific  qualifica- 
tions for  candidates  for  the  various  programs  will 
be  made  available  as  soon  as  possible. 


Procedure  for  Filing  War  Claims  Witli 
Cliina 

[Released  to  the  press  November  13] 

In  conformity  with  an  instruction  from  the  Cen- 
tral Government,  the  Shanghai  Mimicipal  Govern- 
ment has  issued  regulations  for  the  investigation  of 
war  losses.  It  requests  registration  of  such  losses, 
suffered  at  any  time  between  September  18,  1931 
and  the  termination  of  hostilities  with  Japan,  by 
public  and  private  organizations  "of  the  friendly 
powers"  operating  in  China  or  by  their  nationals 
residing  in  China.  American  corporations  should 
report  their  losses  to  the  Bureau  of  Social  Affairs ; 
schools,  to  the  Bureau  of  Education ;  and  indivi- 
duals, to  the  Bureau  of  Civil  Affairs.  Forms  for 
reporting  such  losses  are  available  in  Shanghai  and 
should  be  executed  in  triplicate.  The  time  to  file 
these  registrations  has  expired,  but  the  Shanghai 
Municipal  Government  is  continuing  to  accept 
them  pending  the  decision  of  the  Executive  Yuan 
on  a  request  for  a  90-day  extension.  Both  direct 
and  indirect  claims  may  be  filed.  The  former  in- 
clude death,  personal  injury,  and  property  loss  or 
damage  claims,  and  the  latter  refer  to  losses  due  to 
increased  expenses  or  decrease  of  net  business 
profits.  Property  should  be  valued  as  of  the  date 
of  the  loss  and  should  be  computed  in  Chinese 
national  currency.  The  original  cost  should  also 
be  stated  if  such  figures  are  obtainable. 


Radio  Broadcast  on  Displaced  Persons 

On  November  16  George  L.  Warren,  adviser  to 
the  Department  of  State  on  displaced  persons, 
and  Herbert  A.  Fierst,  Special  Assistant  to  the 
Assistant  Secretary  of  State  for  occupied  areas, 
discussed  with  Sterling  Fisher,  director  of  the 
NBC  University  of  the  Air,  the  question  "Why 
Should  Americans  Worry  About  Displaced  Per- 
sons?" This  program  was  one  in  a  series  entitled 
"Our  Foreign  Policy",  presented  by  NBC.  For  a 
complete  text  of  the  radio  program,  see  Depart- 
ment of  State  press  release  816  of  November  15, 

191:6. 


965 


Air  Transport  Agreement  With  India 


STATEMENT  BY  ACTING  SECRETARY  ACHESON 


[Released  to  the  press  November  15] 

This  is  the  first  foi-mal  agreement  which  the 
United  States  has  concluded  with  the  new  gov- 
ernment of  India.  It  will  permit  two  American 
airlines  to  fly  into  and  through  India  on  dif- 
ferent routes  and  also  grants  reciprocal  rights  for 
Indian  air  service  to  fly  to  this  country  under  the 
general  principles  of  the  so-called  Bermuda  ar- 
rangement which  the  United  States  concluded 


with  the  United  Kingdom  in  February  of  this  year. 
I  am  sure  that  our  new  air  agreement  with  India 
will  make  a  further  contribution  to  the  friendly 
relations  which  we  already  enjoy  with  that 
country. 

I  think  that  is  an  important  agreement,  and  it 
is  rather  significant  that  the  first  agreement  you 
have  with  a  new  government  is  on  this  new  de- 
velopment which  is  air  transport. 


SUMMARY  OF  AGREEMENT' 


The  Department  of  State  of  the  United  States 
and  the  External  Affairs  Department  of  the  Gov- 
ernment of  India  announced  on  November  14  the 
conclusion  of  a  bilateral  air  transport  agreement 
between  the  United  States  and  India  which  was 
signed  in  New  Delhi  on  November  14,  1946. 
George  R.  Merrell,  Charge  d'Affaires  of  the  Amer- 
ican Embassy  at  New  Delhi,  and  George  A. 
Brownell,  personal  representative  of  the  Presi- 
dent of  the  United  States,  signed  on  behalf  of  the 
United  States  Government,  while  those  signing 
for  the  Government  of  India  were  Jawaharlal 
Nehru,  Vice  President  of  the  Council  and  Minis- 
ter of  External  Affairs,  and  Sardar  Abdur  Rab 
Nishtar,  Minister  of  Communications. 

The  agreement  consists  of  13  articles  and  an  an- 
nex, and  defines  conditions  under  which  sched- 
uled air  services  of  each  country  are  to  be  operated 
between  the  United  States  and  India.  The  agree- 
ment is  a  development  of  the  "Bermuda"  type  of 
air-transport   arrangement  which,  since  it  was 


'  The  text  of  the  agreement  was  issued  as  Department 
of  State  press  release  810  of  Nov.  14,  1946. 


concluded  between  the  United  States  and  the 
United  Kingdom  in  February  1946,  has  formed  a 
pattern  for  a  number  of  other  bilateral  arrange- 
ments. Tlie  United  States-Indian  agreement  con- 
forms with  the  principles  embodied  in  the  Ber- 
muda agreement,  but  secures  to  each  party  a 
greater  measure  of  control  over  the  application  of 
those  principles  and  the  air  services  to  be  operated. 

Provision  is  made  for  the  categories  of  traffic 
which  may  be  carried,  use  of  airports,  control  of 
rates  for  carriage  of  traffic  between  the  territory 
of  the  two  countries,  "change  of  gauge",  customs 
duties,  and  exchange  of  information  and  statistics. 
The  agreement  also  makes  provision  for  appro- 
priate use  of  the  machinery  of  the  Provisional  In- 
ternational Civil  Aviation  Organization  and  of  the 
International  Air  Transport  Association,  in  their 
respective  spheres. 

The  annex  describes  specific  routes  to  be  oper- 
ated by  airlines  of  the  United  States  and  gives 
Indian  airlines  reciprocal  rights  to  operate  routes 
to  the  United  States,  to  be  determined  at  a  later 
date.    Airlines  of  the  United  States  are  accorded 


966 


Department  of  State  Bulletin     •     November  24, 1946 


THE   RECORD   OF  THE  WEEK 


the  right  to  fly  via  tlie  following  routes  and  to 
make  traffic  stops  in  India  at  the  places  named : 

Route  1  (to  be  operated  by  Pan  American 
World  Airways)  :  The  United  States  through  Cen- 
tral Europe  and  the  Near  East  to  Karachi,  Delhi, 
and  Calcutta;  thence  to  a  point  in  Burma,  a  point 
in  Siani,  a  point  in  Indo-China,  and  beyond  to 
the  United  States. 

Route  2  (to  be  operated  by  Trans  World  Air- 
line) :  The  United  States  through  Western  Eu- 
rope, North  Africa,  and  the  Near  East  to  Bom- 
bay and  beyond  Bombay  to:  (a)  Calcutta,  a 
point  in  Burma,  a  point  in  Indo-China,  points  in 
China  and  Japan,  and  beyond  to  the  United  States 
aver  Pacific  routes,  (b)  Ceylon,  Singapore,  and 
beyond. 

The  foregoing  routes  may  be  operated  in  both 


directions.  Until  quarantine  facilities  are  avail- 
able in  Bombay,  TWA  flights  from  the  west  will 
temporarily  enter  India  at  Karachi  and  will  pro- 
ceed from  there  to  Bombay. 

An  exchange  of  notes  between  representatives 
of  the  two  Governments  at  the  time  the  agree- 
ment was  concluded  sets  out  a  collateral  under- 
standing concerning  principles  and  arrangements 
with  respect  to  rates  to  be  charged  by  airlines  for 
Fifth  Fi-eedom  traffic  to  and  from  territory  of  the 
other  i^arty. 

In  announcing  conclusion  of  the  bilateral  air 
transport  agreement,  the  two  Governments  ex- 
pressed their  conviction  that  the  mutual  arrange- 
ments which  it  embodies  will  afford  a  practical 
means  of  implementing  and  strengthening  the 
friendly  relations  already  existing  between  them. 


U.S.  Reiterates  Position  on  Rumanian  Elections 


[Released  to  the  press  November  15] 

Text  of  note  which  the  United  States  Represent- 
ative in  Rumania  has  been  authorised  to  deliver 
to  the  Rumanian  Government  in  reply  to  its  note 
of  Novemher  2  to  the  United  States  Govei^nment 

I  have  been  instructed  to  express  to  you  my 
Government's  disappointment  with  the  Rumanian 
Government's  reply  of  November  2  to  its  note  of 
October  28  concerning  the  forthcoming  elections 
in  Rumania.  My  Government  deeply  regrets  that 
the  Rumanian  Government  did  not  see  fit  to  con- 
sider the  substance  of  its  conmients  on  the  elec- 
toral preparations,  but  instead  sought  to  avoid  a 
discussion  of  these  observations  on  the  excuse 
that  they  did  not  represent  the  collective  views  of 
the  powers  signatory  to  the  Moscow  Conference 
Agreement. 

My  Government  has  taken  note,  however,  that 
the  Rumanian  Government  has  again  expressed 
an  intention  to  implement  fully  all  the  obligations 
whicli  it  assumed  following  the  Moscow  Confer- 
ence Agreement,  to  the  end  that  the  elections  naay 
freely  express  the  will  and  aspirations  of  the  Ru- 


manian people,  and  must  therefore  assume  that 
the  Rumanian  Government  shares  the  view  ex- 
pressed in  my  note  of  October  28  that  all  parties 
represented  in  these  elections  should  participate 
on  equal  terms. 

Because  of  the  obligations  which  my  Govern- 
ment assumed  at  Yalta  to  assist  in  bringing  about 
the  establishment  of  a  government  of  free  men  in 
Rumania,  any  suggestion  that  my  recent  note  was 
"incompatible  with  the  attributes  of  a  free  and 
sovereign  state"  is  in  my  Government's  view 
wholly  inadmissible.  I  am  consti'ained  to  believe 
tliat  the  Rumanian  people  if  tliey  could  freely  ex- 
press themselves  would  regard  my  Government's 
interest  in  this  matter  as  a  compliance  with  its 
obligations  under  the  Yalta  Agreement  and  a  wel- 
come manifestation  of  general  American  interest 
in  Rumania's  welfare  and  progress.  My  Govern- 
ment desires  to  assure  the  Rumanian  Government 
that  it  will  not  fail  in  its  support  for  the  demo- 
cratic principles  of  liberty,  freedom  and  justice 
by  wliich  the  United  States  endeavors  to  live  and 
upon  whicli  it  is  convinced,  the  future  i^eace  and 
welfare  of  the  world  depend. 


967 


THE   RECORD   OF  THE  WEEK 


Third  Report  to  Congress  on  Foreign 
Surplus  Disposal 

LETTER  OF  TRANSMITTAL 

To  the  Honorahle  the  President  of  the  Senate 
The  Honorahle  the  Speaker  of  the  House  of  Rep- 
resentatives 

Sirs  :  In  accordance  with  Section  24  of  tlie  Sur- 
plus Property  Act  of  194-i  there  is  transmitted 
herewith  the  third  report  of  the  Department  of 
State  on  the  disposal  of  United  States  surplus 
property  in  foreign  areas.^  Incorporated  therein 
is  the  report  required  from  the  Foreign  Liquida- 
tion Commissioner  by  Section  202  of  the  Philip- 
pine Rehabilitation  Act  of  1946  concei-ning  the  ad- 
ministration of  Title  II  of  that  Act. 

By  September  30,  1946,  surplus  property  with 
original  cost  to  the  United  States  of  approxi- 
mately $5,870,000,000  had  been  sold  for  about  $1,- 
400,000,000.  Of  the  total  realization,  approxi- 
mately $375,000,000  represented  sales  for  cash  dol- 
lars, or  their  equivalent,  including  the  cancellation 
of  United  States  dollar  obligations  to  foreign  gov- 
ernments. Sales  made  for  authorized  foreign  cur- 
rencies or  commitments  to  pay  such  currencies  ac- 
counted for  $125,000,000,  and  property  valued  at 
$33,000,000  was  exchanged  for  real  estate  for  use 
by  the  United  States  Government.  Funds  total- 
ing $30,000,000  have  been  specifically  earmarked 
for  cultural  exchanges  under  provisions  of  the 
Fulbright  Act,  and  the  $100,000,000  transfer  au- 
thorization provided  by  the  Philippine  Rehabili- 
tation Act  has  been  fully  utilized.  The  remainder 
of  the  sales  has  been  for  dollar  credits. 

The  figures  on  sales  are  exclusive  of  direct  trans- 
fers to  UNRRA  made  under  Section  202  of  the 
UNRRA  Participation  Appropriation  Act.  All 
property  disposed  of  represents  about  85  percent 
of  the  total  made  available  to  the  Foreign  Liqui- 
dation Commissioner  for  disposal. 

To  dispose  of  our  overseas  surpluses  as  rapidly 
as  possible,  consistent  with  a  reasonable  return  to 
the  United  States,  has  continued  to  be  the  guiding 
policy  during  the  past  quarter.  The  most  out- 
standing achievements  in  these  three  months  are 
undoubtedly  the  bulk  sales  to  the  Governments  of 
China  and  the  Pliilippines,  which  should  greatly 
accelerate  demobilization  at  many  United  States 
bases  in  the  Pacific.    These  sales  will  bring  about 


'  Depiirtiuent  of  State  publication  2655. 


a  substantial  reduction  in  the  operating  expenses 
of  the  Army  and  Navy  and  will  make  possible  the 
reassignment  of  substantial  numbers  of  military 
personnel  previously  tied  down  by  custodial  duties. 

The  return  which  has  been  obtained  for  overseas 
surplus,  while  it  necessarily  represents  only  a  frac- 
tion of  the  original  procurement  cost  of  the  prop- 
erty sold,  has  already  far  exceeded  the  total  real- 
ization hoj^ed  for  at  the  beginning  of  the  overseas 
disposal  program.  In  addition,  it  has  been  possi- 
ble to  effect  this  realization  on  terms  which  will  re- 
sult in  a  substantially  greater  direct  and  imme- 
diate benefit  to  the  American  taxpayer  than  we  had 
believed  possible. 

During  the  last  quarter,  I  have  reluctantly  ac- 
cepted the  resignation  of  Mr.  Thomas  B.  McCabe 
as  Foreign  Liquidation  Commissioner  and  Special 
Assistant  to  the  Secretary  of  State  in  order  that 
he  might  return  to  his  private  affairs  which  he  had 
laid  clown  in  1940  for  government  service.  Mr. 
McCabe  discharged  the  heavy  duties  and  responsi- 
bilities of  his  office  with  unusual  intelligence, 
industry,  and  patience. 

Despite  the  substantial  accomplishments  re- 
flected in  the  accompanying  report,  much  remains 
to  be  done.  Many  less  spectacular  tasks,  such  as 
the  burden  of  supervising  the  physical  transfers, 
and  accounting  for  the  property  sold  and  its  pro- 
ceeds, are  still  before  us.  In  addition,  there  are 
residual  surpluses  widely  scattered  over  the  entire 
world.  Their  dollar  volume  at  original  cost  is 
small  in  comparison  with  what  has  already  been 
sold.  Nevertheless,  these  properties  must  be 
liquidated  with  the  same  concern  for  the  interests 
of  the  United  States  as  that  displayed  in  disposals 
already  accomplished.  The  problems  which  re- 
main, although  smaller,  are  in  some  ways  even 
more  vexing  than  those  already  solved. 

The  work  so  capably  directed  by  Mr.  McCabe 
in  the  past  will  be  carried  forward  by  Major  Gen- 
eral Donald  H.  Connolly  as  Foreign  Liquidation 
Commissioner,  who  succeeds  Mr.  McCabe  in  sur- 
plus property  disposal  matters,  and  Mr.  Chester 
T.  Lane,  who  will  serve  as  General  Connolly's 
Deputy  and  as  Lend-Lease  Administrator. 

James  F.  Byrnes, 

Secretary  of  State 

Department  of  State 
Washington,  D.G. 
October  31, 19J,6 


968 


Department  of  State  Bulletin 


November  24, 1946 


>oland  To  Consider  U.S.  Requests  for 
destitution  of  Property 

[Released  to  the  press  November  15] 

On  October  5,  1946  the  Department  of  State 
ssued  a  press  release  regarding  the  nationaliza- 
ion  of  firms  in  Poland.^  It  was  there  stated  that 
n  order  to  permit  the  proper  protection  of  Amer- 
can  interests  the  United  States  was  endeavoring 
o  obtain  an  extension  of  time  to  enter  protests 
gainst  nationalization  with  or  without  compen- 
ation.  The  American  Embassy  in  Warsaw  has 
eported  the  receipt  of  a  note  from  the  Polish 
foreign  OiSce  dated  November  13,  1946,  the  es- 
ential  portion  of  which,  in  translation,  reads  as 
ollows  : 

"The  Chairman  of  the  Chief  Commission  for 
Nationalization  Affairs,  taking  into  consideration 
hat  not  all  foreign  owners  and  shareholders  have 
leen  able,  despite  a  number  of  facilities  granted 
II  connection  with  the  submission  of  objections 
egarding  lists  of  establishments  subject  to  na- 
ionalization,  published  in  Monitor  Polski,  No.  94 
•f  September  23,  1946,  and  No.  98  of  September 
0,  1946,  to  utilize  the  determined  period,  has  ex- 
)ressed  agreement  to  consider  favorably  within 
egal  limits,  requests  for  restitution  of  the  lapsed 
leriod,  if  the  requests  are  submitted  by  November 
0,  1946  to  the  Chief  Commission  (Warsaw,  Ulica 
senacka  ;5A)  or  to  the  Polish  Embassy  in  Wash- 
ngton  and  after  that  date  exclusively  to  the  above 
)hief  Conunission." 

The  Polish  Government  requires  owners  of  na- 
ionalized  firms  to  have  a  legal  residence  or  a  leeal 
epresentative  in  Poland  for  the  receipt  of  official 
[ocuments  and  notices  regarding  the  hearing  of 
heir  cases,  and  the  American  Embassy  in  Warsaw 
las  just  been  advised  that  in  nationalization  cases 
a  which  protests  have  already  been  entered  the 
Commission  expects  to  commence  hearings  in  mid- 
)ecember.  It  is  suggested  that  owners  should 
irepare  and  send  to  their  rej^resentatives  in  Po- 
ind prior  to  that  time  detailed  proof  in  support 
f  their  claims. 


THE  RECORD   OF  THE  WEEK 

Nazi  Conspiracy  and  Aggression, 
Volume  VI 

[Released  to  the  press  by  the  War  Department  November  16] 

Volume  VI,  the  fourth  of  a  set  of  eight  volumes 
entitled  IVcisi  Conspiracy  and  Aggression,  was  re- 
leased for  publication  by  the  Office  of  Chief  of 
Counsel  for  Prosecution  of  Axis  Criminality,  the 
War  Department  announced  on  November  16.  The 
set  is  being  published  volume  by  volume  by  the 
Government  Printing  Office. 

Volume  VI  contains  English  translations  of  Hit- 
ler's will  and  testament  and  political  will;  inter- 
cepted Japanese  diplomatic  messages  between  Ber- 
lin, Rome,  and  Tokyo  just  previous  to  the  Japanese 
attack  on  Pearl  Harbor;  the  testimony  of  Erich 
Kempka,  Hitler's  chauffeur,  regarding  the  last  days 
of  Hitler;  and  a  collection  of  documents  regard- 
ing German  naval  operational  orders. 

Some  of  the  documents  introduced  into  evidence 
were  portions  of  interrogations  of  the  defendants 
or  witnesses.  Also  published  is  a  summary  of  an 
interrogation  of  Hanna  Reitsch,  well-known  Ger- 
man test  pilot  and  aeronautical  research  expert, 
giving  an  eyewitness  account  of  the  last  days  in 
Hitler's  air-raid  shelter. 

Exhibits  such  as  a  shrunken  head  of  a  Polish 
man  and  tattooed  human  skin  to  be  used  for  lamp- 
shades were  introduced  as  evidence  in  the  Niirn- 
berg  trial.  Accompanying  certificates  regarding 
the  source  and  authenticity  of  such  exhibits  are 
also  published  in  this  volume. 

Volume  VII  containing  English  translations  of 
more  German  documents  will  be  released  soon,  fol- 
lowed by  Volumes  I  and  II  which  will  outline  the 
prosecution  case  and  show  how  these  documents 
in  Volumes  III  through  VIII  were  used  partially 
or  wholly  in  the  case.  Volume  VIII  will  also  in- 
clude some  of  the  last  writings  of  the  defendants 
in  prison,  as  well  as  German  organizational  charts 
and  a  descriptive  index  of  all  material  in  the  set. 


'  BtTLLETiN  of  Oct.  13,  1946,  p.  651 ;  see  also  Bulleh-in  of 
Nov.  17,  1946,  p.  912. 


969 


THE   RECORD  OF  THE  WEEK 


Chicago  Aviation  Agreements 

Sweden,  Ireland,  Dominican  Repuhlic,  Nicaragua, 
Iran 

[Released  to  the  press  November  14] 

The  following  action,  not  previously  announced, 
has  been  taken  on  the  convention  on  international 
civil  aviation  and  the  international  air-transport 
agreement  formulated  at  the  International  Civil 
Aviation  Conference  in  Chicago  on  December  7, 
1944: 

The  Charge  d'Affaires  ad  interim  of  Sweden 
deposited  with  the  Department  of  State  on  No- 
vember 7  the  Swedish  instrument  of  ratification 
of  the  convention. 

The  Minister  of  Ireland  deposited  with  the  De- 
partment of  State  on  October  31  the  instrument 
of  ratification  of  the  convention  by  the  Govern- 
ment of  Ireland. 

The  Ambassador  of  the  Dominican  Republic  in- 
formed the  Acting  Secretary  of  State  by  a  note 
dated  October  14,  as  follows :  ^ 

In  confonnity  with  Article  V  of  the  Interna- 
tional Air  Transport  Agi-eement,  signed  at  Chi- 
cago on  December  7,  1944,  and  with  instructions 
I  have  received  from  my  Government,  I  have  the 
honor  to  address  Your  Excellency  to  inform  you 
that  the  Government  of  the  Dominican  Republic 
has  decided  to  denounce  the  International  Air 
Tivmsport  Agreement. 

In  accordance  with  the  said  Article  V  of  the 
Agreement  stated,  I  shall  appreciate  it  if  you  will 
have  the  other  Contracting  States  notified  that 
the  International  Air  Transport  Agreement  will 
cease  to  be  effective  for  the  Dominican  Republic 
on  October  14, 1947. 

The  Ambassador  of  Nicaragua  informed  the 
Secretary  of  State  by  a  note  dated  October  7,  as 
follows : 

In  accordance  with  instructions  from  my  Gov- 
ernment and  in  conformity  with  the  terms  of  Ar- 
ticle V  of  the  International  Air  Ti'ansport  Agree- 
ment, ojjened  for  signature  on  December  7,  1944  at 
the  International  Civil  Aviation  Conference  in 
Chicago,  I  have  the  honor  to  inform  Your  Excel- 
lency that  the  Government  of  Nicaragua  desires  to 
denounce  this  Agreement,  and  hereby  gives  notice 

'  Translation. 


to  tlie  Government  of  the  United  States  of  America 
of  the  intention  to  withdraw.  This  Agreement  will 
accordingly  cease  to  be  in  force  with  respect  to  the 
Government  of  Nicaragua  on  October  7,  1947. 

The  Ambassador  of  Iran  signed  the  transport 
agreement  on  August  13. 

The  following  countries  have  now  deposited  in- 
struments of  ratification  of  the  convention :  Poland, 
April  6,  1945 ;  Turkey,  December  20,  1945 ;  Nicar- 
agua, December  28,  1945;  Paraguay,  January  21, 
1946 ;  Dominican  Republic,  January  25, 1946 ;  Can- 
ada, February  13, 1946;  China,  Februai^  20, 1946; 
Peru,  April  8, 1946 ;  Mexico,  June  25, 1946 ;  Brazil, 
July  8,  1946 ;  United  States  of  America,  August  9, 
1946 ;  Ireland,  October  31, 1946 ;  and  Sweden,  Nov- 
ember 7,  1946. 

Argentina  adhered  to  the  convention  on  June  4, 
1946. 

The  transport  agreement  has  now  been  accepted 
by  15  countries,  of  wliich  3  have  given  notices  of 
denunciation,  namely,  the  United  States,  Nicara- 
gua, and  the  Dominican  Republic. 

Department  of  State  Bulletin  Subscrip- 
tion Price  increased 

The  annual  subscription  price  of  the  Depart- 
ment OF  State  Bulletin  will  rise  from  $3.50  to 
$5.00  on  January  1,  1947  owing  to  a  combination 
of  factors  wliich  has  left  the  Superintendent  of 
Documents,  Government  Printing  Office,  no  choice 
but  to  take  this  action.  These  factors  are  the 
constantly  expanding  size  and  scope  of  the  Bulle- 
tin, as  it  attempts  to  cover  the  vast  range  of 
American  international  relations,  and  the  rising 
cost  of  production.  The  printing  and  publishing 
of  government  publications  are  affected  as  much 
by  the  rising  prices  of  materials  and  other  pro- 
duction factors  as  any  other  integral  part  of  the 
national  economy. 

The  need  to  take  this  action  is  regretted  both 
by  the  Department  of  State  and  by  the  Superin- 
tendent of  Documents.  After  thorough  study  of 
the  problem  during  recent  montlis  the  Department 
of  State  considers  that  the  increase  in  price  is 
preferable  to  the  only  alternative,  which  would 
have  been  to  make  drastic  reductions  in  the  quan- 
tity of  original  documentation  and  other  material 
provided  readers. 


970 


Department  of  State  Bulletin 


November  24, 1946 


THE  RECORD  OF  THE  WEEK 


THE  FOREIGN  SERVICE 

Officers  of  the  Foreign  Service 

I  Pursuant  to  Section  201  of  the  Foreign  Service  Act 
of  1946,  Mr.  Selden  Chapin  is  appointed  tlie  Director 
General  of  the  Foreign  Service,  effective  November  13, 
1946. 

II  Pursuant  to  Section  202  of  the  Foreign  Service  Act 
of  1946,  Mr.  Julian  F.  Harrington  is  appointed  Deputy 
Director  General  of  the  Foreign  Service,  effective  No- 
vember 13, 1946. 

Board  of  tlie  Foreign  Service 

I  Effective  November  13,  1946,  pursuant  to  Sec- 
tion 211(a)  of  the  Foreign  Service  Act  of  1946,  the  fol- 
lowing persons  have  been  named  members  of  the  Board 
of  the  Foreign  Service : 

Donald  S.  Russell,         Assistant  Secretary  of  State 
Chairman 

Spruille  Braden  Assistant  Secretary  of  State 

William  Benton  Assistant  Secretary  of  State 

Selden  Chapin  Director  General  of  the  Foreign 

Service 

Leslie  A.  Wheeler  Director  of  the  Office  of 

Foreign  Agricultural  Relations, 
Department  of  Agriculture 

Arthur  Paul  Assistant  to  the  Secretary  of 

Commerce  and  Director  of  the 
Office  of  International  Trade, 
Department  of  Commerce 

David  A.  Morse  Assistant  Secretary  of  Labor 

1S2.7     Boardof  the  Foreign  Service:  (Effective  11-13^6) 

I  Functions.  The  Board  of  the  Foreign  Service 
shall  make  recommendations  to  the  Secretary  of  State 
concerning  the  functions  of  the  Service ;  the  policies  and 
procedures  to  govern  the  selection,  assignment,  rating,  and 
promotion  of  Foreign  Service  officers ;  and  the  policies  and 
procedures  to  govern  the  administration  and  personnel 
management  of  the  Service ;  and  shall  perform  such  other 
duties  as  are  vested  in  it  by  the  provisions  of  the  Foreign 
Service  Act  of  1946,  by  the  terms  of  any  other  act,  or  by 
direction  of  the  Secretary. 

II  Composition.  The  Board  of  the  Foreign  Service 
will  consist  of  the  Assistant  Secretary  of  State  for  Ad- 
ministration, who  shall  be  Chairman  ;  two  other  Assistant 
Secretaries  of  State  to  he  designated  by  the  Secretary  to 
serve  on  the  Board ;  the  Director  General  of  tlie  Foreign 
Service;  and  one  representative  each,  occupying  positions 
with  comparable  responsibilities,  from  the  Departments 
of  Agriculture,  Commerce,  and  Labor,  designated,  respec- 
tively, by  the  heads  of  such  departments.  A  representa- 
tive of  any  other  Government  department,  occupying  a 
position  of  comparable  responsibility,  may  be  designated 


by  the  head  of  such  department  to  attend  meetings  of  the 
Board  at  the  request  of  the  Secretary  of  State,  whenever 
matters  affecting  the  interest  of  that  department  are 
under  consideration. 

Appointment  of  American  and  Indian 
Charges  d'Affaires 

[Released  to  the  press  November  12] 

The  Governments  of  India  and  the  United 
States  having  agreed  to  exchange  fully  accredited 
diplomatic  representatives,  Sir  Girja  Shankar 
Bajpai,  •who  has  been  the  Agent  General  for  India 
in  the  United  States  since  1941,  was  received  on 
November  12  by  the  Acting  Secretary  of  State 
as  Charge  d'Affaires  ad  interim  of  the  newly  es- 
tablished Embassy  of  India  pending  the  appoint- 
ment of  an  Ambassador  of  India. 

George  R.  Merrell,  who  is  the  present  American 
Commissioner  to  India,  will  serve  as  American 
Charge  d'Affaires  ad  interim  pending  the  appoint- 
ment of  an  American  Ambassador. 


THE  DEPARTMENT 
Appointment  of  Officers 

William  Benton,  Assistant  Secretary  of  State  fur  Public 
Affairs,  on  November  14  announced  the  appointment  of 
Charles  M.  Hulten  as  his  Deputy. 

G.  Stewart  Brown  succeeds  Mr.  Hulten  in  the  position 
of  Deputy  Director  of  the  Office  of  International  Informa- 
tion and  Cultural  Affairs.  William  R.  Tyler  has  been 
appointed  Assistant  Director  in  Charge  of  Areas  for  OIC. 

Bromley  K.  Smith  as  Information  Officer,  Office  of  the 
Secretary,  effective  October  31,  1946. 

Alice  T.  Curran  as  Special  Assistant,  Office  of  Assistant 
Secretary  for  Public  Affairs,  effective  September  22, 
1946. 

Hubert  F.  Havlik  as  Chief,  Division  of  Investment  and 
Economic   Development,   effective   September  22,    1946. 

Harold  R.  Spiegel  as  Chief,  Division  of  Financial 
Affairs,  effective  October  22,  1946. 

Livingston  T.  Merchant  as  Chief,  Aviation  Division, 
effective  October  28,  1946. 

Hugli  Borton  as  Chief,  Division  of  Japanese  Affairs, 
effective  November  4,  1946. 

J.  Carney  Howell  as  Deputy  Director,  Office  of  Budget 
and  Finance,  effective  October  6,  1946. 

Franklin  A.  Holmes  as  Chief,  Division  of  Budget,  effec- 
tive October  20,  1946. 


971 


vonte}U^ 


General  Policy  Face 
U.S.     Interests    in    World    Food     Problem. 

Article  by  James  A.  Stillwell 927 

United  States  Philippine  Training  Program: 

Statement  by  Acting  Secretary  Acheson    .  964 

U.S.  Participation  in  Program 964 

Radio  Broadcast  on  Displaced  Persons   .    .    .  965 
U.S.      Reiterates     Position     on     Rumanian 

Elections 967 

The  United  Nations 

Report  on  Third  Session  of  Economic  and 
Social  Council:  Letter  of  Transmittal 
From  U.S.  Representative  to  Secretary 
of  State 932 

Meeting  of  General  Assembly:  U.S.  Position 
on  Armament  Question.  By  Senior 
Representative  of  U.S.  Delegation  .    .    .        934 

U.S.  Position  on  International  Refugee  Or- 
ganization: Statement  by  Representative 
of  U.S.  Delegation  to  United  Nations   .    .        935 

American    Chemical  Society's  Gift   to 

UNESCO 938 

Economic  Affairs 

Statement  by  Heads  of  Delegations  to  Inter- 
national Wool  Talks 942 

U.S.   Delegation  to  ILO  Textiles  Industrial 

Committee 942 

Moscow     Telecommunications     Conference. 

By  Francis  Colt  de  Wolf 943 

Twenty-Ninth  Session  of  International  Com- 
mission for  Air  Navigation 946 

Foreign  Economic  Policy  of  U.S.     By  Under 

Secretary  Clayton 950 

American  Business  With  the  Far  East.     By 

John  Carter  Vincent 959 

Procedure    for    Filing     War     Claims     With 

China 965 

Third  Report  to  Congress  on  Foreign  Surplus 

Disposal.     Letter  of  Transmittal     .    .    .        968 

Poland  To  Consider  U.S.  Requests  for  Resti- 
tution of  Property 969 


Occupation  Matters  page 

U.S.-U.K.     Meetings    on   Bizonal   Arrange- 
ments for  Germany: 
Statement  by  Acting  Secretary  Acheson  .        940 

U.S.    Representatives 941 

Recommendations  b^  Ambassador  Pauley  on 

Japanese   Reparations 957 

Treaty  Information 

Prosecution  of  Major  Nazi  War  Criminals: 
Report^  From  Francis  Biddle  to  President 

Truman 954 

Air  Transport  Agreement  With  India: 

Statement  by  Acting  Secretary  Acheson   .       966 

Summary  of  Agreement 966 

Chicago  Aviation  Agreements:  Sweden,  Ire- 
land, Dominican  Republic,  Nicaragua, 
Iran 970 

international    Organizations    and    Con- 
ferences 

Calendar  of  Meetings 939 

Cultural  Cooperation 

Fifth  Assembly  of  Inter- American  Commis- 
sion of  Women 946 

The  Foreign  Service 

Effective  Date  of  Foreign  Service  Act.    State- 
ment by  the  Secretary  of  State  ....        947 
American  Foreign  Service  of  Tomorrow.     By 

Assistant  Secretary  Russell 947 

Officers  of  the  Foreign  Service 971 

Board  of  the  Foreign  Service 971 

Appointment  of  American  and  Indian  Charges 

d'Affaires      971 

The  Department 

Appointment  of  Officers 971 

Publications 

Foreign  Commerce  Weekly 963 

Nazi  Conspiracy  and  Aggression,  Volume  VI  .       969 


^rni^iAittc/yA 


James  A.  Stillwell,  author  of  the  article  on  world  food  prob- 
lems, Is  Adviser  on  Supplies  in  War  Areas,  OflSce  of  Interna- 
tional Trade  Policy,  Department  of  State. 


U.  S.  60VERNHEHT  PRINTING  OFFICE:  194« 


^Ae/  ^eha^tmeTil/  ^  tnaie^ 


FIRST  GENERAL  CONFERENCE  OF  UNESCO 

By  Assistant  Secretary  Benton 995 

REVIEW  OF  "PAPERS  RELATING  TO  THE  FOREIGN 
RELATIONS  OF  THE  UNITED  STATES,  1931", 
VOLUME  I 982 

AMERICAN  POLICY  IN  THE  FAR  EAST 

Article  by  G.  Bernard  JVoble 975 


For  complete  contents  see  bach  cover 


Vol.  XV,  No.387 
December  1,  1946 


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AMERICAN  POLICY  IN  THE  FAR  EAST 


By  G.  Bernard  Noble 


The  future  of  American  international  relations  will  he 
determined  hy  the  manner  in  which  we  profit  by  the  lessons 
of  the  past.  This  article  attempts  to  throw  light  o-n  the 
course  of  Amei%can  diplomacy  in  the  Far  East  from  the  end 
of  the  19th  century  down  to  Pearl  Harbor.  Perhaps  in  this 
light  there  may  be  some  indications  that  will  show  us  the  way 
to  the  future. 


It  has  sometimes  been  said  that  the  United  States 
does  not  have  a  foreign  policy.  The  unreadiness 
of  our  country  at  certain  times  in  the  past  to  meet 
serious  crises  at  their  inception  might  seem  to  lend 
some  weight  to  this  theory.  It  would  be  more 
nearly  correct  to  say  that,  until  recent  times,  Amer- 
ican foreign  policy  has  frequently  been  stated  in 
broad  general  principles  not  always  adapted  to  the 
requirements  of  particular  situations.  In  the  past 
it  has  often  been  not  so  much  a  question  whether  we 
had  a  policy,  but  rather  whether  we  have  seen 
clearly  the  full  implications  of  the  policy  and  were 
prepared  as  a  people,  mentally  and  materially,  to 
carry  it  out. 

Toward  Europe  we  have  had  a  traditional  policy 
of  aloofness,  politically,  i.e.,  freedom  from  the 
"broils  and  wars"  of  Europe,  as  George  Washing- 
ton put  it.  But  we  know  that  if  they  were  on  a 
continental  scale  we  would  never,  in  fact,  have  been 
able  to  escape  those  "broils  and  wars".  Recent 
events  indicate  that  we  have  now  modified  our 
policy  toward  Europe  to  a  considerable  degree  and 
that  in  the  future  we  shall  recognize  more  clearly 


our  political  interests  in  the  developments  in  that 
Continent. 

Toward  the  Western  Hemisphere  we  have  had  a 
fairly  categorical  and  clear-cut  policy  under  the 
name  of  the  Monroe  Doctrine.  We  have  never 
enforced  it  consistently  at  all  times,  and  it  has 
taken  on  varying  shades  of  meaning,  from  one 
period  to  another.  But  there  has  never  been  any 
doubt  that  in  the  last  resort,  if  we  felt  our  safety 
endangered  by  foreign  political  influences  in  this 
Hemisphere,  we  would  figlit. 

In  the  Far  East  our  policy  has  grown  out  of  a 
mixture  of  commercial  and  financial  interest  and 
Christian  charity.  Not  until  recently  have  con- 
siderations of  national  security  entered  promi- 
nently into  account.  Our  aims  in  the  Far  East 
were,  until  tJie  aftermath  of  World  War  I,  pri- 
marily those  of  promoting  the  interests  of  peace- 
ful commerce,  and  later  of  industry  and  finance, 
along  with  the  spreading  of  the  Christian  religion. 

The  turn  of  the  century  was  an  important  land- 
mark in  our  relations  with  the  Far  East  During 
the  earlier  years  our  policy  had  expressed  itself 


975 


in  terms  of  treaties  and  ordinary  diplomatic  pro- 
cedures to  secure  equality  of  trading  rights  in 
China  and  elsewhere.  These  guaranties  provided 
the  most-favored-nation  treatment  for  our  na- 
tionals in  trade  and  commerce,  meaning  that  what- 
ever treaty  concessions  other  powers  gained  in 
tariffs  or  other  commercial  regulations  would  auto- 
matically accrue  to  us.  That  policy  worked  very 
well  until  the  late  1890's,  when  new  imperialistic 
pressures  seemed  to  threaten  a  division  of  China 
into  spheres  of  interest  among  the  other  great 
powers,  with  the  possible  threat  that  our  previous 
treaties  with  China  might  not  be  sufficient  to  guar- 
antee the  equality  of  trading  rights  which  we 
had  formerly  enjoyed.  Our  acquisition  of  the 
Philippines  at  that  time  served  somewhat  further 
to  intensify  our  interest  in  the  Far  East,  though 
our  interest  remained  predominantly  commercial 
in  character. 

In  1899,  the  United  States  resorted  to  a  new  type 
of  diplomacy  to  secure  its  objectives.  In  the 
famous  notes  of  Secretary  John  Hay  we  asked  the 
various  great  powers  ^  involved  in  the  struggle  in 
China  to  give  guaranties  that  in  their  respective 
so-called  "spheres  of  influence  or  interest",  they 
would  not  interfere  with  the  equality  of  rights  of 
nationals  of  other  countries  in  matters  of  tariffs, 
railroad  charges,  and  harbor  dues. 

The  replies  to  these  notes  were  all  somewhat 
equivocal  or  conditional,  though  the  British  note 
was  the  most  friendly.  Russia  was  the  most  eva- 
sive of  all.  Nevertheless  the  diplomatic  language 
of  the  replies  made  it  possible  for  Secretary  Hay  to 
announce  to  the  world  that  the  policy  of  the  "Open 
Door"  had  been  accepted,  and  that  it  was  the 
governing  policy  in  China.^ 

Within  the  next  few  years  the  United  States 
found  it  appropriate  to  enlarge  the  scope  of  its 
policies  designed  to  bolster  the  shaky  framework 
of  the  Chinese  territorial  and  governmental  sys- 
tem, since  the  narrow  definition  of  the  Open  Door 
in  the  1899  notes  seemed  inadequate  to  the  exi- 


'  Germany,  Great  Britain,  Russia,  Sept.  6,  1899;  Japan, 
Nov.  13;  Ital.v,  Nov.  17;  and  France,  Nov.  21  (Foreign 
Relations,  18!)!),  pp.  128-143). 

'  Ibid.,  p.  142. 

'  Ibid.,  1900,  p.  299. 

*Dec.  7-11,  1900,   ibid..  1915,  pp.   113-115. 

"  Nov.  6  and  Dec.  14, 1909,  iUd.,  1910,  pp.  234-235. 


gencies  of  the  time.  During  the  Boxer  outbreak 
in  1900  Secretary  Hay,  in  another  circular  note 
to  the  great  powers,^  stated  that  it  was  the  policy 
of  the  United  States  to  seek  a  solution  which, 
among  other  things,  would  "preserve  Chinese  ter- 
ritorial and  administrative  entity".  Thus  the 
maintenance  of  China's  territorial  and  administra- 
tive entity  became  the  policy  of  the  United  States. 
At  this  time  the  United  States  stepped  slightly  out 
of  character  in  asking  the  Japanese  whether  their 
Government  would  object  if  we  acquired  a  coaling 
station  in  Samsa  Bay,  Fukien  Province,  opposite 
Japanese-held  Formosa.  Japan  promptly  ob- 
jected, announcing  its  adherence  to  the  principle  of 
maintaining  China's  territorial  integrity.*  We 
were  not  prepared,  against  the  protest  of  Japan,  to 
do  what  others  had  done  without  asking  anyone's 
permission. 

In  1902  and  the  years  immediately  following, 
we  extended  the  Open  Door  doctrine  by  inter- 
preting it  to  prohibit  exclusive  mining  or  railway 
privileges  and  commercial  monopolies.  The  ex- 
clusive right  to  make  loans  to  China  was  also 
regarded  as  in  conflict  with  the  Open  Door  prin- 
ciple. These  extensions  were  initially  aimed 
largely  at  Russia,  which  was  pushing  down 
through  Manchuria  and  threatening  China's  con- 
trol over  that  vast  territory.  After  the  Russo- 
Japanese  War,  1904^05,  the  principles  were  turned 
more  sharply  against  Japan,  which  had  taken 
Russia's  place  in  the  southern  half  of  Manchuria 
as  a  menace  to  China's  territorial  and  administra- 
tive integrity.  In  1909  and  1910  President  Taft 
thought  the  cause  of  the  Open  Door  would  be 
f  urtliered  by  taking  the  Manchurian  railroads  out 
of  international  politics.  He  therefore  proposed 
to  provide  China  with  the  necessary  funds  to  pur- 
chase these  railroads  from  Japan  and  Russia  and 
place  them  under  a  neutral  international  admin- 
istration until  the  loans  were  paid  off.°  Presi- 
dent Taft's  bold  gesture  was  almost  brutally  re- 
buffed by  Russia  and  Japan,  and  the  total  effect 
was  to  draw  these  powers  more  closely  together 
in  the  defense  of  their  interests  in  Manchuria  and 
Eastern  Inner  Mongolia.  Using  the  language  of 
the  Open  Door  and  the  territorial  integrity  of 
China,  they  entered  into  treaty  engagements  on 
July  4,  1910  and  June  25,  1912  which  seemed  de- 


976 


Departmenf  of  State  Bulletin     •      Decembar  1,  1946 


signed  ultimately  to  close  the  door  to  othere  and 
to  threaten  China's  integrity. 

The  events  of  the  decade  following  the  turn  of 
the  century  have  great  significance  from  the  point 
of  view  of  American  policy.  With  the  acquisition 
of  the  Philippines  we  acquired  a  strategic  interest 
in  the  Far  East  which  was  bound  to  complicate 
the  strictly  commercial  interests  which  we  had 
pursued  down  to  1898.  Our  policies  regarding  the 
Open  Door  and  the  integrity  of  China  involved 
us  in  political  responsibilities  which  had  far- 
reaching  implications  and  which  tended  ulti- 
mately to  bring  us  into  conflict  with  the  dominant 
power  in  the  Far  East.  We  sought  to  achieve  our 
objectives — equal  commercial,  industrial,  and 
financial  opportunity  for  all,  and  the  preserva- 
tion of  China's  territorial  and  administrative  en- 
tity by  the  normal  methods  of  open  diplomacy 
and  discussion  and  consent.  Events  were  to  dem- 
onstrate tliat  these  methods  could  attain  the  desired 
objectives  only  so  long  as  a  "balance  of  power" 
existed  in  tlie  Far  Eastern  area,  that  is,  so  long  as 
no  power  or  combination  of  powers  dominated 
the  scene.  Wlien  this  balance  was  threatened  the 
American  people  were  not  prepared  to  support  a 
policy  with  measures  stronger  than  diplomacy. 

The  actual  position  of  the  United  States  was 
appropriately  characterized  by  Secretary  Jolm 
Hay  in  April  1903,  when  he  told  President  Roose- 
velt that  he.  Hay,  assumed  that  "Russia  knows  as 
we  do  that  we  will  not  fight  over  Manchuria,  for 
the  simple  reason  that  we  cannot." "  We  could  not 
therefore  expect  that  our  policy  of  seeking  to  limit 
imperialistic  ambitions  would  continue  to  be  effec- 
tive if  the  balance  of  power  were  upset  and  the 
selfish  imperialism  of  one  country  gained  the  upper 
hand. 

World  War  I  and  its  aftermath  provided  the 
occasion  for  precisely  this  to  happen.  It  gave 
Japan  an  opportunity,  largely  unhampered,  to 
develop  at  the  expense  of  China  its  interests  in  the 
Far  East.  In  1910  Japan  had  already  annexed 
Korea.  It  also  reached  agreements  with  Russia 
which  strengthened  its  position  in  Manchuria  and 
Inner  Mongolia.  The  outbreak  of  World  War  I 
enabled  it  to  take  advantage  of  the  alliance  with 
Britain,  dating  back  to  1902,  and  to  come  into  the 
war,  to  oust  Germany  from  the  Far  East,  and  to 


improve  its  position  in  China  by  taking  over  Ger- 
man-occupied Tsingtao  and  extending  its  influence 
elsewhere  in  the  Shantung  Peninsula.  All  the 
European  powers,  which  formerly  had  been  impor- 
tant factors  in  maintaining  the  balance  of  power  in 
the  Far  East,  were  engaged  in  a  life-and-death 
struggle.  They  therefore  suddenly  became  "neg- 
ligible quantities",  diplomatically  speaking,  in  the 
Far  East.  Only  tlie  United  States  remained  with 
its  hands  more  or  less  free  to  act,  and  even  this 
freedom  was  conditioned  by  deepening  American 
involvement  in  the  course  of  events  in  Europe. 

Japanese  political  and  military  leaders  could 
scarcely  hope  for  a  more  propitious  opportunity  to 
lay  the  foundations  of  empire  and  to  put  China  in 
leading  strings  for  the  indefinite  future.  The 
opportunity  was  avidly  seized  upon,  as  illustrated 
by  the  famous  Twenty-One  Demands  presented 
secretly  to  China  early  in  1915.  These  Demands, 
if  accepted  in  full,  would  have  made  China  a  vir- 
tual protectorate  of  Japan.  Not  only  did  the  Jap- 
anese demand  further  economic  and  political  rights 
in  Manchuria  and  Inner  Mongolia,  but  they  also 
sought  exclusive  mining  and  industrial  rights  in 
the  Yangtze  valley  and  actually  demanded  super- 
visory control  over  Chinese  social  and  political 
institutions,  including  not  only  schools  and 
churches  but  even  the  Government  itself. 

The  United  States  soon  learned  of  the  Demands 
being  made  on  China,  and  Secretary  Bryan,  who 
had  pledged  that  we  would  not  get  into  a  war 
while  he  was  Secretary  of  State,  dispatched  a  note 
to  Japan  arguing  that  its  demands  were  incon- 
sistent with  its  past  pronouncements  regarding  the 
sovereignty  of  China.  Secretary  Bryan's  note, 
however,  contained  a  significant  admission  and 
concession  in  stating  that  "nevertheless  the  United 
States  frankly  recognizes  that  territorial  con- 
tiguity creates  special  relations  between  Japan  and 
these  districts",  referring  particularly  to  Man- 
churia and  Inner  Mongolia.'  In  spite  of  the  ex- 
pressed American  views  and  the  resistance  of 
Chinese  officials  Japan  presented  an  ultimatum  to 
China  on  May  7,  1915,  giving  China  48  hours  in 
which  to  comply.  This  ultimatum  modified  some 
of  the  more  extreme  demands,  which  were  left  for 


"Hay  to  Roosevelt,  Apr.  28,  1903  (Tyler  Dennett,  John 
Jlay,  New  York,  1933,  p.  4ftj). 
'  Mar.  13,  1915,  Foreign  Relations,  1915,  pp.  105-111. 


977 


further  discussion.  China  necessarily  complied, 
and  signed  away  important  aspects  of  her  sov- 
ereignty in  the  treaties.  The  entire  episode  re- 
vealed the  disparity  between  our  statements  of 
policy  and  our  performance,  so  far  as  the  main- 
tenance of  the  Open  Door  and  the  integrity  of 
China  were  concerned. 

This  disparity  was  further  illustrated  shortly 
after  our  entrance  into  the  war  in  1917,  when  we 
sought  the  support  of  Great  Britain,  France,  and 
Japan  in  the  restoration  of  China's  internal  peace 
and  national  unity.  The  fruits  of  our  efforts  were 
finally  expressed  in  the  Lansing-Ishii  agreement 
of  November  2,  1917  which,  although  endorsing 
the  principle  of  maintaining  the  "territorial  sov- 
ereignty" of  China,  nevertheless  stated  that  "terri- 
torial propinquity  creates  special  relations  between 
countries,"  and  that  "Japan  has  special  interests 
in  China,  particularly  in  the  part  to  wliich  her 
possessions  are  contiguous."  ^  Secretary  Lansing 
had  sought  to  add  another  clause  to  the  effect  that 
neither  party  would  "take  advantage  of  present 
conditions  to  seek  special  rights  or  privileges,"  but 
Ishii  objected  to  accepting  this  clause  as  a  part  of 
the  agreement.  It  was,  however,  included  in  a 
secret  protocol.' 

Before  the  end  of  World  War  I,  Japan  also 
secured  from  Britain,  France,  Italy,  and  Russia 
special  recognition  of  her  rights  to  tlie  former 
German  islands  north  of  the  Equator,  as  well  as 
to  Shantung,  and  gained  from  Russia  further 
commitments  mutually  to  safeguard  China  against 
the  domination  of  any  third  party  having  hostile 
aims  against  Russia  or  Japan. 

The  end  of  World  War  I  found  Japan  in  a  domi- 
nant position  in  China  and  the  Far  East.  The 
balance  of  power  on  which  the  success  of  our  poli- 
cies depended  had  largely  disappeared.  The  peace 
settlement  in  1919  confirmed  Japan's  right  to 
Shantung  and  the  islands  north  of  the  Equator, 
and  the  repercussions  of  this  settlement,  combined 
with  Japan's  greatly  enlarged  naval  building  pro- 

'  Ibid.,  1917,  p.  264. 

'The  agreement  was  canceled  as  of  Jan.  2,  1923  {ibid., 
1922,  vol.  II,  p.  595)  ;  Japan  withdrew  from  Shantung  in 
1922  {ibid.,  p.  598). 

"  Feb.  6,  1922,  ibid.,  1922,  vol.  I,  p.  276. 

"  Dec.  13,  1921,  ibid.,  p.  33. 

'■  Feb.  6,  1922,  ibid.,  p.  247. 

"'Article  XIX,  ibid.,  p.  252. 


gram,  began  for  the  first  time  to  cause  serious 
anxiety  in  this  country  over  the  prospect  that 
Japan's  program  of  imperialistic  and  naval  ex- 
pansion might  lead  to  war  with  the  United  States. 
Our  position  was  a  difficult  one.  We  had  taken  a 
strong  stand  with  reference  to  the  Open  Door  and 
China's  territorial  and  administrative  integrity, 
yet,  more  than  ever,  at  the  end  of  an  exhausting 
war,  we  were  unwilling  to  fight  for  the  mainte- 
nance of  these  principles. 

In  order  to  maintain  our  policy  and  to  gain  our 
objectives  by  measures  short  of  war,  it  seemed  to 
be  worthwhile  at  least  to  try  the  diplomatic  ap- 
proach. The  result  was  the  Conference  on  the 
Limitation  of  Armament  held  in  Washington  in 
1921-22,  which  dealt  not  only  with  naval  arma- 
ments, but  also,  and  perhaps  primarily,  with  basic 
political  problems  in  the  Far  East.  In  fact,  it 
can  be  said  that  naval  limitation  would  not  have 
been  possible  without  the  achievement  of  certain 
collateral  political  objectives,  such  as  the  abroga- 
tion of  the  Anglo-Japanese  Alliance,  the  signing 
of  the  Nine  Power  treaty,  the  terms  of  which  safe- 
guarded China's  territorial  and  administrative 
integrity,^"  and  the  acceptance  of  the  Four  Power 
treaty  relating  to  insular  possessions  in  the 
Pacific.ii 

In  the  Washington  treaties  the  United  States 
sought  to  avoid  war  in  the  Pacific  and  at  the  same 
time  to  provide  a  system  of  international  guaran- 
ties for  China,  but  the  success  of  the  treaty  ar- 
rangements depended  ultimately  on  the  willing- 
ness of  Japan  to  respect  its  pledges.  The  outstand- 
ing fact  was  that  the  naval  limitation  treaty  ^^ 
with  the  10 :  10 :  6  ratio  for  capital  ships,  combined 
with  the  provisions  prohibiting  the  fortification  of 
insular  possessions  in  the  Western  Pacific  ^^  made 
it  impossible  for  either  the  United  States  or  Great 
Britain  successfully  to  challenge  Japan  in  Far 
Eastern  waters.  The  United  States  possessed  im- 
portant territorial  and  strategic  holdings  in  Far 
Eastern  waters  (e.g.  the  Philippines  and  Guam), 
but,  because  of  the  naval  limitation  and  non-forti- 
fication clauses  in  the  treaties  we  would  be  unable 
to  defend  them  against  Japanese  attack.  We  were 
party  to  vital  commitments  regarding  China,  com- 
mitments which  now  were  underwritten  by  the 
signatures  of  nine  powers,  but  there  were  no  effec- 
tive provisions  for  enforcement,  and  the  United 


979 


Deparfment  of  State  Bulletin 


December  I,  1946 


States,  acting  alone,  would  be  practically  immo- 
bilized in  the  midst  of  a  crisis.  It  should  be  added 
that  the  previous  inroads  on  China's  sovereignty 
which  Japan  had  made  in  Manchuria  and  Inner 
Mongolia  were  left  intact,  though  Japan  did  with- 
draw from  Shantung  in  1922."  The  success  of 
the  treaties  deiiended  on  the  possibility  of  develop- 
ing cooperative  relationships  in  China,  based  on 
good-will  and  understanding  all  around. 

Unfortunately,  the  good-will  period  was  short- 
lived. A  number  of  factors  undermined  the  struc- 
ture so  hopefully  erected  at  Washington.  A  re- 
vived nationalist  movement  in  China  emerged  in 
1923  aiming  at  freeing  that  country  from  the 
shackles  of  foreign  imperialism,  whether  of  the 
East  or  the  West.  By  1927  this  movement  gave 
promise  of  establishing  a  basis  of  real  Chinese 
unity.  Even  Chang  Hsueh-liang,  then  Manchu- 
rian  warlord,  threw  in  his  lot  with  the  Nanking 
regime  in  December  1928. 

Bitter  outbreaks  against  foreign  interests  in  va- 
rious parts  of  China  marked  the  growth  of  the 
nationalist  spirit,  but  it  was  in  Manchuria  that  the 
most  serious  repercussions  occurred,  for  in  those 
Manchurian  provinces  Soviet  interests  were  in- 
volved in  the  north  and  Japanese  interests  were 
threatened  in  the  south.  The  developments  in 
China  strengthened  the  hands  of  the  Japanese 
militarists  and  imperialists  and  in  1927  caused  the 
downfall  of  the  Liberal  regime  in  Japan,  though 
Shidehara,  the  Foreign  Minister,  was  able  to  return 
in  1929. 

The  foundation  of  the  naval  armaments  agree- 
ments were  also  being  undermined.  Already  com- 
petition was  developing  in  auxiliai-y  vessels  such 
as  cruisers  as  large  as  10,000  tons,  submarines,  and 
torpedo  boats  which  had  not  been  limited  by  the 
Washington  treaty  of  1922.  Wlien  it  was  pro- 
posed to  extend  the  limitations  of  the  Washington 
treaty  to  auxiliary  vessels  at  the  1930  London  con- 
ference the  Japanese  authorities  refused  to  accept 
the  10:10:6  principle  for  all  auxiliary  craft  and 
gained  ratios  slightly  better  than  that  for  light 
cruisers  and  torpedo  boats  and  won  parity  in  sub- 
marines.^^ So  bitterly  did  Japanese  militarist 
circles  feel  about  even  these  mild  limitations  that 
when  Premier  Yuko  Hamaguchi  took  the  respon- 
sibility for  recommending  acceptance  of  the  Lon- 


don treaty,  he  was  shortly  thereafter  mortally 
wounded  by  an  assassin. 

The  economic  debacle  beginning  in  the  United 
States  and  Europe  in  1929,  and  coming  to  a  climax 
in  1931  created  conditions  in  Japan  which  con- 
tributed further  to  fanning  the  flames  of  Japanese 
nationalism  and  at  the  same  time  caused  economic 
and  political  disturbances  in  the  other  great  powers 
which  made  the  occasion  a  propitious  one  for 
Japanese  militarists  to  take  control  of  their  coun- 
try's policy. 

The  Mukden  incident,  on  the  night  of  September 
18-19,  1931,  was  the  supreme  test  of  the  effective- 
ness of  the  collective  system  and  of  American 
policy  in  the  Far  East.  The  initiative  in  Man- 
churia was  taken  by  the  Japanese  military  forces, 
and  the  systematic  manner  in  which  these  authori- 
ties proceeded  in  the  extension  of  the  occupation 
of  Manchuria  indicated  clearly  that  the  action  was 
in  pursuance  of  carefully  laid  plans.  Only  drastic 
and  rapid  action  by  the  League  powers,  in  coopera- 
tion with  the  United  States  and  involving  the 
threat  or  the  actual  use  of  force,  could  have  ar- 
rested the  spread  of  Japanese  power.  No  such 
action  was  taken,  nor  was  the  United  States  Gov- 
ernment prepared  to  act  alone  in  defense  of  treaty 
rights  in  the  Far  East  tlirough  other  than  strictly 
diplomatic  channels.  Wlien  the  League  appealed 
to  the  United  States  on  September  22,  immediately 
after  the  Mukden  incident,  asking  for  our  coop- 
eration in  sending  an  on-the-spot  fact-finding  com- 
mission, our  Government  made  certain  objections 
to  setting  up  this  commission,  stating  that  we  felt 
(a)  that  such  a  move  would  endanger  the  position 
of  the  "liberal"  Government  in  Tokyo,  and  (h) 
that  we  favored  direct  negotiations  between  the 
parties."  Under  the  circumstances  the  League  felt 
unable  to  resort  immediately  to  the  device  of  an 
investigating  committee  which  had  worked  suc- 
cessfully in  several  cases  involving  smaller  powers. 
As  a  result,  the  situation  in  Manchuria  got  rapidly 
out  of  hand  and  the  military  forces  of  Japan  soon 
gained  such  control  of  that  territory  that  only  re- 
sort to  force  on  a  large  scale  could  have  checked 
them. 


"  Treaty  of  Feb.  4,  1922,  iUd.,  p.  948. 

"■  Treaty  of  Apr.  22,  1930,  ibid.,  19;iO,  vol.  I,  p.  107. 

"  Foreign  Relations,  1931,  vol.  Ill,  pp.  35-40,  43-^9. 


979 


In  repeated  diplomatic  notes  and  conversations 
in  late  1931  and  early  1932  the  United  States 
called  Japan's  attention  to  what  were  regarded 
as  violations  of  its  treaty  obligations,  particularly 
the  Nine  Power  treaty  and  the  Pact  of  Paris. 
We  also  proclaimed  the  so-called  "Stimson  doc- 
trine"," informing  Japanese  military  leaders  that 
we  would  not  recognize  the  fruits  of  their  con- 
quest. The  League  powers  followed  a  somewhat 
similar  diplomatic  course,  and  eventually,  with 
the  consent  of  Japan,  appointed  the  Lytton  com- 
mission to  investigate  the  situation  some  months 
after  the  conquest  had  become  a  fait  accotn'pU. 
The  failure  of  the  League  of  Nations  and  the 
United  States  to  agree  on  a  vigorous  program  of 
action  against  Japan  in  the  early  days  of  the  crisis 
not  only  demonstrated  the  ineffectiveness  of  the 
League  of  Nations  as  an  instrument  for  main- 
tenance of  peace  but  also  emphasized  the  unwill- 
ingness of  the  United  States  Government  and  the 
American  people  to  take  drastic  action,  involving 
the  threat  of  force,  to  defend  a  system  of  rights 
in  China  which  we  had  come  to  regard  as  a  vital 
aspect  of  American  policy.  Japanese  militarists 
were  not  slow  to  draw  the  appropriate  inferences 
from  our  attitude. 

The  events  of  the  next  decade  flowed  logically 
from  the  facts  immediately  following  the  Mukden 
incident.  Japanese  pretensions  mounted  rapidly. 
Nippon's  representative  in  the  League  Assembly, 
on  February  4,  1933  stated  that  Japan  was  re- 
sponsible for  the  maintenance  of  peace  and  order 
in  the  Far  East,'*  and  some  days  later  he  added 
that  Japan  would  not  "allow  any  party  to  inter- 
vene in  the  Manchurian  problem".  From  this 
point  there  was  a  logical  transition  to  the  doctrine 
of  Japan's  "Greater  East  Asia  co-prosperity 
sphere".  Meantime,  during  the  middle  1930's,  the 
collective  system  was  in  process  of  disintegration. 
The  Versailles  Treaty  gradually  gave  way  before 


"  Jan.  7,  1932,  Foreign  Relations,  Japan,  1931-l&il,  vol. 
I,  p.  76. 

'*  League  of  Nations,  Official  Journal,  Special  Supple- 
ment no.  112,  1933,  vol.  IV,  p.  17. 

"Foreign  Relations,  Japan,  1931-1941,  vol.  I,  p.  379. 

="  See  reports  adopted  Oct.  6,  1937,  ibid.,  pp.  384,  394. 

•'  Department  of  State,  The  Conference  of  Brussels,  Nov. 
3-24, 1937  (Washington,  Government  Printing  Office,  1938). 

"^Nov.  15,  1937,  Foreign  Relations,  Japan,  19G1-1941, 
vol.  I,  p.  410. 


the  pressure  of  the  Axis,  the  naval  limitation 
treaties  collapsed,  partly  as  a  result  of  Japan's 
refusal  to  cooperate  further  with  the  other  naval 
powers,  and  the  menacing  spread  of  Nazism  and 
Fascism  throughout  the  world  added  to  the  gen- 
eral confusion.  During  this  period,  also,  the 
United  States  retreated  into  isolationism  by  way 
of  the  "neutrality"  legislation  of  1935  and  1937. 

Wlien  Japan,  in  July  1937,  moved  against  Peip- 
ing  in  her  drive  for  the  complete  control  of  China, 
the  situation  was  particularly  favorable  for  the 
aggressor.  Europe  was  in  a  state  of  nervous  ten- 
sion, and  the  United  States  was  practically  im- 
mobilized, diplomatically  speaking,  as  was  evi- 
denced by  the  hostile  popular  reaction  to  President 
Roosevelt's  so-called  "quarantine"  speech  of  Oc- 
tober 5,  1937.^°  Secretary  Hull,  in  a  comprehen- 
sive statement,  applied  the  Good-Neighbor  Policy 
to  the  Far  East,  and  somewhat  later,  denounced 
Japan's  conduct  as  inconsistent  with  the  Nine 
Power  treaty  and  the  Pact  of  Paris.  When  China 
appealed  once  more  to  the  League  on  September 
12,  1937,  a  committee  of  that  organization  found 
Japan  to  be  in  violation  of  both  these  treaties,  and 
the  League  Assembly  called  upon  the  signatories 
of  the  Nine  Power  agreement  to  meet  in  confer- 
ence on  the  subject.^"  When  a  conference  met  at 
Brussels  in  November  1937,^'  it  did  so  without  the 
presence  or  cooperation  of  Japan,  whose  Govern- 
ment informed  the  conference  that  no  interference 
with  the  Japanese  settlement  with  China  would  be 
tolerated.  None  of  the  powers  was  willing  to  take 
any  initiative  in  promoting  strong  measures 
against  Japan.  Although  the  United  States  was 
desirous  of  ending  the  conflict,  we  would  not  at 
that  time  run  any  risks  of  involvement  in  the 
struggle.  The  conference  accordingly  adjourned 
after  reaffirming  the  principles  of  the  Nine  Power 
pact  and  expressing  the  hope  that  efforts  to  obtain 
a  settlement  would  not  be  abandoned.^^  In  fact, 
the  end  of  the  Brussels  conference  marked  the  end, 
until  1941,  of  the  efforts  of  other  nations  to  stop 
Japan.  Nevertheless  the  failure  of  the  Brussels 
conference,  followed  by  the  Panay  incident  (De- 
cember 12,  1937),  and  the  spreading  of  Japanese 
conquest  along  the  vital  arteries  of  China,  accom- 
panied by  the  closing  of  the  Open  Door,  gradually 
developed  a  more  uncompromising  attitude  on  the 


980 


Department  of  State  Bulletin 


December  1,  1946 


part  of  the  American  public  and  prepared  it  for 
harsher  measures. 

The  Neutrality  Act  was  never  applied  to 
the  Sino-Japanese  conflict:  the  Administration 
thought  that  to  cut  off  military  supplies  and 
credits  from  both  parties  would  be  more  disad- 
vantageous to  China  than  to  Japan ;  but  as  Japan 
drew  closer  to  the  Nazi-Fascist  combination  in 
Europe,  the  United  States  made  preparation  for 
stronger  measures.  In  July  1939  notice  was  given 
of  the  abrogation  of  our  1911  treaty  with  Japan, 
which,  when  the  abrogation  became  effective  in 
January  1940,  permitted  us  to  resort  to  economic 
penalties  without  violating  any  treaty  commit- 
ments.-^ 

At  the  same  time  we  were  making  preparations 
to  reduce  our  liabilities  in  the  Far  East;  we  were 
preparing  to  withdraw  fi-om  the  Philippines,  hav- 
ing passed  the  Tydings-McDuffie  act  in  1934  look- 
ing to  Philippine  independence  in  194G;  and  we 
refrained  from  strengthening  tlie  fortifications  of 
Guam.  We  also  withdrew  our  military  forces 
from  certain  parts  of  China,  in  order  to  avoid  unto- 
ward incidents  in  our  relations  with  Japan,  in 
order  to  emjahasize  the  absence  of  any  desire  on 
our  part  to  interfere  in  the  politics  of  Asia  or 
Europe,  President  Roosevelt,  at  a  Hyde  Park  press 
conference  in  July  1940,  threw  out  the  suggestion 
that  the  principles  of  the  Monroe  Doctrine  be 
applied  in  those  other  two  continents. 

The  American  people  were,  in  fact,  engaged  in 
a  tremendous  inward  struggle  between  isolation- 
ism, neutrality,  and  appeasement,  on  the  one  hand, 
and,  on  the  other,  opposing  attitudes  which  in- 
sisted that  these  concepts  were  outmoded  and  that 
policies  based  on  them  would  definitely  lead  us 
into  war  under  far  less  favorable  circumstances 
than  would  be  the  case  if  we  took  a  stand  before 
all  our  law-abiding  neighbors  had  succumbed. 

The  summer  of  1941  witnessed  the  turning  of  the 
tide  of  appeasement  of  Japan.  In  July  of  that 
year  all  Japanese  credits  in  the  United  States  were 
blocked,^*  resulting  in  cutting  off  further  pur- 
chases in  this  country  by  Japan  of  scrap  ii-on,  oil, 
and  other  items  indispensable  for  war  purposes. 
Already  in  1940  several  loans  had  been  made  to 
China.  In  the  summer  of  1941  we  sent  a  lend-lease 
mission  to  China  to  facilitate  shipments  of  sup- 
plies over  the  Burma  Road,  and  American  aviators 


were  permitted  to  resign  their  commissions  and  to 
serve  under  the  Chinese  flag  for  tlie  protection  of 
the  vital  link  between  China  and  the  outside  world. 
These  more  vigorous  moves  by  the  administration 
were  clearly  supported  by  public  opinion. 

On  August  17,  President  Roosevelt,  on  his  return 
from  the  Atlantic  Charter  meeting  with  Prime 
Minister  Churchill,  jDresented  to  the  Japanese  Am- 
bassador a  note  warning  that  "if  the  Japanese 
Government  takes  any  further  steps  in  pursuance 
of  a  policy  or  program  of  military  domination  by 
force  or  threat  of  force  of  neighboring  countries, 
the  Government  of  the  United  States  will  be  com- 
pelled to  take  immediately  any  and  all  steps  which 
it  may  deem  necessary  .  .  .  toward  insuring  the 
safety  and  security  of  the  United  States."  ^  This 
action  left  no  doubt  that  our  policy  was  definitely 
stiffening,  though  our  note  expressed  the  desire 
to  continue  discussions  if  we  should  have  assur- 
ances that  Japan  would  not  continue  its  movement 
of  force  and  conquest. 

During  August  tlie  Japanese  Government  pro- 
posed a  meeting  between  Prime  Minister  Fumi- 
maro  Konoye  and  President  Roosevelt,  with  a  view 
to  discussing  matters  in  issue,-^  but  when  our  Gov- 
ernment insisted  that  there  should  be  some  pre- 
liminary understandings  so  that  the  conference 
might  deal  with  specific  problems  rather  than 
witli  vague  generalities,  the  prospects  for  the  con- 
ference rapidly  faded.^'  When  Tojo  replaced 
Konoye  on  October  16,  the  march  of  events  toward 
war  seemed  inexorable.  Indeed,  an  important  de- 
cision had  already  been  made:  the  Konoye  mem- 
oirs reveal  that  on  September  6  an  Imperial  con- 
ference decided  that  if  no  way  should  be  found 
by  early  October  for  realizing  Japanese  demands, 
the  Empire  should  at  once  prepare  for  war 
against  the  United  States,  Great  Britain,  and  the 
Netherlands. 

The  final  interchanges  of  notes  between  the  two 


""July  26,  1939,  ibid.,  vol.  II,  p.  189.  For  economic 
measures,  see  ibid.,  pp.  201-273. 

"  July  26,  1941,  ibid.,  p.  2G7. 

"  Ibid.,  pp.  556-557. 

^"Aug.  28,  1941,  ibid.,  p.  572.  The  conference  had  pre- 
viously been  suggested  as  early  as  Apr.  9,  ibid.,  p.  402. 

'^Investigation  of  the  Pearl  Harbor  Attack  (S.  Doc.  244, 
July  1946,  pp.  26-27).     See  Committee  Exhibit  173. 


722716 — 16 


981 


Governments  highlighted  the  basic  conflict  be- 
tween the  two  i^owers.  In  its  note  of  November 
20,  1941  tlie  Japanese  asked  the  United  States, 
among  other  tilings,  not  to  interfere  with  its  effoi"ts 
"for  the  restoration  of  the  general  peace  between 
Japan  and  China",  and  asserted  the  right  to  send 
armed  forces  to  French  Indo-China.-*  Secretary 
Hull's  reply,  November  26,  called  on  Japan  to 
"witlidraw  all  military,  naval,  air  and  police  forces 
from  China  and  from  Indo-China".-"  Thus  the 
issue  was  micompromisingly  drawn.  The  United 
States  had  reached  the  conclusion  that  the  time 
had  come  when  it  must  support  the  Open  Door 
and  the  integi'ity  of  China,  even  at  the  risk  of 
war  with  Japan,  and  it  took  this  stand  at  a  time 
when  Ja)>an  had  taken  over  the  main  arteries  of 
China's  life,  had  associated  itself  with  powerful 
Axis  allies,  and  by  treaty  had  neutralized  the 
Soviet  Union.  Our  decisions  were  taken  under 
the  con%'iction  that  we  must  act  while  there  was 
still  time,  with  a  view  to  avoiding  the  alternative 


ultimately  of  facing  the  world  alone  and  fighting 
on  our  own  doorstep.  The  complete  upsetting  of 
the  balance  of  power  in  Europe  and  the  Far  East 
was  a  prospect  which  we  could  not  view  but  with 
unrelieved  alarm.  For  Japan  there  was  no  turning 
back.  Hence  the  events  of  December  7,  1941  lay 
in  the  logic  of  its  expanding  imperial  policy. 

With  the  diplomatic  developments  climaxing  in 
December  1941,  an  important  era  in  American 
diplomacy  came  to  an  end.  During  the  period 
under  review  the  American  Government  and  people 
had  not  always  seen  clearly  the  implications  of 
their  policies,  however  laudable  and  however  sin- 
cerely espoused  these  policies  were.  The  decade 
from  1931  to  1941  was  an  invaluable  training  school 
in  world  aflPairs,  which  brought  ideals  into  closer 
touch  with  realities  in  international  relations  and 
gave  our  people  a  clearer  view  of  their  country's 
position  and  i-espousibilities.  The  lessons  learned 
will  undoubted^  be  applied  to  the  problems  that 
lie  ahead. 


PUBLICATION  OF  "PAPERS  RELATING  TO  THE  FOREIGN  RELATIONS 
OF  THE  UNITED  STATES,  1931",  VOLUME  I 

REVIEWED  BY  VICTOR  J.  FARRAR  AND  GUSTAVE  A.  NUERMBERGER 


The  Department  of  State  releases  on  December 
6, 1946,  volume  I  of  Papers  Relating  to  the  Foreign 
Relations  of  the  United  States,  1931.  Volume  III 
dealing  exclusively  with  the  Far  East  was  released 
on  June  23, 1946.^*'  Volimie  H  is  in  the  final  stages 
of  printing  and  will  be  released  at  a  later  date. 
Of  the  829  documents  in  volume  I,  678  concern 
multilateral  negotiations  on  European  and  Latin 
American  questions,  and  265  the  financial  crisis 
in  Europe.  The  remainder  deal  with  relations  be- 
tween the  United  States  and  Afghanistan,  Albania, 
Australia,  Austria,  Bolivia,  Brazil,  Bulgaria, 
Canada,  and  Chile. 

Final  preparations  for  the  general  disarmament 

"^ Foreign  Relations,  Japan,  1931-1941,  vol.  II,  p.  755. 

"Ibid.,  pp.  768-770. 

=°  BuLLEHN  of  June  30,  1946,  p.  1129. 


conference  scheduled  to  convene  at  Geneva,  Feb- 
ruary 1932,  were  expected  to  be  the  major  diplo- 
matic effort  during  1931.  In  February  1931  Sec- 
retary of  State  Stimson  felt  that  the  chances  for 
a  successful  conference  were  slim  unless  Great 
Britain,  France,  Italy,  and  Gei-many  engaged  in 
direct  conversations  beforehand  to  solve  the  fol- 
lowing issues:  1.  Franco-Italian  naval  problem; 
2.  Franco-German  armament  question;  3.  Arma- 
ments of  countries  bordering  on  the  Soviet  Union. 
Until  the  four  powers  prepared  thoroughly  along 
those  lines,  the  Secretary  of  State  preferred  that 
the  United  States  play  a  subordinate  role.  Never- 
theless, he  viewed  "the  question  of  disarmament  as 
the  most  important  dangerous  question  in  Europe 
today". 

Disarmament,  however,  was  a  secondary  topic 
of  discussion  at  meetings  of  the  League  of  Nations 


982 


Department  of  State  Bulletin     •      December  ?,  7946 


Council.  "For  the  first  time  Ministers  for  For- 
eign Affairs  themselves  are  discussing  economic 
matters  at  Geneva",  reported  the  American  Min- 
ister to  Switzerland.  "They  are  embarrassed  and 
nervous  and  read  their  speeches  instead  of  speaking 
extemporaneously.  But  they  are  pushed  by  an  ex- 
cited public  oi^inion  which  demands  that  some- 
thing be  done  to  relieve  these  conditions.  Perhaps 
the  need  for  economy  will  push  them  into  real  con- 
cessions on  Disarmament — if  so,  the  cloud  of  eco- 
nomic depression  will  have  one  silver  lining.''  On 
May  4,  1931  President  Hoover  had  stressed  the 
relationship  between  disarmament  and  economic 
rehabilitation  in  his  speech  at  the  initial  meeting 
of  the  Sixth  General  Congi-ess  of  the  International 
Chamber  of  Commerce. 

Within  the  next  six  weeks,  the  expanding  fi- 
nancial crisis  in  Europe  and  its  impact  upon  the 
depressed  economic  situation  in  the  United  States 
was  to  advance  the  American  position  from  ob- 
servation to  that  of  action.  Immediate  factors  re- 
sponsible for  this  transition  were :  failure  of  the 
Austrian  C'redit-Ansialf  and  futile  efforts  by  Cen- 
tral Banks  to  check  the  panic;  rapid  withdrawal 
of  foreign  credits  from  Germany;  German  senti- 
ment to  postpone  reparation  obligations;  French 
use  of  the  crisis  to  compel  abandonment  of  the  pro- 
posed customs  union  between  Austria  and  Ger- 
many. This  critical  situation  was  especially  il- 
luminated in  personal  letters  from  Prime  Minister 
Ramsaj'  MacDonald  to  Secretary  of  State  Stim- 
son,  and  from  AValter  E.  Edge,  American  Ambas- 
sador to  France,  to  President  Hoover.  In  these 
circumstances.  President  Hoover  proposed,  on 
June  20,  1931,  ''the  postponement  during  one  year 
of  all  payments  on  intergovernmental  debts,  repa- 
rations and  relief  debts,  both  principal  and  in- 
terest, of  course,  not  including  obligations  of  gov- 
ernments held  by  private  parties."  In  the  bipar- 
tisan group  who  pledged  approval  by  Congress  in 
December  were  Senators  James  F.  Byrnes,  Cordell 
Hull,  and  Arthur  Vandenberg  (chapter  V,  pages 
33-34) . 

The  documents  relating  to  Pi'esident  Hoover's 
moratorium  on  intergovernmental  debts  comprise 
the  first  of  seven  chapters  concerned  with  "Efforts 
of  the  United  States  to  Prevent  Financial  Col- 
lapse in  Europe."  Prolonged  negotiations  to  se- 
cure French  acceptance  of  the  moratorium  (chap- 


ter II)  were  concluded  with  a  Basis  of  Agi-eement 
signed  on  July  6,  1931.  Debtors  of  the  United 
States  which  accepted  the  proposal  (chapter  IV) 
were:  Austria,  Belgium,  Czechoslovakia,  Estonia, 
Finland,  France  (conditionally),  Germany,  Great 
Britain,  Greece,  Hungary,  Italy,  Latvia,  Lithu- 
ania, Poland,  and  Rumania.  Those  countries 
which  had  no  governmental  debt  relations  with 
the  United  States  but  indicated  approval  of  the 
moratorium  were :  Australia,  Bulgaria,  Canada, 
India,  Japan,  New  Zealand,  Portugal  (condition- 
ally), and  the  Union  of  South  Africa.  Also  ac- 
cording their  approval  were  Denmark,  the  Neth- 
erlands, Norway,  Sweden,  and  Switzerland. 
These  countries  were  holders  of  governmental 
debts  arising  from  relief  assistance  after  World 
War  I.  Yugoslavia  was  the  onlj'  goveriunent  in- 
debted directly  to  the  United  States  which  did  not 
express  acceptance  of  the  proposal.  Because  is- 
sues on  the  agenda  would  deal  with  the  Hague 
agreements  of  January  1930,  to  which  it  was  not  a 
signatory,  the  United  States  had  only  an  observer 
at  the  London  Conference  of  Experts  (chapter 
III).  According  to  the  Basis  of  Agreement  with 
France,  this  group  of  experts  was  to  reconcile  "the 
material  necessities"  of  that  Agreement  "with  the 
spirit  of  President  Hoover's  proposal." 

Parallel  with  the  meeting  of  the  Committee  of 
Experts  at  London  was  the  Conference  of  Min- 
isters (July  20-23)  at  which  France,  Germany, 
Great  Britain,  and  the  United  States  were  repre- 
sented, the  latter  government  by  Secretary  of 
State  Stimson.  This  conference  of  responsible 
ministers  was  another  effort  to  halt  excessive  with- 
drawal of  short-term  credits  from  Germany.  Al- 
though formally  initiated  by  Great  Britain,  the 
original  suggestion  for  a  conference  to  deal  with 
the  emergency  had  come  fi'om  President  Hoover. 
Core  of  the  declaration  of  the  London  Conference 
(July  23)  was  an  American  pi'oposal  for  stabili- 
zation of  existing  credits  to  Germany,  and  for  crea- 
tion of  a  committee  to  consider  conversion  of  Ger- 
man credits  from  short-  to  long-term.  By  Au- 
gust 19,  1931  a  Committee  of  Ten  (Wiggin 
Committee)  set  up  by  the  Bank  for  International 
Settlements  had  prepared  a  report,  upon  procedure 
for  such  reconversion.  An  annex  to  that  report  was 
an  agreement  between  the  German  Bankers'  Com- 
mittee and  Germany's  Foreign  Bank  Creditors 


983 


{Standstill  agreement).  Nevertheless,  the  drain 
upon  Germany's  bank  reserves  continued.  On 
November  19,  1931  Germany  applied  for  a  calling 
of  a  Special  Advisory  Committee  to  reexamine 
Germany's  capacity  to  pay  reparations.  The 
American  point  of  view  was  that  Germany  should 
be  given  help  under  the  Young  Plan.  These 
events  preceding  the  meeting  of  the  Young  Plan 
Advisory  Committee,  Basel,  December  8-23,  1931, 
are  covered  in  the  seventh  and  final  chapter  of 
"Efforts  of  the  United  States  to  Prevent  Financial 
Collapse  in  Europe". 

American  concern  over  further  deterioration  of 
economic  affairs  at  home  and  abroad  prompted 
participation  by  the  United  States  in  a  Conference 
of  Wheat  Exporting  Countries,  London,  May 
18-23,  1931,  and  its  abortive  suggestion  for  an 
international  conference  on  the  stabilization  of 
silver.  At  the  Wheat  Conference,  irreconcilable 
points  of  view  upon  the  primary  issue  of  surpluses 
emerged:  acreage  readjustment  versus  export 
quotas.  The  American  Delegation  favored  the 
former  method.  To  acliieve  something  tangible, 
the  Conference  agreed  upon  establishment  of  a 
Conference  committee  with  supervision  over  a 
clearing  house  of  information.  Instead  of  being 
"prepared  to  take  a  careful  look  at  the  facts",  re- 
ported the  Chairman  of  the  American  Delegation, 
many  delegates  "had  plans,  mostly  impossible,  for 
making  their  growers  feel  that  the  underlying 
laws  of  economy  could  be  circumvented".  After 
Great  Britain  and  Japan  had  refused  to  take  the 
initiative  for  calling  of  an  international  confer- 
ence on  silver,  the  American  Minister  to  Switzer- 
land was  instructed  "to  make  discreet  inquiries" 
upon  the  attitude  of  the  League  of  Nations.  With 
the  outlook  for  a  successful  conference  none  too 
bright,  and  a  general  disarmament  conference  im- 
pending, the  League  of  Nations  remained  non- 
committal. Negotiations  for  the  year  ended  with 
Mexico  disposed  to  issue  invitations  but  concerned 
lest  Great  Britain  should  decline  to  accept. 

The  American  approach  to  the  League  of 
Nations  for  convening  of  a  silver  conference  almost 
coincided  with  a  request  from  that  organization 
to  have  the  United  States  represented  on  a  special 
committee  to  study  a  pact  of  economic  non-aggres- 
sion. Sponsor  of  this  proposal  was  the  Soviet 
Delegation  on  the  Commission  of  Enquiry  for 


European  Union.  The  United  States  was  neither 
a  member  of  the  League  of  Nations  nor  did  it  main- 
tain diplomatic  relations  with  the  Soviet  Union. 
A  divisional  memorandum  upon  the  subject  stated 
in  part :  "The  pact  itself  is  in  very  general  terms; 
and  appears  to  offer  nothing  sufficiently  practical 
to  justify  our  acceptance  of  the  invitation.  No- 
body in  Geneva  seems  to  have  taken  it  very  seri- 
ously". A  polite  refusal  of  the  invitation  was  sent 
to  Geneva. 

In  view  of  their  respective  relationships  to 
World  Wars  I  and  II,  there  is  an  interesting 
juxtaposition  of  documents  in  this  volume.  The 
first  group  pertains  to  attendance  of  an  un- 
official American  observer  at  meetings  of  the  Con- 
ference of  Ambassadors,  an  organization  of  the 
Allied  or  Associated  Powers  of  World  War  I. 
Although  Secretary  of  State  Stimson  was  inclined 
to  have  the  United  States  drop  "out  of  even  limited 
participation",  an  instruction  of  May  7, 1921  leav- 
ing attendance  to  discretion  of  the  Paris  Embassy 
remained  effective.  By  early  spring  of  1931,  how- 
ever, the  Conference  of  Ambassadors  had  appar- 
ently ceased  to  meet.  The  second  set  of  documents 
covers  official  and  unofficial  American  reaction 
to  several  phases  of  tense  German-Polish  relations 
with  respect  to  the  Polish  Corridor,  Danzig,  and 
East  Prussia.  To  investigate  alleged  attacks  upon 
Polish  citizens  by  members  of  the  Nazi  Party,  the 
Danzig  High  Commissioner  of  the  League  of  Na- 
tions had  proposed  a  committee  of  the  American, 
British,  and  Belgian  Consuls.  The  American 
Consul  at  Danzig  was  instructed  to  decline  the 
invitation;  to  avoid  involvement  in  differences 
between  Polish  and  Danzig  officials.  Polish  offi- 
cials, on  the  other  hand,  sought  vainly  to  have  the 
Department  of  State  do  something  about  Ameri- 
can newspaper  articles  supporting  the  revisionist 
thesis.  They  feared  its  adverse  effect  upon 
Poland's  policy  of  cooperation  with  Germany,  the 
nuxjor  point  of  which  was  security  of  the  common 
boundary. 

As  the  year  drew  to  a  close,  preparations  for 
the  general  disarmament  conference  emerged  from 
a  relative  obscurity  imposed  by  tlie  intense  multi- 
lateral diplomacy  stemming  from  the  Hoover 
moratorium  proposal.  During  his  visits  to  Rome, 
Paris,  London,  and  Berlin  in  the  early  sununer. 


984 


Depariment  of  Slafe  Bulletin      •      December  I,  1946 


Secretary  of  State  Stimson  hardly  ever  neglected 
the  subject  of  disarmament,  especially  that  phase 
of  particular  interest  to  the  official  with  whom  he 
was  conversing :  President  Hindenburg ;  Chancel- 
lor Heinrich  Bruening;  Prime  Minister  Kamsay 
MacDonald;  Benito  Mussolini;  or  Pierre  Laval. 
Early  in  the  spring,  Mr.  Stimson  had  stressed  the 
importance  of  France  and  Italy  adjusting  differ- 
ences over  their  respective  naval  construction  pro- 
grams and  subscribing  to  the  London  Naval  Treaty 
of  1930.  Failure  to  do  so  would  give  him  cause  to 
question  the  usefulness  of  American  participation 
in  the  general  disarmament  conference.  No  solu- 
tion resulted  from  a  renewal  of  Franco-Italian 
negotiations  prior  to  the  conference.  This  friction 
hampered  formulation  of  an  Armaments  Truce, 
originally  proposed  by  Italy  for  the  duration  of 
the  disarmament  conference.  Eventually,  a  truce 
for  one  year  dating  from  November  1  was  ac- 
cepted by  all  governments  invited  to  the  general 
disarmament  conference.  On  December  29,  1931 
the  personnel  of  the  American  Delegation,  with 
Charles  G.  Dawes,  American  Ambassador  to  Great 
Britain,  as  chairman,  was  announced.  Later, 
upon  appointment  of  Mr.  Dawes  to  presidency  of 
the  Keconstruction  Finance  Corporation,  Secre- 
tary of  State  Stimson  became  chairman  of  the 
Delegation. 

During  1931,  the  Chaco  dispute  between  Bolivia 
and  Paraguay  was  the  main  theme  of  American 
diplomatic  relations  with  Latin  America.  By  a 
note  of  June  25  to  Bolivia,  the  Commission  of 
Neutrals  renewed  its  efforts  for  settlement  of  the 
Chaco  dispute  by  direct  negotiations  between  Bo- 
livia and  Paraguay  assisted,  if  necessary,  by  the 
Commission  of  Neutrals.  A  worsening  of  rela- 
tions between  the  two  countries  led  to  a  severing 
of  diplomatic  relations  on  July  5.  Argentine  ef- 
forts to  adjust  this  diplomatic  incident  failed. 
In  reply  to  a  Brazilian  suggestion  that  the  United 
States  offer  to  arbitrate  the  boundai'y  question. 
Under  Secretary  of  State  William  K.  Castle  indi- 
cated American  preference  that  the  neutrals  con- 
tinue to  handle  the  issue. 

A  month  after  the  neutrals'  note  of  June  25,  the 
Bolivian  Government  replied  that  it  did  not  "find 
itself  disposed  to  accept  arbitration  involving  an 
indeterminate  parcel  of  the  national  territory" 
but  that  it  "would  be  disposed  to  study  immedi- 


ately a  pact  of  nonaggression  in  the  Chaco"  (p. 
749).  By  September  3,  1931  both  Bolivia  and 
Paraguay  had  accepted  an  invitation  of  the  Com- 
mission of  Neutrals  to  send  representatives  to 
Washington  for  consideration  of  a  pact  of  non- 
aggression.  Consultations  upon  a  non-aggression 
pact  were  delayed  from  October  1  to  November  11 
for  routine  causes. 

Of  greater  concern  to  the  Commission  of  Neu- 
trals were  clashes  between  Bolivian  and  Para- 
guayan troops  in  the  Chaco.  To  facilitate  the  task 
of  the  representatives  when  they  met  in  Washing- 
ton, the  neutrals  suggested  to  both  Governments 
that  military  commanders  confine  troops  to  their 
respective  forts.  Inter- American  interest  in  this 
crisis  was  indicated  when,  on  October  19, 1931,  dip- 
lomatic representatives  of  19  American  govern- 
ments in  Washington  signed  a  joint  telegram  di- 
rected to  Bolivia  and  Paraguay.  The  message 
urged  the  disputants  to  "sign  a  pact  of  non-aggres- 
sion as  they  have  already  contemplated  doing,  and 
that  they  continue  their  efforts  to  arrive  at  a  de- 
finitive solution  of  the  Chaco  question  which  is  so 
much  occupying  the  nations  of  the  American  con- 
tinent". The  inaugural  meeting  to  discuss  a  non- 
aggression  pact  was  held  at  the  Pan  American 
Union  on  November  11.  Owing  to  failure  of  Bo- 
livian delegates  to  arrive  at  that  date,  November 
24  was  selected  for  another  meeting  of  the  Com- 
mission of  Neutrals  and  delegates  of  Bolivia  and 
Paraguay. 

The  significance  of  correspondence  covering 
boundary  disputes  between  the  Dominican  Kepub- 
lic  and  Haiti,  and  between  Honduras  and  Nicara- 
gua lies  in  the  expressed  desire  of  the  United  States 
to  avoid  participation.  In  the  first  case,  the  Ameri- 
can Government  regretted  that  a  certain  note  was 
interpreted  as  a  "proffer  of  good  offices".  Machin- 
ery provided  for  under  terms  of  the  Dominican- 
Haitian  frontier  treaty  of  January  21,  1929  was 
regarded  as  adequate  for  a  satisfactory  settlement. 
The  United  States  likewise  kept  aloof  from  rati- 
fication proceedings  upon  the  protocol  of  Jan- 
uary 21,  1931  to  settle  the  Honduras-Nicaragua 
dispute. 

This   volume  of  Foreign  Relations,  1931   in- 
cludes documents  upon  treaties  and  agreements. 
(Continued  on  page  998) 


985 


THE  UNITED  NATIONS 


Conference  on  International  Traffic  on  Danube^ 


Secretary-General  Trygve  Lie  has  received  an- 
swers from  all  the  seven  governments  queried  in 
his  telegi-am  of  8  October  as  to  whether  they  were 
willing  to  participate  in  a  conference  on  inter- 
national traffic  on  the  Danube,  recommended  by 
the  Economic  and  Social  Council  in  a  resolution 
of  3  October,  1946.^ 

Three  of  the  answers  were  in  the  affirmative 
(U.K.,  U.S.A.,  and  Greece) ,  one  conditionally  so 
(France),  and  three  in  the  negative  (U.S.S.R., 
Czechoslovakia,  and  Yugoslavia) .  The  Secretary- 
General  is  forwarding  all  these  answers  to  the 
delegations  of  the  seven  interested  governments 
and  in  a  telegram  yesterday  asked  them  whether, 
in  the  circumstances,  they  desire  the  convocation 


'Released  to  the  press  by  the  United  Nations  Oct.  31, 
1946. 

-The  text  of  Mr.  Lie's  telegram  is  as  follows: 

Have  honour  inform  you  that  Economic  Social  Council 
adopted  3  October  following  text  resolution  submitted  by 
United  States  Delegation  regarding  international  traffic 
on  Danube  River. 

In  view  of  the  critical  limitations  of  shipping  facilities 
on  the  Danube  River  which  are  adversely  affecting  the 
economic  recovery  of  Southeastern  Europe  the  Economic 
and  Social  Council  recommends  that  a  conference  of  rep- 
resentatives from  all  interested  states  be  arranged  under 
the  auspices  of  the  United  Nations  to  meet  in  Vienna  not 
later  than  1  November  for  the  purpose  of  resolving  tlie 
basic  problems  now  obstructing  the  resumption  of  inter- 
national Danube  traffic  and  establishing  provisional  op- 
erating and  navigation  regulations.  Interested  states  are 
the  riparian  states,  states  in  military  occupation  of 
riparian  zones  and  any  states  whose  nationals  can  demon- 
strate clear  title  to  Danube  vessels  which  are  now  located 
on  or  have  operated  prior  to  the  war  in  international 
Danube  traffic.  As  a  basis  for  discussion  in  this  projected 
conference  of  representatives  from  interested  states  the 
Economic  and  Social  Council  submits  the  following  recom- 
mendations : 


of  the  conference.  The  text  of  the  Secretary-Gen- 
eral's telegram  to  the  delegations  of  the  United 
Kingdom,  United  States,  and  Greece,  is  as  follows : 

Kindly  bring  following  attention  your  Govern- 
ment :  Referring  my  telegram  8  October  concern- 
ins:  international  traffic  on  Danube  River  have 
honour  inform  you  that  consultation  interested 
members  United  Nations  gave  following  result. 
Governments  Greece  United  Kingdom  and  United 
States  agree  calling  conference  and  express  will- 
ingness participate  therein.  Goveriunents  Czecho- 
slovakia Union  Soviet  Socialist  Republics  and 
Yugoslavia  do  not  agree  calling  conference  and 
are  not  willing  participate  therein.  French  Gov- 
ernment expresses  interest  resuming  free  naviga- 


(A)  That  commercial  traffic  be  resumed  on  the  Danube 
from  Regens  to  the  Black  Sea  ; 

(B)  That  security  from  seizure  be  guaranteed  to  all 
ships,  their  crews  and  cargoes ; 

(C)  That  all  Danube  vessels  except  German  be  allowed 
to  sail  under  their  own  national  flag; 

(D)  That  adequate  operating  agreements  be  arranged 
between  the  interested  states  as  well  as  the  national  and 
private  .shipping  companies  under  general  supervision  of 
the  occupying  powers  to  permit  the  maximum  use  of  the 
limited  shipping  facilities; 

(E)  That  information  be  exchanged  freely  on  condi- 
tion of  navigation  and  that  responsibility  be  undertaken 
for  river  maintenance  over  the  entire  length  of  the  river. 

According  supplementary  rule  K  of  amended  provi- 
sional rules  procedure  General  Assembly  requiring  prior 
consultation  members  United  Nations  before  calling  inter- 
national conference  by  Economic  Social  Council  I  have 
honour  request  your  Government  to  inform  me  if  it  agrees 
meeting  Danube  Conference  and  if  will  participate 
therein. 

Tetgve  Lie,  Secretary-Oeneral 


986 


Department  of  Sfafe  Bulletin     •      December  7,  1946 


THE  UNITED  NATIONS 


tion  on  Danube  and  ready  participate  conference 
but  on  condition  riparian  states  also  participate 
tlierein.  In  light  above  anwers  have  honour  re- 
quest your  Government  infoi'm  me  if  convocation 
conference  desired. 

Trygve  Lie,  Secretary-General 

The  above  text  was  telegraphed  to  the  delega- 
tions of  the  U.S.S.R.,  Czechoslovakia,  Yugo- 
slavia, and  France  with  the  following  introduc- 
tion: 

"Kindly  bring  following  attention  your  Govern- 
ment :  Referring  my  telegram  8  October  concern- 
ing international  traffic  on  Danube  River  have 
honour  communicate  to  you  for  your  information 
text  telegram  sent  by  me  today  to  Governments 
Greece  United  Kingdom  and  United  States". 

The  full  text  of  the  replies  received  from  the 


seven  governments  in  response  to  Mr.  Lie's  original 
inquiry  will  be  made  public  shortly. 

(Note :  During  the  last  session  of  the  Economic 
and  Social  Council,  Yugoslavia  and  Czechoslo- 
vakia invoked  the  Council's  aid  to  regain  posses- 
sion of  the  Danubian  vessels,  the  property  of  these 
two  countries  and  which  are  now  in  the  United 
States  occupied  zone  of  Germany  and  Austria. 

The  Council,  however,  rejected  the  Czechoslovak 
and  Yugoslav  resolutions  and  adopted  the  United 
States  resolution  which  requested  the  Secretary- 
General  of  the  United  Nations  to  consult  with  the 
interested  states — the  riparian  states,  states  in 
military  occupation  of  riparian  states,  and  any 
states  whose  nationals  can  demonstrate  clear  title 
to  Danube  vessels — with  a  view  to  calling  an  in- 
ternational conference  on  Danube  traffic  before 
November  1st  1946.) 


United  States  Position  on  the  Veto  Question 


STATEMENT  BY  U.S.  DELEGATE' 


The  Committee  is  considering  a  number  of  reso- 
lutions relating  to  the  "veto".  It  is  a  term  that 
has  obtained  wide  usage.  The  press  constantly 
refers  to  it — it  is  a  short  and  suggestive  word. 

The  so-called  "veto  question"  arises  from  the 
construction  of  the  voting  formula  in  the  Charter 
of  the  United  Nations.  In  effect,  the  veto  does 
reside  in  the  permanent  membei-s  of  the  Security 
Council.  However,  if  we  consider  the  Yalta 
formula — the  formula  proposed  by  President 
Roosevelt  at  Yalta,  accepted  there  by  Prime  Mmis- 
ter  Churchill  and  Marshal  Stalin,  and  incorpo- 
rated into  the  Charter  as  article  27 — we  must  not 
think  of  it  in  the  narrow  sense  of  a  veto.  We  must 
not  ignore  the  history  and  purpose  of  that 
formula. 

Let  us  look  at  paragi'aiih  3  of  that  article — the 
pai"agraph  that  causes  much  of  the  controversy. 
Let  us  examine  the  inile  of  unanimity. 

Those  of  you  who  were  at  San  Francisco  will 
recall  how  the  importance  of  the  unanimity  of  the 


great  powers  in  preserving  peace  influenced  our 
action  in  adopting  the  Charter  and  approving  ar- 
ticle 27.  We  were  convinced  that  the  great  powers 
alone  possessed  the  strength  and  military  and 
naval  resources  necessary  to  crush  aggression  and 
to  enforce  peace.  World  War  II  demonstrated 
that  fact.  We  were  further  persuaded  that  the 
powers  who  in  unity  had  won  the  war  could 
tlu'ough  unity  and  a  common  purpose  win  the 
peace.  We  also  believed  that  division  between  the 
great  powers  over  intervention  or  the  use  of  force 
might  result  in  war  instead  of  peace. 

Can  you  imagine  what  would  happen  if  four  of 
the  smaller  states  and  three  of  the  gi-eat  powers 
decided  to  use  force  against  a  state — perhaps 
against  a  great  power — over  the  determined  oppo- 
sition of  two  permanent  members  of  the  Council  ? 

'Made  in  Committee  1  (Political  and  Security)  of  the 
General  Assembly  on  Nov.  15,  1946  by  Senator  Tom  Con- 
nally  and  released  to  the  press  by  the  Unitetl  Nations  on 
the  same  date.  Senator  Connally  is  U.S.  Delegate  to  the 
General  Assembly  and  a  member  of  Committee  1. 


987 


THE  UNITED   NATIONS 


That  would  mean  war — not  the  preservation  of 
peace. 

The  unanimity  of  the  gi-eat  powers  on  important 
matters  is,  in  the  opinion  of  the  United  States, 
essentia]  for  the  successful  functioning  of  the  Se- 
curity Council  and  for  the  future  of  the  United 
Nations.  But — the  words  we  stress  are  successful 
functioninff.  The  requirement  that  the  permanent 
members  must  concur  in  a  decision  must  not  be 
made  use  of  hj  any  of  them  to  frustrate  that  func- 
tioning. On  the  contrary,  the  United  States  be- 
lieves that  the  permanent  members  of  the  Security 
Council  have  a  special  responsibility  to  make  the 
Organization  work,  to  see  that  the  spirit  and  intent 
of  the  Yalta  formula  are  fulfilled.  They  must 
remember  and  live  up  to  what  they  said  at  San 
Francisco  in  the  Four-Power  declaration  to  which 
they  all  subscribed : 

"It  must  not  be  assumed  .  .  .  that  the  perma- 
nent members  .  .  .  would  use  their  'veto'  power 
wilfully  to  obstruct  the  operation  of  the  Council." 

Mr.  President,  I  was  a  United  States  Delegate  at 
San  Francisco  and  in  the  committee  took  part  in 
the  debate  on  the  voting  formula.  Among  other 
things  I  said : 

"It  is  our  theory  that  they  (the  jDermanent  mem- 
bers) will  be  sensible  of  that  sense  of  responsibility 
and  that  they  will  discharge  the  duties  of  their 
office  not  as  representatives  of  their  governments, 
not  as  representatives  of  their  own  ambitions  or 
their  own  interests,  but  as  representatives  of  the 
whole  Oi-ganization  in  behalf  of  world  peace  and 
in  behalf  of  world  security.  Any  other  course, 
Mr.  President,  would  over  a  period  of  time  cause 
the  disintegration  of  this  Organization.  Fifty 
nations  would  not  permit  the  arbiti'ary  or  wilful 
use  of  the  powers  of  the  Security  Council  when  it 
was  adverse  to  the  interests  of  all  of  the  Organiza- 
tion or  of  world  peace." 

I  regret  to  say  that  developments  have  not  en- 
tirely fulfilled  my  hopes.  But  I  still  maintain 
that  "arbitrary  or  wilful  use"  would  over  a  period 
of  time  cause  the  disintegration  of  the  Organiza- 
tion. The  life  of  the  Charter  depends  upon  the 
lofty  and  unselfish  discharge  of  their  duties  by  the 
members  of  the  Security  Council. 

Senator  Austin  in  his  address  in  the  Assembly 


made  reference  to  the  general  principles  which 
should  control  the  Security  Council. 

The  permanent  members  of  the  Security  Council 
are  members  of  the  United  Nations  before  they  are 
members  of  the  Council.  They  are  obligated  to 
perform  their  duties  to  the  Organization  just  as 
are  all  other  members.  Membership  on  the  Coun- 
cil does  not  exempt  them  from  any  duties  or  re- 
sponsibilities. Membership  on  the  Security  Coun- 
cil carries  no  title  of  nobility  nor  privilege  nor 
preference.  The  permanent  members  of  the  Se- 
curity Council  have  a  heavier  responsibility  for  the 
successful  operation  of  the  United  Nations  than 
those  of  any  other  organ  or  agency.  The  members 
of  the  Security  Council  are  trustees  for  all  the 
members  of  the  United  Nations.  The  Charter 
lays  upon  them  "primary  responsibility  for  the 
maintenance  of  international  peace  and  security" 
and  the  members  of  the  United  Nations  "agree  that 
in  carrying  out  its  duties  under  this  responsibility 
the  Security  Council  acts  on  their  behalf".  Note 
the  solemn  statement — "under  this  responsibility 
the  Security  Council  acts  on  their  behalf".  The 
responsibility  of  the  five  permanent  members  of 
the  Security  Council  is  momentous.  It  is  tremen- 
dous. It  may  have  the  effect  of  shaking  the  very 
foundations  of  the  earth.  How  can  any  member 
of  the  Security  Council  consider  lightly  or  selfishly 
that  lofty  responsibility? 

I  shall  say  little  about  the  record  of  the  Council 
to  date.  I  do  wish  to  point  out,  however,  that  the 
picture  is  not  all  black.  The  Council's  record  has 
not  been  one  of  unrelieved  frustration.  Remember 
its  successes  when  you  are  weighing  the  worth  of 
the  Yalta  formula.  Place  against  the  exercise  of 
the  veto  such  items  as  the  agreement  of  Britain  and 
Fi-ance  to  evacuate  their  troops  from  Syria  and  the 
Lelianon,  and  the  withdrawal  of  Soviet  forces 
from  Iran. 

So  much  for  the  background  and  the  record  of 
tlie  Security  Council.  The  question  remaiiis — 
wliat  of  the  future  ?  Wliat  can  we  do  now  to  insure 
the  success  of  the  Security  Council? 

First,  I  want  to  say  a  few  words  about  what 
should  not  be  done.  The  United  Nations  is  barely 
ten  months  old.  During  the  short  period  of  its 
existence  some  things  have  gone  well  and  others 
have  gone  badly.     There  may  be  parts  of  the  Char- 


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ter  that  will  prove  absolutely  unworkable  and  have 
to  be  changed  ultimately.  Article  27  may  be  one 
of  those  parts,  but  we  do  not  know  that  now  and 
we  shall  not  know  it  for  some  time  to  come. 
JDuring  the  first  hundred  years  after  the  adop- 
tion of  the  Constitution  of  the  United  States 
and  tlie  Bill  of  Eights,  it  was  amended  only  five 
times.  But  all  that  time  it  was  growing  and 
developing  and  was  meeting  the  needs  of  an  ex- 
panding nation.  The  United  Nations  Charter  also 
has  in  it  the  potentialities  of  growth  and  develop- 
ment. The  way  to  find  out  what  these  potentiali- 
ties are  is  to  test  it,  to  build  slowly  on  the  founda- 
tion that  we  so  successfully  laid  at  San  Francisco. 
Let  us  not,  therefore,  in  haste  attempt  to  amend  the 
Charter.  Let  us  profit  by  experience  and  a  better 
understanding  of  the  fmictions  and  obligations, 
powers  and  purposes  set  forth  in  the  Charter. 

On  the  other  hand,  there  are  certain  important 
steins  that  we  may  take,  where  already  we  have 
that  wide  area  of  agreement  that  is  so  necessary  for 
their  success.  It  is  my  conviction  that  many  of  the 
difficulties  encountered  in  the  Security  Council 
during  the  first  year  of  its  operation  have  been  due 
to  lack  of  certainty  and  differences  of  opinion 
regarding  the  practical  application  of  the  voting 
formula  adopted  at  San  Francisco. 

Let  me  be  more  specific.  You  will  recall  that 
when  the  Charter  prescribed  two  types  of  votes 
in  the  Security  Council,  it  was  intended  that  there 
should  be  little  confusion  as  to  when  the  Council 
should  use  one  method  and  when  it  should  use  the 
other.  I  have  before  me  the  Four-Power  state- 
ment made  at  San  Francisco  on  June  7, 1945.  That 
statement  listed  quite  a  number  of  instances  where 
the  Council's  decisions  would  be  procedural  and 
where  the  veto  would  not  apply.  The  statement 
went  on  to  predict  that  "it  is  unlikely  that  there 
will  arise  in  the  future  any  matters  of  great  im- 
portance on  which  a  decision  will  have  to  be  made 
as  to  whether  a  procedural  vote  will  apply".  That 
prediction  fell  far  short  of  its  mark.  Many  mat- 
ters have  arisen  where  there  had  been  real  dif- 
ference of  opinion  as  to  which  type  of  vote  to  use. 
The  Security  Council  should  proceed  to  settle  the 
doubts.  That  is  part  of  the  unfinished  business 
from  San  Francisco. 

The  Security  Council  should  put  in  its  rules  of 
procedure  as  soon  as  possible  as  complete  a  list  of 


procedural  decisions  as  the  Council  can  agree  upon. 
This  would  mean  that  in  the  future,  whenever  a 
question  arises  as  to  the  kind  of  vote  that  is  re- 
quired, the  Council  could  in  most  cases  solve  the 
problem  by  a  simple  reference  to  the  list. 

There  is  still  another  matter  where  I  believe  the 
stage  has  been  set  for  progress.  There  is  a  provi- 
sion in  paragraph  three  of  article  27  of  the  Charter 
that  a  party  to  a  dispute  shall  abstain  from  voting 
in  the  Security  Council  in  decisions  relating  to 
chapter  VI  of  the  Charter— Pacific  Settlement. 
It  is  perfectly  clear  that  the  purpose  of  this  was 
to  prevent  the  party  from  being  a  judge  in  its  own 
cause,  to  establish  in  the  Charter  a  principle  of 
justice  which  is  elementary  in  every  legal  system. 
We  would  not  permit  a  party  to  a  lawsuit  to  sit 
as  a  member  of  the  jury. 

President  Koosevelt  firmly  believed  that  tliis 
principle  constituted  a  very  great  contribution  to 
the  development  of  international  organization. 
Its  acceptance  first  at  Yalta,  and  then  at  San 
Francisco,  is  a  landmark.  However,  because  of 
some  technicalities  which  I  do  not  intend  to  ex- 
plore, doubts  have  been  suggested  as  to  whether 
it  can  be  effectively  applied  to  the  operations  of 
the  Security  Council. 

My  own  view  is  tliat  the  requirement  that  a 
party  to  a  dispute  shall  abstain  from  voting  con- 
stitutes an  exception  to  the  general  rule  set  forth 
in  the  preceding  part  of  article  27.  It  is  the  con- 
sidered opinion  of  the  United  States  Delegation 
that  article  27  lays  down  clearly  and  without 
equivocation  the  fundamental  principle  that  in 
the  field  of  peaceful  settlement  under  the  Charter 
no  state  shall  be  a  judge  in  its  own  cause.  No  legal 
technicalities  or  mental  excursions  into  the  stra- 
tosphere should  be  permitted  to  becloud  this  im- 
portant concept. 

I  was  much  interested,  Mr.  President,  in  what 
tlie  distinguished  Delegates  of  El  Salvador  and 
New  Zealand  had  to  say  about  the  possibility  of  a 
permanent  member  abstaining  from  voting  on  a 
matter  without  vetoing  it.  This  problem  deserves 
very  careful  consideration.  It  would  be  particu- 
larly helpful  with  respect  to  the  peaceful  settle- 
ment of  disputes  if  a  way  could  be  found  to  permit 
a  permanent  member  which  does  not  want  to  block 
action  by  the  Council  to  abstain  from  voting. 

As  it  stands  today  a  great  power  may  find  itself 


722716 — 4G- 


989 


THE  UNITED   NATIONS 


in  the  utterly  ridiculous  situation  of  voting  for  a 
measure  which  it  does  not  entirely  approve  or 
else  blocking  the  wheels  of  justice  by  the  unwilling 
use  of  its  veto.  There  should  be  some  middle 
ground  if  the  machinery  of  peaceful  settlement  is 
to  function  smoothly. 

If  progress  can  be  made  along  these  lines  in 
the  Security  Council,  it  will  not  accomplish  every- 
thing that  some  would  like  to  see  accomplished. 
But  it  will  help.  It  will  ease  the  task  of  tlie 
Security  Council  in  arriving  at  satisfactory  deci- 
sions relating  to  the  pacific  settlement  of  disputes. 
It  will  eliminate  many  of  the  argmnents  that  have 
at  times  frustrated  the  work  of  the  Council.  The 
operations  of  the  Council  will  move  forward  more 
smoothly. 

I  must  remind  those  who  criticize  the  United 
Nations  that  it  takes  more  than  mere  machinery  to 
bring  world  peace.  In  my  opinion  the  machinery 
that  we  have  is  in  the  main  adequate.  But  if  the 
raw  material  that  goes  into  the  machine  is  bitter- 
ness and  friction  among  the  member  states  we 
cannot  expect  harmony  and  unity  to  result. 

How  can  we  in  the  General  Assembly  best  con- 
tribute to  bringing  about  the  progress  we  so  ear- 
nestly desire  with  respect  to  the  work  of  the  Secu- 
rity Council?  I  think  that  a  full  discussion  of 
this  problem  in  the  General  Assembly  is  bound  to 
be  helpful.  The  General  Assembly  may  wish  to 
go  so  far  as  to  make  recommendations  to  the  Se- 
curity Council.  That  also  would  be  helpful.  How- 
ever, I  think  that  the  discussions  and  the  recom- 
mendations should  be  focused  on  the  general  objec- 
tives that  we  hope  will  be  attained.  Clearly  the 
General  Assembly  cannot  assume  to  dictate  tech- 
nical details.  The  Security  Council  itself  must 
determine  the  techniques,  the  methods  for  accom- 
plishing these  objectives.  If  the  best  way  to  ac- 
complish the  objectives  which  we  may  recommend 
is  for  the  Security  Council  to  adopt  rules  of  pro- 
cedure, then  clearly  it  is  only  the  Security  Council 
that  can  perform  the  task. 

Any  resolution  that  the  General  Assembly  may 
see  fit  to  adopt  should  concern  itself  only  with  the 
broad  outlines  of  what  we  hope  to  achieve.  Any- 
thing that  we  recommend  should  be  realistic, 
should  be  attainable,  should  be  in  the  direction  of 
substantial  and  certain  progress. 

With  this  in  mind,  I  think  it  is  appropriate  to 


indicate  specifically  the  United  States  attitude  to- 
wards the  proposals  advanced  thus  far  in  the 
General  Assembly. 

The  United  States  opposes  any  steps  in  the 
direction  of  amending  the  Charter.  It  is  well 
known  that  amendment  of  the  Charter  is  impossi- 
ble at  this  time.  The  resolution  proposed  by 
Australia  is  moderate  in  that  it  deals  with  general 
objectives.  We  believe  however  that  the  specific 
recommendation  that  the  permanent  members 
shall  refrain  from  exercising  their  veto  power 
except  in  the  cases  under  chapter  VII  of  the  Char- 
ter should  first  be  considered  by  the  permanent 
members  of  the  Council. 

Mr.  Chairman,  I  would  like  to  review  briefly 
the  position  of  the  United  States. 

1.  We  regard  the  principle  of  unanimity  as 
of  the  highest  importance  for  the  success  of  the 
United  Nations. 

2.  We  believe  that  the  responsibility  imposed 
upon  the  great  powers  by  the  Charter  requires 
them  to  exert  every  effort  to  reach  agreement  on 
important  issues  before  the  Security  Council. 

3.  We  reaffirm  the  position  we  took  at  San  Fran- 
cisco that  the  veto  should  be  used  only  in  the 
very  rare  and  exceptional  cases. 

4.  We  insist  that  the  use  of  the  veto  cannot  relieve 
any  state  from  its  fundamental  obligations  under 
the  Charter. 

5.  We  do  not  favor  amendment  of  the  Charter 
at  this  time,  although  we  hope  that  full  agree- 
ment, including  of  course  that  of  the  five  per- 
manent members,  may  make  it  possible  in  the 
future  to  modify  the  practice  of  great-power  una- 
nimity as  it  applies  to  the  peaceful  settlement  of 
disputes  under  Chapter  VI. 

6.  We  believe  that  the  voting  formula  should 
be  clarified  in  the  light  of  experience  and  practical 
need.  The  Security  Council  should  embark  upon 
this  task  at  the  earliest  practicable  time. 

7.  In  particular,  we  believe  that  the  Security 
Council  should  agree  upon  as  complete  a  list  as 
possible  of  types  of  decisions  where  the  veto  does 
not  apply. 

8.  We  believe  that  article  27  makes  it  clear  that 
in  the  field  of  peaceful  settlement  no  state  should 
be  a  judge  in  its  own  cause. 

9.  The  problem  of  great-power  abstention  should 


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Department  of  Stale  Bulletin 


December  I,  1946 


THE  UNITED  NATIONS 


be  carefully  considered,  particularly  with  respect 
to  the  peaceful  settlement  of  disputes. 

Mr.  Chairman,  digressing  a  moment  from  the 
written  text,  I  want  to  say  that  while  we  are 
opposed  at  this  time  to  the  amendment  of  the 
Charter,  we  are  in  favor  of  making  the  Charter 
work.  Mr.  Chaii-man,  let  me  issue  this  warning 
to  all  the  members  of  the  United  Nations  and  to 
the  Security  Council  itself.  If  this  Charter  does 
not  work,  if  its  functions  are  not  properly  per- 
formed, this  Organization  may  ultimately  go 
down  in  ruins.  The  League  of  Nations  perished ; 
this  Organization  must  not  perish.  It  must  go 
on ;  it  must  succeed.  There  is  beyond  these  doors, 
there  is  out  on  the  far-flung  reaches  of  the  earth, 
a  force  greater  than  the  Security  Council,  a  force 
greater  than  the  Assembly,  and  that  is  the  crystal- 
lized opinion  of  the  peoples  of  the  world.  If  we 
caimot  attain  our  objectives  through  the  United 
Nations,  that  public  opinion  will  seek  another 
remedy. 

Mr.  Chairman,  I  would,  therefore,  warn  all  who 
are  in  authority  in  this  Organization  to  stop,  look, 
listen,  and  consider  their  high  duties  and  responsi- 
bilities with  a  view  to  making  this  Organization 
work. 

In  conclusion,  let  me  stress  that  members  of  the 
Security  Council  in  good  conscience  do  not  repre- 
sent in  the  Security  Council  their  own  govern- 
ments. They  represent  the  entire  membership  of 
the  United  Nations.  Their  right  to  vote  is  not  a 
personal  possession.  They  have  no  right  to  cast 
a  vote  in  any  narrow  or  nationalistic  or  selfish 
interest.  At  the  bar  of  history  they  are  responsible 
for  administering  their  high  functions  in  the  inter- 
est of  international  peace  and  in  the  interest  of 
the  entire  United  Nations  Organization.  Any 
member  of  the  Security  Council  who  fails  to  per- 
form these  high  functions  has  no  proper  conception 
of  his  duties  and  responsibilities.  Those  duties 
and  responsibilities  require  that  they  be  performed 
in  accordance  with  the  principles  and  purposes  of 
the  Charter  and  in  a  manner  to  attain  its  lofty 
objectives.  Let  there  be  no  embezzlement  of  power 
by  the  Security  Council  or  by  any  member.  Stand- 
ing at  the  highest  point  of  the  world's  history,  the 
Security  Council  has  a  magnificent  opportunity  to 
set  before  all  living  men  and  the  generations  that 


come  after  us  a  commanding  example  of  high 
duty  nobly  performed.  Humankind  will  pour  out 
its  gratitude  and  will  bless  them  if  they  will  pre- 
serve the  peace  of  the  world.  May  God  endow  it 
and  its  members  with  a  clear  vision  of  their  duties 
and  with  a  high  courage  to  perform  every  obliga- 
tion to  the  United  Nations  and  to  the  world ! 

U.S.  Position  on  Establishment  of 
Trusteeship  System 

STATEMENT  BY  MEMBER  OF  THE  U.S. 
DELEGATION! 

The  United  States  Delegation,  represented  here 
by  Congressman  Bloom  and  myself,  will  not  at  this 
time  comment  in  detail  upon  the  various  sub- 
stantive matters  before  this  committee.  We  will 
primarily  deal  now  with  the  matter  which  we  deem 
to  be  most  urgent,  that  is,  the  procedure  which  will 
enable  the  Trusteeship  Council  to  be  established 
at  this  session.  However,  before  passing  to  the 
question  of  procedure,  we  should  like  to  express, 
on  behalf  of  the  United  States,  appreciation  of  the 
steps  which  have  already  been  taken  to  implement 
the  provisions  of  chapter  XI  and  chapters  XII 
and  XIII  of  the  Charter. 

The  Government  of  the  United  States  takes  a 
deep  interest  in  chapter  XI  of  the  Charter — "The 
Declaration  Regarding  Not  Self-Governing  Ter- 
ritories". At  London  the  United  States,  together 
with  other  members  of  this  committee,  took  the 
view  that  chapter  XI  of  the  Charter  should  re- 
ceive prompt  implementation.  This  view  was  in- 
corporated in  the  resolution  adopted  by  the 
General  Assembly  which  requested  that  the  infor- 
mation with  regard  to  non-self-governing  terri- 
tories required  by  article  73  (e)  of  the  Charter 
should  be  transmitted  to  the  Secretary-General  so 
that  he  might  summarize  it  in  his  reports  on  the 
work  of  the  organization.  The  United  States 
adopted  a  broad  view  of  its  responsibilities  under 
chapter  XI  and  forwarded  to  the  Secretary-Gen- 
eral during  August  of  this  year  information  relat- 


'  Made  in  Committee  IV  (Trusteeship)  of  the  General 
Assembly  on  Nov.  7,  1946  by  John  Foster  Dulles  and  re- 
leased to  the  press  by  the  United  Nations  on  the  same 
date.  Mr.  Dulles  is  Alternate  U.  S.  Delegate  to  the  Gen- 
eral Assembly. 


991 


THE  UNITED  NATIONS 


iiig  to  all  the  non-self-governing  territories  for 
which  it  is  acbninistratively  responsible.  The 
United  States  has  noted  the  steps  taken  by  other 
members  of  the  United  Nations  in  this  regard  and 
is  confident  that  the  beginning  now  being  made 
will  grow  into  a  process  which  will  greatly  aid 
the  non-self-governing  peoples  of  the  world. 

With  regard  to  the  trusteeship  system  provided 
for  in  chapters  XII  and  XIII  of  the  Charter,  the 
United  States  Delegation  notes  with  satisfaction 
the  fulfilment  by  mandatory  powers  of  their 
declarations  of  intention,  made  at  London,  to  sub- 
mit trusteeship  proposals.  The  United  States  for 
its  part  is  prepared  similai'ly  to  contribute  to  the 
establishment  and  extension  of  the  trusteeship  sys- 
tem. Yesterday  the  President  of  the  United  States 
made  the  following  statement  which  he  authorized 
us  to  communicate  to  the  General  Assembly : 

"The  United  States  is  prepared  to  place  under 
trusteeship  with  the  United  States  as  the  adminis- 
tering authority,  the  Japanese  INIandated  Islands 
and  any  Japanese  Islands  for  which  it  assumes 
responsibilities  as  a  result  of  the  second  World 
War.  In  so  far  as  the  Japanese  Mandated  Islands 
are  concerned  this  government  is  transmitting  for 
information  to  the  other  members  of  the  Security 
Council  and  to  New  Zealand  and  the  Philippines  a 
draft  of  a  strategic  area  trusteeship  agreement 
which  sets  forth  the  terms  upon  which  this  govern- 
ment is  prepared  to  j)lace  those  islands  under 
trusteeship.  At  an  early  date  we  plan  to  submit 
this  draft  agreement  formally  to  the  Security 
Council  for  its  approval." 

Five  mandatory  powers  have  now  laid  before  the 
General  Assembly  draft  terms  of  trusteeship  for 
eight  mandated  territories.  As  i-egards  these 
draft  terms,  the  United  States  believes  that  most  of 
them,  in  their  present  revised  form,  are  generally 
satisfactory  and  that  they  offer  a  reasonable  basis 
for  implementing  the  trusteeship  system.  The 
United  States  is  hopeful,  therefore,  that  the  Gen- 
eral Assembly  will  find  it  possible  to  set  up  the 
Trusteeship  Council  at  this  session.  However, 
that  will  not  happen  easily. 

In  this  trusteeship  matter  we  can  readily  fall 
into  a  morass  which  will  so  entangle  us  that  the 
trusteeship  provisions  of  the  Charter  will  never 


become  operative.  Let  us  frankly  admit  that  the 
Charter  provisions  are  awkward  and  ambiguous. 
They  could  give  rise  to  prolonged  controversy  and 
lead  to  an  impasse. 

The  Charter  formula  for  constituting  the  Trus- 
teeship Council  is  such  that  before  there  can  be  a 
Trusteeship  Council,  trusteeship  agreements  must 
have  been  concluded  witli  at  least  three  members 
of  the  United  Nations.  How  are  such  agreements 
to  be  reached  ? 

The  Charter  says:  "The  terms  of  trusteeship 
.  .  .  shall  be  agreed  upon  by  the  states  directly 
concerned,  including  the  mandatory  power  in  the 
case  of  territories  held  under  mandate  .  .  .  and 
shall  be  approved  as  provided  for  in  Articles  83 
and  85".  Articles  83  and  85  call  for  approval  by 
the  General  Assembly,  except  that  in  the  case  of 
strategic  areas  the  approval  shall  be  by  the 
Security  Council. 

At  the  moment  there  are  before  us  eight  pro- 
posed trusteeship  agreements,  all  in  relation  to 
mandated  territory  which  is  not  designated  as 
strategic.  Procedure  in  relation  to  these  agree- 
ments is  certain  in  at  least  two  respects :  First,  the 
terms  of  trusteeship  must  be  agreed  to  by  the  man- 
datory power;  secondly,  tlie  terms  of  the  trustee- 
ship must  be  approved  by  the  General  Assembly, 
presumably  by  a  two-thirds  vote.  Wliether  any 
further  procedural  steps  are  required,  and  if  so 
what,  is  a  matter  of  uncertainty. 

In  the  case  of  the  mandated  territories  before 
us,  are  there  states  other  than  the  mandatory 
whose  agreement  must  be  obtained?  If  so,  how 
are  these  states  to  be  determined  and  how  should 
their  agreement  be  evidenced  ? 

It  can  be  contended  that  in  the  situations  before 
us  only  the  mandatory  power  is  "directly  con- 
cerned" within  the  meaning  of  the  Charter.  It  is 
true  that  the  Charter  uses  the  plural  "states".  But 
this  cannot  mean  that  in  every  case  of  trusteeship 
more  than  one  state  must  agree  as  to  the  terms  of 
trusteeship.  If  a  nation  which  is  sole  sovereign 
over  certain  colonial  territory  is  willing  to  put 
that  territory  under  trusteeship,  on  conditions 
agreeable  to  two-thirds  of  the  General  Assembly, 
surely  it  is  entitled  to  do  so.  Article  77  (c)  speaks 
of  "teri-itories  voluntarily  placed  under  the  sys- 


992 


Department  of  State  Bulletin     •      December  ?,  1946 


I 


tem  by  states  responsible  for  their  administra- 
tion". Clearly,  in  these  cases  the  sovereign  is 
alone  the  state  "directly  concerned".  Therefore, 
the  fact  that  the  Charter  uses  the  plural  does  not 
require  us,  in  every  case,  to  find  several  states  whose 
preliminary  agreement  must  be  obtained.  The 
word  "states"  obviously  includes  the  singular  as 
well  as  the  plural  and  the  Charter  should  be  inter- 
preted as  though  it  read  "the  state  or  states  directly 
concerned".  Therefore,  it  can  be  powerfully  ar- 
gued that  where  the  territory  proposed  to  be  placed 
under  trusteeship  is  administered  by  a  single 
sovereign,  its  agreement  is  the  only  agreement  re- 
quired as  a  prelude  to  Assembly  action. 

The  American  Delegation  has  concluded  not 
only  that  such  interpretation  of  the  Charter  is 
legally  proper  but  that  it  is  the  fairest  and  most 
workable  interpretation  that  can  be  given  to  the 
Charter. 

Every  other  interpretation  suggested  will  in- 
volve us  in  difficulties  and  delays.  For  example,  it 
could  be  contended  that  the  phrase  "directly  con- 
cerned" looks  to  legal  title  and  that  where  more 
than  one  state  shares  the  title  it  is  the  agreement 
of  those  states  which  must  be  obtained. 

This  would  mean,  in  the  case  of  the  former  Ger- 
man colonies,  that  the  "states  directly  concerned" 
would  be  the  "Principal  Allied  and  Associated 
Powers"  in  whose  favor  Germany,  under  article 
119  of  the  Treaty  of  Versailles,  renounced  all  her 
rights  and  titles  over  her  overseas  possessions. 
These  five  Principal  Allied  and  Associated  Pow- 
ers were:  Great  Britain,  France,  the  United 
States,  Japan,  and  Italy.  The  rights  of  Japan 
and  Italy  having  been  extinguished,  Great  Britain, 
France,  and  the  United  States  could  claim  that,  as 
the  three  remaining  effective  Principal  Allied  and 
Associated  Powers,  they  and  they  alone  should  be 
considered  the  "states  directly  concerned"  because 
of  their  joint  title.  Probably  that  claim  would 
give  rise  to  argument  and  delay. 

It  could  be  argued  that  the  Charter  test  of 
"direct  concern"  is  not  legal  but  i^ractical.  Such 
an  interpretation  would  open  a  vast  field  for  specu- 
lation. Are  the  five  principal  powers  under  the 
United  Nations  Charter  "states  directly  concerned" 
either  because  they  are  permanent  members  of  the 
Security    Council    or,    prospectively,    permanent 


THE  UNITED  NATIONS 

members  of  the  Trusteeship  Council  ?  Can  states 
claim  to  be  "states  directly  concerned"  because  of 
geographic  propinquity  or  because  of  economic  or 
cultural  or  ethnic  ties  or  perhaps  merely  because 
they  take  an  interest  in  the  subject  ?  If  so,  what  is 
the  measuring  rod?  Is  the  geographic  propin- 
quity only  that  reflected  by  common  borders,  or  is 
it  enough  to  be  within  100  miles  or  1,000  miles  of 
the  trust  territory?  Or  even  2,500  miles,  as  one 
delegation  has  already  suggested?  How  much 
trade  is  necessary  to  justify  concern  on  economic 
grounds  ?  How  close  must  be  the  ethnic  and  cul- 
tural ties  ?  Such  questions  do  not  lend  themselves 
to  any  clear  answer.  If  we  assume  that  they  must 
all  be  answered  before  the  trusteeship  system  is 
established,  then  there  is  great  risk  that  the 
trusteeship  system  will  never  be  established. 

In  the  light  of  these  considerations  the  United 
States  Delegation  urges  that  the  Assembly,  and 
this  committee  on  its  behalf,  should  not  become 
involved  in  all  these  questions.  We  prefer  a  prac- 
tical procedure  which,  in  harmony  with  the  letter 
and  spirit  of  the  Charter,  will,  as  quickly  as  pos- 
sible, permit  the  establishment  of  the  trusteeship 
system  and  the  giving  to  the  inhabitants  of  the 
trust  territories  the  benefit  of  that  system.  Con- 
cretely, we  propose : 

1.  That  a  small  subcommittee  of  this  committee 
should  be  established  to  consider  the  draft  trustee- 
ship agreements  before  us  and  to  negotiate  on  our 
behalf  in  relation  to  them ; 

2.  That  all  states  which  are  interested  be  given 
the  opportunity  promptly  to  submit  to  this  sub- 
committee and  to  the  mandatory  power  involved 
their  suggestions  regarding  these  proposed  trustee- 
ship agreements; 

3.  That  after  hearing  such  suggestions  and  after 
consultation  with  the  subcommittee,  the  manda- 
tory power  concerned  shall  promptly  advise  the 
subcommittee  as  to  the  acceptability  of  those 
suggestions ; 

4.  That  the  agreements  reflecting  any  such  mod- 
ifications shall  then  be  considered  by  this  com- 
mittee and  referred  by  it  to  the  General  Assembly 
with  the  recommendation  of  this  committee,  in 
each  case,  as  to  approval  or  disapproval. 

Under  this  procedure  every  state  which  is  inter- 


993 


THE  UNITED   NATIONS 


ested,  whether  or  not  technically  a  state  "directly 
concerned",  whether  it  be  large  or  small,  whether 
it  be  near  or  far,  will  have  an  equal  opportunity 
to  present  its  views.  All  would,  however,  without 
prejudice  to  any  rights  they  may  possess,  now 
forego  formal  classification  as  being,  or  not  being, 
states  "directly  concerned"  and  would  forego  for- 
mal signature  of  the  preliminary  agreement,  ac- 
cepting the  verdict  of  a  two-thirds  vote  of  the 
Assembly. 

If  any  state  other  than  the  mandatory  power 
is  a  state  "directly  concerned",  the  United  States 
has  a  strong,  and  we  believe  unassailable,  case  to 
be  considered  to  be  such  a  state.  We  have  an  in- 
terest in  the  title  conferred  under  the  treaties  of 
Versailles  and  of  Berlin.  We  are  a  permanent 
member  of  the  Security  Council  and  will  be  a 
permanent  member  of  the  Trusteeship  Council 
when  established.  We  have  important  economic 
interests  in  all  the  mandated  areas,  and  in  the  case 
of  the  Australian  and  New  Zealand  mandates,  and 
pei'haps  others,  we  have  a  concern  based  upon 
geographic  and  other  considerations. 

The  United  States,  however,  is  willing  to  join 
with  othere  in  accepting  a  system  of  equality  and 
not  asserting  a  special  position  in  relation  to  the 
agreements  now  before  us.  We  do  not  want  inter- 
minable and  inconclusive  discussion.  Neither  do 
we  want  an  interpretation  of  "states  directly  con- 
cerned" which  might  import  the  veto  system  into 
the  work  of  the  Assembly.  Accordingly,  the 
United  States,  without  prejudice  to  its  legal  rights 
and  on  the  assumption  that  others  will  do  the 
same,  is  prepared,  in  relation  to  the  trusteeship 
agreements  now  before  us,  to  agi"ee  to  them  in  the 
form  in  which,  after  an  exchange  of  views,  they 
are  submitted  by  the  administering  authority, 
recommended  by  this  committee  and  approved  by 
two  thirds  of  the  Assembly. 

There  can  be,  and  doubtless  will  be,  many  ear- 
nest opinions  with  resjaect  to  what  should  be  the 
terms  of  trusteeship  agreements.  No  doubt  many 
would  like  a  special  position  for  impressing  their 
views.  But  let  us  remember  that  such  a  special 
position  may  be  of  illusory  value.  For  under  the 
Charter  there  can  be  no  trusteeship  at  all  without 


the  agreement  of  the  mandatory  power.  Let  us 
also  remember  that  if  there  is  trustee  at  all,  that  ob- 
ligatorily provides  the  inhabitants  of  the  trust  ter- 
ritories with  the  benefits  of  the  Charter.  By  it  the 
administering  authorities  are  obligated,  among 
other  things,  "to  promote  the  political,  economic, 
social,  and  educational  advancement  of  the  in- 
habitants of  the  trust  territories,  and  their  pro- 
gressive development  towards  self-government  or 
independence  .  .  .  -"  Every  administering  au- 
thority is  by  the  Charter  required  "to  encourage  re- 
spect for  human  rights  and  for  fundamental 
freedoms  for  all  without  distinction  as  to  race,  sex, 
language  or  religion  .  .  .  -" 

No  doubt  all  of  us  have  our  ideas  as  to  how  these 
objectives  should  be  attained,  and  all  of  us  would 
like  to  see  our  ideas  spelled  out  in  the  trusteeship 
agreements.  The  United  States  Delegation,  for 
its  part,  believes  that  the  agreements  now  before 
us  are  susceptible  of  improvement.  We  hope  that 
the  mandatory  powers  will  accept  changes  which 
might  bring  them  into  accord  with  the  views  of 
such  states  as  may  reasonably  claim  an  interest  in 
the  subject.  But  the  essential  is  to  establish  the 
Trusteeshijj  Council  and  to  make  operative  those 
basic  obligations  which  are  set  forth  in  the  Charter. 
We  can  proceed  without  excessive  insistence  upon 
the  expression  of  particular  views,  knowing  that 
the  Charter  itself  deals  with  the  essentials  and 
that  no  one  can  lawfully  subtract  one  jot  or  tittle 
from  chapter  XII  of  the  Charter  which  will  con- 
stitute the  overriding  constitution  for  the  peoples 
of  all  the  ti'ust  territories. 

We  believe  that  history  will  not  judge  kindly 
any  who  take  a  position  which  would  in  fact  block 
the  establishment  of  the  trusteeship  system  and  its 
grant  to  dependent  peoples  of  the  right  to  eventual 
self-government  or  independence.  Let  us  have 
confidence  in  article  XII  of  the  Charter  as  a  con- 
stitution for  trusteed  areas;  let  us  trust  the  judg- 
ment of  two  thirds  of  the  Assembly  as  to  how  that 
Charter  should  be  implemented;  let  us  assume  the 
good  faith  of  our  fellow  members  who  now  pro- 
pose trusteeship.  Under  these  conditions  this  As- 
sembly can  accomplish  one  of  its  most  urgent  and 
most  difKcult  tasks — that  is  to  establish  the  trustee- 
ship system  now. 


994 


Department  of  State  Bulletin 


December  1,  1946 


I 


First  General  Conference  of  UNESCO 


BY  ASSISTANT  SECRETARY  BENTON' 


Mr.  Chairman:  Twelve  months  have  passed, 
since  the  constitution  of  UNESCO  was  drawn  ujd — 
twelve  troubled  and  war-weary  months  that  have 
demonstrated  once  more  the  urgent  need  for  under- 
standing among  the  peoples  of  the  world.  We 
here  assembled  have  now  reached  the  solemn  but 
hopeful  day  on  which  the  constitution  of 
UNESCO  is  to  be  made  a  living  force  by  a  pro- 
gram designed  to  advance  that  understanding.  To 
the  development  of  that  program  the  Preparatory 
Commission,  under  the  distinguished  leadership  of 
Dr.  Julian  Huxley,  has  contributed  many  months 
of  devoted  and  fruitful  effort. 

As  Chairman  of  the  United  States  Delegation  to 
this  Conference  I  can  assure  you  that,  although 
UNESCO  is  as  yet  but  little  understood  anywhere 
in  the  world,  its  hopes  and  goals  have  the  complete 
and  the  fervent  support  of  my  country  and  its 
people. 

The  United  States  Congress,  in  formally  ap- 
proving the  membership  of  my  country  in 
UNESCO,  created  a  United  States  National  Com- 
mission in  accordance  with  the  recommendation 
contained  in  article  VII  of  UNESCO's  constitu- 
tion. This  Conunission  is  a  body  unique  in  Ameri- 
can history.  It  unites  in  one  assembly  spokesmen 
of  the  arts,  sciences,  and  learned  professions;  of 
the  educational  system  at  all  levels ;  of  radio,  mo- 
tion pictures,  and  the  press ;  of  the  educational  in- 
terests of  labor  and  agriculture,  and  of  religious 
bodies ;  and  of  many  other  American  groups  that 
are  now  working  for  the  establishment  of  peace. 

In  September  the  United  States  Commission  met 
for  four  days  of  spirited  discussion  to  advise  the 
United  States  Delegation  to  this  conference.  My 
nine  associates,  appointed  by  President  Truman  to 
our  Delegation  here,  are  all  of  them  members  of 
the  United  States  Commission  for  UNESCO. 

Mv.  Chairman,  this  is  not  a  period  of  history 
that  encourages  pleasant  dreams.  Peace  will  not 
be  established  by  wishful  words,  no  matter  how 


eloquent  the  expression  or  how  noble  the  senti- 
ments. If  UNESCO  is  to  contribute  to  the  peace 
of  the  world,  it  must  do  so  through  its  program  of 
education  and  of  scientific  and  cultural  exchanges. 
This  progi-am  must  be  soundly  conceived,  boldly 
plaimed,  and  energetically  executed.  This  pro- 
gram must  look  toward  the  decade  ahead  and  not 
merely  towards  this  year  and  next  year. 

On  what  principles  should  such  a  i^rogram  be 
based  ? 

First,  its  primary  goal  must  be  a  firm  peace  built 
on  genuine  understanding  among  the  peoples  of 
the  world.  Let  me  quote  from  the  report  submit- 
ted by  the  United  States  National  Commission  to 
the  Department  of  State :  "UNESCO  is  not  con- 
ceived of  as  an  international  undertaking  to  pro- 
mote education  and  science  and  cultui-e  as  ends  in 
themselves,  but  rather  through  education,  science 
and  culture,  to  advance  the  peace  of  the  world. 
The  American  Delegation  should  support  those 
proposals  for  action  which  give  promise  of  ad- 
vancing directly  and  significantly  the  cause  of 
peace  through  understanding." 

Mr.  Chairman  and  fellow  delegates,  the  Ameri- 
can Delegation  accepts  this  principle  as  formu- 
lated by  its  National  Commission.  This  principle 
would  affect  the  structure  as  well  as  the  spirit  of 
UNESCO.  This  principle  would  minimize  the 
danger  that  UNESCO  will  develop  into  a  loose 
federation  of  specialized  groups,  each  pursuing 
its  own  interest  on  the  quite  human  assumption 
that  each  holds  a  master  key  to  world  understand- 
ing. This  is  a  very  real  danger.  We  must  not 
emerge  from  this  conference  as  a  series  of  special 
interest  groups  labeled  "creative  arts",  "natural 
sciences",  "mass  media",  and  so  forth,  insulated 
from  each  other  and  competing  or  "logrolling" 
for  attention  and  a  share  of  the  budget. 


'Address  made  at  tbe  First  General  Conference  of 
UNESCO  at  Paris  on  Nov.  23,  1&46  and  released  to  the 
press  on  the  same  date.  Jlr.  Benton  is  Chairman  of  the 
American  Delegation. 


995 


THE  UN/TED   NATIONS 


Specialized  skills  and  interests  should  be  placed 
in  tlie  service  of  the  common  cause — the  cause  of 
peace  through  understanding.  Each  in  its  own 
field  must  seek  to  stimulate  interchange  on  a  world 
scale ;  but  the  common  cause  must  not  be  subordi- 
nated to  the  service  of  any  special  field  or  any 
group  of  fields. 

Thus,  my  first  principle  is  an  integrating  prin- 
ciple to  protect  us  against  the  divisive  forces  that 
beset  us.  I  suggest  that  UNESCO  be  organized 
around  its  great  central  unifying  objective  rather 
than  on  the  many  foundations  of  the  various  dis- 
ciplines and  fields  of  knowledge  into  which  its 
intellectual  resources  are  divided.  The  channels 
through  which  it  will  act  will  themselves  exert  an 
integrating  influence  upon  its  activities.  These 
channels  seem  to  me  to  be  three  in  number.  First, 
we  have  the  traditional  role  of  formal  education ; 
secondly,  the  emerging  role  of  scientific  and  cul- 
tural exchanges,  in  which  the  Institute  of  Intel- 
lectual Cooperation  bravely  pioneered,  and 
thirdly,  the  new  and  relatively  unexplored  field  of 
mass  education  at  the  adult  level.  Through  these 
three  channels  we  can  perhaps  best  integrate  the 
efforts  of  tlie  specialists  and  focus  them  upon  the 
common  goal. 

This,  then,  is  the  first  principle :  to  concentrate 
our  efforts  upon  our  primary  objective — the  build- 
ing of  peace  through  understanding  among  the 
peoples  of  the  world. 

My  second  principle  is  that  the  means  employed 
by  UNESCO  should  be  adapted  to  the  end  I  have 
outlined.  Let  me  quote  again  from  the  report  of 
the  United  States  National  Commission :  "In  the 
opinion  of  the  National  Commission  the  responsi- 
bility of  the  United  Nations  Educational,  Scien- 
tific and  Cultural  Organization  in  the  present 
crisis  is  so  great  and  so  pressing  that  the  Organ- 
ization should  not  hesitate  to  employ  any  proper 
means,  however  novel  or  however  costly,  which 
give  promise  of  success.  UNESCO  is  itself  a  new 
agency,  daring  in  purpose  and  novel  in  structure. 
The  means  it  employs  should  be  appropriate  to  its 
nature.  It  must  serve  as  the  cutting  edge  for  in- 
ternational action." 

I  shall  cite  as  a  prime  example  of  a  means  ap- 
propriate to  its  nature  the  mass  education  of  the 
peoples  of  the  world.  This  goal  can  only  be 
achieved  in  the  world  as  a  whole  through  the  mod- 

996 


em  instruments  of  mass  communications — the 
modern  press,  the  radio,  and  the  motion  picture. 
Because  these  new  instruments  of  world  communi- 
cation have  been  vulgarized  on  occasion  and  have 
even  been  perverted  and  misused  for  mass  decep- 
tion does  not  mean  that  they  cannot  be  employed, 
by  those  who  wish  so  to  employ  them,  for  the  high 
purposes  of  knowledge  and  truth.  The  use  of 
such  instruments  for  mass  education  is  little  un- 
dei-stood  by  many  of  the  world's  scholars  and  intel- 
lectuals. The  first  sentence  of  the  UNESCO  con- 
stitution states  that  it  is  in  the  minds  of  men  that 
the  defenses  of  peace  must  be  constructed.  We  in 
the  American  Delegation  understand  that  to  mean 
all  men,  not  merely  elite  groups  with  special  train- 
ing- 
Scholars  and  scientists  and  philosophers  and 
artists  are  the  sources  and  wellsprings  of  the 
world's  culture.  We  can  no  longer  wait  upon  slow 
seepage  to  bring  their  work  to  the  masses  of  man- 
kind. The  ordinary  men  and  women  of  the  world 
are  athirst  for  knowledge.  Their  stride  is  the 
stride  of  a  giant.  They  will  march  surely  as  they 
have  the  knowledge  or  blindly  as  they  lack  it. 

As  vice  president  of  the  University  of  Chicago 
for  eight  years  I  saw  that  the  riches  of  human 
learning  need  not — indeed  cannot  and  must  not — 
be  the  hoard  and  the  monopoly  of  the  few.  I 
learned  that  without  sacrifices  of  intellectual  in- 
tegrity it  is  possible  to  reach  millions  of  ordinary 
men  and  women  by  the  new  instruments  of  com- 
munication, and  to  provide  them  with  stimulus 
to  thought  and  intelligent  action.  Here  is  the 
great  educational  challenge  of  the  future — for 
UNESCO  and  for  all  of  us. 

The  task  UNESCO  faces  is  a  staggering  one. 
It  is  a  grim  fact  that  more  than  half  the  people 
of  the  world  are  living  under  some  degree  of 
political  censorship.  It  is  a  grim  fact  that  more 
than  half  the  earth's  population — and  not  the 
same  half — is  illiterate. 

The  hopeful  side  of  the  picture  is  that  men  every- 
where have  an  innate  yearning  for  understanding. 
Further,  they  have  the  capacity  to  achieve  it.  The 
anthropologists  have  demonstrated  that,  biologi- 
cally, all  races  and  peoples  have  in  roughly  equal 
measure  the  same  potentialities  for  understand- 
ing and  for  creative  work.  Men  have  struggled 
for  centui'ies  to  bring  into  being  the  ideal  of  po- 

Deparfmenf  of  State  Bulletin     •      December  1,  1946 


i 


THE  UNITED  NATIONS 


litical  democracy ;  the  streets  of  this  beautiful  city 
have  run  red  for  that  ideal.  More  recently  men 
have  struggled  for  economic  democracy.  I  propose 
for  UNESCO  the  developement  of  means  adequate 
to  a  third  goal — the  goal  of  cultural  democracy; 
the  opportunity  for  all  to  share  in  the  ideas  and 
the  knowledge  that  will  enable  them  to  partici- 
pate intelligently  in  the  affairs  of  the  world  com- 
munity. 

UNESCO  does  not  believe  and  cannot  believe 
that  peace  is  to  be  obtained  through  the  intellectual 
and  cultural  subjugation  of  the  world  by  any 
single  political  philosophy  or  through  the  con- 
version of  the  world  to  any  single  religious  faith. 
UNESCO  is  founded  on  the  belief  that  neither 
the  forced  unification  of  the  world  of  the  spirit 
nor  the  forced  standardization  of  the  world  of 
the  mind  can  give  men  peace,  but  only  a  world 
democracy  of  mind  as  well  as  spirit.  Cultural 
democracy  implies  cultural  integrity,  as  true  polit- 
ical democracy  implies  the  freedom  of  the  per- 
son and  his  personal  integrity  and  self-respect. 
The  cultural  democracy  which  UNESCO  pro- 
poses is  a  democracy  of  mind  and  spirit  in  which 
every  culture  shall  be  free  to  live  and  develop  in 
itself  and  in  the  great  community  to  common 
culture.  Free  men  do  not  fear  ideas;  free  men 
are  not  afraid  of  thought;  free  men  are  eager  to 
confront  the  differences  and  rich  varieties  that  life 
presents,  and  to  determine  for  themselves  the 
things  they  take  as  true.  This,  from  the  begin- 
ning, has  been  the  path  of  freedom. 

This  brings  me  to  my  third  and  last  principle : 
the  scope  of  our  program,  over  the  years  ahead, 
must  be  proportioned  to  the  task. 

It  might  be  argued  that  the  goal  for  UNESCO 
is  impossible  of  attainment  within  the  significant 
future;  that  the  task  is  so  immense  that  UNESCO 
can  make  only  a  minor  contribution  to  it,  scarcely 
decisive  in  the  issue  of  war  and  peace. 

My  answer  again  is  to  direct  attention  to  the 
new  means  at  the  disposal  of  the  cultural  forces  of 
the  world. 

One  hundred  years  ago  Horace  Mann,  a  great 
pioneer  of  American  education,  was  establishing 
the  common  school  system  of  Massachusetts.  The 
system  he  founded  became  the  model  for  public 
education  throughout  the  48  States.  It  was  harder 
for  Horace  Mann  to  travel  from  Boston  to  Pitts- 


field,  about  a  hundred  miles  away,  than  it  was 
for  the  American  Delegates  to  this  Conference  to 
fly  from  Washington  to  Paris.  It  was  far  harder 
for  Horace  Mann  to  communicate  with  Pittsfield 
than  it  is  for  the  president  of  Harvard  University 
to  talk  to  the  Minister  of  Education  in  China. 
The  despair  one  feels  in  thinking  of  the  immen- 
sity of  UNESCO's  tremendous  responsibilities  is 
mitigated  when  we  think  of  instruments  now  at 
our  disposal.  In  fact,  if  the  ideas  which  we 
espouse  here  are  as  dynamic  as  were  those  of 
Horace  Mann,  there  is  no  reason  for  despair. 

Thus  my  fears  for  UNESCO  are  not  the  lack 
of  instruments  or  the  absence  of  interest  or  capac- 
ity on  the  part  of  ordinary  people  everywhere. 
My  fears  are  that  we  ourselves,  we  of  UNESCO, 
will  not  set  our  sights  high  enough  for  the  long 
range;  that  the  leaders  of  our  nations  will  not 
perceive  the  true  potentialities  of  UNESCO ;  and 
that  the  financial  and  political  support  accorded 
UNESCO  will  not  permit  us  to  proportion  our 
program  to  the  job  ahead  of  us. 

I  do  not  now  propose,  however,  an  expansion 
of  the  budget  advanced  by  the  Secretariat  of  the 
Preparatory  Commission.  In  fact,  it  may  well 
be  advisable  to  scale  the  first  year's  expenditures 
downward. 

War  has  left  its  historic  wake  of  destruction, 
hunger,  and  disease.  The  world  is  now  struggling 
back  toward  physical  and  financial  health.  We 
must  not  risk  the  foundering  of  the  United  Na- 
tions and  or  its  specialized  agencies  by  asking  na- 
tions to  assume  heavy  new  financial  burdens  at 
a  moment  when  many  of  them  do  not  have  the  re- 
sources to  subsist  and  rebuild.  Neither  should  we 
risk  devitalizing  this  great  enterprise  by  making 
it  largely  the  responsibility  of  a  few  nations. 

The  coming  year,  I  think  we  are  agreed,  should 
be  a  year  of  exploring  and  planning — planning 
accompanied  by  the  launching  of  a  small  number 
of  ciiicial  projects,  which  will  clearly  demonstrate 
the  worth  and  the  significance  of  our  undertaking. 
This  year  of  planning  will  bring  further  clarifica- 
tion of  purposes,  will  serve  as  a  laboratory  for  our 
own  experience  and  for  demonstration  to  our  peo- 
ples of  some  of  the  kinds  of  things  we  can  accom- 
plish. 

But  of  one  thing  we  must  be  careful :  the  budget 
for  1947  must  not  be  regarded  by  our  governments 


722716 — 46- 


997 


THE  UNITED  NATIONS 


or  our  peoples  as  establishing  the  norm  for  future 
years;  I  suggest  we  present  the  1947  budget  as  a 
fledgling  budget.  If  we  think  of  it  as  the  fledg- 
ling that  indeed  it  is,  while  we  test  our  wings  and 
plan  our  course  of  flight,  this  will  prepare  our 
governments  for  the  more  costly  projects  that 
UNESCO  must  embrace  when  the  world  emerges 
from  this  period  of  struggle  for  subsistence.  Fu- 
ture budgets  must  be  scaled  to  the  magnitude  of 
UNESCO's  opportunities  and  to  the  promise  of 
UNESCO's  organization  as  it  grows  in  strength. 

As  understanding  develops  throughout  the 
world,  the  unproductive  cost  of  armaments  can 
and  must  come  down.  The  combined  budgets  of 
all  nations  for  their  military  and  naval  establish- 
ments for  this  year  is,  I  would  guess,  at  least  ten 
thousand  times  the  size  of  any  budget  now  con- 
templated for  UNESCO.  In  each  country  the 
military  establishment  is  an  unproductive  drain 
on  the  economy  as  is  a  fire-insurance  premiimi  an 
improductive  expenditure  for  a  home-owner. 
Wlien  his  fire-insurance  premium  becomes  un- 
bearably large,  the  home-owner  seeks  ways  to  re- 
duce it  by  reducing  the  risk  of  fii'e. 

To  the  world  citizeni-y  UNESCO  is  a  vehicle 
through  which  the  risk  of  fire  can  be  reduced. 
Surely  it  is  good  business  to  put  money  into 
UNESCO  when  the  risk  against  which  we  are 
protecting  ourselves  is  war. 

UNESCO  has  been  called  into  existence  to  serve 
all  the  peoples  of  the  world,  without  distinction  of 
race  or  nationality,  sex  or  language  or  economic 
condition.  I  trust  tliat  the  day  is  near  at  hand 
when  all  nations  will  have  taken  their  place  as 
members  of  this  organization. 

UNESCO  belongs  to  the  people  and  not  to  the 
scholars  and  intellectuals,  though  the  opportunity 
for  leadership  is  theirs.  The  people  will  ask  one 
question:  What  is  UNESCO  doing  for  peace? 
The  people  will  not  accept  excuses.  If  we  offer 
such,  they  will  merely  ignore  us. 

Mr.  Chairman  and  fellow  delegates,  to  help 
make  peace :  that  is  the  task  of  UNESCO.  It  is 
the  hardest,  longest,  lai'gest  task  that  men  can 
undei'take.  Peace  cannot  be  built  by  little  men, 
with  a  little  money,  in  a  little  way.  UNESCO 
needs  strong  men  and  bold  men.  To  those  who  are 
strong  and  bold  for  peace  the  people  will  not  deny 
the  backing  they  need.    The  people  will  give  their 


support  and  far  more.  They  will  give  their  devo- 
tion, their  hearts,  and  their  minds. 

The  military  experts  have  said  there  is  no  de- 
fense against  the  weapons  of  modern  war.  They 
are  right.  There  is  no  military  defense.  But 
there  is  another,  a  greater  defense,  which  is  not 
military.  The  people  have  sent  us  here  to  build  it. 
That  defense  must  be  built  by  us  and,  as  the  con- 
stitution of  UNESCO  declares,  it  must  be  built 
in  the  minds  of  men.  It  must  be  built  in  the  minds 
of  all  men — everywhere. 

Foreign  Relations  Papers — Continued  from  page  9S5 

The  United  States  was  one  of  42  signatories  to  a 
multilateral  treaty  on  limiting  manufacture  and 
regulating  distribution  of  narcotic  drugs.  A  re- 
quest by  the  Afghanistan  Government  for  nego- 
tiation of  a  treaty  establishing  official  relations 
was  considei'ed  "premature"  because  the  United 
States  had  not  yet  recognized  that  Government. 
The  United  States  and  Canada  agreed  that  prog- 
ress on  drafting  of  a  treaty  for  development  of  the 
St.  Lawrence  waterway  "would  be  more  definitely 
assured  by  direct  and  verbal  exchange  of  views" 
between  the  two  Governments.  A  provisional  com- 
mercial agreement  between  the  United  States  and 
Chile  was  effected  by  an  exchange  of  notes. 

Of  interest  to  students  of  international  law  are 
replies  by  the  Department  of  State  to  inquiries  on 
the  following  subjects:  immunity  of  foreign  states 
from  suits  in  Federal  and  State  courts;  repre- 
sentation of  the  United  States  before  foreign 
courts;  definition  of  a  commercial  attache;  infor- 
mation whethei'  such  an  official  is  entitled  to  diplo- 
matic immunity. 

Papers  Rtlattng  to  the  Foreign  Relations  of  the 
United  States,  1931,  volume  I,  was  compiled  by 
William  F.  Cargo,  Victor  J.  Farrar,  Gustave  A. 
Nuermberger,  John  Gilbert  Reid,  and  William  R. 
Willoughby  under  the  direction  of  E.  Wilder 
Spaulding,  Chief  of  the  Division  of  Research  and 
Publication,  and  E.  R.  Perkins,  Editor  of  the 
Foreign  Relations  Volumes.  Coi^ies  of  volume  I 
(cix,  961  pp.)  will  be  available  shortly  and  may 
be  purchased  from  the  Superintendent  of  Docu- 
ments, Government  Printing  Office,  for  $2.75 
each. 


998 


Department  of  Sfafe  Bulletin 


December  1,  1946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings  ' 


In  Session  as  of  November  24,  1946 

Far  Eastern  Commissiou 


United  Nations: 

Security  Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

UNRRA-Intergovernmental   Committee    on    Refugees     (IGCR) 
Joint  Planning  Committee. 

General  Assembly _ 

Telecommunications  Advisory  Committee 


German  External  Property  Negotiations  with  Portugal  (Safehaven) 

PICAO: 

Interim  Council 


Divisional 

Meteorological  Division   . 
Communications  Division 


International  Conference  on  Trade  and  Employment:  First  Meeting 
of  the  Preparatory  Committee. 

Inter-Allied  Trade  Board  for  Japan 


FAO:  Preparatory  Commission  To  Study  World  Food  Board  Pro- 
posals 

Council  of  Foreign  Ministers 

lARA:  Meetings  on  Conflicting  Custodial  Claims 


UNESCO: 

"Month"  Exhibition 
General  Conference  . 


ILO:  Industrial  Committee  on  Textiles:    Brussels 

International  Whaling  Conference 

Scheduled  for  November  1946 -January  1947 

ILO:  Industrial  Committee  on  Building,  Civil  Engineering  and  Pub- 
lic Works 


Rubber  Study  Group  Meeting 


Washington 


Lake  Success 

Lake  Success 

Lake  Success 

Washington  and  Lake 

Success 
Flushing  Meadows     .    . 
Lake  Success 


Lisbon 


Montreal 


Montreal 
Montreal 

London    . 


Washington 
Washington 

New  York  . 
Brussels  .    . 


Paris 
Paris 


Washington 


Brussels 


The  Hague  , 


February  26 

March  25 
March  25 
June  14 
July  25 

October  23 
November  10 

September  3 


September  4- 
November  18 

October  29-November  26 
November  19 

October  15 


October  24 
October  28 

November  4 
November  6 

November- December 
Noi'ember  19- 
December  10  (tentative) 
November  16-25 

November  20 


November  25-December  3 


November  25-30 


Calendar  prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


999 


Calendar  of  Meetings — Continued 


PICAO: 

Divisional 

Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division  .    .    . 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division 

United  Nations: 

Economic  and  Social  Council 

Commission  on  Narcotic  Drugs 

Drafting  Committee  of  International  Trade  Organization,  Pre- 
paratory Committee 
Economic  and  Employment  Commission 

Social  Commission 

Subcommission  on  Economic  Reconstruction 

Human   Rights  Commission 

Population  Commission 

Meeting  of  Postal  Experts 

Meeting  of  Governmental  Experts  on  Passport  and  Frontier  For- 
malities 

Inter-American  Commission  of  Women:  Fifth  Annual  Assembly  .    . 

UNRRA  Council,  Sixth  Session 

Intergovernmental  Committee  on  Refugees  (IGCR):  Sixth  Plenary 
Session 

Meeting  of  Medical  and  Statistical  Commissions  of  Inter-American 
Committee  on  Social  Security 

Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education 


Montreal  .  . 

Montreal  .  . 

Montreal  .  . 

Montreal  .  . 

Lake  Success 
Lake  Success 

Lake  Success 

Lake  Success 

Geneva   .    . 

Lake  Success 

Lake  Success 

New  York  . 
Geneva   .    . 

Washington 
Washington. 
London   .    . 

Washington 

Caracas  .  . 
Caracas  .    . 


November  26 
December  3 
January  7 
January  14 


November  27 


January  20-February  28 

(tentative) 
January  20-February  5 

(tentative) 
January  20-February  5 

(tentative) 
January  27-February  13 

(tentative) 
January  27-February  11 

(tentative) 
January  27-February  1 1 

(tentative) 
December  10 
January  14-29 

December  2-12 
December  10 
December  16 

January  6-11 

January  12-24 
January  12-24 


Activities  and  Developments  » 


UNRRA  Council:  Sixth  Session 

[Released  to  the  press  by  UNRRA  November  20] 

The  sixth  session  of  the  UNRRA  Council  will  be 
held  in  Washington,  D.  C,  it  was  announced  No- 
vember 20  at  UNRRA  headquarters  in  Washing- 
ton. The  session  will  open  on  December  10  at  the 
Shoreham  Hotel.  A  brief  session  is  planned  deal- 
ing with  policy  questions,  including  the  transfer  of 
certain  UNRRA  functions  to  other  international 
agencies.  The  agenda  will  be  adopted  at  the  open- 
ing meeting. 


1000 


Department  of  State  Bulletin     •     December  I,  1946 


fl 


International  Whaling  Conference:  First  Plenary  Session 

ADDRESS  BY  ACTING  SECRETARY  ACHESON > 


I  am  very  pleased  to  have  this  opportunity  of 
welcoming  you  here  today  on  behalf  of  the  Gov- 
ernment of  the  United  States  of  America. 

The  convening  of  this  International  Wlialing 
Conference  is  gratifying  not  only  because  it  marks 
an  advance  in  international  cooperative  effort  in 
whale  conservation  but  also  because  it  illustrates 
increasing  cooperation  among  the  nations  in  the 
solution  of  international  conservation  problems. 

The  work  of  this  Conference  is,  first,  to  provide 
for  the  coordination  and  codification  of  existent 
regulations  and,  second,  to  establish  effective  ad- 
ministrative machinery  for  the  modification  of 
these  regulations  from  time  to  time  in  the  future 
as  conditions  may  require. 

Previous  conferences  have  recognized  that  there 
is  an  urgent  need  to  establish  permanent  inter- 
national machinery  to  deal  with  whaling  questions 
and  to  avoid  the  frequent  formal  international 
conferences  and  protocols  which  have  character- 
ized the  history  of  whaling  regulations.  The 
United  States  proposals  for  a  permanent  whaling 
commission  and  for  codification  of  existing  regu- 
lations are  a  manifestation  of  the  recognized  need 
to  place  whale  conservation  on  a  permanent  basis. 
These  proposals  have  been  presented  to  you  as  a 
basis  for  your  deliberations  at  this  Conference. 

Wliile  the  immediate  task  of  this  Conference 
is  primarily  of  an  administrative  character  in 
establishing  the  long-range  machinery  for  regu- 
lation, the  broad  objectives  of  whale  conservation 
must  be  constantly  borne  in  mind.  In  wide  per- 
spective, all  of  the  nations  of  the  world  have  re- 
sponsibility and  interest  in  maintaining  and  de- 
veloping the  whale  stocks.  These  whale  stocks 
are  a  truly  international  resource  in  that  they 
belong  to  no  single  nation  nor  to  a  group  of  na- 
tions, but  rather  they  are  the  wards  of  the  entire 
world.  It  is  true  that  the  whalers  of  only  a  few 
nations  have,  during  any  one  period,  chosen  to 
exploit  this  common  resource.    It  has  not  been  so 


long  since  this  country  was  the  primary  exploiter 
of  the  world's  stocks,  and  I  must  admit  that  I 
look  back  with  regret  to  the  fact  that  the  world 
in  that  era  did  not  take  its  conservation  responsi- 
bilities more  seriously. 

Whale  conservation  must  be  an  international 
endeavor,  and  it  is  our  hope  that  each  nation,  what- 
ever its  direct  or  indirect  interest  in  whaling,  will 
ultimately  participate  actively  in  the  great  task 
of  fostering  and  developing  this  common  resource. 

As  I  turn  this  meeting  over  to  you,  I  do  so  with  no 
question  as  to  the  outcome.  You  are  not  new  to 
this  problem  of  whale  conservation  and  develop- 
ment— many  of  you  are  authors  of  this  program — 
most  of  you  have  worked  closely  together  for  many 
years  in  striving  toward  the  best  possible  means  for 
preserving  international  whale  stocks,  and  all  of 
you  are  here  with  similar  purpose  and  similar 
aims. 

May  I  then  wish  you  great  success  in  the  work  of 
this  Conference  and  a  pleasant  stay  here. 


THE  FOREIGN  SERVICE 
Consular  Offices 

The  American  Mission  at  Tirana,  Albania,  was 
closed  on  November  15,  1946. 


Diplomatic  Office 

The  American  IMission  at  New  Delhi,  India,  was 
raised  to  an  Embassy  on  November  1,  1946. 


'Made  at  the  opening  plenary  session  of  the  Inter- 
national Whaling  Conference  at  Washington  on  Nov.  20, 
1946  and  released  to  the  press  on  the  same  date. 


1001 


ACTIVITIES  AND   DEVELOPMENTS 


United  States  Accepts  Membership  in 
\    Provisional  Maritime  Consultative 
/    Council 

'  [Released  to  the  press  November  21] 

The  Government  of  the  United  States  is  notify- 
ing the  Government  of  the  United  Kingdom  of  its 
acceptance  of  membership  in  the  Provisional  Mari- 
time Consultative  Council,  the  Department  of 
State  announced  on  November  21. 

Notification  to  the  British  Government  of  the 
acceptance  is  in  accord  with  the  procedure  deter- 
mined at  the  second  session  of  the  United  Maritime 
Consultative  Council  which  was  held  in  Washing- 
ton October  24^30,  1946.^ 

The  Provisional  IMaritime  Consultative  Council 
was  organized  at  the  Washington  meeting  as  an 
interim  group  pending  the  establishment  of  a  per- 
manent world  maritime  organization  that  can  be 
integrated  with  the  United  Nations.  The  United 
Maritime  Consultative  Council  became  non-exist- 
ent as  of  October  31, 1946. 

At  the  close  of  its  Washington  meeting,  the 
United  Maritime  Consultative  Council  sent  a  tele- 
gi'am  to  the  Secretary-General  of  the  United  Na- 
tions stating  that  it  had  agi'eed  to  recommend  to  its 
member  governments  the  establishment,  through 
the  machinery  of  United  Nations,  of  a  permanent 
international  shipping  organization  within  a  de- 
fined scope. 

Representatives  of  the  following  nations  were 
23resent  at  the  Washington  sessions : 

Australia,  Brazil,  Belgium,  Canada,  Chile,  Den- 
mark, France,  Greece,  India,  Netherlands,  New 
Zealand,  Norway,  Poland,  Sweden,  Union  of  South 
Africa,  United  Kingdom,  and  United  States. 

U.S.  Delegation  to  Industrial  Com- 
mittee on  Building,  Civil  Engineering 
and  Public  Works  of  ILO 

[Released  to  the  press  November  22] 

The  Secretary  of  State  announced  on  Novem- 
ber 22  that  the  President  has  approved  the  com- 


'  BuLMTiN  of  Oct.  6,  1946,  p.  631 ;  aud  Nov.  3,  p.  816. 


position  of  the  United  States  Delegation  to  at- 
tend the  meeting  of  the  Industrial  Committee  on 
Building,  Civil  Engineering  and  Public  Works 
of  the  International  Labor  Organization.  These 
nominations  were  submitted  by  the  Secretary  of 
State  upon  the  recommendation  of  the  Seci'etary 
of  Labor,  Lewis  B.  Schwellenbach.  This  meeting 
is  scheduled  to  be  held  in  Brussels,  Belgium,  No- 
vember 25  to  December  3, 1946. 

The  other  countries  scheduled  to  participate 
are:  Australia,  Belgium,  Brazil,  Canada,  Chile, 
China,  Czechoslovakia,  Denmark,  Finland,  France, 
India,  Italy,  Mexico,  Netherlands,  Norway,  Po- 
land, Sweden,  Switzerland,  Union  of  South 
Africa,  and  United  Kingdom.  This  meeting 
stems  from  the  policy  inaugurated  by  the  Govern- 
ing Body  of  the  International  Labor  OiEce  in 
January  1945  of  establishing  seven  major  Indus- 
trial Committees  for  the  purpose  of  paying  closer 
attention  to  the  individual  industries  and  thus 
implementing  the  previously  evolved  general  prin- 
ciples governing  labor  standards  and  social  policy 
on  an  individual  industry  basis.  In  line  with  these 
objectives  the  ILO  has  already  held  the  initial 
meetings  of  five  of  the  Industrial  Committees: 
Coal  Mining,  Inland  Transport,  Iron  and  Steel, 
Metal  Trades,  and  Textiles,  in  all  of  which  the 
United  States  Government  was  represented  by 
complete  delegations.  As  in  the  case  of  the  previ- 
ously held  committee  meetings,  the  first  session  of 
the  Building,  Civil  Engineering  and  Public 
Works  Committee  is  expected  to  be  largely  organ- 
izational in  character  and  to  lend  itself  to  prelim- 
inary explorations  into  the  fields  of  social  policy 
in  which  future  international  cooperation  in  the 
world's  consti'uction  industries  may  be  undertaken. 

The  composition  of  the  United  States  Delegation 
is  as  follows : 

REPRESENTING      THE      GOVERNMENT      OF      THE 
UNITED   STATES 

Members 

Robert  J.  Myers,  Manpower  Division,  Office  of  Military 
Government  for  Germany  (U.  S.)  ;  Assistant  Com- 
missioner Designate,  Bureau  of  Liibor  Statistics, 
Department  of  Labor,  Washington,  D.C. 

Winchester  E.  Reynolds,  Commissioner  of  Public 
Buildings,  Federal  Works  Agency,  Washington,  D.C. 

Advisers 

Herman  Byer,  Acting  Chief,  Employment  and  Occupa- 

(Ccmtirmed  on  page  1022) 


1002 


Department  of  State  Bulletin     •      December  I,  J 946 


THE   RECORD   OF  THE   WEEK 


Czechoslovakia  Provides  for  Compensation  of  Claimants 


Under  Nationalization  Program  ^ 


[Released  to  the  press  November  20] 

The  Czechoslovak  Republic  is  now  publishing 
from  time  to  time  in  its  official  gazette,  the  Uredni 
List,  the  names  and  addresses  of  all  enterprises 
taken  over  pursuant  to  the  four  nationalization 
decrees  signed  October  25, 1945.  The  decrees  pro- 
vide that  compensation  will  be  made  to  all  persons 
or  legal  corporations  except  those  who  engaged  in 
activities  against  the  sovereignty,  independence, 
integrity,  democratic  constitution,  safety,  or  de- 
fense of  the  Czechoslovak  Republic.  All  claimants 
must  prove  that  they  do  not  come  within  these 
classifications.  There  is  some  possibility  that  pro 
rata  compensation  may  be  given  innocent  stock- 
holders. The  assets  and  liabilities  of  nationalized 
enterprises  are  determined  as  of  January  1,  1946, 
and  compensation  therefor  will  be  based  on  the 
official  prices  of  October  27,  1945.  However,  if 
these  are  not  available,  the  price  will  be  established 
by  official  valuation  after  deducting  liabilities. 
Compensation  claims  for  nationalized  enterprises 
may  now  be  filed  directly  with  Department  IV  of 
the  Ministry  of  Foreign  Affairs.  For  the  claim- 
ant's convenience  only,  the  Depai-tment  of  State 
will  act  as  transmitting  agent  for  filing  such  claims. 
At  present  there  is  no  time  limit  for  such  filing. 
Claims  should  be  in  sextuplicate  (an  original  and 
five  copies).  Claimants  sending  their  claims  di- 
rectly to  Czechoslovakia  should  mail  one  copy  to 
the  Department  of  State. 

In  addition  to  an  indication  that  claimants  do 
not  come  within  the  classifications  mentioned 
above,  claims  should  include:  (1)  evidence  of 
claimant's  American  nationality;  naturalized  indi- 
viduals should  specify  certificate  number,  date,  and 
place  of  naturalization,  and  request  the  Immigra- 
tion and  Naturalization  Service  at  Philadelphia, 


Pa.,  to  furnish  evidence  thereof  for  transmission 
with  their  claim;  (2)  a  full  description  of  the 
property  in  question,  its  location  and  clear  proof 
of  title  thereto,  including  a  statement  of  the  time 
and  manner  of  the  acquisition  of  claimant's  own- 
ership or  other  interest  therein;  (3)  evidence  of 
the  nature  and  extent  of  any  non- American  inter- 
est in  the  property,  if  known;  and  (4)  a  detailed 
itemized  statement  of  the  assets  and  liabilities  on 
January  1,  1946  and  their  value  based,  if  known, 
on  prices  of  October  27, 1945  together  with  proper 
and  sufficient  evidence  thereof. 

Documentary  evidence  should  consist  of  original 
documents  or  certified  copies  of  originals  and  affi- 
davits to  support  every  essential  allegation.  Doc- 
uments filed  as  evidence  should  be  numbered  con- 
secutively and  cited  by  number  immediately  after 
the  allegations  in  support  of  which  the  documents 
are  filed. 

When  a  claimant  is  represented  by  an  attorney  in 
Czechoslovakia,  the  latter  should  have  a  power  of 
attorney  evidencing  his  authority  to  act  in  such 
capacity.  If  such  representation  is  desired,  the 
Department  will,  upon  request,  furnish  a  list  of 
attorneys  which  it  has  received  from  the  chambers 
of  lawyers  for  Bohemia,  Moravia-Silesia,  and  Slo- 
vakia, and  the  claimant  may  communicate  directly 
with  the  attorney  selected.  It  should  be  clearly 
understood  that  the  Department  of  State  can  not 
assume  responsibility  for  the  attorneys  selected,  the 
preparation  of  claims,  or  the  obtaining  of  appro- 
priate evidence  in  support  of  allegations. 

The  procedures   above   outlined   are  only   for 


'An  arlkle  on  the  natioiializatinn  program  in  Czecho- 
slovakia will  appear  in  tlie  Buixetin  of  Dec.  S,  1946. 


1003 


THE  RECORD   OF  THE  WEEK 


claims  under  the  nationalization  laws  and  do  not 
purport  to  cover  cases  of  property  requisitioned  or 

\      otherwise  taken  by  the  Government. 

/  The  following  enterprises  were  nationalized  by 

the  above-mentioned  Czechoslovak  decrees : 

(a)  All  jjrivate  insurance  interests;  joint  stock 
companies  engaged  in  banking  and  financial  trans- 
actions (joint  stock  banks) ;  certain  mines  and 
mining  enterprises,  power  plants,  and  installations 
(with  few  exceptions) ;  numerous  enterprises  of 
the  chemical  and  pharmaceutical  industries;  sugar 
factories  and  refineries;  industrial  distilleries  and 
spirit  refineries;  breweries  with  a  1937  output  of 
more  than  150,000  hectoliters  of  beer ;  certain  enter- 
prises of  the  armament  industry;  certain  iron, 
steel,  and  non-ferrous  metal  works  and  steel-roll- 
ing mills;  certain  rolling,  pressing,  and  drawing- 
mills;  enterprises  for  cellulose  manufacture; 
gramaphone  record  factories ;  flour  mills  having  a 
capacity  of  at  least  60  tons  of  gi'ain  a  day  on  Octo- 
ber 27,  1945,  and  enterprises  for  the  manufacture 
of  veneer  and  i^ly  wood  and  two  ty^jes  of  glass  works 
existing  on  that  date ; 

(6)  The  following  enterprises  having  the  aver- 
age number  of  employees  set  after  their  names 
between  the  dates  indicated: 

(1)  Between  January  1,  1938  and  January  1, 


1940,  those  enterprises  producing  porcelain  for 
industrial  use  and  asbestos  cement  goods — 150; 
margarine  factories — 150;  sawmills — 150;  print- 
ing textiles — 200 ;  paper  mills — 300 ;  sawmills  con- 
nected with  woodworking  industries  and  inde- 
pendent factories  of  woodenware — 300;  certain 
spinning  mills  for  cotton,  worsted  yarn,  woolen 
yarn,  flax,  jute,  and  artificial  fibers — 400;  certain 
weaving  mills  for  wool,  silk,  and  artificial  fibers 
and  enterprises  manufacturing  carpets,  blankets, 
lace,  galloons,  hosiery,  and  knitwear — 400 ;  certain 
spinning  mills  reclaiming  textile  waste,  factories 
making  thread  and  yarn — 400;  cotton-weaving 
mills — 500 ;  clothing  industry — 500 ;  chocolate  and 
sweets  factories — 500. 

(2)  Between  July  1, 1938  and  July  1, 1940,  those 
enterprises  basically  producing  building  and  in- 
dustrial ceramics,  glazed  tiles,  porcelain  and  lime, 
quarrying  of  limestone — 150;  brickworks — 200. 

(3)  Between  January  1,  1939  and  January  1, 

1941,  tJiose  enterprises  manufacturing  artificial 
leather  and  leather  goods — 400. 

(4)  Between  January  1,  1942  and  January  1, 
1944,  foundries  of  pig  iron,  wrought  iron,  steel, 
and  non-ferrous  metals — 400;  metallurgical  in- 
dustry, electrical  engineering,  precision  tool  mak- 
ing, and  optical  instruments  enterprises — 500. 


U.S.-Czechoslovak  Agreement  on  Commercial  PoBity 
and  Compensation  Claims 


[Released  to  the  press  November  21] 

On  November  14,  1946  identical  notes  were  ex- 
changed between  the  Ambassador  of  Czechoslo- 
vakia, Dr.  Juraj  Slavik,  and  Acting  Secretary 
Acheson,  embodying  an  agreement  between  the 
Government  of  Czechoslovakia  and  the  Govern- 
ment of  the  United  States  concerning  commercial 
policy,  compensation  for  nationalized  properties, 
and  related  matters.  This  agreement  marks  the 
culmination  of  discussions  on  these  matters  carried 
on  in  Washington  between  representatives  of  the 
two  Governments.  The  text  of  the  United  States 
note  follows: 


Excellency  : 

The  Government  of  the  United  States  expresses 
its  satisfaction  at  the  successful  conclusion  of  the 
discussions  with  the  Government  of  Czechoslo- 
vakia concerning  commercial  policy,  compensation 
for  nationalized  properties  and  related  matters  of 
mutual  interest  in  furthering  the  economic  rela- 
tions between  their  two  countries.  These  discus- 
sions have  resulted  in  agreement  by  the  two 
Governments  on  the  following  matters: 

1.  The  two  Governments  affirm  their  continued 
support  of  the  principles  set  forth  in  Article  VII 


1004 


Department  of  State  Bulletin 


December  I,  1946 


THE  RECORD   OF  THE  WEEK 


of  the  Mutual  Aid  Agreement  of  July  11,  1942,^ 
and  reiterate  their  desire  to  achieve  the  elimination 
of  all  forms  of  discriminatory  treatment  in  inter- 
national commerce,  and  the  reduction  of  tariffs  and 
other  trade  barriers. 

2.  The  Government  of  Czechoslovakia  is  in  ac- 
cord with  the  general  tenor  of  the  "Proposals  for 
Expansion  of  World  Trade  and  Employment"  re- 
cently transmitted  to  the  Government  of  Czecho- 
slovakia by  the  Government  of  the  United  States. 
Pending  the  conclusion  of  the  negotiations  at  the 
general  international  conference  on  trade  and  em- 
ployment contemplated  by  the  "Proposals",  the  two 
Governments  declare  it  to  be  their  policy  to  abstain 
from  adopting  new  measures  which  would  preju- 
dice the  objectives  of  the  conference. 

3.  The  two  Governments  share  the  view  that  the 
conduct  of  international  trade  through  the  mech- 
anism of  bilateral  barter,  clearing,  and  similar 
agreements  is  generally  not  compatible  with  the 
maximization  of  benefits  deriving  from  trade  or 
with  the  goal  of  eliminating  trade  discrimination. 
The  Government  of  Czechoslovakia  has  expressed 
the  view,  however,  that  the  use  of  such  agreement 
during  the  postwar  transition  period  has  been 
necessary,  but  it  will  direct  its  efforts  to  their 
abandonment  and  a  return  to  multilateralism  at 
the  earliest  possible  date. 

4.  The  Government  of  Czechoslovakia  has  de- 
clared that  it  must  maintain  a  system  of  import 
and  export  controls  during  the  postwar  transition 
period  in  order  to  safeguard  the  equilibrium  of  its 
balance  of  payments  while  seeking  to  achieve  in 
an  orderly  way  its  plan  of  economic  reconstruction. 
The  Government  of  Czechoslovakia  will  adminis- 
ter the  issuance  of  import  licenses  without  dis- 
crimination as  among  foreign  sources  of  supply  as 
soon  as  Czechoslovakia  possesses  or  is  able  to  ob- 
tain sufficient  free  foreign  exchange  so  that  it  is 
no  longer  necessary  for  her  to  make  her  purchases 
within  the  limits  of  bilateral  trade  and  financial 
agreements. 

5.  If  the  Government  of  either  country  estab- 
lishes or  maintains  a  monopoly  or  enterprise  for 
the  importation,  exportation,  purchase,  sale,  dis- 
tribution or  production  of  any  article,  or  gi'ants 
exclusive  privileges  to  any  enterprise  to  import, 
export,  purchase,  sell,  distribute  or  produce  any 


article,  such  monopoly  or  enterprise  shall  accord 
to  the  commerce  of  the  other  country  fair  and 
equitable  treatment  in  respect  of  its  purchases  of 
articles  the  growth,  produce  or  manufacture  of 
foreign  countries  and  its  sales  of  articles  destined 
for  foreign  countries.  To  this  end  the  monopoly 
or  enterprise  shall,  in  making  such  purchases  or 
sales  of  any  article,  be  influenced  solely  by  con- 
siderations, such  as  price,  quality,  marketability, 
transportation  and  terms  of  purchase  or  sale, 
which  would  ordinarily  be  taken  into  account  by  a 
private  commercial  enterprise  interested  solely  in 
purchasing  or  selling  such  article  on  the  most 
favorable  terms. 

6.  The  two  Governments  express  their  inten- 
tion at  the  earliest  practicable  date  to  enter  into 
negotiations  looking  toward  the  conclusion  of  a 
comprehensive  treaty  of  friendship  and  conunerce 
which  will  regulate  to  their  mutual  satisfaction 
economic  relations  between  the  two  countries. 
Meanwhile  the  two  Governments  have  taken 
cognizance  of  the  fact  that  each  continues  to  ac- 
cord to  articles  the  growth,  produce  or  manufac- 
ture of  the  other  unconditional  most-favored- 
nation  treatment  with  respect  to  customs  duties, 
the  rules  and  formalities  of  customs,  and  the  tax- 
ation, sale,  distribution,  and  use  within  its  terri- 
tory of  such  articles  consistent  with  provisions  of 
the  former  trade  agreement  between  the  two  coun- 
tries dated  March  7, 1938.= 

7.  The  Government  of  the  United  States  and 
the  Government  of  Czechoslovakia  will  make  ade- 
quate and  effective  compensation  to  nationals  of 
one  country  with  respect  to  their  rights  or  inter- 
ests in  properties  which  have  been  or  may  be  na- 
tionalized or  requisitioned  by  the  Government  of 
the  other  country.  In  this  connection,  the  Govern- 
ment of  the  United  States  has  noted  with  satisfac- 
tion that  negotiations  concerning  compensation  on 
account  of  such  claims  will  shortly  begin  in  Praha. 

8.  The  two  Governments  agree  to  afford  each 
other  adequate  opportunity  for  consultation  re- 
erardinc  the  matters  mentioned  above,  and  the 
Government  of  Czechoslovakia,  recognizing  that 
it  is  the  normal  practice  of  the  Government  of  the 


'  Executive  Agreement  Series  261. 
'  Executive  Agreement  Series  147. 


1005 


THE  RECORD  OF  THE  WEEK 


United  States  to  make  public  comprehensive  in- 
formation concerning  its  international  economic 
relations,  agrees  to  make  available  to  the  Govern- 
ment of  the  Unite-d  States  full  information,  similar 
in  scope  and  character  to  that  normally  made 
public  by  the  United  States,  concerning  the  inter- 
national economic  relations  of  Czechoslovakia. 

The  Government  of  the  United  States  will  be 
pleased  to  receive  from  the  Govermnent  of  Czecho- 
slovakia a  statement  confirming  its  understanding 


of  this  agreement  reached  by  the  two  Govern- 
ments. 

Accept  [etc.] 

The  note  from  the  Ambassador  of  Czechoslo- 
vakia confirms  the  Government  of  Czechoslo- 
vakia's understanding  of  the  agreement  reached 
by  the  two  Governments.  The  substance  of  the 
Czechoslovak  note  is  identical  with  that  of  the 
United  States  note. 


World  Air  Transport:  Development  of  United  States  Policy 

BY  GARRISON  NORTON  i 


I  am  not  here  to  discuss  the  security  aspects  of 
world  air  transport.  But  I  think  you  will  all 
agree  that  the  social  and  economic  effects  of  mass 
world  air  transport  would  be  so  beneficial  as  to 
constitute  a  long  step  in  the  direction  of  world 
security.  "Iron  curtains",  and  all  they  stand  for, 
are  the  gi-eatest  threat  to  security  today.  The 
peoples  of  the  world  must  get  to  know  each  other, 
just  as  the  good  citizens  here  present  know  each 
other,  or  we  shall  perish. 

Therefore,  I  can  quote  to  you  from  a  resolution 
adopted  by  our  Government  and  that  of  the  United 
Kingdom  at  Bermuda  last  February,  as  the  expres- 
sion of  what  I  call  our  "Number  One  Policy"  in  the 
field  of  world  air  transport :  ^  ".  .  .  the  two  Gov- 
ei'nments  desire  to  foster  and  encourage  the  widest 
possible  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 
promoting  friendly  understanding  and  good  will 
among  peoples  ..." 

In  a  moment  I  shall  return  to  the  Bermuda 
agreement,  but  I  want  to  emphasize  that  the  policy 
just  expressed  has  been  formulating  in  our  Gov- 
ernment for  some  years  and  has  been  developed  in 


^Made  before  the  Cincinnati  Rotary  Club  on  Nov.  21, 
1946  and  released  to  the  press  on  the  same  date.  Mr. 
Norton  is  Director  of  the  Office  of  Transport  and  Com- 
munications, Department  of  State. 

=  Bulletin  of  Apr.  7,  1946,  p.  585. 


full  acceptance  of  the  doctrine  that  every  country 
has  complete  and  exclusive  sovereignty  over  the 
air-space  above  its  territory.  For  example,  what 
I  have  described  as  our  "Nmnber  One  Policy" 
wrought  a  fundamental  change  in  our  attitude  as 
to  the  manner  in  which  our  foreign  air  carriers 
could  arrange  for  routes  and  landing  rights  in  the 
territories  of  other  countries.  Under  the  Foreign 
Air  Mail  Act  of  1928,  our  airlines  made  their  own 
arrangements  with  foreign  governments,  prima- 
rily for  the  reason  that  these  governments  had  no 
interest  in  engaging  in  international  air  transport 
at  that  time.  However,  with  the  growing  impor- 
tance of  air  transport,  more  and  more  of  these 
countries  realized  that  they  did  want  to  enter  this 
field  themselves.  In  recent  years  virtually  all  of 
them  have  demanded  reciprocal  rights.  Since  it 
is  of  course  impossible  for  a  private  American  air- 
line to  grant  the  right  for  a  foreign  airline  to  enter 
this  comitry,  there  was  a  tendency  even  at  this 
early  date  toward  shifting  negotiations  to  an  in- 
tergovernmental level.  Much  thought  was  given 
to  this  problem  by  the  Congress,  the  Department 
of  State,  and  the  Department  of  Commerce.  The 
record  of  hearings  before  House  and  Senate  com- 
mittees clearly  shows  that  Senators  and  Congress- 
men, as  well  as  administration  officials,  were  fully 
aware  of  the  remarkable  pioneering  job  done  by 
our  first  international  flag  earners.  But  it  is 
equally  clear  from  the  record  that  an  overwhelm- 
ing majority  of  these  gentlemen  believed  the  time 
had  come,  in  the  interest  of  the  policy  above  out- 


1006 


Department  of  State  Bulletin     •      December  1,  1946 


THE  RECORD   OF  THE  WEEK 


lined,  to  put  a  stop  to  the  private  negotiation  of 
international  civil  air  rights. 

The  most  important  step  taken  by  our  Govern- 
ment in  this  direction  was  the  passage  in  1938  of 
the  Civil  Aeronautics  Act.  Section  2  of  that  Act 
voices  much  of  the  policy  I  have  just  quoted  to  you. 
Section  801  puts  control  over  international  aviation 
in  the  hands  of  the  President,  and  section  802 
makes  it  clear  that  the  State  Department,  in  any 
negotiations  with  foreign  governments  for  the 
establishment  of  air  routes  and  services,  must  con- 
sult with  the  Civil  Aeronautics  Board.  This  Act, 
while  it  authorizes  the  State  Department  to  negoti- 
ate international  air  agreements,  does  not  prohibit 
private  individuals  or  corporations  from  conclud- 
ing similar  contracts  with  foreign  powers,  al- 
though section  1102  implies  that  the  Board  may 
veto  such  contracts. 

The  Transportation  Act  of  1940  further 
strengthened  the  role  of  Government  in  negotia- 
tion of  international  civil  air  rights  and  led  to  an 
important  opinion  of  the  Attorney  General  in 
which  he  more  precisely  delineated  the  Board's 
duties  and  responsibilities  in  this  field.  The  final 
step  occurred  in  1943,  when  the  Department  of 
State  and  the  Civil  Aeronautics  Board  issued  a 
joint  statement  in  which  it  was  made  clear  that 
henceforth  the  Department  of  State  would  conduct 
with  foreign  governments  such  negotiation  for 
new  or  additional  rights  as  might  be  determined 
to  be  desirable  as  a  result  of  collaboration  between 
the  Department  and  the  Board.' 

Our  Government  had  arrived  at  this  position 
none  too  soon.  War  had  accelerated  the  develop- 
ment of  world  aviation  to  an  incredible  degree. 
Our  Army  was  transporting  four  million  passen- 
gers across  the  Atlantic.  Our  technicians  had 
girdled  the  globe  with  a  system  of  airports  and 
radio  aids  to  air  navigation  similar  to  what  we 
had  already  achieved  in  the  United  States.  Mass 
world  air  transport  was  within  easy  reach.  Even 
to  those  of  us  who  had  been  associated  with  avia- 
tion for  many  years,  this  development  was  aston- 
ishing. My  first  round  trip  across  the  Atlantic  in  a 
C-54,  stopping  at  Army  fields  in  Newfoundland, 
the  Azores,  and  Iceland,  seeing  the  heavily  loaded 
planes  arrive  and  depart  with  fresh  troops  and 
wounded  men,  was  an  experience  I  shall  never  for- 


get. An  international  civil-aviation  conference, 
even  in  wartime,  had  become  an  obvious  necessity. 
Our  Government  took  the  lead  in  inviting  the  other 
states  to  such  a  conference  in  Chicago. 

From  that  conference,  held  in  November  and 
December  1944  and  attended  by  representatives 
of  54  nations,  emerged  the  basic  pattern  of  world 
aviation  under  which  the  majority  of  nations  are 
proceeding  today.  The  conference  accepted  with- 
out question  the  doctrine  of  "sovereignty  of  air- 
space" and  the  policy  of  "dealing  at  governmental 
level"  which  I  have  just  mentioned;  in  fact 
those  are  foundation-stones  in  the  structures  built 
at  Chicago.  But  the  conference,  reflecting  the 
rapid  advance  in  world  aviation,  went  much  fur- 
ther than  that ;  it  tackled  the  problem  of  approach- 
ing multilaterally  the  various  aspects  of  interna- 
tional civil  air  transport.- 

This  multilateral  approach  proved  successful  in 
two  major  fields :  organization  and  techniques.  In 
other  words,  it  was  fomid  possible  to  agree  around 
the  table  as  to  a  Provisional  International  Civil 
Aviation  Organization  which  has  already,  under 
the  inspired  leadership  of  its  President,  Dr.  Ed- 
ward P.  Warner,  accomplished  great  things  in  the 
standardization  of  aids  to  navigation  and  air- 
safety  practices  of  every  kind.  Moreover,  this 
organization,  which  last  May  adopted  Montreal  as 
its  permanent  headquarters,  has  already  gone  a 
long  way  in  establishing  its  relationship  and 
affiliation  with  the  United  Nations.  Furthermore, 
this  Provisional  International  Civil  Aviation 
Organization  is  now  well  on  its  way  to  dropping 
the  word  provisional  from  its  title.  In  July  1946 
the  United  States  Senate,  in  ratifying  the  treaty 
under  which  the  organization  can  become  a  perma- 
nent one,  started  a  landslide  of  ratifications  by 
other  nations.  There  is  little  doubt  that  the  requi- 
site 26  ratifications,  and  probably  many  more,  will 
be  deposited  before  the  next  Assembly  at  Montreal. 

In  the  field  of  economic  regulation,  however, 
the  multilateral  approach  stumbled  rather  badly 
in  spite  of  the  frank  and  sincere  efforts  of  all 
concerned  at  Chicago.    The  main  stumbling  block 


■  BuixEmN  of  Oct.  16,  1943,  p.  265. 

^  For  text  of  Final  Act  of  the  Chicago  Aviation  Con- 
ference see  Department  of  State  publication  2282. 


1007 


THE  RECORD   OF  THE  WEEK 


was  the  extent  of  multilateral  grant  of  operating 
privileges.  The  United  Kingdom  headed  those 
nations  which  took  a  somewhat  restrict  ionist  view ; 
the  United  States  led  those  nations  advocating 
maximum  freedom  of  the  air.  Unable  to  agree  in 
this  difficult  field  of  economic  regulation,  the  con- 
ference boldly  took  the  steps  which  would  lead  to 
agreement  in  the  future.  Most  important  of  these 
was  the  definition  of  operating  privileges  for 
scheduled  international  air  services.  To  many  of 
you  the  so-called  "Five  Freedoms  of  the  Air"  may 
be  familiar,  but  I  should  summarize  them  here: 

Freedom  Orie:  The  privilege  to  fly  across  a 
country's  territory  without  landing. 

Freedom  Two:  The  privilege  to  land  for  non- 
traffic  purposes  (such  as  refueling). 

Freedom  Three:  The  privilege  to  disembark 
passengers,  mail,  and  cargo  taken  on  in  the  air- 
craft's home  country. 

Freedom  Four:  The  privilege  to  embark  such 
traffic  for  the  aircraft's  home  country. 

Freedom  Five:  The  privilege  to  carry  such 
traffic  between  two  foreign  countries. 

During  the  last  days  of  the  Chicago  conference 
these  definitions  were  incorporated  in  two  multi- 
lateral agreements:  the  International  Air  Trans- 
port Agreement,  which  provided  for  the  unre- 
stricted reciprocal  grant  of  all  five  freedoms ;  and 
the  International  Air  Services  Transit  Agreement, 
which  provided  for  reciprocal  grant  of  only  the 
first  two  freedoms.  This  transit  or  "Two  Free- 
doms" agreement  met  with  considerable  support 
and  has  been  signed  by  29  countries,  including 
the  United  Kingdom  and  all  the  Dominions. 

The  transport  or  "Five  Freedoms"  agi'eement, 
however,  found  few  friends  (other  than  the  United 
States)  among  those  countries  which  had  devel- 
oped air  services  to  any  considerable  extent.  In 
fact,  a  year  and  a  half  after  the  drafting  of  this 
agreement  at  Chicago,  it  had  been  accepted  by 
only  two  such  countries — the  Netherlands  and 
Sweden.  Most  of  the  remaining  signatories  were 
those  Latin  American  countries  which  had  sup- 
ported our  principles  of  air  freedom  at  Chicago. 

There  were  several  reasons  for  the  failure  gen- 
erally to  accept  the  "Five  Freedoms"  agreement. 
It  contained  certain  legal  infirmities.  It  was  am- 
biguous with  respect  to  exchange  of  routes  between 


the  various  countries  concerned.  As  a  matter  of 
fact,  to  agree  multilateraUy  upon  routes  to  be 
flown  is  difficult,  if  not  impossible.  Let  me  give 
you  an  example  of  what  I  mean  from  a  field  that 
may  be  more  familiar  to  you.  Our  Government 
has  recently  agreed,  in  the  course  of  multilateral 
trade  negotiations,  upon  certain  general  prin- 
ciples, but  we  didn't  try  to  include  a  universal  50 
percent  tariff  reduction,  because  the  situation  dif- 
fers everywhere.  Tlie  same  applies  to  air  trans- 
port. Nations  can  agree  multilateraUy  upon  the 
princijjles  under  which  they  will  fly  together,  but 
the  routes  to  be  flown  must  be  worked  out  bi- 
laterally in  accordance  with  individual  national 
requirements.  These  were  some  of  the  reasons 
which  prompted  our  Government  last  July  to  an- 
nounce that,  in  accordance  with  article  5  of  the 
air  transjjort  agreement,  the  United  States  there- 
upon gave  the  required  year's  notice  of  its  inten- 
tion to  withdraw  from  this  agi-eement.  Several 
other  countries  have  since  done  likewise.  You 
might  call  it  the  end  of  a  noble  experiment. 

But  there  was  another  compelling  reason  for 
this  decision  by  our  Government.  We  had  estab- 
lished a  bilateral  pattern — a  pattern  which  we 
believe  provides  the  key  to  a  multilateral  air- 
transport agreement  under  which  the  "Number 
One  Policy"  quoted  at  the  beginning  of  tliis  talk 
will  become  an  accomplished  fact.  To  make  clear 
what  had  hapi^ened,  I  must  go  back  for  a  moment 
to  the  summer  of  1945. 

After  Chicago  in  the  absence  of  an  accepted 
multilateral  air-transport  agreement,  it  became 
necessary  for  the  United  States  Government  to 
negotiate  bilateral  agreements  with  those  countries 
through  whose  territories  we  wanted  our  inter- 
national flag  carriers  to  fly.  While  we  had  been 
successful  in  concluding  a  number  of  these  bilateral 
agreements  in  the  latter  part  of  1944  and  during 
1945,  the  first  big  test  of  this  bilateral  approach 
occurred  after  the  Civil  Aeronautics  Board  in  its 
North  Atlantic  route  case  had  announced  the 
pattern  upon  which  three  United  States  flag  car- 
riers were  certified  to  fly  across  the  Atlantic  and  on 
to  three  separate  termini,  one  in  Moscow,  the  other 
two  in  India.  The  key  to  this  North  Atlantic 
route  pattern  was  the  United  Kingdom,  whose 
views  of  economic  regulation  in  the  air  conflicted 
with  our  desires  for  fullest  freedom  of  operation. 


1008 


Department  of  State  Bulletin     •      December  1,  1946 


My  inmiediate  predecessor,  George  P.  Baker, 
foresaw  that  with  such  a  development  there  was 
gi-owing  risk  that  the  air-transport  world  would 
become  divided  into  two  opposing  camps.  His 
intensive  efforts  to  compose  the  differences  between 
Britain  and  America  on  this  matter  culminated  in 
the  meeting  of  delegations  from  the  two  countries 
in  Bermuda  early  this  year.  That  the  agreement 
reached  at  Bermuda  is  fair  to  both  countries  is 
perhaps  proved  by  the  fact  that  it  has  been 
attacked  vigorously  both  in  Parliament  and  in 
Congress  as  being  too  generous  to  the  other  f  ellow.^ 
It  has  been  defended  in  London  and  in  Wasliing- 
ton— and  I  believe  successfully  defended — on  the 
incontrovertible  grounds  that  it  reconciles  the  de- 
sire of  the  United  States,  on  the  one  hand,  to  avoid 
any  regulation  which  might  be  construed  as  restric- 
tive of  the  full  exploitation  of  air  transport  by 
private  enterprise,  and  the  desire  of  the  United 
Kingdom,  on  the  other  hand,  that  international  air 
services  should  be  free  from  destructive  rate  wars 
and  competitive  subsidies. 

I  should  like  to  describe  this  Bermuda  agreement 
to  you,  because  it  is  an  important  milestone  on  the 
highway  along  which  we  have  moved  so  rapidly 
since  the  war.  But  my  time  grows  short;  I  must 
stick  to  my  subject  and  complete  in  a  few  more 
words  tlie  story  of  the  development  of  our  inter- 
national air-transport  policy. 

The  Bermuda  agi-eement  broke  the  log  jam.  We 
have  now  signed  a  total  of  23  bilateral  agreements, 
and  all  of  those  which  we  have  concluded  since 
Bermuda  incorporate  its  pertinent  provisions  and 
principles.  Many  more  are  in  various  stages  of 
negotiation,  and  there  is  now  little  doubt  that  the 
principles  of  Bermuda  will  receive  the  general 
acceptance  of  the  nations  of  the  world. 

Thus  it  happened  that  even  before  last  May, 
when  the  First  Interim  Assembly  of  the  Provi- 
sional International  Civil  Aviation  Organization 
took  place  at  Montreal,  it  had  become  apparent 
to  us  that  a  realistic  solution  of  the  multilateral 
approach  in  this  difficult  area  of  economic  regula- 
tion was  definitely  in  prospect.  If  we  could  com- 
plete enough  of  these  bilateral  agreements  in 
which  the  principles  would  be  the  same  and  the 
routes  would  be  individually  negotiated  to  meet 
the  requirements  of  the  various  countries,  we  could 
merge  them  into  a  single  agreement  under  the 


THE  RECORD   OF  THE  WEEK 

auspices  of  the  international  organization.  The 
British  shared  our  view  of  this  matter :  their  Dele- 
gation at  Montreal  stood  firmly  with  ours  in  the 
course  of  free  and  frank  discussion  between  the 
delegates  of  tlie  44  member  nations  there  repre- 
sented. The  results  of  this  discussion  are  be- 
coming apparent  in  the  proposed  multilateral 
agreement  which  is  now  being  drafted  by  the  or- 
ganization's staff  for  submission  to  the  Assembly 
next  year. 

It  was  only  logical  therefore  that  tlie  Govern- 
ments of  the  United  States  and  the  United  King- 
dom should  make  a  joint  statement  of  their  posi- 
tion. I  should  like  to  quote  from  this  statement, 
issued  last  September,  to  show  you  how  far  along 
the  road  we  have  gone  since  Bermuda  in  the  de"^ 
velopment  of  the  policies  embodied  in  that  agree- 
ment.-   I  quote  as  follows : 

"Both  parties  are  in  accord  that  experience  since 
the  Bermuda  agreement  has  demonstrated  that  the 
principles  enunciated  in  that  agreement  are  sound 
and  iM-ovide,  in  their  view,  a  reliable  basis  for 
the  orderly  development  and  expansion  of  Inter- 
national Air  Transport.  They  believe  that  these 
principles  provide  the  basis  for  a  multilateral  in- 
ternational agreement  of  the  type  that  their  repre- 
sentatives at  the  meeting  of  the  Provisional  Inter- 
national Civil  Aviation  Organization  Assembly  in 
May  advocated  as  being  in  the  interests  of  inter- 
national air  transport. 

"Consequently,  both  parties  believe  that  in  nego- 
tiating any  new  bilateral  agreements  with  other 
countries,  they  should  follow  the  basic  principles 
agreed  at  Bermuda,  including  particularly 

"(A)  fair  and  equal  opportunity  to  operate  air 
services  on  international  routes  and  the  creation 
of  machinery  to  obviate  unfair  competition  by 
unjustifiable  increases  of  frequencies  or  capacity; 
"(B)  the  elimination  of  formulae  for  the  prede- 
termination  of  frequencies  or  capacity  or  of  any 
arbitrary  division  of  air  traffic  between  countries 
and  their  national  airlines; 

"(C)  the  adjustment  of  Fifth  Freedom  traffic 
with  regard  to: 


'  For  text  of  the  Bermuda  agreement  see  BuiXEiriN  of 
Apr.  7,  1046,  p.  .584. 
'  BuLLErrtN  of  Sept.  29,  1946,  p.  577. 


1009 


THE   RECORD   OF  THE  WEEK 


"  ( 1 )  traffic  requirements  between  the  country  of 
origin  and  the  countries  of  destination, 

"(2)  the  requirements  of  tlirougli  airline  op- 
eration, and 

"(3)  the  traffic  requirements  of  the  area 
through  which  the  airhne  passes  after  taking  ac- 
count of  local  and  regional  services. 

"The  representatives  of  the  two  countries  were 
united  in  the  belief  that  until  a  multilateral  agree- 
ment should  be  adopted,  the  Bermuda  type  of 
agreement  represents  the  best  form  of  approach 
to  the  problem  of  interim  bilateral  agreements. 

"In  furtherance  of  the  foregoing  principles 
each  government  is  prepared  upon  the  request  of 
any  other  government  with  which  it  has  already 
concluded  a  bilateral  air  transport  agreement  that 
is  not  deemed  to  be  in  accordance  with  those 
principles  to  make  such  adjustments  as  may  be 
found  to  be  necessary." 

Gentlemen,  my  time  is  up  and  I  have  only 
sketched  the  development  of  our  policy  in  the  field 
of  world  air  transport.  I  have  heard  that  policy 
criticized  from  two  extremes.  Some  call  it  an 
attempt  to  obtain  the  Fifth  Freedom  for  our  car- 
riers at  the  expense  of  the  local  air  transport  of 
other  nations.  These  critics  claim  that  it  will  pro- 
mote a  subsidy  war  in  which  the  United  States 
Ti-easurj'  can  always  win  and  that  it  is  merely 
another  example  of  "dollar  diplomacy".  The 
joint  statement  fi'om  which  I  have  just  quoted  is  a 
quick  reply  to  those  allegations.  A  more  specific 
answer  is  the  Bermuda  agi-eement  itself.  I  have 
also  heard  our  policy  criticized  as  being  "weak  and 
watery"'.  Those  who  hold  this  view  point  with 
pride  to  the  exclusive  arrangements  our  air  carriers 
obtained  in  the  past,  to  the  airports  and  radio  aids 
we  built  everywhere  during  the  war,  and  to  the 
obvious  fact  that  through  development  of  our  air- 
craft and  air-transport  industries  by  private  enter- 
prise we  are  in  a  position  to  out-build  and  out- 
operate  the  world.  "Wliy  give  away  our  natural 
advantages  ?"  these  people  ask.  The  answer  is  the 
fact,  so  often  forgotten,  that  in  tliis  matter  of  world 
air  transport  we  must  deal  with  sovereign  nations. 
These  nations  have  complete  control  over  their  air 
space,  and  as  I  have  already  mentioned  they  are  no 
longer  willing  to  grant  air  rights  on  a  non-recipro- 
cal basis.  Moreover,  in  no  field  of  economic  devel- 
opment are  the  vital  factors  of  security  and  pres- 


tige more  deeply  involved  than  they  are  in  the  field 
of  civil  air  transport.  As  for  those  airports  and 
radio  aids,  we  built  them  to  help  win  the  war  arid 
we  won  the  war.  We  did  not  build  them  to  obtain 
an  economic  leg  in  the  door  or  to  create  a  short-run 
bargaining  position  against  the  sovereign  rights  of 
other  nations.  We  believe  that  the  operating  priv- 
ileges we  have  so  far  obtained,  after  a  year  of 
intensive  effort,  are  in  the  best  long-rim  interests 
of  our  own  healthy  air-transport  industry.  But 
above  all,  we  believe  that  our  policy  leads  to  a 
greater  goal :  peace  and  security  for  the  peoples  of 
the  world  through  mass  air  transport. 


Economist  To  Study  Public  Finance 
in  American  Republics 

Dr.  Philip  D.  Bradley,  of  the  department  of 
economics  of  Harvard  University,  has  received  a 
travel  grant  under  the  program  administered  by 
the  Department  of  State  for  the  exchange  of 
professors  and  technical  experts  between  this 
country  and  the  other  American  republics  during 
the  current  fiscal  year.  The  purpose  of  this  gi'ant, 
which  supplements  a  grant  he  has  received  from 
the  Guggenheim  Foundation,  is  to  enable  him  to 
carry  out  investigations  in  the  field  of  public 
finance  in  Latin  America.  He  will  also  confer  with 
colleagues  in  the  field  of  economics  and  observe  the 
status  of  studies  in  economics  in  universities  in 
the  cities  which  he  plans  to  visit. 


Radio  Broadcast  on  American 
Trade  Policy 

On  November  23  the  Assistant  Secretary  of 
State  for  Economic  Affairs,  Willard  Thorp,  and 
the  Chief  of  the  Commercial  Policy  Division, 
Winthrop  Brown,  discussed  with  Sterling  Fisher, 
Director  of  the  NBC  University  of  the  Air,  the 
American  trade-agreements  program  with  relation 
to  the  proposed  International  Trade  Organization. 
This  program  was  one  in  a  series  entitled  "Our 
Foreign  Policy".  For  a  complete  text  of  the 
radio  progi'am,  see  Department  of  State  press  re- 
le^ise  835  of  November  23. 


1010 


Deparfmenf  of  State  Butlet'm      •      December  ?,  7946 


The  Foreign  Social  Policy  of  the  United  States 

BY  OTIS  E.  MULLIKEN' 


Many  statements  have  been  made,  many  speeches 
presented,  on  the  general  foreign  policy  and  on  the 
foreign  economic  policy  of  the  United  States,  but 
relatively  little  has  been  said  of  our  Government's 
foreign  social  policy.  It  is  entirely  appropriate 
that  a  discussion  of  this  phase  of  our  foreign 
policy  should  be  presented  to  a  conference  of  people 
concerned  with  social  work.  By  your  professional 
knowledge  and  experience  you  are  esjoecially  quali- 
fied to  appraise  that  policy  and  to  give  our  Gov- 
ernment the  benefit  of  your  views. 

General  Considerations 

"Wliat  is  foreign  social  policy  ? 

In  most  general  terms,  it  is  that  part  of  foreign 
policy  which  is  concerned  with  international  prob- 
lems and  activities  in  the  social  field.  More  spe- 
cifically, it  involves  cooperative  activities  with 
other  peoples  in  the  solution  of  social  problems  and 
the  develo^Dment  of  mutual  understanding.  I  shall 
have  occasion  later  to  discuss  the  content  of  this 
policy.  For  the  moment  I  would  like  to  refer 
briefiy  to  its  relations  to  United  States  foreign 
jDolicy  generally  and  to  foreign  economic  policy. 

Less  than  a  month  ago,  in  welcoming  the  Gen- 
eral Assembly  of  the  United  Nations,  President 
Truman  said,  "The  heart  of  our  foreign  policy  is 
a  sincere  desire  for  peace."-  Secretary  Byrnes 
has  said,  "The  United  States  is  interested  in  one 
thing  above  all  else,  a  just  and  lasting  peace."  ^ 

Certain  basic  concepts  recur  in  official  statements 
of  our  foreign  policy — the  purpose  of  peace  and 
security,  the  method  of  friendly  partnership,  and 
the  development  of  understanding.  As  President 
Truman  has  stated,  "It  is  understanding  that  gives 
us  an  ability  to  have  peace."  Assistant  Secretary 
Benton  expressed  the  same  thought  when  he  said 
that  the  aim  of  peace  can  be  achieved  only  by 
understanding. 


In  an  address  prepared  the  day  before  his 
death.  President  Roosevelt  wrote,  "Today  we  are 
faced  with  the  preeminent  fact  that  if  civilization 
is  to  survive,  we  must  cultivate  the  science  of 
human  relationships — the  ability  of  all  peoples,  of 
all  kinds,  to  live  together  and  work  together  in  the 
same  world — at  peace." 

I  should  like  to  ask  you  whether  the  social  field^ 
the  field  of  health,  welfare,  education,  human 
rights,  and  fundamental  freedoms— has  any  con- 
tribution to  make  to  friendly  understanding  and 
to  peace,  for  these  constitute  the  subject-matter  of 
foreign  social  policy.  The  question  is  rhetorical ; 
the  answer  is  evident.  These  fields  obviously  hold 
great  promise  for  the  development  of  that  under- 
standing and  friendly  cooperation  among  peoples 
which  is  at  the  basis  of  our  foreign  policy. 

Foreign  social  policy,  being  concerned  with 
these  matters,  is  therefore  an  integral  part  of  our 
general  foreign  policy. 

The  very  nature  of  the  relations  between  eco- 
nomic and  social  problems  sometimes  makes  it 
diflieult  to  distinguish  between  them.  What  rela- 
tions exist  between  our  foreign  social  policy  and 
our  foi'eign  economic  policy  ? 

Under  Secretary  of  State  Clayton  has  described 
the  foreign  economic  policy  of  the  United  States 
in  the  following  words : 

"The  United  States  is  committed  to  the  support 
of  all  sound  measures  which  will  contribute  to  an 
increase  in  the  production  and  consumption  of 
goods  throughout  the  world  to  the  end  that  peo- 


'  Address  made  before  the  Kentucky  Conference  of  Social 
Work  in  Louisville,  Ky.,  on  Nov.  22,  1946  and  released  to 
the  press  on  the  same  date.  Mr.  Mulliken  is  Chief  of  the 
Division  of  International  Labor,  Social  and  Health  Affairs, 
Office  of  International  Trade  Policy,  Department  of  State. 

=  BuTJ-BriN  of  Nov.  3,  1946,  p.  809. 

'  Bulletin  of  Oct.  l.'i,  1946,  p.  666. 


1011 


THE  RECORD   OF  THE  WEEK 


pie  everywhere  will  have  more  to  eat,  more  to  wear, 
and  better  homes  in  which  to  live. 

"We  do  not  contend  that  higher  living  stand- 
ards will  of  themselves  guarantee  the  peace  but  we 
do  believe  that  they  will  create  a  climate  con- 
ducive to  the  preservation  of  peace  in  the  world. 

"In  order  to  achieve  our  objective  of  a  rising 
standard  of  li\'ing  throughout  the  world,  we  are 
committed  to  the  reduction  of  barriers  to  the  inter- 
national movement  of  goods  and  to  the  elimina- 
tion of  discriminatory  practices  in  international 
trade."  ^ 

The  purpose  of  achieving  higher  living  stand- 
ai'ds  is  closely  akin  to  what  many  think  of  as 
social  policy.  It  is  interesting  to  note  that  the 
Temporary  Social  Commission  of  the  Economic 
and  Social  Council  of  the  United  Nations — an  in- 
ternational gi'oup  of  experts — undertook  as  its 
first  task  to  give  meaning  to  the  term  social  policy. 
It  concluded  that  the  object  of  such  policy  should 
be  to  insure  to  all  a  satisfactory  basis  of  living 
and  that  the  essential  element  of  social  policy  is 
the  standard  of  living.  The  standard  to  be  at- 
tained is  the  well-being  of  all  members  of  the 
community,  enabling  each  one  to  develop  his  per- 
sonality in  accordance  with  the  needs  of  the  com- 
munity; and,  at  the  same  time,  to  enjoy  from 
youth  to  old  age  as  full  a  life  as  may  be  possible. 

The  Temporary  Social  Commission,  in  addition 
to  referring  to  food  and  nutrition,  clothing  and 
housing,  also  referred  to  other  elements  of  this 
standard  of  living — health  and  medical  care,  edu- 
cation and  recreation — which  are  essential  com- 
ponents not  exclusively  economic  in  character. 

Social  policy  is  obviously  bound  up  with  eco- 
nomic policy,  which  aims  at  the  production  of 
goods  and  services  and  their  distribution  to  the 
best  advantage  to  the  community.  But  it  seems 
to  me  that  it  goes  further.  It  proceeds  beyond 
the  provision  for  material  wants  to  those  condi- 
tions which,  as  the  National  Social  Welfare  As- 
sembly has  pointed  out,  enable  individuals  and 
families  to  lead  personally  satisfying  and  socially 
useful  lives. 

I  like  the  way  President  Roosevelt  once  put  it 


'  Bulletin  of  Aug.  18,  1946,  p.  320. 
^  Bulletin  of  Oct.  28,  1945,  p.  655. 
'  Treaty  Series  093. 


when  he  said,  "In  national  as  in  international  af- 
fairs economic  policy  can  no  longer  be  an  end  in 
itself.  It  is  merely  a  means  for  achieving  social 
objectives." 

This  statement  gives  us  a  proper  perspective  in 
which  to  recognize  the  interdependence  of  foreign 
economic  and  social  policy  as  integral  parts  of  our 
foreign  policy. 

U.  S.  Foreign  Social  Policy  Defined 

Wliat  is  the  foreign  social  policy  of  the  United 
States  ?  President  Truman,  on  October  27,  1945, 
made  a  definitive  statement  on  United  States  for- 
eign policy.     He  said: 

"Our  Ajnerican  policy  is  a  policy  of  friendly 
partnership  with  all  peaceful  nations,  and  of  full 
support  for  the  United  Nations  Organization."  ^ 

The  United  Nations  Charter  is  part  of  the  law 
of  our  land  and  a  part  of  the  law  of  nations.  In 
adopting  the  Charter  the  United  States  assumed 
a  number  of  obligations."  Especially  pertinent 
to  a  consideration  of  our  foreign  social  policy  are 
articles  55  and  56  of  the  Charter.  Article  56  reads 
as  follows: 

"All  Members  pledge  themselves  to  take  joint 
and  separate  action  in  cooperation  with  the  Or- 
ganization for  the  achievement  of  the  purposes  set 
forth  in  Article  55." 

The  purposes  referred  to  in  article  55  are  the 
following : 

"With  a  view  to  the  creation  of  conditions  of 
stability  and  well-being  which  are  necessary  for 
peaceful  and  friendly  relations  among  nations 
based  on  respect  for  the  principle  of  equal  rights 
and  self-determination  of  peoples,  the  United 
Nations  shall  promote : 

"a.  higher  standards  of  living,  full  employment, 
and  conditions  of  economic  and  social  progress 
and  development ; 

"&.  solutions  of  international  economic,  social, 
health,  and  related  problems;  and  international 
cultural  and  educational  cooperation ;  and 

"<?.  universal  respect  for,  and  observance  of,  hu- 
man rights  and  fundamental  freedoms  for  all  with- 
out distinction  as  to  race,  sex,  language,  or 
relision." 


1012 


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Active  Cooperation  With  International  Machinery 

This  policy  obviously  involves  active  coopera- 
tion with  and  participation  in  the  international 
machinery  established  to  achieve  these  purposes. 

The  Charter  of  the  United  Nations  provides 
that  the  General  Assembly  shall  initiate  studies 
and  make  recommendations  for  the  purpose  of 
promoting  international  cooperation  in  tlie  eco- 
nomic, social,  cultural,  educational,  and  health 
fields,  and  assisting  in  the  realization  of  human 
rights  and  fundamental  freedoms  for  all  without 
distinction  as  to  race,  sex,  language,  or  religion. 

Then  there  is  the  Economic  and  Social  Council 
which  is  to  make  and  initiate  studies  and  reports 
and  make  recommendations  with  respect  to  inter- 
national economic,  social,  cultural,  educational, 
health  and  related  matters,  and  for  the  purpose  of 
promoting  respect  for  and  observance  of  human 
rights  and  fundamental  freedoms  for  all. 

Furthermore,  there  are  the  Commissions  which 
have  been  established  by  the  Council  to  advise  it 
in  this  work.  In  the  social  field,  there  are  the 
Social  Commission,  the  Commission  on  the  Status 
of  Women,  the  Narcotics  Commission,  the  Popu- 
lation Commission,  and  the  Commission  on  Human 
Eights. 

In  addition,  there  are  those  intergovernmental 
agencies  which  are  semi-independent,  but  which 
will  be  brought  into  relationship  with  the  United 
Nations.  These  include  the  International  Labor 
Organization,  the  World  Health  Organization, 
United  Nations  Educational,  Scientific  and  Cul- 
tural Organization,  and  the  proposed  Interna- 
tional Refugee  Organization — each  with  its  own 
IDurposes  and  activities  in  the  social  field. 

The  implementation  of  our  foreign  social  policy 
requires  active  participation  in  the  work  of  all 
these  organs. 

I  would  not  want  to  create  the  impression  that 
the  foreign  social  policy  of  the  United  States  is 
something  new — something  that  has  just  come  into 
existence  with  the  establishment  of  the  United  Na- 
tions. That  is  far  from  the  truth.  Many  aspects 
of  our  foreign  social  policy  have  existed  for 
years — dating  back  almost  to  the  beginning  of  our 
national  existence,  as  I  shall  indicate  in  a  few 
moments.  It  is  simply  that  the  United  Nations 
has  afforded  us  a  new  mechanism  for  the  more 


effectively  coordinated  expression  of  many  aspects 
of  that  policy. 

In  addition  to  these  United  Nations  bodies  there 
are  other  comparable  international  organizations 
falling  outside  the  framework  of  the  United  Na- 
tions structure.  Among  these  are  the  following: 
The  Inter- American  Economic  and  Social  Council, 
the  Pan  American  Sanitary  Bureau,  the  Inter- 
national Penal  and  Penitentiary  Commission, 
the  Intergovernmental  Committee  on  Refugees, 
the  American  International  Institute  for  the  Pro- 
tection of  Childhood,  and  the  Permanent  Inter- 
American  Committee  on  Social  Security.  In  con- 
nection with  each  of  these  the  United  States  has 
the  same  responsibility  for  participation,  support, 
and  cooperative  exchange  of  experience. 

The  United  States  Government,  however,  has 
not  been  satisfied  and  will  not  be  satisfied  to  rest  its 
efforts  in  the  field  of  international  social  policy 
with  those  activities  which  it  carries  on  through 
such  international  organizations.  It  has  devel- 
oped and  is  developing  more  extensively  and  more 
intensively  various  activities  for  which  it  assmnes 
primary  responsibility.  It  sends  experts  in  the 
social  field  to  foreign  countries  to  provide  technical 
advice  and  assistance.  It  brings  students,  repre- 
sentatives of  foreign  goverimients,  and  other  per- 
sons to  this  country  for  training.  It  assists  in  the 
financing  of  cooperative  projects  in  the  social  field. 
It  stimulates  and  assists  by  participation  in  many 
international  conferences  in  these  several  fields 
which  are  organized  primarily  by  private  groups. 

Activities  Concerning  Foreign  Social  Policy 

1.  Public  Health 

First,  the  field  of  public  health.  The  United 
States  Government  has  a  great  interest  in  inter- 
national aspects  of  public  health,  since  disease  in 
other  parts  of  the  world  has  always  had  an  effect 
on  the  health  of  the  people  of  the  United  States. 
The  United  States  Government  has  been  repre- 
sented at  international  health  conferences  since 
1851.  It  has  participated  in  international  health 
agreements  since  its  participation  in  the  formation 
in  1902  of  the  Pan  American  Sanitary  Bureau  and 
in  the  formation  in  1903  of  the  International  Office 
of  Public  Health. 

The  United  States  has  actively  participated  in 
the  work  of  the  Pan  American  Sanitary  Bureau ;  a 


1013 


THE  RECORD  OF  THE  WEEK 


citizen  of  the  United  States  has  always  been  its 
Director.  In  1924,  under  United  States  leader- 
ship, the  Bureau  expanded  its  functions  to  include 
reporting  on  most  of  the  communicable  diseases, 
research  in  public  health,  and  aid  to  governments 
in  developing  national  health  services.  The 
United  States  contributes  approximately  one  half 
of  the  annual  appropriation  to  the  Bui-eau.  In 
addition,  it  supplies  jjersonnel  from  the  Public 
Health  Service  and  extra  funds  from  various 
sources  which  finance  and  staff  the  larger  portion 
of  the  field  work  of  the  organization. 

We  have  been  a  member  of  the  International 
Office  of  Public  Health  since  its  inception ; '  and 
although  our  Government  was  never  a  member  of 
the  League  of  Nations,  it  did  participate  in  the 
work  of  the  League's  Health  Section.  United 
States  experts  in  various  fields  of  health  were 
active  members  of  the  principal  scientific  commis- 
sions of  the  Health  Section. 

As  dissolution  of  the  League  of  Nations  became 
certain,  the  Department  of  State  took  steps  to  as- 
sure that  the  essential  fmictions  of  the  League's 
Health  Section  would  continue  and  expand.  In 
cooperation  with  the  Public  Health  Service,  the 
Department  began  preparations  for  an  interna- 
tional health  organization  and  drafted  an  outline 
of  a  basic  structure  and  constitution. 

The  United  States  played  a  leading  part  at  the 
International  Health  Conference  held  in  New 
York  this  summer  where  the  constitution  of  the 
World  Health  Organization  was  drafted. 

This  conference  organized  an  Interim  Commis- 
sion to  prepare  for  the  first  meeting  of  the  World 
Health  Organization.  This  Commission,  on  which 
the  United  States  is  represented,  is  already  active. 
It  is  preparing  to  start  immediately  some  of  the 
essential  functions  of  the  World  Health  Organ- 
ization. 

The  United  States  organized  the  health  activities 
of  the  Institute  of  Inter- American  Affairs.  The 
Health  Section  of  the  Institute  was  established  as 
a  corporation,  following  the  1942  Rio  conference 


'Treaty  Series  466. 

'For  article  on  "International  Control  of  Dangerous 
Drugs",  by  George  A.  Morloek,  see  Bulletin  of  Nov.  17, 
1M6,   p.  885. 

'Treaty  Series  612. 


of  Foreign  Ministers.  Immediately  thereafter, 
bilateral  agreements  were  entered  into  between  the 
United  States  and  all  Latin  American  republics, 
except  Argentina  and  Cuba,  whereby  a  Coopera- 
tive Health  Service  was  set  up  in  each  Ministry 
of  Health.  These  services  engaged  in  all  types  of 
health  activity,  including  research  and  training. 
In  this  way  they  have  aided  in  the  further  develop- 
ment of  the  national  health  departments  of  the 
Latin  American  republics. 

Consideration  is  being  given  currently  to  de- 
veloping a  program  for  assigning  public-health 
attaches  to  the  principal  countries  of  the  world. 
We  believe  that  we  can  aid  the  development  of  pub- 
lic-health activities  in  the  United  States  as  well 
as  in  other  countries  by  placing  these  trained 
attaches  in  our  principal  embassies.  They  would 
become  acquainted  with  the  national  health  serv- 
ices of  the  countries  to  which  they  are  accredited, 
join  their  medical  and  health  societies,  and  meet 
the  individuals  who  are  carrying  on  health  admin- 
istration and  medical  research.  They  would  be  in 
a  position  to  inform  us  of  the  advances  made  in 
other  countries  as  well  as  to  transmit  such  infor- 
mation concerning  our  own  country  to  other 
nations. 

;..  Narcotic  Drugs 

The  field  of  narcotic  drugs  is  related  closely  to 
both  health  and  welfare. 

In  this  field  it  is  the  policy  of  the  United  States 
to  cooperate  with  all  other  countries  in  measures 
promoting  international  control.*  Early  in  the 
twentieth  century  the  United  States  recognized 
that  it  could  not  protect  itself  from  the  interna- 
tional illicit  traffic  in  narcotic  drugs  if  it  acted 
alone.  It  took  the  initiative  in  bringing  about 
the  first  international  conference  on  the  subject, 
which  was  held  in  Shanghai  in  1909.  Later  the 
United  States  proposed  the  convening  of  the  con- 
ference, which  resulted  in  the  international  opium 
convention  signed  at  The  Hague  on  January  23, 
1912.=' 

The  United  States  participated  in  the  interna- 
tional drug  conferences  held  at  Geneva,  Switzer- 
land, under  the  auspices  of  the  League  of  Nations 
in  1924,  1931,  and  1936  and  was  represented  by  an 
observer  at  the  Bangkok  conference  of  1931  on 


1014 


Department  of  Sfafe  Bulletin     •      December  1,  1946 


THE  RECORD  OF  THE  WEEK 


opium  smoking.  The  United  States  is  a  paxiy  to 
the  convention  signed  at  The  Hague  on  January  23, 
1912  and  to  the  convention  limiting  the  manufac- 
ture and  regulating  the  distribution  of  narcotic 
drugs  signed  at  Geneva  on  July  13,  1931.^°  The 
United  States  was  represented  in  an  expert  and  ad- 
visory capacity  at  all  meetings  of  the  Advisory 
Committee  of  the  League  of  Nations  on  the  Traffic 
in  Opium  and  other  Dangerous  Drugs,  from  1923 
to  1940. 

In  those  international  conferences  and  meetings 
the  representatives  of  the  United  States  have 
clearly  stated  that  the  policy  of  the  United  States 
is  to  limit  the  production  of  the  poppy  plant  and 
the  manufacture  of  narcotic  drugs  strictly  to 
medicinal  and  scientific  requirements  and  to  con- 
sider use  for  any  other  purpose  as  abuse.  Consid- 
erable progress  has  been  made  towards  this  goal 
through  the  conventions  resulting  from  the  con- 
ferences and  meetings  just  mentioned. 

There  remains  to  be  concluded  an  international 
convention  limiting  the  production  of  the  narcotic 
raw  materials,  namely,  the  poppy  plant,  the  coca 
shrub,  and  the  marihuana  plant. 

The  United  States  has  accepted  membership  on 
the  Commission  on  Narcotic  Drugs  of  the  Eco- 
nomic and  Social  Council  of  the  United  Nations. 
It  is  prepared  to  take  an  active  part  in  that  Com- 
mission m  the  drafting  of  a  convention  which 
will  guarantee  to  the  world  an  adequate  supply 
of  opium  and  its  derivatives  and  of  the  coca  leaf 
and  its  derivatives  for  medicinal  and  scientific 
requirements,  but  with  no  surplus  available  for 
the  illicit  traffic. 

3.  Cultural  and  Educational  Cooperation 

What  is  the  United  States  doing  to  promote 
international,  cultural,  and  educational  coopera- 
tion ?  While  the  answer  leads  me  to  cite  activities 
carried  on  through  the  Office  of  International  In- 
formation and  Cultural  Affairs  of  the  Department 
of  State,  it  should  be  recalled  that  many  of  these 
programs  are  imdertaken  through  collaboration 
with  other  agencies  of  the  Government  and  private 
groups.  The  programs  are  all  designed  to  en- 
courage and  strengthen  cultural  contact,  inter- 
change and  mutual  understanding  between  the 
peoples  of  the  United  States  and  other  nations. 


Activities  of  the  Department's  Division  of  Cul- 
tural Cooperation,  established  in  1938,  were  origi- 
nally limited  to  this  hemisphere  and  included 
travel  and  study  grants;  exchange  of  professors 
and  books;  assistance  to  United  States  cultural 
centers  in  Latin  America,  such  as  libraries,  insti- 
tutes, and  schools,  and  the  distribution  in  Latin 
America  of  informational  motion  pictures  and 
other  cultural  materials. 

Cooperative  projects  of  a  technical  or  scientific 
nature  which  have  been  developed  by  many  agen- 
cies of  the  Federal  Government  include  such  pro- 
grams as  the  development  of  vital  statistics  of  the 
Western  Hemisphere,  investigation  in  methods  of 
insect  eradication,  control  of  malaria  and  bubonic 
plague,  studies  of  educational  systems,  consulta- 
tion on  principles  and  practice  of  library  science, 
cooperation  with  national  agencies  of  other  gov- 
ernments in  the  development  of  maternal  and 
child  health  and  welfare  services,  and  technical 
consultation  on  matters  of  industrial  safety. 

Informational  exchange  projects  made  possible 
the  preparation  and  exchange  of  information  on 
educational  methods,  information  regarding  work- 
ing conditions  and  opportunities  for  women,  and 
the  translation  and  distribution  of  certain  Govern- 
ment publications. 

Through  the  President's  emergency  fmid,  the 
program  was  extended  to  China  in  July  1942  and 
in  the  following  year  to  the  Near  East  and  Africa 
where  it  was  directed  at  strengthening  American- 
founded  schools  and  hospitals  in  carrying  on  ex- 
tension services,  especially  projects  in  engineering, 
public  health,  and  agriculture.  Grants-in-aid 
were  given  to  American  institutions  in  Turkey, 
Syria,  and  Liberia.  Teachers  were  sent  to  Af- 
ghanistan at  that  Govermnent's  request.  Books 
and  other  cultural  materials  were  sent  to  educa- 
tional centei's  in  these  countries  and  in  Egypt, 
Iran,  Ethiopia,  and  Morocco. 

Looking  toward  a  world-wide  program,  the 
Office  of  International  Information  and  Cultural 
Affairs  also  performs  the  informational  activities 
of  this  Government  abroad.  This  latter  program 
is  ciirried  on  through  the  maintenance  of  libraries, 
continuation  and  expansion  of  the  daily  wireless 
bulletin  service  to  United  States  diplomatic  mis- 


'  Treaty  Series  863. 


1015 


THE  RECORD   OF  THE  WEEK 


sions,  mailed  information  service,  distribution  of 
visual  materials  depicting  all  phases  of  American 
life,  and  the  operation  of  short-wave  broadcasting 
covering  virtually  the  entire  world. 

Since  the  focal  point  of  the  cultural-cooperation 
program  in  the  foreign  country  is  the  cultural- 
relations  attaches  assigned  to  American  diplo- 
matic or  consular  missions,  mention  should  be 
made  here  of  their  activities,  through  which  there 
is  a  two-way  flow  of  personnel,  publications,  and 
information  between  this  country  and  the  foreign 
countries. 

These  attaches  maintain  liaison  and  regular  con- 
tact with  local  government  officials  in  education, 
science,  health,  arts,  and  other  appropriate  fields ; 
with  representatives  of  local  organizations  such  as 
schools,  colleges,  industrial,  scientific,  and  agricul- 
tural groups,  community  centers  and  cultural  asso- 
ciations; and  with  intellectual  leaders,  national 
and  foreign,  such  as  educators,  writers,  artists, 
scientists,  and  scholars. 

Comj^lementing  the  overseas  information  and 
cultural  activities  of  the  Department  of  State  will 
be  the  work  of  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization.  This  Or- 
ganization has  the  basic  purpose  of  promoting 
understanding  on  a  world-wide  basis.  It  will 
work  through  and  with  existing  informational 
and  cultural  programs — ^both  governmental  and 
non-governmental — of  the  various  United  Nations. 

It  is  not  conceived  of  as  an  international  under- 
taking to  promote  education,  science,  and  culture 
as  ends  in  themselves  but  rather  through  educa- 
tion, science,  and  culture  to  advance  the  peace  of 
the  world. 

In  accordance  with  the  recent  legislation  au- 
thorizing our  participation  in  UNESCO,  a  United 
States  National  Commission  for  UNESCO  has 
been  appointed.  It  is  made  up  of  one  hundred 
outstanding  persons  in  the  fields  of  science,  educa- 
tion, and  culture. 

The  proposals  to  be  advocated  by  tlie  United 
States  Delegation  to  the  first  general  conference  of 
UNESCO  which  opened  in  Paris  on  November  19, 
as  recommended  by  the  National  Commission  for 
UNESCO,  recognize  that  the  concern  of  the  or- 
ganization is  with  the  relations  of  men  with  each 


other.  It  approaches  these  relations  in  terms  of 
three  kinds  of  international  collaboration:  (1) 
international  collaboration  for  the  preservation  of 
men's  knowledge  of  themselves,  their  world,  and 
each  other;  (2)  international  collaboration  for  the 
increase  of  that  knowledge  through  learning,  sci- 
ence, and  tlie  arts ;  and  (3)  international  collabora- 
tion for  the  dissemination  of  that  knowledge 
through  education  and  through  all  the  instru- 
ments of  communication  between  the  peoples  of 
the  earth,  in  order  that  understanding  may  replace 
the  mistrust,  suspicion,  and  fear  which  lead  to  war. 

4-  Hwman  Rights 

The  United  States,  as  a  member  of  the  United 
Nations,  is  committed  to  promoting  "universal 
respect  for  and  observance  of,  human  rights  and 
fundamental  freedoms  for  all  without  distinction 
as  to  race,  sex,  language,  or  religion."  These  aims 
are  in  keeping  with  the  traditional  American 
emphasis  on  the  importance  of  basic  freedoms. 

The  United  States  Government,  through  its  rep- 
resentatives at  United  Nations  meetings,  has  sup- 
ported, and  frequently  led,  moves  designed  to  give 
effect  and  international  significance  to  the  ideals 
and  principles  of  human  rights  enunciated  in  the 
Charter.  Specifically,  we  played  a  major  role  in 
the  establishment  of  the  Human  Rights  Commis- 
sion, with  its  stated  aim  to  advise  and  aid  the 
United  Nations  in  promoting  respect  for  and 
observance  of  fundamental  human  rights. 

In  order  to  spell  out  and  implement  certain 
aspects  of  hiunan  rights,  we  took  the  lead  in  sug- 
gesting a  subcommission  on  freedom  of  informa- 
tion and  the  press,  and  supported  a  move  to  estab- 
lish subcommissions  for  the  protection  of  minori- 
ties and  the  prevention  of  discrimination.  Thus 
far  these  subcommissions  have  only  been  author- 
ized. Presumably  they  will  be  set  up  in  the  near 
future  as  means  to  the  end  of  securing  "funda- 
mental freedoms  for  all  without  distinction  as  to 
race,  sex,  language,  or  religion." 

Admittedly,  serious  obstacles  stand  in  the  way  of 
the  effective  translation  of  these  policy  objectives 
into  concrete  achievements.  A  statement  of  pol- 
icy obviously  does  not  exorcise  racial,  ethnic,  reli- 
gious, or  national  intolerance  nor  guarantee  funda- 


1016 


Department  of  State  Bulletin      •      December  1,  J946I 


THE  RECORD   Of  THE  WEEK 


mental  freedoms.  The  United  States  is  deter- 
mined, however,  working  through  the  United  Na- 
tions, to  move  forward  to  the  achievement  of  these 
objectives. 

Social  Welfare  Rights 

In  more  than  one  way  the  development  of  the 
foreign  social  policy  of  the  United  States  is  a 
I'eflection  of  the  parallel  lines  of  social-welfare 
developments  which  have  taken  place  through 
public  and  private  agencies  of  this  country. 

Participation  in  conferences  dealing  with  social 
questions  has  been  one  of  the  earliest  methods  by 
which  this  Government  shared  with  other  nations 
its  concern  in  meeting  certain  social  problems. 

Because  of  the  gravity  and  international  char- 
acter of  traffic  in  women  and  children  and  because 
of  international  conferences  on  this  subject  held 
in  1902  and  1910  the  Covenant  of  the  League  sin- 
gled out  this  subject,  together  with  traffic  in  opium 
and  other  dangerous  drugs,  for  action  by  interna- 
tional cooperation. 

After  the  first  conference  called  by  the  League 
Assembly  in  June  1921,  a  permanent  advisory 
committee  on  traffic  in  women  and  children  was 
established  which,  at  its  first  meeting,  recom- 
mended that  the  United  States  be  requested  to  ap- 
point members  to  the  committee.  Although  not  a 
member  of  the  League,  this  Government  designated 
a  representative  to  serve  in  an  advisory  capacity. 

Attendance  at  conferences  resulted  in  the  desire 
for  continuous  exchange  of  information  and  expe- 
rience in  fields  of  common  interest.  Congressional 
legislation  in  1939  made  it  possible  for  qualified 
United  States  emj^loyees  to  be  detailed,  on  request, 
to  governments  of  the  American  republics,  and 
authorized  the  President  to  utilize  the  services  of 
the  departments,  agencies,  and  independent  estab- 
lislmients  of  the  Government  in  carrying  out  the 
reciprocal  undertakings  and  cooperative  purposes 
enumerated  in  the  treaties,  resolutions,  and  recom- 
mendations signed  by  all  the  21  American 
republics. 

Many  of  the  projects  undertaken  have  been  in 
the  field  of  social  welfare.  They  have  included 
such  activities  as  cooperative  programs  in  training 
staff  for  maternal  and  child-health  work,  in  study- 


ing the  needs  of  dependent  and  delinquent  chil- 
dren, in  helping  to  strengthen  the  social-service 
training  programs,  in  assisting  in  the  revision  of 
children's  codes,  and  in  developing  advisory  serv- 
ices in  the  field  of  social  welfare.  Pediatricians, 
public-health  nurses,  social  workers,  and  nutri- 
tionists have  been  loaned  by  the  Children's  Bureau 
to  governments  requesting  their  assistance  in 
developing  their  own  child- welfare  programs. 

Specialists  in  the  field  of  social  welfare  have, 
with  other  professional  persons,  been  invited  for 
study  and  observation  in  this  country.  Each  one 
of  these  progi'ams  tells  a  story  which  is  most  con- 
vincing as  to  the  value  of  such  programs  in  terms 
of  developing  mutual  understanding  between 
peoples. 

Consideration  is  being  given  currently  to  the 
possibility  of  developing  a  progi-am  of  assigning 
social-welfare  attaches  to  our  missions  in  the  prin- 
cipal countries  of  the  world.  These  attaches 
would  facilitate  the  exchange  of  information  and 
experience  in  the  field  of  social  welfare. 

Of  the  Commissions  established  by  the  Eco- 
nomic and  Social  Council  the  Social  Commission 
undoubtedly  will  be  of  first  interest  to  those  con- 
cerned with  social  pi'oblems. 

Eight  members,  appointed  by  the  Economic  and 
Social  Council  as  a  nuclear  group,  met  together 
at  Hunter  College,  New  York,  this  spring. 

The  main  principles  of  social  policy,  as  viewed 
by  the  Temporary  Social  Commission,  were  as 
follows : 

(a)  there  is  an  interdependence  of  social  and 
economic  jiolicy ; 

(b)  the  pursuance  of  such  policy  is  the  duty  of 
the  whole  community ; 

(c)  a  rise  in  the  material  standard  of  life  does 
not  of  itself  necessarily  mean  a  well-planned  so- 
cial life; 

(d)  the  beneficiaries  of  social  institutions  should 
participate  in  the  development  of  social  policy. 

The  Commission  recommended  that  special  con- 
sideration be  given  to  social  problems  requiring 
immediate  attention,  such  as  those  remaining  after 
the  termination  of  UNKRA.  This  was  also  a  mat- 
ter of  concern  to  the  UNRRA  Council  which  met 
last  August  in  Geneva.     At  that  time  two  resolu- 


1017 


THE   RECORD   OF  THE  WEEK 


tions  were  passed  relating  to  social  welfare.  They 
recommended  the  establishment  of  an  Interna- 
tional Children's  Fund  and  the  assumption  by  the 
United  Nations  of  such  UNRRA  welfare  services 
as  the  United  Nations  might  wish  to  undertake. 

The  Economic  and  Social  Council  adopted 
resolutions  on  these  same  subjects,  which  were  in- 
troduced by  the  United  States  Delegation.  These 
matters  are  to  be  brought  before  the  current  meet- 
ing of  the  General  Assembly. 

Wlien  the  permanent  Social  Commission  meets 
the  first  of  next  year  it  will  give  further  considera- 
tion to  these  problems,  to  the  continuation  of  the 
work  of  the  League  of  Nations  regarding  traffic  in 
women  and  children,  to  the  carrying  out  of  child- 
welfare  work  in  cooperation  with  other  interna- 
tional organizations,  and  to  dealing  with  crime 
prevention  and  treatment  of  oflFenders.  It  has  also 
been  directed  to  study  the  care  of  special  groups, 
such  as  children,  the  aged,  and  handicapped ;  and 
social  services  in  areas  which  are  underdeveloped 
and  in  those  which  have  been  directly  affected  by 
the  war.  Consideration  will  also  be  given  to  meth- 
ods of  dealing  with  problems  resulting  from  the 
termination  of  UNRRA  welfare  activities  and 
with  the  problem  of  setting  up  international  ma- 
chinery for  housing  and  town  and  country 
planning. 

The  Social  Commission  was  requested  to  take 
steps  to  create  a  subcommission  on  children  and  to 
consult  with  the  International  Penal  and  Peniten- 
tiary Commission  on  its  future  status. 

It  is  thus  evident  that  the  Social  Commission 
has  a  large  and  impoi'tant  task  before  it  in  advis- 
ing the  Economic  and  Social  Council  on  these 
many  matters. 

There  are  two  other  Commissions  of  the  Eco- 
nomic and  Social  Council  through  participation  in 
which  the  United  States  will  effectuate  parts  of  its 
foreign  social  policy.  The  Commission  on  the 
Status  of  Women  will  prepare  recommendations 
and  reports  to  the  Economic  and  Social  Council 
on  promoting  women's  rights  in  political,  eco- 
nomic, social,  and  educational  fields. 

The  Population  Commission  will  be  concerned 
with  population  changes,  the  factors  associated 
with  such  changes,  policies  designed  to  influence 
these  factors,  and  migratory  movements  of  popu- 
lation. 


Refugees  and  Displaced  Persons 

Acute  social  needs  of  peoples  abroad  have  for 
many  decades  elicited  the  sympathy  and  active 
help  of  American  citizens  and  their  Government. 
This  help  has  usually  been  given  to  those  who  were 
victims  of  catastrophes,  such  as  floods,  famines, 
earthquakes,  and  plagues  rather  than  to  alleviate 
the  long-term  social  ills  of  foreign  peoples.  Early 
expressions  of  American  interest  in  distress  in 
other  lands  have  included,  in  addition  to  voluntary 
contributions,  Congressional  appropriations  which 
were  made  as  early  as  1812. 

The  1930's  saw  the  development  of  new  needs, 
as  Jews  and  other  persecuted  minorities  in  Europe 
became  victims  of  the  Nazi  Government.  Wliat 
began  as  a  relatively  small  volume  of  distress  soon 
grew  into  a  flood  that  swamped  all  available 
sources  of  aid.  Action  taken  by  the  American 
people  to  relieve  the  extensive  and  tragic  human 
need  was  of  two  general  types :  that  taken  by  gov- 
ernmental agencies  and  that  by  voluntary  organi- 
zations. 

In  1938  the  United  States  Government  assumed 
the  initiative  in  extending  an  invitation  to  a  num- 
ber of  governments  to  meet  at  £vian,  France,  to 
assist  thousands  of  refugees  who  were  fleeing  from 
Germany.  This  Government  thought  it  might  be 
able  to  do  something  in  association  with  other  gov- 
ernments by  way  of  negotiations  with  Germany 
"to  improve  the  present  conditions  of  exodus  and 
to  replace  them  by  conditions  of  orderly  migra- 
tion". The  outcome  of  the  lilvian  conference  was 
the  establishment  of  the  Intergovernmental  Com- 
mittee on  Refugees  which  now  has  35  member 
governments  and  at  the  present  moment  is  ac- 
tively engaged  in  the  task  of  trying  to  resettle 
some  of  tlie  displaced  persons  of  Europe. 

In  November  1943  UNRRA  became  the  focus  for 
coordinating  the  activities  of  military,  govern- 
mental, and  private  action  to  provide  relief  and 
rehabilitation  to  the  people  of  liberated  territories 
in  Europe  and  the  Far  East.  The  United  States 
has  contributed  generously  to  this  program. 

At  the  same  time  that  governmental  agencies 
were  being  developed  to  meet  the  needs  of  war 
victims,  efforts  were  also  being  made  to  coordinate 
tlie  work  of  voluntary  social  agencies  operating 
abroad.     In  March  1941  the  President  appointed 


1018 


Department  of  Stale  Bulletin 


December  1,  1946 


THE  RECORD   OF  THE  WEEK 


a  Committee  on  War  Relief  Agencies  to  examine 
the  whole  problem  of  foreign  war  relief  in  relation 
to  local  charities  and  to  national-defense  welfare 
needs.  On  July  25,  1942  the  President  issued  an 
Executive  order  establishing  the  President's  War 
Relief  Control  Board  wliicli  was  empowered  to 
license  war-relief  agencies,  to  require  reports,  and 
generally  to  regulate  and  control  solicitation  and 
disposition  of  contributions  for  relief  abroad. 
One  of  the  most  important  aspects  of  the  Board's 
supervision  of  private  war  relief  was  the  integra- 
tion of  policies,  plans,  programs,  and  procedures 
of  voluntary  agencies  with  tliose  of  Federal  and 
other  governmental  or  intergovernmental  agencies 
and  of  the  American  Red  Cross. 

The  War  Relief  Control  Board  was  replaced  in 
May  1946  by  the  Advisory  Committee  on  Volun- 
tary Foreign  Aid,  which  is  performing  substan- 
tially the  same  functions  on  a  voluntary  basis. 
Between  September  1939  and  March  1946  volun- 
tary agencies  and  individuals  in  cooperation  with 
these  two  bodies  provided  over  $600,000,000  of  re- 
lief to  foreign  countries. 

Many  thousands  of  persons  in  Europe,  the  Far 
East,  and  other  parts  of  the  world  who  have  fled 
from  their  former  countries  of  residence  either 
cannot  or  do  not  wish  to  return  to  their  homes 
because  of  danger  to  their  lives  or  liberties  or  be- 
cause of  race,  religion,  or  political  beliefs.  Over 
850,000  of  these  so-called  displaced  persons  and 
refugees  are  now  being  cared  for  in  camps  in  the 
American  zones  in  Germany  and  Austria.  Prin- 
cipal responsibility  for  the  care  and  maintenance 
of  these  persons  falls  on  our  military  forces,  with 
UNRRA  providing  persoimel  to  administer  the 
camps. 

This  Government  holds  the  view  that  responsi- 
bility for  the  care  and  maintenance  and  the  even- 
tual repatriation  and  resettlement  of  these  dis- 
placed persons  and  refugees  should  be  assumed  by 
an  international  agency  set  up  under  the  United 
Nations.  The  establishment  of  such  an  agency,  to 
be  known  as  the  International  Refugee  Organiza- 
tion, has  been  the  subject  of  extensive  debate  and 
much  controversy  since  the  first  meeting  of  the 
Economic  and  Social  Council  of  tlie  United  Na- 
tions held  in  Februaiy  1946.  A  draft  constitution 
and  budget  for  the  International  Refugee  Organi- 


zation has  been  prepared  and  presented  to  the 
present  session  of  the  General  Assembly  for  adop- 
tion. It  is  too  early  to  predict  what  the  outcome 
will  be,  but  this  Government  is  giving  full  support 
to  the  establislunent  of  the  International  Refugee 
Organization. 

Labor 

In  the  field  of  labor  the  United  States  Govern- 
ment, since  1934,  has  given  substantial  support  to 
the  development  of  international  social  standards 
through  its  membership  in  the  International  Labor 
Organization — dedicated  to  the  development  of 
social  justice  as  a  necessary  element  in  the  estab- 
lishment of  universal  peace."  It  is  a  matter  of 
real  significance  that  in  this  Organization,  which  is 
a  major  medium  for  social  policy,  "the  representa- 
tives of  workers  and  employers,  enjoying  equal 
status  with  those  of  governments,  join  with  them 
in  free  discussion  and  democratic  decision  with  a 
view  to  the  promotion  of  the  common  welfare." 

In  joining  the  ILO,  this  Government  recognized 
that  "the  failure  of  any  nation  to  adopt  humane 
conditions  of  labor  is  an  obstacle  in  the  way  of 
other  nations  which  desire  to  improve  the  condi- 
tions in  their  own  countries". 

At  the  26th  Session  of  the  International  Labor 
Conference  in  Philadelphia  in  1944  this  Govern- 
ment joined  in  the  formulation  of  the  Declaration 
of  Philadelphia,  which  in  itself  comprises  a  forth- 
right and  forward-looking  statement  of  interna- 
tional social  policy." 

The  International  Labor  Conference  declared 
that  since  poverty  anywhere  constitutes  a  danger 
to  prosperity  everywhere,  all  human  beings,  ir- 
respective of  race,  creed,  or  sex,  have  the  right  to 
pursue  both  their  material  well-being  and  their 
spiritual  development  in  conditions  of  freedom  and 
dignity,  of  economic  security  and  equal  oppor- 
tunity. 

It  is  sometimes  said  that  the  ILO  deals  with  the 
social  aspect  of  economic  problems  and  the  eco- 
nomic aspect  of  social  problems. 

As  examples  of  social  problems,  towards  the 
solution  of  which  the  United  States  is  contributing 


"  Treaty  Serie.s  874. 

"  Bulletin  of  May  20,  1044,  p.  481. 


1019 


THE  RECORD   OF  THE  WEEK 


through  its  participation  in  the  ILO,  may  be  cited 
the  nine  conventions  and  four  recommendations 
concerning  conditions  of  employment  among  sea- 
farers, adopted  in  June  1946  at  Seattle ;  the  three 
conventions  and  two  recommendations  concerning 
medical  examination  for  employment  of  children 
and  young  workers,  and  concerning  restriction  of 
night  work  of  children  and  young  persons  which 
were  adopted  at  the  Montreal  conference  on  Octo- 
ber 9,  1946.  Reference,  too,  should  be  made  to 
the  preliminary  conclusions  reached  at  Montreal 
for  the  establishment  of  a  convention  on  social 
policy  in  non-self-governing  territories.  Final 
action  on  this  next  year  will  culminate  the  import- 
ant contribution  of  the  ILO,  throughout  its  27- 
year  history,  to  improvement  of  conditions  of  de- 
pendent peoples.  The  development  of  pi-inciijles 
in  the  planning  of  public  works  and  in  the  preven- 
tion of  unemployment  during  the  past  year  repre- 
sented social  progress  in  economic  problems,  while 
the  economic  aspect  of  social  problems  was  em- 
phasized in  the  ILO  consideration  of  the  broad 
field  of  post-war  migration. 

The  United  States  Government  derives  much 
from  the  experience  of  other  governments  through 
its  participation  in  the  ILO ;  and,  likewise,  makes 
available  the  fruits  of  its  own  experience  to  help 
other  nations  short-cut  their  way  to  social  progress. 

Conclusion 

This  has  not  been  a  complete  description  of  the 
subject-matter  of  our  foreign  social  policy.  I  have 
not  described  some  activities  at  all  or  any  in 
detail.  I  believe,  however,  that  I  have  indicated 
its  basic  content  and  major  directions. 

The  United  States  does  have  a  foreign  social 
policy  continuously  evolving,  continuously  push- 
ing forward  to  the  achievement  of  its  purpose — 
the  development  of  cooperative  relations  among 
people — the  development  of  mutual  understand- 
ing— the  advancement  of  human  welfare — all  for 
the  purpose  of  maintaining  the  peace  to  which  we 
all  so  earnestly  and  devoutly  aspire. 

I  am  confident  that  your  professional  knowledge 
and  experience  will  bear  testimony  to  the  sound- 
ness of  this  program  and  that  you  will  wish  your 
Government  well  in  the  achievement  of  these  pur- 
poses. 

Before  concluding  I  would  like  to  direct  some 

1020 


of  my  remarks  to  you  men  and  women  as  in- 
dividuals. 

Diplomats,  representatives  of  foreign  offices 
and  nunistries  and  departments,  not  ordinarily  as 
interested  in  social  problems  as  you,  are  now  con- 
cerned— seriously  and  conscientiously  concerned — 
with  these  international  social  problems.  Are  you 
equally  interested  and  informed  on  the  relations 
of  these  problems  to  the  international  economic 
and  political  problems  with  which  they  are  asso- 
ciated ? 

Are  you  exercising  your  prerogative  and  dis- 
charging your  responsibility  for  determining  the 
foreign  social  policy  of  your  Government?  The 
Department  of  State  recognizes  its  twofold  respon- 
sibility in  this  connection.  The  first  responsibility 
is  to  make  available  as  fully  and  as  promptly 
as  possible  information  on  the  problems  with 
which  it  is  concerned  and  the  policies  it  proposes 
for  dealing  with  those  problems.  The  second  is 
to  ascertain  as  accurately  as  possible  the  views  of 
American  citizens. 

The  place  of  the  American  citizen  in  the  process 
is  to  be  well  informed,  to  be  critical  but  under- 
standing, to  examine  the  problems  and  the  possible 
solutions,  to  balance  arguments,  to  place  long- 
range  values  over  those  of  the  moment,  to  place 
the  interests  of  all  above  the  interests  of  the  few, 
and  to  make  his  conclusions  known  to  his  Gov- 
ernment. The  foreign  policy — the  foreign  social 
policy — of  the  United  States  is  ultimately  deter- 
mined by  you  and  the  other  citizens  of  our  country. 

Myron  C.  Taylor  To  Continue 
Mission  to  Vatican 

[Rele.ised  to  the  press  by  the  White  Honse  November  23] 

I  have  directed  my  personal  representative,  the 
Honorable  Myron  C.  Taylor,  to  proceed  to  Rome 
for  a  brief  period  to  resume  discussion  of  mat- 
ters of  importance  with  His  Holiness  Pope  Pius 
XII  and  others  in  authority.  Mr.  Taylor  will  also 
resume  his  efforts  in  respect  to  the  reorganization 
of  the  Italian  Red  Cross  and  his  chairmanship  of 
American  relief  for  Italy. 

Mr.  Taylor's  work  as  the  guiding  force  and 
leading  spirit  in  organizing  American  relief  for 
Italy  already  has  been  fruitful  of  practical  re- 
sults.   Italy  has  been  in  sore  need  from  the  timei 

Department  of  State  Bulletin      •      December  1,  1946 


of  the  invasion  and  during  and  since  the  war. 
Noteworthy  among  his  activities  has  been  his  work 
among  youngsters  rendered  homeless  by  the  rav- 
ages of  war,  along  lines  comparable  with  those 
which  have  animated  Boys  Town  and  other  agen- 
cies dealing  at  the  present  time  with  the  problem 
of  juvenile  delinquency  in  the  United  States.  His 
hope  is  that  the  reorganized  Italian  Red  Cross 
will  become  the  active  medium  for  all  national  re- 
lief distribution  in  Italy. 

Mr.  Taylor's  forthcoming  mission  to  Italy  will 
be  of  short  duration — not  exceeding  thirty  days. 
Li  resuming  his  conversations  with  the  Pope  he 
will  continue  his  mission  in  behalf  of  peace.  His 
purpose,  as  on  previous  missions,  will  be  to  ob- 
tain for  my  guidance  the  counsel  and  coopera- 
tion of  all  men  and  women  of  good-will  whether 
in  religion,  in  government,  or  in  the  pursuits  of 
everyday  life. 

As  in  the  past  he  and  I  will,  in  our  labors  for 
peace,  continue  to  welcome  the  advice  of  leaders 
in  religion  of  all  convictions  and  loyalties,  how- 
ever diverse,  not  only  in  this  country  but  through- 
out the  world. 


Convention   on   Regulation  of 
American  Automotive  Traffic 


Inter- 


[  Released  to  the  press  November  12] 

On  November  1,  1946  the  President  proclaimed 
the  convention  on  the  regulation  of  inter-Ameri- 
can automotive  traffic  which  was  opened  for  sig- 
nature at  Washington  on  December  15,  194:3  and 
was  signed  on  or  after  that  date  for  the  United 
States  of  America  (subject  to  a  reservation  with 
respect  to  article  XV)  and  14  other  American  re- 
publics, namely:  Bolivia,  Brazil,  Chile,  Costa 
Rica,  Cuba,  Dominican  Republic,  Ecuador,  El 
Salvador,  Guatemala,  Haiti,  Honduras,  Nicara- 
gua, Panama,  and  Peru.  The  convention  was 
approved  by  the  Senate  on  July  25,  1946  and  was 
ratified  by  the  President  on  August  8,  1946  sub- 
ject to  the  reservation  with  which  it  was  signed.^ 

With  the  deposit  of  the  United  States  instru- 
ment of  ratification  with  the  Pan  American  Union 
on  October  29,  1946,  the  United  States  became  the 
seventh  government  with  respect  to  which  the  con- 
vention has  come  into  force.  Instruments  of  rati- 
fication of  the  convention  were  deposited  with  the 
Pan  American  Union  by  Guatemala  on  July  6, 


THE  RECORD  OF  THE  WEEK 

1944,  Peru  on  July  25, 1944,  the  Dominican  Repub- 
lic on  August  4,  1944,  Nicaragua  on  August  31, 
1944,  Brazil  on  January  8,  1945,  and  El  Salvador 
on  May  22,  1946. 

The  convention  is  designed  to  facilitate  and  en- 
courage the  movement  of  motor-vehicle  traffic  be- 
tween the  American  republics  by  simplifying  for- 
malities and  establishing  uniform  regulations  for 
international  automotive  traffic  in  relation  to  such 
matters  as  registration,  driving  licenses,  standards 
of  size  and  equipment,  and  the  keeping  of  records 
of  international  automotive  traffic. 

Air-Transport  Agreement  Witli  tlie 
Pliiiippine  Republic 

On  November  18  the  Department  of  State  re- 
leased the  text  of  a  bilateral  air-transport  agree- 
ment between  the  United  States  and  the  Republic 
of  the  Philippines  which  was  concluded  in  Manila 
on  November  16,  and  which  was  signed  on  behalf 
of  the  United  States  by  Ambassador  Paul  V. 
McNutt  and  on  behalf  of  the  Philippines  by  Vice 
President  and  Secretary  of  Foreign  Affairs 
Elpidio  Quirino. 

The  body  of  the  agreement  is  based  substantially 
on  the  so-called  "standard  form"  drawn  up  at 
the  Chicago  Aviation  Conf  erence,^  while  the  annex 
gives  a  general  description  of  the  routes  to  be 
operated  and  provides  that  both  parties  shall  agree 
to  certain  principles  and  objectives  which  are 
taken  from  the  Bermuda  air-transport  agreement 
between  the  United  States  and  the  United 
Kingdom.'' 

In  accordance  with  the  Civil  Aeronautics 
Board's  Pacific  case,  the  United  States  airlines 
which  will  obtain  traffic  rights  into  the  Philippines 
under  the  new  agreement  are  the  Pan  American 
World  Airways  System  on  a  mid-Pacific  route  to 
Manila  and  beyond,  via  two  route  sectors  to  the 
Asiatic  mainland,  and  Northwest  Airlines  over  a 
North  Pacific  I'oute  to  Manila  via  Tokyo  and 
Shanghai.  Philippine  air  services  are  accorded 
reciprocal  riglits  for  international  traffic  at 
Honolulu  and  San  Francisco. 


"  BuiXETiN  of  Jan.  1,  1944,  p.  22. 

■  For  text  of  the  agreement,  see  Department  of  State 
press  release  825  of  Nov.  18,  1916. 
"  Bulletin  of  Apr.  7,  1946,  p.  584. 


I02I 


THE  RECORD   OF  THE  WEEK 

United  States  Economic  Policy 
Toward  Germany 

In  a  publication  entitled  United  States  Eco- 
nomic Policy  Toward  Germany,  the  Department 
of  State  presents  a  summary  of  the  progress  of  the 
American  Military  Government  in  effecting  an 
economic  program  for  post-war  Germany,  in  ac- 
cordance with  the  spirit  of  Allied  agreements. 

Disarmament,  reparation,  and  reconstruction 
constitute  the  three  main  themes  of  American 
policy.  "The  first  two  are  corrective  measures: 
Germany  is  to  be  deprived  of  the  economic  basis 
for  war  and  is  to  compensate  the  Allies  as  far  as 
possible  for  the  damage  caused  by  German  aggres- 
sion. The  third  theme  is  constructive:  Germans 
are  to  be  'given  the  opportunity  to  prepare  for  the 
eventual  reconstruction  of  their  life  on  a  demo- 
cratic and  peaceful  basis.' " 

Copies  of  this  publication,  number  2630,  may  be 
obtained  through  the  Superintendent  of  Docu- 
ments, Government  Printing  Office,  for  40  cents. 


1944   Sanitary   Conventions   and   1946 
Sanitary  Protocols 

Denmark 

The  Charge  d'Affaires  ad  interim  of  Denmark 
informed  the  Acting  Secretary  of  State  by  a  note 
dated  August  22, 1946  of  the  accession  by  Denmark 
to  the  international  sanitary  convention,  1944,^ 
modifying  the  international  sanitary  convention 
of  June  21,  1926,"-  and  to  the  protocol  of  1946  ^  to 
prolong  the  convention  of  1944,  with  the  reserva- 
tion that  Greenland  and  the  Faro  Islands  are 
exempted  from  the  provisions  of  the  convention. 
The  effective  date  of  accession  to  the  convention 


'  Treaty  Series  991. 

'  Treaty  Series  762. 

"  Treaties  and  Other  International  Acts  Series  1551. 

'  Treaty  Series  992. 

'  Treaty  Series  901. 

'  Treaties  and  Other  International  Acts  Series  1552. 


and  protocol  by  Demnark  is  August  23,  1946,  the 
date  of  receipt  of  the  note  of  accession  by  the 
Department  of  State. 

Syria 

The  Charge  d'Affaires  ad  interim  of  Syria  in- 
formed the  Secretary  of  State  by  separate  notes 
dated  October  26,  1946  of  (1)  the  accession  by 
Syria  to  the  above-mentioned  convention  of  1944 
and  protocol  of  1946;  and  (2)  the  accession  by 
Syria  to  the  international  sanitary  convention  for 
aerial  navigation,  1944,*  modifying  the  interna- 
tional sanitary  convention  for  aerial  navigation  of 
April  12,  1933,=  and  the  protocal  of  1946  "  to  pro- 
long the  convention  of  1944.  The  effective  date  of 
accession  to  those  conventions  and  protocols  by 
Syria  is  October  31,  1946,  the  date  the  notes  of 
accession  were  received  by  the  Department  of 
State. 

The  two  1944  conventions  and  the  two  1946  pro- 
tocols were  opened  for  signature  in  Washington  on 
December  15, 1944  and  April  23, 1946,  respectively. 


ILO  Committee — Continued  from  page  1002 

tional  Outlook  Branch,  Bureau  of  Labor  Statistics, 
Department  of  Labor,  Washington,  D.C. 
Murray  Ross,  Assistant  Chief,  International  Labor 
Organizations  Branch,  Division  of  International 
Labor,  Social  and  Health  Affairs,  Department  of 
State,  Washington,  D.C. 

REPRESENTIXG  THE  EMPLOYERS  OF  THE  UNITED 
STATES 

Mem  hers 

Vincent  P.  Ahearn,  executive  secretary.  National  Sand 

and  Gravel  Association,  Washington,  D.C. 
Edward  P.  Palmer,  president.  Senior  and  Palmer,  New 

York,  N.Y. 

REPRESENTING  THE  WORKERS   OF  THE  UNITED 

STATES 

Members 

C.  J.  Haggerty,  representative.  International  Union  of 
Wood,  Wire  and  Metal  Lathers,  San  Francisco, 
Calif. ;  president,  California  State  Federation  of 
Labor. 

Charles  Johnson,  Jr.,  vice  president.  United  Brotherhood 
of  Carpenters  and  Joiners  of  America,  New  York, 
N.Y. 


1022 


Depatiment  of  State  Bulletin      •      December  I,  7946 


Report  of  the  Mission  on 
Japanese  Combines 

Zaibatsu — the  money  clique — is  held  to  be 
largely  responsible  for  the  monopolistic  tenor  of 
the  Japanese  foreign  policy  since  the  Meiji  restora- 
tion. The  Mission  on  Japanese  Combines,  which 
remained  in  Japan  from  January  to  March  of  this 
year  under  the  auspices  of  the  State  and  War 
Departments,  was  assigned  the  task  of  recom- 
mending standards,  policies,  and  procedures  for 
carrying  out  a  basic  occupation  objective — 
destruction  of  the  Zaibatsu. 

The  Department  of  State  has  published  Part  I 
of  the  report  of  that  mission,  under  the  title. 
Report  of  the  Mission  on  Japanese  Combines 
(publication  2628).  Part  I  presents  analytical 
and  technical  data  covering  the  findings  of  the 
mission,  and  may  be  secured  from  the  Superin- 
tendent of  Documents,  Government  Printing 
Office,  for  75  cents. 


THE  DEPARTMENT 
Appointment  of  Officers 

Julian  F.  Harrington  as  Director,  Office  of  the 
Foreign  Service,  ex  officio,  effective  November  13, 
1946. 

H.  P.  Martin  as  Deputy  Director,  Office  of  the 
Foreign  Service,  effective  November  13,  1946. 

Acting  Secretary  Acheson  announced  on  No- 
vember 25  the  appointment  of  Hamilton  Robinson 
as  Director  of  the  Office  of  Economic  Security 
Policy  to  fill  the  position  made  vacant  by  the  resig- 
nation on  September  15  of  John  K.  Galbraith. 
This  Office  is  responsible  for  advising  the  Secre- 
tary of  State  concerning  economic  policies  in  occu- 
pied areas,  namely,  Germany,  Austria,  Japan,  and 
Korea,  and  for  the  Department's  activities  relating 
;o  economic  security  controls. 


THE   RECORD  OF  THE  WEEK 

Departmental  Regulations 

In  the  Departmental  Regulations  published  in  the 
BuLUSTiN  of  June  30, 1946,  the  following  revislon.s,  effective 
October  15,  1946,  should  be  noted : 

The  Office  of  the  Adviser  on  Air  Law  has  been  redesig- 
nated Office  of  the  Aviation  Adviser  (131.11). 

The  Shipping  Law  and  Treaties  Section  has  been  re- 
designated Shipping  Agreements  Section   (131.12). 

The  Telecommunications  Law  and  Agreements  Section 
has  been  redesignated  Telecommunications  Agreements 
Section   (13L13). 

193.2  Inter-American  Educational  Foundation,  Inc. 
(lAEF):     (Effective  5-20-i6) 

I  Functions.  The  Foundation  was  formed  to  further 
the  general  welfare  of  and  to  strengthen  the  bonds  between 
the  peoples  of  the  Western  Hemisphere  by  undertaking 
and  carrying  out  an  inter-American  educational  program ; 
and  is  carrying  out  the  cooperative  programs  entered  into 
under  agreement  with  the  other  American  republics  in  the 
field  of  education. 

II  ORGANrz,\TiON,  Management,  and  Relation  to  the 

Department. 

A  The  Foundation  is  a  membership  corporation 
formed  under  the  Laws  of  Delaware,  and  has  no  capital 
stock.  The  members,  in  addition  to  the  three  named  in 
the  certiiicate  of  incorporation  and  their  successors,  are 
designated  by  the  Secretary  of  State  and  they  in  turn 
elect  directors  from  their  own  number.  The  Secretary 
has  designated  as  members  of  the  Foundation  Assistant 
Secretaries  Braden  (Chairman),  Benton,  Clayton,  and 
Russell,  together  with  a  representative  from  the  Office  of 
each  of  the  above-mentioned  Assistant  Secretaries,  and 
two  operating  officials  of  the  Foundation.  Each  of  the 
members  has  been  made  a  director.  The  Executive  Com- 
mittee is  composed  of  the  President  of  the  Foundation 
and  the  representatives  from  the  offices  of  the  Assistant 
Secretaries. 

B  The  Board  of  Directors  has  full  management  of 
the  affairs  and  property  of  the  Foundation  and  elects  the 
officers  of  the  corporation.  The  officers  carry  on  the 
Foundation's  operations  in  accordance  with  the  policies 
and  resolutions  of  the  directors.  The  Executive  Committee 
acts  on  all  policy  matters  between  meetings  of  the  Board. 
The  administrative  services  (personnel,  legal,  fiscal, 
budget,  general  office  service,  and  so  forth),  and  other  gen- 
eral services  of  the  Foundation,  are  performed  in  the 
United  States  and  in  the  other  American  republics  by  the 
facilities  of  the  In.stitute  of  Inter-American  Affairs. 

C  Existing  liaison  relationships  and  communication 
channels  between  the  Foundation  and  the  offices  of  the 
Department  have  not  been  changed  by  the  termination 
of  the  Office  of  Inter-American  .iVffairs ;  all  formal  policy 
communications  between  the  Department  and  the  Institute 
clear  through  the  Office  of  the  Assistant  Secretary  for 
American  Republic  Affairs. 


1023 


■  '•j.'i'ji.Vjjri-.'- 


'vontettL 


General  Policy  Page 

American   Policy   in   the   Far   East.     By   G. 

Bernard  Noble 975 

Foreign  Social  Policy  of  the  United  States. 

By  Otis  E.  Mulliken 1011 

Myron   C.   Taylor  To   Continue   Mission  to 

Vatican 1020 

Economic  Affairs 

UN RR A  Council:  Sixth  Session 1000 

International  Whaling  Conference:  First  Ple- 
nary Session.  Address  by  Acting  Secre- 
tary Acheson 1001 

U.S.  Accepts     Membership     in     Provisional 

Maritime  Consultative  Council   ....      1002 

U.S.  Delegation  to  Industrial  Committee  on 
Building,  Civil  Engineering  and  Public 
Works  of  ILO 1002 

Czechoslovakia  Provides  for  Compensation 
of  Claimants  Under  Nationalization 
Program 1003 

U.S.-Czechoslovak  Agreement  on  Commer- 
cial Policy  and  Compensation  Claims  .      1004 

World  Air  Transport:  Development  of  U.S. 

Policy.     By  Garrison  Norton 1006 

Radio  Broadcast  on  American  Trade  Policy.      1010 

The  United  Nations 

Conference  on  Danube  Traffic 986 

U.S.  Position  on  the  Veto  Question.  State- 
ment by  U.S.  Delegate 987 

U.S.  Position  on  Establishment  of  Trustee- 
ship System.  Statement  by  Member  of 
U.S.  Delegation 991 

First  General  Conference  of  UNESCO.     By 

Assistant  Secretary  Benton 995 


Treaty  Information  Paee 

U.S.-Czechoslovak  Agreement  on  Com- 
mercial Policy  and  Compensation 
Claims 1004 

Convention  on  Regulation  of  Inter-American 

Automotive  Traffic 1021 

Air-Transport  Agreement  With  the  Philip- 
pine Republic 1021 

1944  Sanitary  Conventions  and  1946  Sani- 
tary Protocols 1022 

International  Organizations  and  Conferences 

Calendar  of  meetings 999 

Cultural  Cooperation 

Economist  To  Study  Public  Finance  in  Amer- 
ican Republics ^010 

The  Foreign  Service 

Consular  Offices 10°^ 

Diplomatic  Office 100^ 

The  Department 

Appointment  of  Officers 1023 

Departmental  Regulations 1023 

Publications 

"Papers  Relating  to  the  Foreign  Relations  of 
the  U.  S.,  1931",  Volume  I.  Reviewed 
bv    Victor   J.    Farrar   and    Gustave    A. 

QQO 

Nuermberger 

U.  S.  Economic  Policy  Toward  Germany  .    .      1022 

Report   of   the    Mission   on   Japanese   Com- 

bines     


%mi^mcdoM 


O  Bernard  NoUe  prepared  his  article  on  American  policy  in  the 
Far  East  in  consultation  with  John  Carter  Vincent,  Director  of 
the  Office  of  Far  Eastern  Affairs,  Department  of  State.  Ur. 
Noble  is  Chief  of  the  Division  of  Historical  Policy  Research  in 
the  Office  of  Public  Affairs,  Department  of  State. 

Victor  J.  Farrar  and  Qustave  A.  Nuermberger  are  Research 
Assistants  in  the  Foreign  Relations  Branch,  Division  of  His- 
torical Policy  Research,  OfHce  of  Public  Affairs,  Department 
of  State. 

U.  S.  «0¥t«IMEHT  HIKTISS   OFFICE,  19»1 


tJne/  ^eha^y^t^^teni/  aw  tnaie^ 


NATIONALIZATION  PROGRAM  IN  CZECHOSLO- 
VAKIA    •     Article  by  Miriam  E.  Oatman 1027 

TWENTY-NINTH     SESSION     OF     INTERNATIONAL 

LABOR  CONFERENCE     •    An  Article 1034 

GERMAN    DOCUMENTS:        CONFERENCES     WITH 

AXIS  LEADERS,  1944 1040 

SIXTH  SESSION  OF  THE   COUNCIL   OF  UNRRA    • 

Article  by  David  Persinger 1032 


For  complete  contentssee  back  cover 


Vol  XV,  No.  388 
December  8, 1946 


^ENT    oj^ 


■^tes  o*^ 


y.  S.  SUPERINll'ENDENT  OF  DOCUMENTS 

DEC  18  1946 


m 


^ 


Qje/ia/y^e^ 4)^ y^a{^    JDUllGlin 


Vol.  XV,  No.  388     •     Pubucation  2705 
December  8, 1946 


For  sale  by  the  Superintendent  of  Documents 

U.  S.  Oovemment  Printing  Office 

Washington  25,  D.  C. 

Subsceiption: 
62  issues,  $3.50;  single  copy,  10  cents 

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

Published  with  the  approval  of  the 
Director  of  the  Bureau  of  the  Budget 


The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
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  De- 
partment of  State  and  the  Foreign 
Service.  The  BULLETIN  includes 
press  releases  on  foreign  policy  issued 
by  the  White  House  and  the  Depart- 
ment, 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  inter- 
national 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. 


THE  NATIONALIZATION  PROGRAM  IN  CZECHOSLOVAKIA 


by  Mirmm  E.  Oatmcm 


More  than  a  year  ago  Czechoslovakia  enacted  laws  to  na- 
tionalise mines,  important  industries,  food  enterprises,  hanks, 
and  insurance  corporations.  These  laws  pr-ovided  for  com- 
pensation to  owners,  with  the  exception  of  such  groups  as 
Germans,  Hungarians,  and  Czechoslovak  collaborators  or 
traitors.  American  property  to  the  amount  of  $30,000,000 
to  $50,000,000  was  nationalized.  Negotiations  for  compen- 
sation are  still  in  progress. 


Scope  and  Background  of  Nationalization 

The  recent  nationalization  measures  in  Czecho- 
slovakia are  far-reaching  in  scope.  It  is  reported 
that  about  65  percent  of  the  country's  total  in- 
dustrial capacity  is  included  in  the  larger  enter- 
prises which  have  been  transferred  to  Govermnent 
ownership  and  control.^  Key  industries,  such  as 
mining,  metallurgy,  heavy  engineering,  and  pub- 
lic utilities,  as  well  as  all  joint-stock  banks  and 
private  insurance  companies  have  been  national- 
ized completely. 

Through  the  nationalized  sector  the  state  will 
dominate  the  remainder  of  the  econoniy.  Its 
control  over  the  economy  may  be  expected  to  in- 
crease further  as  a  result  of:  (1)  concentration  of 
future  industrial  development  in  the  nationalized 
industries  and  generally  in  large  plants;  (2)  exist- 
ing restrictions  on  the  establishment  of  new  pri- 
vate enterprises  in  nationalized  industry;  (3) 
discouragement  of  private  investment  in  other 


industries  because  of  fears  of  further  nationali- 
zation. 

The  enactment  of  the  nationalization  measures 
at  this  time  was  due  to  a  combination  of  political 
and  economic  factors.  For  many  years  there  has 
been  a  strong  leftist  movement  in  Czechoslovalda. 
The  Communists  and  Social  Democrats,  who  have 
dominated  the  bloc  of  parties  in  control  of  the 
Government  since  its  return  from  exile,  both  ad- 
vocate a  considerable  degree  of  state  ownership. 
Even  the  two  parties  to  their  right  have  accepted, 
with  more  or  less  reluctance,  the  view  that  a  cer- 
tain amount  of  nationalization  is  inevitable. 

The  economic  situation  of  Czechoslovakia  after 
her  liberation,  though  less  desperate  than  that  of 


'  News  flashes  from  Czechoslovakia,  Mar.  iri,  1946. 

[EwTOR's  Note:  This  is  the  secontl  in  a  series  of  articles 
on  the  nationalization  programs  in  various  European  coun- 
tries. The  first  article,  on  the  Polish  nationalization  law, 
appeared  iu  the  Bullehn  of  Oct.  13,  1946,  p.  601.] 


1027 


most  other  European  countries,  gave  added 
impetus  to  the  nationalization  proposals.  Even 
before  the  war  Czechoslovakia's  industry  was 
highly  centralized  and  tied  closely  to  the  banking 
system.  During  the  war,  the  German  occupants 
took  over  the  two  most  important  banks  and  all 
their  assets.  The  Germans  also  acquired  large 
interests  through  the  confiscation  of  Jewish  and 
foreign  capital.  After  the  surrender  of  the  Ger- 
man Army,  many  of  the  leading  enterprises  were 
left  not  only  without  owners  but  also  without 
managers.  In  many  instances,  operations  were 
continued  by  workers'  councils  aided  by  political 
organizers.  The  workers'  councils  were  later 
recognized  in  several  presidential  decrees  provid- 
ing for  state  control  over  "masterless  enterprises" 
formerly  owned  by  Germans,  Hungarians,  or 
Czech  collaborators.  It  is  probable  that  the  dif- 
ficulties and  delays  involved  in  the  restoration  of 
property  rights,  the  general  disorganization  of 
the  Czechoslovak  economy,  and  the  problems  of 
reconversion  and  ultimate  development  of  indus- 
try, have  been  important  contributory  factors  in 
prompting  nationalization. 

First  Steps  Toward  Nationalization 

As  early  as  May  19,  1945  a  presidential  decree 
provided  for  state  control  over  "masterless  enter- 
prises" that  had  been  in  the  hands  of  Germans  or 
Hungarians,  or  of  Czechoslovak  collaborators. 
Another  decree  provided  for  state  confiscation  of 
"all  land,  buildings,  livestock  and  implements 
formerly  belonging  to  the  German  and  Hungarian 
gentry,  or  to  large  estate  owners  irrespective  of 
their  citizenship."  Since  the  confiscated  land  is 
being  sold  on  easy  terms  to  small  farmers  and 
farm  laborers,  nationalization  is  not  permanent 
in  this  case. 


2  The  citations  of  these  decrees  are :  decree  on  nationali- 
zation of  mines  and  industries,  Code  of  Laws  and 
Ordinances  of  C'zechotsJoxmTcia,  no.  100/45;  decree  ou 
nationalization  of  food  industry,  iMd.,  no.  101/45 ;  decree 
on  nationalization  of  joint-stock  companies  engaged  in 
banlcing  and  finance,  iHd.,  no.  W2/45 ;  decree  on 
nationalization  of  insurance  companies,  ibid,.,  no.  103/45. 

5  The  average  in  this  and  several  other  instances  is  to 
be  recl£oned  between  the  dates  of  Jan.  1,  1942  and  Jan. 
1,  1944.  In  some  cases,  the  period  from  Jan.  1,  1938  to 
Jan.  1,  1940,  or  that  from  July  1,  1938  to  July  1,  1940,  is 
used  as  a  basis. 


The  Nationalization  Decrees  of  October  1945 

For  several  months  the  Government  of  Czecho- 
slovakia discussed  the  possibilities  of  further 
nationalization.  On  October  27,  1915  it  issued 
four  decrees  (dated  October  24,  1945)  which  em- 
bodied the  results  of  its  deliberations.  The  fol- 
lowing branches  of  the  economy  were  thereby 
nationalized:  (1)  all  mines  and  many  industries; 

(2)  several  lines  of  industry  concerned  with  food; 

(3)  joint-stock  companies  engaged  in  banking  and 
financial  transactions ;  (4)  private  insurance  com- 
panies." A  brief  account  will  be  given  of  the 
principal  features  of  this  important  legislation. 

Nationalization  of  Mines  amd  Industries 

The  decree  on  the  nationalization  of  mines  and 
industrial  enterprises,  which  is  the  first  of  the 
series  and  is  a  model  for  the  others  in  certain 
respects,  provides  that  on  the  day  of  promulgation 
the  following  shadl  be  nationalized :  all  mines 
operated  under  public  mining  regulations;  all 
power  plants  serving  the  public  with  gas,  electric- 
ity or  steam,  except  those  operated  solely  for  the 
use  of  non-nationalized  industrial  ente rj:) rises ; 
iron  and  steel  works  and  rolling  mills;  non-ferrous 
metal  works,  except  indejiendent  ones  not  in- 
cluded in  a  combine  or  trust;  foundries  for  pig 
iron,  wrought  iron,  steel,  and  non-ferrous  metals 
averaging  400  or  more  employees  ° ;  presses,  roll- 
ing mills,  and  wire-drawing  plants,  except  those 
which  work  only  lead  and  tin;  mechanical  en- 
gineering works,  electrical  engineering  works,  and 
optical  and  precision-instrument  works  averaging 
more  than  500  employees;  armament  and  mu- 
nitions plants;  chemical  industries  equipped  to 
manufacture  acids,  alkaline  cyanides,  water  glass, 
matches,  artificial  fertilizers,  methyl  alcohol  from 
wood  tar,  benzine  and  its  homologues,  oils  (by 
distillation,  cracking,  or  synthesis),  artificial 
sweetenings,  fibers,  synthetic  rubber,  automobile 
and  bicycle  tires;  pharmaceutical  plants;  mines 
and  deposits  of  magnesite,  asbestos,  china  clay, 
mica,  feldspar,  valuable  heat-resistant  clays  and 
earths;  factories  manufacturing  cement  and  mor- 
tar; factories  of  technical  porcelain  and  asbestos 
cement  averaging  more  than  150  employees ;  glass 
works   equipped    for   continuous   production    or 


1028 


Deparfmenf  of  State  Bulletin      •      December  8,   1946 


having  a  capacity  of  at  least  1,000  liters  a  day; 
limestone  quarries  and  plants  producing  building 
and  teclinical  ceramics,  glazed  tiles,  porcelain,  and 
lime  averaging  more  than  150  employees;  brick- 
works averaging  more  than  200  employees ;  cellu- 
lose factories;  enterprises  manufacturing  paper 
and  cardboard,  paper  and  pulp,  pulp  and  card- 
board, or  all  three,  averaging  more  than  300  em- 
ployees; sawmills  averaging  more  than  150 
employees;  veneer  factories  averaging  more  than 
300  employees ;  plywood  factories ;  cotton  spinning 
mills,  carded  and  combed  yarn  spinning  mills, 
spinning  mills  for  flax,  jute,  and  artificial  fibers 
averaging  more  than  400  employees ;  cotton  weav- 
ing works  averaging  more  than  500  employees; 
mills  spinning  textile  waste,  plants  manufacturing 
bandaging  materials,  and  mills  weaving  hemp, 
flax,  and  jute  averaging  more  than  400  employees; 
textile  printing  works  averaging  more  than  200 
employees ;  clothing  factories  averaging  more  than 
600  employees ;  tanneries  and  factories  for  leather 
and  leather  substitutes  averaging  more  than  400 
employees;  plants  manufacturing  gramophone 
records. 

Enterprises  operated  by  cooperative  associa- 
tions are  not  affected  by  this  decree.  The  same 
holds  for  enterprises  specifically  exempted  by  the 
Government  on  the  suggestion  of  the  Minister  of 
Industry  and  enterprises  which  the  same  Minister 
decides  to  exempt  in  order  that  they  may  be  closed 
down.* 

Subject  to  specific  exceptions,  compensation 
will  be  paid  for  nationalized  property.  This  com- 
pensation will  equal  the  current  value  of  the 
property  at  the  time  of  nationalization,  after  the 
deduction  of  liabilities.^  In  arriving  at  the  amount 
of  compensation,  however,  no  account  will  be 
taken  of  the  value  of  unexploited  deposits  of  raw 
materials,  mining  rights,  or  property  devoted  to 
social,  educational,  and  similar  purposes. 

No  compensation  will  be  paid  for  any  national- 
ized property  which  at  the  end  of  the  occupation, 
or  later,  belonged  to:  (1)  the  German  Reich,  the 
Kingdom  of  Hungary,  public  persons  under  Ger- 
man or  Hungarian  law,  the  Nazi  and  Hungarian 
political  parties  and  related  organizations,  or  Ger- 
man or  Hungarian  corporations ;  (2)  German  and 
Hungarian  nationals,  except  those  loyal  to  Czecho- 


slovakia who  participated  in  its  fight  for  freedom 
or  suffered  under  the  occupant;  (3)  natural  per- 
sons who  acted  against  the  authority  or  unity  of 
Czechoslovakia,  its  democratic-republican  form  of 
government,  or  its  safety  and  defense ;  or  who  in- 
duced others  to  act  in  such  ways;  or  who  con- 
sciously supported  the  German  and  Hungarian 
occupation  authorities ;  or  who  earlier  (during  the 
period  of  danger  defined  by  law)  promoted  Ger- 
manization  or  Magyarization  in  Czechoslovakia; 
or  who  acted  against  the  interests  of  the  Czecho- 
slovak state  or  of  the  Czech  and  Slovak  nations ; 
(4)  persons  who  on  the  part  of  their  business 
managers  tolerated  activities  of  the  kind  just 
described;  (5)  legal  persons — that  is,  corpo- 
rations, and  so  forth — which  engaged  in  or  toler- 
ated such,  activities,  so  far  as  the  natural  persons 
who  are  their  members  have  not  exercised  sufficient 
caution  and  good  judgment  in  their  direction. 

Certain  adjustments  and  allowances  may  be 
made  by  the  Government  even  though  full  compen- 
sation is  denied.  An  important  paragi-apli,  which 
may  be  of  particular  interest  to  American  share- 
holders, provides  that  if  compensation  is  refused 
to  a  legal  person,  natural  persons  having  a  capital 
interest  therein,  who  do  not  belong  to  the  cate- 
gories of  collaborators,  traitors,  and  the  like, 
named  in  the  preceding,  are  to  be  compensated  in 
proportion  to  their  shares. 

Compensation  will  be  paid  in  the  form  of  gov- 
ernment bonds,  cash,  or  other  values.  An  eco- 
nomic fund  of  nationalized  property  is  to  be  set  up 
in  Prague  to  handle  compensation  matters.  In  all 
four  decrees,  the  same  fund  is  entrusted  with  this 
function.  The  bonds  which  it  issues  in  compensa- 
tion for  nationalized  property  are  to  be  amortized 
by  the  excess  profits  of  national  enterprises.  The 
payment  of  interest  and  the  amortization  of  the 
bonds  are  guaranteed  by  the  Government. 

National  enterprises,  which  take  the  place  of  the 
undertakings  transferred  to  the  state,  are  formally 

*  In  Slovakia,  the  Commissioner  of  Industry  must  be 
consulted  in  both  cases,  as  well  as  the  Commissioner  of 
Finance  in  the  second  instance. 

"This  does  not  necessarily  mean  that  liabilities  will  be 
honored.  Paragraph  5  of  the  decree  provides  for  certain 
adjustments  and  settlements,  but  says  definitely  that  the 
state  does  not  guarantee  the  obligations  of  nationalized 
enterprises. 


1029 


established  by  ministerial  order.  One  or  several  of 
the  nationalized  plants  or  enterprises  compose  the 
original  capital  of  a  national  enterprise.  A  man- 
ager and  a  managing  committee  administer  each 
separate  national  enterprise  according  to  business 
principles.  The  managers,  their  deputies,  and  a 
part  of  the  members  of  the  managing  committees 
are  appointed  by  an  over-all  organization  known 
as  the  Central  National  Authority  for  a  given  in- 
dustry." The  function  of  this  organization  is  "to 
ensure  uniform  direction  and  businesslike  man- 
agement of  the  common  interests  of  the  national 
enterprises".  The  degi-ee  of  true  managerial  re- 
sponsibility exercised  by  either  the  Authorities  or 
the  managers  of  individual  enterprises  is  appar- 
ently quite  limited,  since  article  23  of  the  decree 
states :  "The  Government  will  issue  detailed  regu- 
lations for  national  enterprises  and  Central  and 
Regional  Authorities,  especially  on  their  commer- 
cial policy,  accounting,  use  of  profits,  relation  of 
emjiloyees  to  the  enterprise,  supervision,  the 
agenda  and  decisions  of  the  managing  committee, 
the  responsibility  of  the  manager  and  of  the  mem- 
bers of  the  committee,  et  cetera". 

Nationalisation  of  Food-Processing  Enterprises 
The  second  of  the  four  basic  nationalization 
decrees  provides  for  the  taking  over  by  the  state 
of  the  following  branches  of  the  food  industry: 
sugar  factories  and  refineries;  industrial  distil- 
leries and  spirit  refineries ;  breweries  with  an  out- 
put of  more  than  150,000  hectoliters  of  beer  in 
1937;  flour  mills  with  a  capacity  of  at  least  60 
tons  of  grain  a  day;  margarine  factories  averag- 
ing more  than  150  employees;  chocolate  and  con- 
fectionery factories  averaging  more  than  500 
employees.  Certain  exemptions  are  provided, 
especially  enterprises  operated  or  owned  by  co- 

°  In  Slovakia,  which  has  a  considerable  degree  of  in- 
dependence, a  regional  authority  will  be  set  up  where 
needed. 

'  As  elsewhere,  there  are  special  arrangements  for 
Slovakia. 

*  Code  of  Laws  and  Ordinaiwes  of  Czechoslovakia,  no. 
102/45,  art.  11,  par.  2.  No  reason  is  given  for  allocating 
the  excess  profits  of  banks  to  the  Treasury  rather  than  the 
Economic  Fund  of  Nationalized  Property. 

°  In  Slovakia,  the  Council  acts  through  a  subordinate 
Regional  Insurance  Council. 


operative  associations,  and  agricultural  joint- 
stock  sugar  factories  and  refineries  in  which  the 
majority  of  stock  is  held  by  small  sugar-beet 
farmers. 

The  nationalized  food  enterprises  are  to  be  set 
up  as  national  enterprises.  Each  one  is  to  have 
a  manager  and  a  managing  committee,  under  the 
general  supervision  of  a  national  or  regional  au- 
thority. Employees  and  sugar-beet  farmers  are 
to  have  shares  in  sugar  factories  and  refineries, 
and  employees  and  local  authorities  are  to  have 
shares  in  breweries.  The  state  is  also  a  share- 
holder. The  compensation  provisions  in  the  de- 
cree on  mines  and  industries  are  made  applicable 
where  appropriate. 

Nationalization  of  Joint-Stoch  Banks 

Joint-stock  companies  engaged  in  banking  and 
financial  transactions  are  nationalized  and  trans- 
formed into  national  enterprises.  Banks  as  na- 
tional enterprises,  though  state  property,  are  or- 
ganized as  individual  corporations  and  are  regis- 
tered exactly  as  if  they  were  private  firms.  Each 
bank  is  managed  by  a  managing  coimnittee  (con- 
sisting of  a  chairman,  vice  chairman,  and  five  other 
members)  and  supervised  by  a  supervisory  board. 
Current  business  is  handled  and  decisions  are  car- 
ried out  by  a  manager  appointed  by  the  Minister 
of  Finance  on  the  motion  of  the  Central  Adminis- 
tration for  Banks.' 

The  banks  must  be  operated  according  to  the 
principles  of  commercial  enterprise.  After  ade- 
quate provision  has  been  made  for  reserve  fimds, 
the  excess  profits  of  banks  are  to  go  to  the 
Treasury.^ 

Compensation  will  be  paid  to  holders  of  the 
original  stock  of  joint-stock  banks  according  to 
rules  and  subject  to  exceptions  very  similar  to 
those  established  by  the  decree  on  mines  and 
industries. 

Nationalization  of  Private  Insurance  Companies 
All  private  insurance  interests  in  the  territory 
of  the  Czechoslovak  Republic  are  transferred  to 
state  ownership.  Each  company  is  set  up  as  a 
national  enterprise  to  be  operated  according  to 
commercial  principles.  An  Insurance  Council  is 
set  up  in  Prague  for  the  uniform  control  of  all 
insurance  business  other  than  social  insurance.' 


1030 


Department  of  Stale  Bulletin      *      December  8,    1946 


The  administration  of  each  company  is  in  the 
hands  of  a  managing  committee.  This  committee 
ai^points  the  necessary  number  of  managers  of  the 
company,  subject  to  the  approval  of  the  Council. 

Compensation  for  property  losses  caused  by 
nationalization  will  be  paid  according  to  prin- 
ciples practically  identical  with  those  already 
described. 

American  Interests  in  Nationalized  Property 

The  amount  of  property  nationalized  in  Czecho- 
slovakia, ownership  of  which  was  vested  in  nation- 
als of  the  United  States,  is  not  exactly  known. 
Estimates  made  by  various  sources  range  from 
$30,000,000  to  $50,000,000.  Perhaps  twice  as  much 
American  property  located  in  Czechoslovakia  con- 
sists of  real  estate,  currency,  jewelry,  personal 
effects,  and  the  like,  which  have  not  been  national- 
ized. 

In  January  1946  the  Czechoslovak  Government 
announced  that :  (1)  the  matter  of  compensation 
for  nationalized  enterprises  in  which  foreign  cap- 
ital is  invested  will  be  negotiated  directly  with  the 
governments  of  the  owners;  and  (2)  the  Minis- 
tries of  Finance  and  Industry  plan  to  reimburse 
the  owners  of  such  capital  in  3  percent  government 
bonds.  It  also  stated  in  a  note  to  the  American 
Ambassador  that  it  had  taken  measures  to  ascer- 
tain the  value  of  concerns  containing  foreign  cap- 
ital ;  and  it  asked  the  aid  of  the  Embassy  in  draw- 
ing up  a  complete  list  of  enterprises  in  which  an 
American  interest  exists,  as  well  as  the  amount 
and  present  value  of  each  interest  and  the  date  of 
acquisition.  Two  hints  as  to  policy  were  contained 
in  this  note:  (1)  a  suggestion  that  since  compen- 
sation is  to  be  paid  out  of  a  special  fund  accruing 
from  the  excess  profits  of  nationalized  concerns, 
the  question  of  compensation  depends  partly  upon 
(he  facilities  granted  to  Czechoslovak  export  trade ; 
and  (2)  a  remark  indicating  that  there  may 
be  a  diffei'ence  between  cases  representing  gen- 
uine foreign  investments  and  those  which  are 
really  an  export  of  Czechoslovak  capital  (property 
of  emigres,  et  cetera. 

Official  inquiries  were  started  to  determine  the 
means  by  which  claimants  could  actually  obtain 
compensation.    In  a  note  dated  May  7,  1946  the 


Czechoslovak  Ministry  of  Foreign  Affairs  in- 
formed the  American  Ambassador  that  it  still 
lacked  "sufficient  reliable  data  concerning  foreiom 
capital  investments  in  nationalized  undertakings 
...  to  draw  up  a  list  of  such  holdings".  It  also 
stated  tliat  compensation  is  due  to  the  former 
owner,  for  example,  a  joint-stock  company,  but  not 
to  individual  shareholders.  The  parties  to  the 
compensation  proceedings  will  be  the  companies 
and  corporations  (against  which  individual  share- 
holders will  be  able  to  press  claims) . 

Reference  was  also  made  to  the  provision  in 
article  10  of  the  decree  on  the  nationalization  of 
mines  and  industries  that  proceedings  on  com- 
pensation shall  be  governed  by  the  rules  of  the 
decree  of  January  13,  1928  on  the  jurisdiction  of 
the  administrative  authorities.  This  provision 
means  that  the  Czechoslovak  Government  intends 
to  have  claims  for  compensation  arising  out  of  the 
nationalization  of  property  decided,  not  by  the 
civil  courts  but  on  the  basis  of  hearings  before  an 
administrative  agent  or  agency.  A  special  section 
in  the  Ministiy  of  Foreign  Affairs  has  been  estab- 
lished to  receive  foreign  claims  and  to  expedite 
their  handling.  Such  administrative  hearings 
have  a  strong  resemblance  to  regular  judicial  pro- 
ceedings, and  the  decree  in  question  endeavors  to 
l^rotect  all  the  usual  rights  of  parties.  Arrange- 
ments of  this  kind  are  usual  in  most  parts  of  Europe 
when  the  state  or  any  part  of  the  administration  is 
one  of  the  parties. 

Inquiries  were  made  as  to  the  formalities 
necessary  to  the  instigation  of  proceedings  to  ob- 
tain compensation,  and  most  of  the  points  raised 
in  this  connection  have  now  been  settled.  Mean- 
while, a  law  dated  May  15,  1946  but  published  on 
June  18,  1946  has  had  a  discouraging  effect  upon 
claimants.  This  law  provided  for  a  war-profits 
tax  and  a  capital  levy  which  will  have  the  effect 
of  reducing  the  amounts  paid  in  compensation. 

In  the  last  few  months  the  Governments  of  the 
United  States  and  Czechoslovakia  have  been  dis- 
cussing procedures  and  principles  for  comjsensat- 
ing  American  owners  of  properties  nationalized 
by  Czechoslovakia.  No  agreement,  however,  has 
yet  been  reached  beyond  the  general  assurance 
given  in  the  exchange  of  notes  between  the  two 
Governments  on  November  14,  1946  that  adequate 
and  effective  compensation  will  be  made. 


1031 


SIXTH  SESSION  OF  THE  COUNCIL  OF  UNRRA 


hy  David  Persinger 


The  UNRRA  Council  will  meet  on  Decerriber  10,  19Jfi  in 
Washinffton  to  plan  the  completion  of  its  operations.  Deci- 
sions will  be  a-ffected  hy  action  of  the  United  Nations  on  plans 
for  relief  in  19^7  and  on  the  establishment  of  the  Interna- 
tional Refugee  Organization  to  care  for  displaced  persons. 
Legality  of  the  proposed  transfer  to  the  Children^  Fund  of 
UNRRA^s  remaining  assets  has  been  questioned.  The  Coun- 
cil vrvast  elect  the  successor  to  Director  General  La  Guardia, 
who  plans  to  resign. 


The  Council  of  UNRRA  is  scheduled  to  hold 
its  sixth  session  at  the  Shoreham  Hotel  in  Wash- 
ington beginning  December  10.  The  date  was 
selected  in  order  to  have  ample  time  to  finish  the 
session  before  Christmas  but  at  the  same  time  in 
the  hope  that  a  number  of  the  problems  referred 
to  below  will  have  been  settled  in  the  United 
Nations  meeting  now  being  held  in  New  York. 

Under  Secretary  William  L.  Clayton  is  the 
United  States  member  of  the  Council,  and  C.  Tyler 
Wood,  Special  Assistant  to  Assistant  Secretary 
Thorp,  and  Dallas  W.  Dort,  Adviser  on  Relief 
and  Rehabilitation,  are,  respectively,  Mr.  Clayton's 
First  and  Second  Alternates.  With  few  excep- 
tions, the  advisers  to  Mr.  Clayton  will  be  the  same 
as  those  who  were  members  of  the  delegation  to 
the  fifth  session  of  the  Council  held  at  Geneva  last 
August. 

It  is  anticipated  that  this  may  be  the  concluding 
session  of  the  UNRRA  Council,  and  the  problem  of 


how  to  wind  up  UNRRA's  affairs  will  probably  be 
the  main  issue  discussed.  It  was  decided  at 
Geneva  that  UNRRA  was  to  seek  to  conclude  its 
various  supply  programs  by  the  end  of  this  year 
(by  the  end  of  Marcli  in  tlie  case  of  the  Far  Eastern 
programs) ,  with  an  allowable  "slip  over"  of  30  to 
60  days,  and  its  displaced-persons  program  by  the 
end  of  June  of  next  year.  Therefore,  with  only  a 
few  months  of  operations  left,  the  principal  prob- 
lem remaining  is  that  of  liquidating  UNRRA's 
funds,  property,  and  personnel  in  an  ordei-ly  fash- 
ion and  within  a  reasonable  tune. 

In  this  connection,  the  problem  of  how  necessary 
relief  will  be  made  available  in  1947,  which  is 
currently  under  discussion  in  the  General  Assem- 
bly of  the  United  Nations,  is  of  direct  interest  to 
the  UNRRA  Council.  If  the  U.S.  proposal  for 
bilateral  agreements  between  the  supplying  and 
receiving  countries  is  adopted,  there  will  be  noth- 
ing to  prevent  the  prompt  wind-up  of  UNRRA's 


1032 


Department  of  State   Bulletin      •      December  8,   1946 


affairs — unless  it  be  the  problem  of  displaced 
persons  discussed  hereafter.  On  the  other  hand, 
if  an  international  relief  program  for  1947  along 
the  lines  proposed  by  Director  General  La  Guardia 
is  adopted  by  the  United  Nations,  it  may  be  that 
it  will  be  coordinated  with  the  terminating 
UNERA  programs  in  such  a  way  that  an  imme- 
diate wind-up  of  UNRRA's  operations  will  not  be 
feasible.  It  is  still  too  early  to  say  what  plan  will 
be  adopted. 

The  discussion  in  the  General  Assembly  of  next 
year's  relief  problem  has  not  always  made  clear 
to  the  general  public  that,  although  UNRRA  has 
aimed  at  concluding  its  shipments  to  Europe  by 
the  end  of  1946,  some  very  large  tonnages  are  ex- 
pected to  be  shipped  to  Europe  in  January  and 
February.  These  latter  shipments  will  consist 
largely  of  industrial  rehabilitation  materials, 
whereas  the  relief  needs  for  next  year  which  are 
being  considered  are  exclusively  foodstuffs. 

The  other  continuing  phase  of  UNRRA's  opera- 
tions is  the  care  of  displaced  persons.  The  Coun- 
cil at  its  fifth  session  directed  UNRRA  to  continue 
this  work  until  the  end  of  June  of  next  year  and 
expressed  the  hope  that  the  International  Refugee 
Organization  would  be  effectively  operating  by 
that  time.  The  IRO  is  now  under  lengthy  discus- 
sion at  the  U.N.  meeting,  and  it  appears  entirely 
possible  that  it  will  not  be  in  a  position  to  take 
over  all  of  UNRRA's  operations  by  the  time 
UNRRA  is  required  to  end  them.  If  such  a  con- 
dition should  eventuate,  the  United  States  will 
be  in  the  position  of  having  to  continue  the  care 
of  the  displaced  persons  in  its  zones  in  Germany 
and  Austria  and  to  contribute  largely  to  the  care 
of  displaced  persons  in  Italy  without  assistance 
from  other  nations. 

Meanwhile  the  U.S.  Army,  which  has  been  fur- 
nishing the  basic  supplies  for  displaced  persons 
in  the  U.S.  zone  in  Germany,  must  continue  to  do 
so  as  long  as  UNRRA  continues  to  operate  there, 
and  the  U.S.  Army  in  Austria  must  begin  to  do  the 
same  as  soon  as  the  UNRRA  food  program  for 
Austria  is  completed,  an  event  which  will  occur 
in  January  or  February  of  1947.  It  has  not  yet 
been  decided  how  basic  supplies  will  be  provided 
for  displaced  persons  in  Italy  at  the  conclusion 
of  the  UNRRA  supply  program. 


The  UNRRA  Council,  at  its  sixth  session,  will 
receive  reports  from  the  Director  General  con- 
cerning the  state  of  transfers  of  its  health  func- 
tions to  the  World  Health  Organization,  of  its 
welfare  functions  to  the  U.N.,  and  of  its  author- 
ity over  the  disposition  of  the  proceeds  of  local 
sales  of  UNRRA  supplies  to  an  appropriate  body 
of  the  United  Nations. 

Another  transfer  which  was  proposed  by  the 
Council  at  Geneva  appears  to  have  encountered 
certain  difficulties.  In  Resolution  103  it  was  pro- 
posed that  the  UNRRA  funds  remaining  at  the 
conclusion  of  UNRRA's  operations  should  be 
placed  in  an  international  fund  for  the  rehef  and 
rehabilitation  of  children  and  adolescents. 

The  United  Nations  General  Assembly  has  been 
considering  at  some  length  the  establishment  of 
such  an  international  children's  fund.  It  has  not 
yet  been  determined,  however,  if  the  Congressional 
legislation  which  authorized  the  United  States  to 
participate  in  UNRRA  and  which  appropriated 
funds  for  UNRRA  will  permit  any  funds  which 
may  remain  to  be  transferred  by  UNRRA  to  an- 
other intei'national  organization  such  as  the  pro- 
posed fund. 

Furthermore,  it  is  possible  that  full  considera- 
tion has  not  yet  been  given  to  the  practical  aspects 
of  such  a  proposal,  notably  the  probable  delay  in 
the  transfer  of  funds  which  UNRRA  may  have 
authority  to  transfer.  It  seems  very  likely  that 
UNRRA's  liabilities  will  not  have  been  finally  and 
fully  determined  for  at  least  a  year  after  all 
UNRRA  operations  have  ceased.  If  the  fund  is 
intended  to  benefit  the  children  and  adolescents  of 
the  liberated  areas  of  Europe  and  the  Far  East 
prior  to  the  close  of  1948,  it  may  be  tliat  they  will 
receive  little  benefit  from  UNRRA  funds. 

The  last  item  to  come  before  the  sixth  session 
of  the  Council  will  be  the  resignation  of  Director 
General  La  Guardia  and  the  selection  of  his  suc- 
cessor. The  selection  of  a  new  Director  General 
will  necessarily  depend  in  a  considerable  measure 
upon  the  final  outcome  of  the  discussions  in  U.N. 
of  the  problems  mentioned  above.  The  type  of 
individual  who  would  prove  most  efficient  in  wind- 
ing up  UNRRA's  operations  would  not  be  the  type 
most  needed  if  UNRRA  is  to  continue  its  opera- 
tions for  any  appreciable  time. 


72.3438 — 415- 


1033 


TWENTY-NINTH  SESSION  OF  THE  INTERNATIONAL  LABOR  CONFERENCE 


An  Article ' 


Delegates  representing  1^6  national  governments  gathered 
at  Montreal  in  September  1946  for  the  Twenty-ninth  Session 
of  the  International  Labor  Conference.  The  work  of  the 
Conference  centered  largely  about  the  approval  of  a  draft 
agreement  between  the  United  Nations  and  the  International 
Labor  Organization,  a  revision  of  its  constitution,  and  the 
preparation  of  resolutions,  recommendations.^  and  conven- 
tions designed  to  further  social  progress  and  i?nprove  work- 
ing conditions. 


The  Twenty-ninth  Session  of  the  International 
Labor  Conference,  which  met  at  Montreal,  Canada, 
from  September  19  to  October  9,  1946,  was  the 
second  session  held  during  1946.-  It  was  attended 
by  delegates  representing  46  of  the  member  states 
of  the  Organization.  Thirty-five  of  the  delega- 
tions were  "complete",  comprising  two  govern- 
ment delegates,  one  management  delegate,  and  one 
labor  delegate.  The  United  Nations,  the  United 
Nations  Relief  and  Eehabilitation  Administration 
(UNRRA),  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization  (UNESCO), 
the  Intergovernmental  Committee  on  Refugees 
(IGCR),  and  the  Provisional  International  Civil 


'  Prepared  by  the  Division  of  International  Conferences 
in  collaboration  with  the  Division  of  International  Labor, 
Social  and  Health  Affairs,  Department  of  State. 

'The  Twenty-eighth  Maritime  Session  met  at  Seattle, 
Wash.,  June  6-29,  1946. 


Aviation  Organization  (PICAO)  were  repre- 
sented by  observers. 

The  Conference  elected  as  its  president  Hum- 
phrey INIitchell,  Canadian  Minister  of  Labor,  and 
the  following  vice-presidents:  A.  M.  Joekes, 
Netherlands  Government  Delegate;  Sir  John 
Forbes  Watson,  United  Kingdom  employers'  dele- 
gate; and  Carlos  Fernandez  Eodriquez,  Cuban 
workers'  delegate.  Edward  Phelan,  Director  Gen- 
eral of  the  International  Labor  Office,  acted  as 
Secretary  General.  The  Conference  was  addressed 
by  Trygve  Lie,  Secretary-General  of  the  United 
Nations ;  George  Isaacs,  British  Minister  of  Labor 
and  National  Service,  Henri  Laugier,  Assistant 
Secretary  General  <~j.  the  United  Nations;  and  Jan 
Stanczyk,  Direct  jr-General  of  the  Department  of 
Social  Affairs,  United  Nations.  i 

The  agenda  for  the  Twenty-ninth  Session  com- 
prised the  following  six  items:  (1)  Director's  re- 


1034 


Department  of  Slate  Bulletin      •      December  8,   1946 


port;  (2)  reports  on  the  application  of  conven- 
tions; (3)  constitutional  questions ;  (4)  budgetary 
and  financial  matters;  (5)  protection  of  children 
and  young  workers;  and  (G)  minimum  standards 
of  social  policy  in  dependent  territories.  On  each 
of  these  items  the  Conference  had  before  it  one  or 
more  reports  prepared  by  the  International  Labor 
OlBce.  With  the  exception  of  the  Director's  re- 
port, these  were  referred  by  the  Conference  to  com- 
mittees established  for  each  of  the  agenda  items, 
the  committees  in  turn  reporting  to  the  Confer- 
ence in  plenary  sitting.  Senator  Elbert  D. 
Thomas,  one  of  the  two  United  States  Delegates, 
served  as  chairman  of  the  Committee  on  Mini- 
mum Standards  of  Social  Policy  in  Dependent 
Territories.^  In  addition,  the  Conference  set  up 
a  Selection  (or  Steei'ing)  Committee,  a  Creden- 
tials Committee,  a  Resolutions  Committee,  a 
Standing  Orders  Committee,  and  a  Drafting 
Committee. 

Seven  plenary  sessions  were  devoted  to  a  dis- 
cussion of  the  Director's  report,  which  dealt  with 
immediate  peace  problems,  international  economic 
collaboration,  the  organization  of  employment,  and 
the  activities  of  the  Oi'ganization  since  the  Twenty- 
seventh  Session  of  the  Conference  held  at  Paris  in 
October-November,  1945.  Sixty-six  speakers  from 
34  countries  participated  in  the  discussion,  with 
Mr.  Phelan  replying  in  an  address  delivered  at  the 
fifteenth  plenary  sitting. 

On  the  recommendation  of  the  various  commit- 
tees, the  Conference  adopted  an  instrument  for 
the  amendment  of  the  constitution  of  the  Organi- 
zation, four  international  labor  conventions,  two 
recommendations,  and  14  resolutions.  These  deci- 
sions brought  to  80  the  total  of  conventions  adopted 
by  the  Organization  to  date,  and  also  to  80  the 
total  of  recommendations  adopted  to  date.  Fifty 
of  the  conventions  are  currently  in  force.  As  of 
November  1,  1946  the  total  number  of  ratifications 
of  the  various  conventions  was  922. 

The  Conference  also  approved  a  draft  agreement 
between  the  United  Nations  and  the  International 
Labor  Organization  which  will  come  into  effect 
when  it  has  been  given  similar  approval  by  the 
General  Assembly  of  the  United  Nations.  The 
agreement  defines  the  terms  of  the  relationship 
between  the  two  organizations,  and  under  it  the 
United  Nations  recognizes  the  ILO  as  a  specialized 


agency  "responsible  for  taking  such  action  as  may 
be  appropriate  under  its  basic  instrument  for  the 
accomplishment  of  the  purposes  set  forth  therein." 

In  addition,  the  Conference  adopted  a  report  of 
the  Committee  on  the  Application  of  Conventions, 
seven  reports  of  the  Selection  Committee,  five  re- 
ports of  the  Credentials  Committee,  a  report  of  the 
Finance  Committee  of  Government  Representa- 
tives, a  report  of  the  Committee  on  Standing  Or- 
ders, and  a  report  of  the  Resolutions  Committee. 

On  the  recommendation  of  the  Finance  Commit- 
tee of  Government  Representatives  the  Conference 
approved  a  budget  for  the  1947  operations  of  the 
Organization  of  16,052,980  Swiss  francs  (approxi- 
mately $3,733,000  in  U.  S.  currency) .  The  budget 
will  be  allocated  among  51  states. 

The  Credentials  Committee  considered  the  ob- 
jections against  the  credentials  of  the  workers' 
delegates  and  advisers  of  India  and  Greece.  It 
unanimously  found  those  of  the  Indian  workers' 
delegate  and  his  advisers  to  be  in  order  but  sub- 
mitted majority  and  minority  reports  on  the  ob- 
jection against  the  Greek  workers'  delegation. 
The  Conference  approved  by  a  vote  of  40  to  36  the 
majority  report,  which  rejected  the  objection. 

On  the  recommendation  of  the  Committee  on 
Standing  Orders,  the  Conference  approved  a  num- 
ber of  changes  in  the  standing  orders  of  the  Con- 
ference. These  amendments  gave  statutory  char- 
acter to  the  practice  under  which  official  transla- 
tions of  speeches  into  Spanish  are  furnished  by 
the  secretariat,  and  documents  of  the  Conference 
and  the  stenographic  record  are  published  in 
Spanish  as  well  as  English  and  French,  the  official 
languages  of  the  Organization. 

Two  resolutions  on  matters  outside  the  agenda  of 
the  Conference  were  approved.  One  of  these  asked 
the  Governing  Body  of  the  Organization  to  con- 
sider the  desirability  of  placing  on  the  agenda  of 
a  forthcoming  session  of  the  Conference  the  ques- 
tion of  the  social  problems  of  indigenous  popula- 
tions of  independent  countries.  The  other  placed 
the  Conference  on  record  as  paying  tribute  to 
"those  brave  people  who  suffered  and  especially  to 
the  millions  who  died  in  the  struggle  for  freedom 
and  liberty"  and  as  asking  "all  member  govern- 
ments to  develop  and  strengthen  their  democratic 

'  For  membership  of  U.  S.  Delegation,  see  Buixbtin  of 
Sept.  29,  1040-,  p.  573. 


1035 


institutions  and  social  principles  in  accordance 
with  the  Atlantic  Charter  and  the  Declaration  of 
Philadelphia  to  prevent  the  reappearance  of 
Fascist  exploitation  everywhere". 

On  the  recommendation  of  the  Committee  on 
Constitutional  Questions,  the  Conference  unani- 
mously adopted  an  Instrument  for  the  Amend- 
ment of  the  Constitution  of  the  International 
Labor  Organization,  1946.  This  instrument  era- 
bodied  a  large  number  of  amendments  to  the 
constitution  which  will  come  into  effect  with 
ratification  or  appi'oval  of  the  instrument  by  two 
thirds  of  the  member  states  of  the  Organization, 
including  five  of  the  eight  states  which  hold  non- 
elective  seats  on  the  Governing  Body  as  states  of 
chief  industrial  importance.  The  effect  of  the 
more  important  of  these  amendments  is  (1)  to 
add  the  promotion  of  the  objects  set  forth  in  the 
Declaration  of  Philadelphia  to  the  purposes  of  the 
Organizations;  (2)  to  delete  all  references  to  the 
League  of  Nations;  (3)  to  facilitate  cooperation 
between  the  Organization  and  the  United  Nations ; 
(4)  to  clarify  and  give  greater  recognition  to  the 
position  occupied  by  the  Governing  Body;  (5)  to 
change  the  title  of  Director  of  the  International 
Labor  Office  to  Director  General;  (6)  to  require  a 
two-thirds  vote  of  the  Conference  to  waive  the 
suspension  of  voting  rights  of  states  in  arrears 
in  their  contributions;  (7)  to  increase  the  obliga- 
tions of  the  member  states  in  respect  to  action  on 
international  labor  conventions ;  (8)  to  clarify  the 
obligations  of  member  states  in  respect  to  recom- 
mendations; (9)  to  clarify  the  obligations  of  fed- 
eral states  in  respect  to  conventions  and  recom- 
mendations; (10)  to  improve  the  procedure  for  the 
application  of  conventions  to  non-metropolitan 
territories;  and  (11)  to  empower  the  Governing 
Body  to  recommend  to  the  Conference  measures 
to  secure  compliance  with  the  terms  of  ratified 
conventions. 

On  the  recommendation  of  the  Committee  on 
Constitutional  Questions,  the  Conference  also 
adopted  (1)  a  convention  for  the  partial  revision, 
in  consequence  of  the  dissolution  of  the  League  of 
Nations,  of  the  conventions  adopted  at  the  previ- 
ous 28  sessions  of  the  Conference;  (2)  a  series  of 
final  articles  concerning  ratification  and  denuncia- 
tion procedure  to  be  inserted  to  future  conven- 
tions; (3)  a  model  clause  concerning  measures  to 
secure  compliance  with  the  provisions  of  conven- 


tions for  inclusion  in  future  conventions;  (4)  a 
resolution  referring  to  the  Governing  Body  for 
further  consideration  the  preliminary  text  of  a 
proposed  convention  on  the  privileges  and  im- 
munities of  the  Organization;  (5)  a  resolution 
urging  the  prompt  ratification  of  the  Instrument 
of  Amendment,  194C;  (6)  a  resolution  applying 
immediately  certain  provisions  of  the  Instrument 
of  Amendment,  1946,  including  the  provision 
changing  the  title  of  Director  of  the  Office  to  Di- 
rector General. 

At  the  eighteenth  plenary  sitting,  Mr.  Edward 
Phelan  informed  the  Conference  that  the  Instru- 
ment for  the  Amendment  of  the  Constitution, 
1945,  adopted  at  the  Twenty-seventh  Session  of 
the  Conference  in  Paris,  had  come  into  force, 
ratifications  or  acceptances  having  been  received 
from  three  quarters  of  the  member  states  of  the 
Organization. 

In  his  reply  to  the  debate  on  the  Director's  re- 
port, Mr.  Phelan  announced  that  the  International 
Labor  Office  was  not  leaving  Montreal,  although 
many  of  the  headquarters  staff  would  be  trans- 
ferred this  winter  from  the  overcrowded  offices 
there  to  the  ILO  Building  at  Geneva.  He  pointed 
out  that  the  Organization,  under  the  terms  of  the 
agreement  with  tlie  United  Nations,  had  agi'eed  to 
consult  the  United  Nations  before  making  any  de- 
cision in  regard  to  its  permanent  headquarters. 
He  also  pointed  out  that,  under  the  amended  con- 
stitution, the  Conference  was  empowered  to  fix  the 
seat  of  the  Organization. 

On  the  recommendation  of  the  Selection  Com- 
mittee, the  Conference  unanimously  expressed  the 
hope  that  Lebanon,  Nicaragua,  and  El  Salvador 
would  "forthwith  communicate  to  the  Director 
their  formal  acceptance  of  the  obligations  of  the 
Constitution  of  the  Organization  and  will  be  rep- 
resented as  Members  of  the  Oi'ganization  at  the 
30th  Session  of  the  Conference."  The  Committee 
pointed  out  that  the  three  states  had  made  applica- 
tion for  membership  in  the  Organization  and  that 
as  members  of  the  United  Nations  they  were  en- 
titled, under  the  terms  of  the  constitutional 
amendment  which  had  come  into  force,  to  become 
members  by  stating  their  acceptance  of  the  obliga- 
tions imposed  by  the  constitution. 

In  addition  to  the  conventions  and  resolutions 
referred  to  above,  the  major  decisions  of  the  Con- 
ference may  be  summarized  as  follows : 


1036 


Department  of  State  Bulletin      •      December  8,   7946 


International  labor  conventions:  Convention 
concerning  medical  examination  for  fitness  for 
employment  in  industry  of  children  and  young 
persons;  convention  concerning  medical  examina- 
tion of  children  and  young  persons  for  fitness  for 
employment  in  non-industrial  occupations;  and 
convention  concerning  the  restriction  of  night 
work  of  children  and  young  persons  in  non-indus- 
trial occupations. 

Recommendations :  Eecommendation  concern- 
ing the  medical  examination  for  fitness  for  employ- 
ment of  cliildren  and  young  persons ;  and  recom- 
mendation concerning  the  restriction  of  night 
work  of  children. 

Resolutions :  Kesolution  concerning  the  jDlacing 
of  certain  questions  with  regard  to  non-self-gov- 
erning territories  on  the  agenda  of  the  next  session 
of  the  International  Labor  Conference;  resolution 
concerning  freedom  of  labor;  resolution  concern- 
ing action  by  the  Governing  Body ;  resolution  con- 
cerning the  extension  of  medical  examination  to 
young  agricultural  workers ;  resolution  concerning 
the  adoption  of  the  revised  statute  of  the  adminis- 
trative tribunal;  resolution  confirming  the  terms 
of  office  of  the  judges  of  the  administrative  tribu- 
nal for  three  years;  resolution  concerning  the 
adoption  of  the  revised  staff  pension  regulations; 
resolution  concerning  the  contributions  payable  to 
the  pension  fund  in  1947. 

The  conventions  and  recommendations  sum- 
marized above  are  described  in  more  detail  in  the 
sections  which  follow. 

Convention  Concerning  Medical  Examination  for 
Fitness  for  Employment  in  Industry  of  Children 
and  Young  Persons 

This  convention  provides  that  young  persons 
under  18  years  of  age  working  in  industrial  under- 
takings (exclusive  of  agricultural  and  maritime 
occupations)  shall  not  be  admitted  to  employment 
unless  they  have  been  found  fit  to  work  by  a 
thorough  medical  examination,  to  be  administered 
by  a  qualified  physician.  The  continued  employ- 
ment of  young  persons  under  18  years  of  age  shall 
be  subject  to  the  repetition  of  medical  examination 
at  least  yearly.  The  convention  provides  that 
medical  examinations  shall  be  required  until  at 
least  the  age  of  21  years  in  occupations  involvinf 
high  health  risks.  The  examination  shall  be  with- 
out charge  to  the  young  person  or  his  parents. 


Appropriate  measures  shall  be  taken  by  the  com- 
petent authority  for  vocational  guidance  and  phys- 
ical and  vocational  rehabilitation  of  those  found  to 
be  unsuited  to  certain  types  of  work  or  to  have 
physical  handicaps.  It  permits  the  issuing  of 
temporary  work  certificates  in  special  cases  where 
a  young  person  is  found  to  be  unfit.  It  makes 
special  provisions  for  India  and  other  countries 
where  it  is  found  impracticable  at  present  to  en- 
force fully  its  terms.  It  calls  for  special  enforce- 
ment machinery.  The  convention  will  come  into 
force  two  months  after  it  has  been  ratified  by  two 
member  states.  It  provides  for  reconsideration  of 
its  terms  at  the  expiration  of  each  ten-year  period 
after  its  coming  into  force.  It  further  provides 
that  existing  agreements  insuring  more  favorable 
conditions  shall  not  be  affected  by  the  convention. 

Convention  Concerning  Medical  Examination  of 
Children  and  Young  Persons  for  Fitness  for 
Employment  in  N on-Ind,ustrial  Occupations 

This  convention  provides  that  young  persons 
under  18  years  of  age  working  in  non-industrial 
undertakings  (exclusive  of  agriculture  and  mari- 
time occupations)   shall  not  be  admitted  to  em- 
ployment unless  they  have  been  found  fit  to  work 
by  a  thorough  medical  examination,  to  be  admin- 
istered by  a  qualified  physician.    It  permits  na- 
tional laws  or  regulations  to  exempt  young  per- 
sons employed  in  family  undertakings  which  are 
recognized  as  not  being  dangerous  to  their  health. 
The  continued  employment  of  young  persons  un- 
der 18  years  of  age  shall  be  subject  to  the  repeti- 
tion of  medical  examinations  at  least  yearly.     It 
provides  that  medical  examinations  shall  be  re- 
quired until  at  least  the  age  of  21  years  in  occu- 
pations involving  high  health  risks.    The  exami- 
nation shall  be  without  charge  to  the  young  person 
or  his  parents.     Appropriate  measures  shall  be 
taken  by  the  competent  authority  for  vocational 
guidance  and  physical  and  vocational  rehabilita- 
tion of  those  found  to  be  unsuited  to  certain  types 
of  work  or  to  have  physical  handicaps.     It  per- 
mits the  issuing  of  temporary  work  certificates  in 
special  cases  where  a  young  person  is  found  to  be 
unfit.     It  calls  for  special  enforcement  machinery. 
It  provides  special  provisions  for  certain  countries 
where  it  is  found  impracticable  at  present  to  en- 
force fully  its  terms.     The  convention  will  come 
into  force  twelve  months  after  it  has  been  ratified 


1037 


by  two  member  states.  It  provides  for  reconsid- 
eration of  its  terms  at  the  expiration  of  each  ten- 
year  period  after  its  coming  into  force.  It  pro- 
vides that  existing  agreements  insuring  more 
favorable  conditions  shall  not  be  affected  by  the 
convention. 

Conventions  Conceiving  the  Restriction  of  Night 
Work  of  Children  and  Toung  Persons  in  Non- 
Industrial  Occupations 

This  convention  provides  that  children  under 
14  years  of  age  who  are  admissible  for  full  or  part- 
time   non-industrial   employment    (exclusive   of 
agricultural  or  maritime  occupations)   and  chil- 
dren over  14  years  of  age  who  are  still  subject  to 
full-time  compulsory  school  attendance  shall  not 
be  employed  nor  work  at  night  during  a  period  of 
at  least  14  consecutive  hours,  including  the  inter- 
val between  8  o'clock  in  the  evening  and  8  o'clock 
in  the  morning.     National  laws  or  regulations 
may  exempt  domestic  service  in  private  households 
and  work  in  family  undertakings  which  is  not 
deemed  to  be  harmful  to  young  persons.    It  pro- 
vides that  children  over  14  years  of  age  who  are 
no  longer  subject  to  full-time  compulsory  school 
attendance,  and  young  persons  under  18  years  of 
age  shall  not  be  employed  nor  work  at  night  dur- 
ing a   period  of   at  least   12  consecutive  hours 
including  the  interval  between  10  o'clock  in  the 
evening  and  6  o'clock  in  the  morning.     The  con- 
vention makes  certain  exceptions  to  meet  local 
climatic  conditions.     It  permits  national  laws  or 
regulations  to  grant  temporary  individual  licenses 
in  order  to  enable  young  persons  of  16  years  of 
age  and  over  to  work  at  night  when  the  special 
needs  of  vocational  training  so  require,  subject  to 
the  period  of  daily  rest  being  not  less  than  11 
consecutive  hours.    National  laws  or  regulations, 
subject  to  certain  restrictions,  may  grant  indi- 
vidual licenses  in  order  to  enable  children  or  young 
persons  under  18  years  of  age  to  appear  at  night 
as  performers  in  public  entertainment  or  to  par- 
ticipate at  night  as  performers  in  the  making  of 
cinematographic  films.    The  convention  provides 
for  the  enforcement  of  the  provisions  of  the  con- 
vention.    It  provides  special  provisions  for  India 
and  other  countries  where  it  is  found  impractica- 
ble at  present  to  enforce  fully  its  terms.     The 
convention    shall    come    into    force    12    months 


after  it  has  been  ratified  by  two  member  states. 
It  provides  for  reconsideration  of  its  terms  at  the 
expiration  of  each  ten-year  period  after  its  coming 
into  force.  It  provides  that  existing  agreements 
insuring  more  favorable  conditions  shall  not  be 
affected  by  the  convention. 

Recormnendation  Concerning  th£  Medical  Exami- 
nation for  Fitness  for  Employment  of  Children 
and  Young  Persons 

This  recommends  that  governments  extend  to 
all  occupations  carried  on  for  profit,  without  con- 
sideration of  the  family  relationship,  the  protec- 
tion provided  for  by  the  conventions  concerning 
medical  examination  for  fitness  for  employment 
of  children  and  young  persons.  It  recommends 
that  all  children  should  undergo,  preferably  be- 
fore the  end  of  their  compulsory  school  attend- 
ance, a  general  medical  examination,  the  results 
of  which  can  be  used  by  the  vocational  guidance 
services.  The  thorough  medical  examination  re- 
quired on  entry  into  employment  should  include 
clinical,  radiological,  and  laboratory  tests,  and 
should  be  accompanied  by  appropriate  advice  on 
health  care  and  if  necessary  by  supplementary 
vocational  guidance  with  a  view  to  a  change  of 
occupation.  It  recommends  the  extension  of  com- 
pulsory medical  examination  until  at  least  21  for 
all  young  workers  employed  in  industrial  or  non- 
industrial  occupations.  It  recommends  that  yoimg 
persons  found  by  medical  examination  to  have 
physical  handicaps  or  limitations  or  to  be  gener- 
ally unfit  for  employment  should  receive  proper 
medical  care,  be  encouraged  to  return  to  school 
or  be  given  guidance  toward  suitable  occupations, 
and  be  extended  financial  aid  if  necessary  during 
the  period  of  medical  treatment,  schooling,  or  vo- 
cational training.  It  recommends  that  measures 
be  taken  to  train  a  body  of  qualified  examining 
doctors.  It  spells  out  in  greater  detail  the  ma- 
chinery desirable  to  insure  enforcement  of  medical 
examinations. 

Recommendations  Concerning  the  Restriction  of 
Night  Work  of  Children  and  Toung  Persons  in 
Non-Industrial  Occupations 

This  recommends  that  the  protection  provided 
young  persons  under  the  provisions  of  the  con- 
vention concerning  the  restriction  of  night  work 
in  non-industrial  occupations  be  extended  to  all 


1038 


Department  of  State  Bulletin      •      December  8,   1946 


undertakings  carried  on  for  profit,  without  regard 
to  family  undertaliings,  and  to  young  persons 
under  18  who  are  engaged  in  domestic  service.  It 
recommends  that  licenses  should  be  issued  for  lim- 
ited periods  to  young  persons  in  public  entertain- 
ment, and  should  be  granted  to  children  under  14 
only  in  exceptional  cases.  It  recommends  a  more 
detailed  plan  for  insuring  enforcement  of  restric- 
tion of  night  work,  and  recommends  that  greater 
use  be  made  of  women  in  a  supervisory  capacity. 


As  a  member  of  the  ILO  the  United  States  Gov- 
ernment is  obligated  within  12  months  to  submit 
to  the  "competent  authority"  each  convention  for 
ratification  and  each  recommendation  "for  consid- 
eration with  a  view  to  effect  being  given  to  it  by 
national  legislation  or  otherwise."  Under  the  ex- 
isting constitution,  however,  a  Federal  state  such 
as  the  United  States  may  treat  a  convention  to 
which  constitutional  limitations  are  applicable  as 
a  recommendation  only. 


Addresses  and  Statements  of  the  Week 


Clair  Wilcox,  director  of  the  Office  of 
International  Trade  Policy,  and 
chairman  of  U.S.  Delegation  to  Pre- 
paratory Committee  for  the  Inter- 
national Trade  and  Employment 
Conference. 

Richard  H.  Heindel,  chief,  Division  of 
Libraries  and  Institutes,  Office  of 
International  Information  and  Cul- 
tural Affairs. 

Paul  V.  McNutt,  Ambassador  to  the 
Republic  of  the  Philippines. 


George  Wadsworth,  American  Minister 
to  Syria  and  Lebanon  and  Ambas- 
sador Designate  to  Iraq. 


Chester  T.  Lane,  lend-lease  administrator, 

Department  of  State. 
David     E.     Austen,     deputy    executive 

director   of   lend-lease,    Department 

of  State. 


Acting  Secretary  Acheson 


C.  Tyler  Wood,  special  assistant  to  the 
Under  Secretary  of  State  for  Eco- 
nomic Affairs. 


Statement  on  accomplishments  of  the 
Preparatory  Committee  for  the 
International  Trade  and  Employ- 
ment Conference.  Text  issued  as 
press  release  843  of  Nov.  26. 
Printed  in  this  issue. 

"Understanding  the  United  States 
Abroad".  Text  issued  as  press 
release  846  of  Nov.  27.  Excerpts 
printed  in  this  issue. 

On  the  subject  of  American-Philippine 
cooperation.  Text  issued  as  press 
release  848  of  Nov.  27.  Not 
printed. 

On  the  subject  of  American  influence 
in  the  Arab  renaissance.  Text 
issued  as  press  release  849  of  Nov. 
29.     Not  printed. 


Radio  broadcast  on  the  subject  of  lend- 
lease  accomplishments.  Text  is- 
sued as  press  release  850  of  Nov. 
29.     Not  printed. 


Statement  concerning  the  reparations 
settlement  program  for  Japan. 
Text  issued  as  press  release  855  of 
Nov.   29.     Printed  in   this   issue. 

On  the  subject  of  direct  food  relief  to 
devastated  areas  to  supplant 
UNRRA.  Text  issued  as  press 
release  851  of  Nov.  29.  Printed 
in  this  issue. 


Made  before  the  final  plenary 
session  of  the  Preparatory 
Committee  on  Nov.  26. 


Delivered  before  the  National 
Council  for  the  Social  Studies 
in  Boston  on  Nov.  27. 

Delivered  before  Beta  Theta  Pi 
fraternity  in  Indianapolis,  Ind. 
on  Nov.  27. 


Delivered  at  a  dinner  in  honor  of 
the  chief  delegates  of  the  five 
Arab  states  to  the  General 
Assembly  of  the  United  Na- 
tions by  the  Institute  of  Arab- 
American  Affairs  in  New  York 
on  Nov.  29. 

Broadcast  made  over  NBC  Univer- 
sity of  the  Air  program  on 
Nov.  30. 


Made  on  Nov.  29. 


Made  on  "Town  Meeting  of  the 
Air"  broadcast  at  Plymouth, 
Mass.  on  Nov.  28. 


1039 


GERMAN  DOCUMENTS:  CONFERENCES  WITH  AXIS  LEADERS,  1944 


The  Fuhrer  and  the  Duce,  with  their  diplomatic  and  mili- 
tary advisers,  continue  their  series  of  conferences  held  near 
Salzburg  in  April  1944-  The  discussion  touches  such  mat- 
ters as  availahle  manpower,  military  and  civilian  morale, 
building  of  a  Republican  Fascist  army,  and  the  importance 
of  ideological  training  in  the  armed  forces. 


Memorandum  of  Conversation  between  the  Fuhrer 
and  the  Duce  at  Schloss  Klessheim,  April  23,  1944 
12  to  2  p.m.  Also  present,  the  Reich  Foreign  Min- 
ister, Field  Marshal  Keitel,  Ambassador  Rahn, 
Marshal  Graziani,  Ambassador  Anfuso,  and  Under 
Secretary  of  State  Mazzolins. 

Fiihrer's  Memorandum  No.  20/44 
State  Secret 

The  Fuhrer  began  the  conference  with  the  state- 
ment that  he  had  yesterday  set  forth  our  decision 
to  carry  on  the  struggle  uncompromisingly  to  a 
victorious  conclusion.  It  was,  however,  necessary 
that  this  confidence  and  this  planning  be  supported 
by  corresponding  action.  In  Germany  the  war  ef- 
fort was  a  total  one.  Even  the  young  boys  were 
being  used  in  the  flak  service  and  the  girls  in  the 
airplane-spotting  service.  AVe  had  set  up  fire- 
fighting  regiments  of  half-grown  boys,  who  also 
had  to  run  additional  risks  since  they  had  to  do 
their  duty  not  just  after  the  departure  of  the  enemy 
planes  but  even  during  the  course  of  the  air-raid 
alarm.  The  German  workers  were  working  72 
hours  a  week  at  their  machines  and,  if  special 
jobs  were  required  of  them,  they  often  worked  16 
or  17  hours  and  they  would  have  to  sleep  along- 


These  are  translations  of  documents  on  German-Italian 
conversations,  secured  from  German  Government  files,  and 
are  among  the  German  official  papers  which  the  Bulletin 
is  currently  publishing. 


side  their  machines.  Our  mine  workers  had  only 
two  days  a  month  off  from  their  shifts,  which, 
with  a  nine-hour  work  day  from  1,100  to  1,200 
meters  under  the  earth,  amounted  to  a  terrific 
exertion.  Women  were  employed  even  in  the  most 
dangerous  positions  in  munitions  and  machine  fac- 
tories. In  all  sorts  of  establislunents,  even  those 
of  the  State  Kailways,  women  were  being  em- 
ployed more  and  more.  If  we  got  additional 
workers  from  abroad  the  only  result  was  that  Ger- 
man laborers  were  set  free  for  use  at  the  front. 
It  was  clear  that  a  country  which  was  exerting 
itself  so  completely  was  entitled  to  judge  the  other 
countries  according  to  their  performance  in  the 
joint  conduct  of  the  war. 

In  North  Africa  a  good  army  has  been  lost. 
Tlie  Fiiln-er  had  still  believed  at  the  time  of  their 
meeting  at  Feltre  that  by  the  employment  of  8  to 
10  German  divisions  it  would  be  possible  to  hold 
Sicily  and  even  to  drive  the  enemy  from  the  island. 
Then  had  come  the  collapse.  The  Fuhrer  was 
convinced  that  countries  and  peoples  at  all  periods 
could  be  represented  by  individual  men.  The 
Kussians  had  their  Stalin.  It  was  the  misfortune 
of  France  that  no  great  man  had  been  discovered 
there.  To  a  certain  extent  Churchill  was  also  a 
strong  man  and  one  thought  of  Italy  only  in  con- 


1040 


Oepar\mer\\  of  State  Bulletin      •      December  8,    1946 


nection  with  the  Duce.  The  best  evidence  that 
Italy  had  succumbed  to  subversive  influence  was 
the  proceedings  in  South  Italy.  Italy's  will  to 
resist  had  been  bound  up  in  the  person  of  the 
Duce.  When  the  Duce  was  removed  it  became 
our  task  to  stabilize  the  situation.  The  German 
units  southward  of  Florence  had  been  put  in 
extreme  danger,  as  well  as  our  units  in  the  Balkans 
and  in  Crete.  In  the  Peloponnesus,  for  instance, 
we  had  had  four  German  divisions  and  several 
fortification  defense  battalions.  All  of  these  units 
would  have  been  lost  if  the  treachery  of  Badoglio 
and  the  King  had  been  successful,  so  that  imme- 
diate and  stern  measures  had  been  necessary.  It 
had  still  not  been  clear  whether  the  liberation  of 
the  Duce  could  be  accomplished  by  a  coup.  The 
course  of  further  development  in  Italy  could  not 
have  been  foreseen.  Badoglio  had  had  no  organi- 
zation, the  Army  had  been  disorganized,  and  the 
Navy  had  become  unreliable.  The  officer  corps 
had  displayed  weakness  in  its  relationsliip  with 
the  Italian  soldiers.  The  Fiihrer  had  been  told 
officially  by  the  Italians  that  Italy  would  only 
now  cooperate  effectively  since  previously  efforts 
on  behalf  of  the  common  cause  had  been  hin- 
dered by  Fascism,  which  was  hated  by  the  people. 
Nevertheless,  only  the  Fascist  units  and  certain 
anti-German  elements  had  had  real  military 
value. 

These  circumstances  had  required  lightning- 
swift  and  determined  decisions  to  restore  the  situ- 
ation and  to  prevent  further  treachery.  For  it 
was  completely  clear  that  a  German  collapse, 
regardless  of  whether  it  occurred  in  the  West  or 
the  East,  would  destroy  the  last  barrier  against 
the  Asiatic  flood.  Only  the  German  divisions  in 
the  East  stood  in  the  way  of  a  new  invasion  simi- 
lar to  that  of  the  Huns.  Neither  the  King  nor 
Badoglio  could  have  saved  his  country  fi'om  this 
catastrophe.  The  Badoglio  regime  was  inclined 
only  to  compromise  and  compromise  represented 
weakness. 

From  these  facts  we  had  drawn  the  necessary 
conclusions,  which  perhaps  from  the  outside  ap- 
peared harsh  but  which  represented  the  one  and 
only  thing  which  could  have  been  and  had  to  be 
done.  After  the  event  people  were  generally  in- 
clined to  regard  measures  which  had  been  born 
from  the  necessity  of  the  moment  as  being  too 


harsh.  So,  for  example,  the  jurists  at  Leipzig  had 
come  to  such  conclusions  in  the  proceedings  against 
the  so-called  "war  criminals"  on  charges  of  viola- 
tions of  international  law,  without  grasping  the 
fact  that  measures  which  may  have  been  incom- 
prehensible in  the  atmosphere  of  the  Leipzig  court- 
room had  had  to  be  taken  by  soldiers  at  the  front. 
The  deciding  factor  in  the  case  of  such  measures 
was  their  success.  If,  looked  at  in  retrospect,  they 
may  have  appeared  to  have  been  regrettable  from 
the  psychological  point  of  view  and  unnecessary 
from  the  material  point  of  view,  their  employ- 
ment in  Italy  had  nevertheless  been  correct  since 
the  situation  had  actually  been  restored.  Since  the 
Duce  was  not  there  himself  peoi^le  had  not  known 
where  the  treachery  had  arisen  and  one  could 
hardly  have  believed  that  the  English  would  ex- 
ploit the  situation  in  such  a  timorous  and  irres- 
olute fashion  as  they  did.  Our  measures  had  to 
be  taken  to  restore  the  situation  and  to  remove 
the  threat  to  our  rear.  The  Fiihrer  exercised  great 
authority  in  Germany,  but  he  nevertheless  had  to 
listen  to  his  Marshals  and  his  Colonel-Generals 
who  told  him  that  the  expenditure  of  any  further 
divisions  in  Italy  was  folly  as  long  as  the  supply 
routes  were  not  definitely  assured.  The  Fiihrer 
had  based  his  plans  on  the  Duce  and  now  it  was 
suddenly  reported  to  him  that  Fascism  was  no 
longer  in  existence. 

Thus  had  come  about  the  necessity  for  very 
harsh  and  thorough-going  measures.  We  had  in- 
tended first  to  withdraw  to  the  Apennines  or  even 
only  to  hold  the  Alpine  passes  which  could  have 
been  completely  defended  with  some  12  divisions. 
Germany  alone  would  not  have  been  able  to  control 
so  extensive  an  area,  and  as  soon  as  we  lost  to  the 
enemy  the  airfields  of  Foggia  and  on  Corsica  we 
had  realized  that  South  Germany  at  any  rate  stood 
open  to  enemy  air  attacks.  The  difference  between 
having  enemy  airfields  in  South  Italy  and  having 
them  in  the  Po  Valley  was  not  so  great,  but  in 
this  evacuation  there  had  been  one  measure  abso- 
lutely necessary  for  us:  the  complete  destruction 
of  everything  which  might  assist  the  enemy  and 
the  removal  of  material  which  we  could  use  in  our 
own  conduct  of  the  war. 

In  the  area  controlled  by  us  one  very  difficult 
question  had  arisen,  namely,  what  was  to  become 
of  the  Italian  Army.     In  that  Army  there  were 


1041 


scattered  elements  of  people  who  were  willing  to 
go  along  with  us  and  also  scattered  elements  in- 
cluding our  bitterest  enemies,  among  whom  were 
to  be  included  the  Alpini.  This  attitude  of  the 
Alpini  had  been  produced  in  part  by  their  service 
in  the  East,  although  we  had  never  used  them  in 
offensive  operations  but  always  only  for  defensive 
purposes.  The  Fiilirer  in  his  conversations  with 
the  Duce  had  always  until  now  kept  silent  about 
the  matter,  nevertheless  it  was  a  fact  that  General 
[Italo]  Gariboldi  had  caused  us  great  difficulties. 
At  .  .  .,^  for  example,  the  Italian  units,  al- 
though they  had  a  three-fold  superiority  in  num- 
bers, had  not  been  able  to  control  the  same  extent 
of  railway  as  our  troops.  Thus  there  had  been  a 
loss  of  21/^  munitions  trains  daily  which  had  cost 
the  life  of  many  a  German  soldier.  An  extraordi- 
narily brave  man.  General  Eibel,  who  had  won  the 
Iron  Cross  with  oak  leaves  and  swords,  had  fallen 
there,  not  by  the  hand  of  the  enemy,  but  a  hand 
grenade  had  been  thrown  at  him  from  an  Italian 
column,  and  he  had  been  killed  sitting  in  his  own 
car.  The  Italian  troops  at  the  front  had  sung  the 
"Internationale"  and  had  made  insulting  remarks 
about  the  Duce  and  himself. 

With  such  an  attitude  on  the  part  of  the  Italian 
troops  we  could  either  give  up  the  East  and  the 
Southeast  or  we  could  set  about  defending  our- 
selves, and  in  such  a  situation  we  would  have  had 
to  have  looked  upon  these  Italian  units  as  hostile. 
In  Germany  we  had  not  allied  ourselves  to  any 
kind  of  an  Italy  but  only  to  the  Fascist  Italy. 
Among  the  German  people  the  Duce  enjoyed  great 
popularity.  When  the  Duce  now  suddenly  dis- 
appeared we  were  compelled  to  regard  those  who 
were  responsible  for  that  as  traitors.  Our  meas- 
ures for  the  disarmament  of  the  Italian  troops  and 
for  deporting  them  had  been  necessary  because 
the  Italian  troops  had  been  infected.  For  that 
the  officer  corps  bore  the  blame.  If  the  Italian 
officers  had  treated  their  men  differently  and  had 
shared  their  rations  with  them  as  ours  did,  the 
result  would  have  been  different.  With  our  troops 
in  Kumania  the  daily  bread  ration  had  been  re- 
duced to  250  grams  and  it  went  without  saying 
that  officers  and  men  got  the  same  ration  and  at 
Stalingrad  both  of  them  had  gone  hungry.     But 

'  Name  of  place  is  illegible  in  original. 


the  Italian  officers  had  not  learned  to  act  dif- 
ferently. With  us  units  which  did  not  conduct 
themselves  properly  were  dissolved  and  outright 
cowards  were  shot.  In  our  eyes  the  Italian  troops 
had  behaved  shamefully,  especially  toward  the 
Duce,  and  we  had  accordingly  made  them  pris- 
oners of  war  and  only  later  introduced  regula- 
tions applying  to  them  as  military  internees. 
This  collapse  on  the  part  of  Italy  had  laid  new 
burdens  on  the  German  peo^Dle.  Fathers  of 
families  and  last  remaining  sons  had  had  to  be 
called  up  and  the  German  people  had  rightly 
demanded  that  the  Italians  should  at  least  be  put 
to  work  in  Germany.  Just  as  before,  the  true 
Fascists  who  had  conducted  themselves  with  dis- 
tinction were  excluded  from  all  this.  It  had  been 
demonstrated  before  the  treason  of  Badoglio  that 
among  the  Italians  there  were  outstanding  work- 
ei*s,  while,  on  the  other  hand,  many  of  them  even 
then  had  not  wanted  to  do  anything.  Thus,  for 
example,  in  the  home  city  of  the  Fiihrer  it  had 
happened  that  the  Italians,  in  spite  of  getting 
the  same  food  rations  as  the  German  workers,  and 
in  addition  quantities  of  wine  and  macaroni,  still 
produced  only  60  to  70  percent  results.  The 
Fiihrer  was  convinced  that  the  workers  had  never 
received  such  good  rations  in  Italy  and  at  Linz 
a  strike  and  a  shooting  fray  had  even  occurred. 
The  Italian  workers  had  then  appealed  to  their 
Ambassador  and  had  put  on  the  guise  of  Italian 
patriots  who  were  persecuted  by  us,  although,  as 
a  matter  of  fact,  they  were  pure  Communists.  It 
was  shameful  that  even  the  French  workers  had 
conducted  themselves  better  with  us.  Most  of 
them  had  even  come  back  again  to  Germany  after 
their  vacations.  It  was  intolerable  that  jieople 
who,  although  they  got  better  rations,  still  worked 
less,  then  went  out  on  strike  and  caused  trouble. 
While  the  Italian  workers  and  the  Italian  military 
internees  had  acted  as  Fascists,  the  relationship 
between  the  Germans  and  the  Italians  had  been 
very  good.  We  were  interested  only  in  seeing 
that  they  were  engaged  in  work  which  was  im- 
portant to  the  war  effort  from  the  economic  point 
of  view,  even  though  possibly  a  German  laborer 
who  worked  72  hours  a  week  might  be  replaced  by 
two  foreign  workers  who  worked  only  48  hours 
but  under  the  same  rationing  plan  ate  double  the 
amount. 


1042 


Department  of  Sfofe  Bulletin      •      December  8,    1946 


If  the  Duce  now  said  that  this  whole  system 
was  unsatisfactory,  we  likewise  found  it  so,  for 
on  the  one  hand  there  were  Italians  who  were  being 
trained  by  us  as  soldiers,  and  on  the  other  hand 
there  were  military  personnel  who  were  interned. 
This  could  not  be  altered,  however.  The  one 
grouja  was  infected  with  treason,  while  the  other 
group  was  made  up  of  young  inexperienced  peo- 
ple being  trained  as  soldiers.  We  would  set  up 
for  the  Duce  an  outstanding  unit,  composed  of 
the  best  and  not  of  the  average.  The  necessary 
training  period  amounted  to  18  months  and  the 
soldiers  would  be  well  trained  by  the  standards 
of  German  officers.  The  new  Italian  SS  battalion 
had  already  proved  itself  in  Italy,  the  new  units 
would  do  the  same,  and  the  replacement  elements 
were  first  rate.  We  would  gladly  train  additional 
units  for  the  Duce,  but  with  the  setting  up  of  new 
units  the  question  of  arming  them  arose.  We  had 
suffered  great  losses  in  arms  and  it  was  necessary 
to  supply  the  arms  to  the  better  units,  and  we 
were  concerned  first  with  arming  our  own  units. 
Every  German  rifle  must  go  to  the  front.  We  had 
even  made  use  of  Italian  arms.  It  was  our  in- 
tention to  provide  the  Duce  with  a  sound  officer 
corps  which  would  also  engage  in  training.  If 
out  of  the  600,000  military  internees  200,000  should 
sign  up  for  active  service  they  would  be  doing 
it  only  to  improve  their  own  lot  and  would  not 
be  the  sort  of  troops  who  would  have  made  the 
sacrifices  that  had  been  required  by  the  struggle 
around  Cassino.  That  was  a  general  character- 
istic, however.  Even  the  Germans  would  rather 
do  less  work  or  would  prefer  to  leave  the  front 
and  go  home.  We  suffered  losses  in  the  East  of 
150,000  men,  dead  and  wounded,  month  after 
month.  In  order  to  make  the  proper  selection  it 
would  be  necessary  to  deal  with  the  military  in- 
ternees individually  and  to  separate  out  those  who 
declared  themselves  to  be  Fascists,  and  also  those 
who,  in  the  course  of  time,  showed  themselves  to 
be  unreliable  in  the  performance  of  their  duty, 
and  to  shift  these  latter  gradually  to  duties  as 
civilian  laborers.  This  was  not  an  ideal  solution, 
but  at  a  time  like  this  it  was  necessary  to  adopt 
the  most  practicable  rather  than  the  ideal  solu- 
tion. They  were  at  present  not  prisoners  of  war 
but  military  internees,  although  the  sentiment  on 
our  front  which  scorned  the  Italian  troops  be- 


cause of  their  betrayal  would  have  been  for  treat- 
ing them  much  more  harshly. 

The  Fiihrer  then  came  to  a  discussion  of  the  re- 
building of  the  Army  and  he  expressed  his  regrets 
that  he  would  not  be  able  to  accompany  them  on 
the  trip  to  Grafenrohr,  where  the  first  Italian  di- 
vision was  in  training.  It  was  most  important  of 
all  that  the  organization  which  was  being  built 
up  should  be  an  entirely  sound  unit,  and  as  soon 
as  four  divisions  should  be  organized,  these  could 
then  be  doubled  and  finally  tripled.  These  divi- 
sions should,  however,  consist  not  only  of  coura- 
geous and  well-disciplined  troops,  but  they  should 
be  ready  to  go  to  their  death  for  the  Duce.  Ger- 
many had  had  practice  in  the  constitution  of  such 
units.  With  us  from  each  company  there  had  been 
made  a  battalion,  from  each  battalion  a  regiment, 
and  from  each  regiment  a  division,  and  thus,  from 
the  seven  divisions  which  existed  up  to  1935,  when 
general  comjDulsory  military  service  had  been  in- 
troduced, 24  divisions  had  been  created,  and  at 
present  the  same  method  was  being  followed  in 
the  SS  and  in  the  Army.  At  the  beginning  of 
the  war  the  Leihstandarte  had  been  a  regiment, 
then  it  became  a  division,  and  finally  it  became  a 
corps.  Such  rebuilding  was  a  thing  that  required 
time  and  if  the  military  forces  of  a  country  had 
passed  through  such  a  crisis  as  had  the  Italians, 
the  matter  was  still  more  difficult.  The  Fiihrer 
wanted  to  provide  the  Duce  with  the  foundation 
for  an  absolutely  reliable  military  force.  This 
was  a  prerequisite  for  the  stabilization  of  the 
Fascist  regime  in  Italy.  But  the  Italian  soldiers 
must  be  determined  to  fight  for  the  Duce  like  a 
Roman  legion. 

On  the  matter  of  the  zone  of  operations  the 
Fiihrer  said  that  he  could  make  only  one  remark, 
that  was,  that  in  Germany  there  was  a  proverb 
to  this  effect :  "A  burnt  child  fears  the  fire."  After 
the  events  which  had  taken  place  in  Italy  we 
found  ourselves  in  a  terrible  situation.  We  had 
not  believed  that  we  could  hold  a  position  south- 
ward of  Eo2ne,  for  in  Italy  there  were  two  bottle- 
necks for  the  Germans.  One  was  the  Apennines. 
If  the  roads  crossing  the  Apennines  were  dom- 
inated by  the  Partisans  it  would  be  impossible  for 
us  to  hold  a  position  south  of  the  Apennines.  And 
it  was  only  from  the  fact  that  the  Duce  had  been 
liberated  and  that  the  landing  at  Salerno  had  been 


1043 


delayed  that  it  had  been  possible  for  us  to  make  a 
stand  even  southward  of  Rome.  The  second 
bottleneck  was  the  Alpine  roads.  The  establish- 
ment of  the  zone  of  operations  in  this  region  which 
was  so  important  for  the  supply  of  such  extensive 
territories  had  had  the  result  that  now,  although 
there  were  no  regular  units  stationed  there,  no 
Partisan  bands  were  present  there  either.  The 
Fiihrer  was  not  fighting  for  square  meters,  for,  if 
the  war  were  won,  we  would  then  have  to  carry 
out  the  German  mission  in  the  East.  We  would 
get  our  raw  materials  from  the  Eastern  areas, 
especially  everything  which  we  needed  to  make 
our  position  in  the  East  a  permanent  one.  If  we 
were  to  carry  on  the  conflict  in  Italy  against  over- 
whelming superiority  in  materiel,  we  would  have 
to  have  our  rear  completely  free,  and  we  would 
have  to  dominate  and  make  secure  the  Alpine 
passes  so  as  to  be  sure  that  no  Partisans  would  be 
able  to  threaten  those  narrow  supply  routes. 
Therefore,  for  military  reasons,  no  alteration 
could  be  made  in  the  arrangement  concerning  the 
zone  of  operations  under  any  conditions. 

The  Fiihrer  hoped  to  be  able  to  hold  the  present 
positions,  although  we  expected  to  have  to  face 
an  attack  during  the  next  few  days  from  the  Net- 
tuno  bridgehead,  which  would  be  carried  on  with 
a  terrific  expenditure  of  materiel.  Each  day 
quantities  were  being  landed  there  equivalent  to 
the  content  of  18  Italian  munitions  trains,  while 
we  could  bring  our  trains  up  only  as  far  as  Flor- 
ence and  at  the  most  bring  two  trains  a  day  up 
to  the  front.  We  were  counting  on  the  possibility 
that  two  to  three  million  shells  would  be  fired  at 
us  from  400  to  500  guns.  The  Fiihrer  did  not 
know  what  would  remain,  but  what  survived  would 
continue  to  fight.  An  unconditional  necessity  for 
a  hard  struggle  of  this  sort  was  that  under  no 
circumstances  should  a  crisis  be  permitted  to  occur 
in  the  rearward  areas. 

A  progressive  abandonment  of  the  necessary 
military  measures  in  those  zones  was  dependent  on 
a  strengthening  of  the  Fascist  system.  This  proc- 
ess, however,  would  have  its  basis  in  the  Duce  and 
it  was  of  extreme  unportance  that  the  Duce  should 
remain  in  good  health.  At  one  time  Badoglio 
had  said  to  Kesselring  that  the  Duce  had  only  two 

'  One  word  illegible  in  original. 


months  to  live  because  he  was  suffering  from  can- 
cer. The  Fiihrer  was  happy  that  he  had  learned 
from  Morell  that  the  Duce's  trouble  was  only  a 
nervous  one,  with  some  slight  growths  which 
could  be  completely  cured.  Professor  Morell  was 
the  best  and  most  modern  surgeon  and  he  had 
developed  his  own  theory  of  bacteria  of  which  the 
universities  at  present  had  only  a  slight  knowl- 
edge. It  was  hard  to  ask  that  a  university  pro- 
fessor should  suddenly  achnit  that  his  whole 
previous  knowledge  had  become  obsolete  by  the 
course  of  developments  and  the  opposition  to 
Galileo  and  Koch  in  their  clay  had  been  based  on 
this  same  sort  of  diflBculty.  The  life  which  the 
Duce  and  he  led  was  a  dangerous  life.  If  any- 
thing happened  to  the  Duce  today  no  one  could 
take  his  place.  If  one  fact  presented  itself  clearly 
from  history  it  was  that  of  the  uniqueness  of  per- 
sonalities. The  death  of  Frederick  the  Great,  had 
it  occurred  during  the  Silesian  War,  would  have 
ended  that  war  completely  and  the  course  of  de- 
velopments would  have  taken  an  entirely  different 
turn. 

Unfortunately  nothing  was  perfect.  We  had  an 
excellent  army,  but  we  nevei'theless  required  mili- 
tary tribunals,  and  there  had  been  instances  where 
one  hardly  knew  whether  it  was  stupidity  or  mad- 
ness which  had  played  a  part.  Thus,  for  example, 
a  great  quantity  of  maps  of  Sweden  had  been 
shipped  through  Sweden.  Yet  one  could  not 
draw  from  that  the  conclusion  that  military  maps 
should  not  be  dispatched  to  any  military  authori- 
ties in  the  future.  It  was  the  same  way  in  the 
zones  of  operations.  Some  mistakes  had  certainly 
been  made  there.  Ambassador  Rahn  had  been 
commissioned  to  bring  these  mistakes  to  a  halt. 
Even  in  Germany  things  happened  which  were 
wrong.  Just  recently  a  census  of  .  .  .^  and 
hazelnut  bushes  in  yards  had  been  ordered,  with 
an  estimate  being  required  of  how  much  these 
bushes  would  bear.  Often  one  might  believe  that 
saboteurs  were  responsible  for  such  things.  In 
some  individual  cases  this  suspicion  had  been  jus- 
tified. Also  in  the  field  of  the  war  economy  hor- 
rible examples  of  folly  occurred  and  one  must  not 
take  everything  which  happened  too  seriously. 
Also,  through  lack  of  forethought,  great  difficul- 
ties had  been  created  in  the  Party,  in  the  armed 


1044 


Department  of  State  Bulletin      •      December  8,   1946 


forces,  and  in  the  field  of  foreign  policy.  Thus, 
for  example,  a  man  who  had  received  a  certain, 
assignment  had,  with  all  the  papers  on  the  sub- 
ject, set  out  on  a  journey  in  a  Storch  plane  and 
landed  in  Belgium.  The  documents  which  the 
man  had  taken  with  him  consisted  of  the  plans 
for  our  march  through  Belgium.  Such  and  simi- 
lar cases  had  happened  in  Russia  in  the  neigh- 
borhood of  Voronezh  and  Velikie  Luki.  Often 
human  fallibility  really  celebrated  a  holiday.  In 
addition  there  was  the  fact  that  the  best  people 
were  no  longer  engaged  in  the  work  of  adminis- 
tration, for  they  had  been  assigned  to  the  more 
dangerous  posts.  Besides,  everywhere  old  people 
had  had  to  be  drawn  upon,  because  the  others  were 
at  the  front.  The  French  general,  Giraud,  in 
spite  of  his  being  known  to  be  a  dangerous  man, 
had  been  allowed  to  escape  from  prison  and  had 
even  been  able  to  get  away  a  second  time,  allegedly 
because  it  was  thought  that  he  had  papers  setting 
him  free. 

All  these  individual  instances  showed  that  a 
new  system  of  regulation  could  not  be  made  uni- 
versally applicable  to  the  operations  zones.  In 
those  areas  hardships  would  have  to  be  corrected 
as  individual  cases.  When  the  regime  of  the  Duce 
was  once  more  firmly  reestablished  then  one  could 
proceed  with  the  removal  of  such  regulations.  In 
the  course  of  this  struggle  involving  life  and 
death  we  must  abide  by  the  letter  of  the  regula- 
tions and  all  difficulties  which  might  arise  would 
have  to  be  treated  individually.  Ambassador 
Rahn  had  been  ordered  to  examine  such  cases  indi- 
vidually and  to  render  his  assistance.  Even  the 
Fiilirer  consulted  his  advisers  about  measures,  al- 
though he  had,  of  course,  assumed  responsibility. 
Crises  could  not  be  prevented  from  arising  and 
he  had  to  take  into  account  the  views  of  those 
gentlemen  who  would  have  to  carry  out  his  orders 
on  the  spot. 

In  the  case  of  the  military  internees  he  wanted 
those  who  were  good  and  reliable  to  be  sorted  out 
and  assigned  to  the  troops.  It  would  be  best  if 
the  younger  men  who  were  uncontaminated  should 
be  made  available  for  the  new  divisions.  If  the 
Fiilirer  believed  that  this  plan  could  not  be  accom- 
plished he  would  say  so  to  the  Duce.  But  his 
commanders  believed  that  the  reconstitution  of  the 
Italian    divisions    could    be    accomplished.      He 


would  furnish  the  Italian  troops  with  the  best 
types  of  German  armament.  Only  Italian  moun- 
tain guns  would  be  supplied  to  them,  because  the 
Italian  mountain  guns  were  at  least  as  good  as  the 
German  ones.  The  intention  was  to  extend  these 
nuclei  slowly  but  thoroughly.  Taking  the  long 
view,  we  would  give  the  Italians  the  very  best  that 
we  could  give  them.  We  would  not  assign  every 
Italian  officer  to  these  new  divisions,  but  that  was 
not  a  measure  directed  against  the  Italians  as  such 
but  one  that  was  also  employed  from  time  to  time 
in  our  own  forces.  Thus  we  had  reassigned  com- 
manders shortly  before,  or  even  during,  combat  if 
we  did  not  consider  them  suitable.  In  that  respect 
the  Duce  had  the  advantage,  since,  because  of  the 
great  quantity  of  manpower  available  to  him,  he 
had  a  certain  room  for  choice,  which  we  did  not 
have,  and  thus  he  could  select  only  the  best.  We 
would  supply  him  with  the  yeast,  the  base  from 
which  the  future  Italian  army  would  be  developed. 
Even  we  ourselves  had  once  made  out  of  seven  divi- 
sions 21,  later  56,  then  90,  and  now  around  300  di- 
visions. At  one  time  the  27th  Jiiger  Battalion  had 
been  engaged  in  a  training  period  of  two  to  three 
years.  This  had  in  reality  been  a  brigade  composed 
of  5,000  Finns.  This  brigade  formed  the  basis  of 
the  Finnish  Army.  All  of  the  leading  Finnish  of- 
ficers right  up  to  Mannerheim  came  from  this  bat- 
talion. We  wanted  uncompromisingly  to  supply 
the  Duce  with  the  basis  for  an  army  which  would 
serve  only  one  god,  for,  if  a  soldier  served  two  gods, 
then  in  his  hour  of  need  he  would  call  on  the  god  of 
peace,  which  with  the  Italian  people  might  very 
well  mean  the  King  and  his  compromise  govern- 
ment. How  important,  in  addition  to  good  mili- 
tary training,  we  considered  ideological  training  to 
be,  was  demonstrated  by  the  fact  that  now  in  the 
midst  of  a  war  we  were  proceeding  to  the  comple- 
tion of  the  National  Socialist  indoctrination  in 
our  own  armed  forces  and  we  required  of  every 
officer  unconditional  allegiance  to  National  Social- 
ism. 

With  this  the  Fiilirer  bade  farewell  to  the  Duce, 
since  he  had  to  leave  for  a  conference  on  the  mili- 
tary situation,  and  he  arranged  that  the  conversa- 
tion should  be  resumed  in  the  course  of  the  after- 


noon. 


SONNLEITHNER 


1045 


Memorandum  of  the  conversation  between  the 
Fiihrer  and  the  Duce  at  Schloss  Klessheim,  April  23, 
1944,  4  to  5  p.m.  Also  present:  the  Reich  Foreign 
IVlinister,  Field  Marshal  Keitel,  Ambassador  Rahn, 
SS-Standartenfiihrer  Dollmann,  Marshal  Graziani, 
Under  Secretary  of  State  Mazzolini,  Ambassador 
Anfuso,  and  the  Italian  Military  Attache  in  Berlin, 
Colonel  Morera 

Fiihrer's  Memorandum  21/44 
State  Secret 

After  tlie  Fiihrer  had  invited  the  Duce  to  com- 
mence the  discussion,  the  latter  made  the  following 
reply  to  the  Fiihrer's  remark  that  Fascism  had 
not  been  in  existence  in  July  1943 : 

The  strength  of  the  Fascist  Party  had  at  that 
time  been  with  the  various  armies.  In  the  Italian 
homeland  there  remained  only  the  women  and 
the  young  and  the  very  old  men.  Besides,  Bado- 
glio  had  adopted  a  very  effective  sort  of  tactics, 
which  had  begun  with  a  policy  aimed  at  confusion. 
In  order  to  lull  the  Fascists  to  sleep,  Badoglio  had 
first  announced  that  the  war  would  continue  and 
that  the  Italians  would  continue  to  stand  by  the 
side  of  Germany.  It  was  principally  for  that 
reason  that  no  reaction  on  the  part  of  the  Italian 
people  had  followed  the  measures  of  Badoglio. 
Besides,  no  one  had  known  what  had  happened  to 
himself,  the  Duce.  To  an  inquiry  the  King  had 
declared  that  the  Duce  was  lais  guest.  Others  had 
reported  that  the  Duce  was  incurably  ill.  Thus 
the  Italian  people  had  not  known  how  to  take  the 
situation  and  it  had  come  to  pass  that  after  a  21- 
year  period  of  control  of  the  government,  he  had 
been  dismissed  like  an  unreliable  servant.  If  the 
Italian  generals  had  ever  surprised  the  enemy  as 
well  as  they  had  surprised  the  Italian  people  on 
that  occasion  the  Italians  would  perhaps  have 
been  able  to  occupy  Egypt.  The  Italian  Army  was 
predominantly  a  caste  devoted  to  its  own  interests 
and  its  outlook  had  been  thoroughly  monarchist. 
This  had  come  as  a  result  of  the  fact  that  the  Army 
had  been  put  together  from  the  various  princely 
armies  of  the  small  states  which  had  existed  before 
the  unification  of  Italy.  Thus  the  Duce  knew  to- 
day that  the  battle  of  Custozza  could  have  been 
won  if  the  two  Italian  generals  who  were  in  com- 
mand of  armies  on  either  side  of  the  Po  had  acted 
together.  This  battle,  which  had  actually  ended 
in  a  defeat,  had  taken  place  at  the  beginning  of  the 
unification  of  the  Italian  Kingdom  and  that  event 
had  left  behind  bad  feeling  in  the  Army. 


The  military  internees  could  be  divided  into 
three  categories: 

1.  Those  who  were  willing  to  fight  along  with 
the  Germans.  The  Duce  took  this  opportunity  to 
defend  the  Alpini  regiments  whose  conduct,  on  the 
Eastern  front  and  following  the  betrayal,  the 
Fiihrer  had  criticized  in  the  course  of  the  preced- 
ing conversation,  and  he  remarked  that  the  Alpini 
constituted  a  closed  group  within  the  Army  and 
had  a  very  limited  point  of  view.  When  they  had 
been  sent  to  Russia  they  had  believed  that  they 
were  going  to  be  able  to  fight  in  the  Caucasus  and 
then,  although  they  had  been  outfitted  for  moun- 
tain fighting,  they  were  employed  on  the  steppes 
of  the  Don. 

2.  Those  who  wanted  nothing  further  to  do  with 
the  war  and  who  also  wanted  to  escape  from  work. 

3.  Those  who  had  come  out  for  fighting  on  the 
side  of  Germany,  whose  actual  viewpoint  would 
have  to  be  examined  further. 

The  Duce  would  be  satisfied  if  these  military 
internees  remained  in  Germany.  Just  a  little 
while  ago  7,000  officers  had  returned  to  Italy.  The 
Duce  had  not  been  pleased  about  it.  His  request 
for  better  treatment  of  the  military  internees  was 
not  for  the  benefit  of  these  people  themselves,  but 
arose  only  from  the  desire  to  improve  the  morale 
of  their  relatives  and  dependents  in  Italy,  amount- 
ing to  some  six  millions. 

The  Duce  was  satisfied  with  the  reconstitution 
of  the  divisions  in  Germany  and  he  agi-eed  with 
the  Fiihrer's  idea  that  it  would  be  better  that 
fewer,  but  more  reliable,  units  should  be  consti- 
tuted. To  this  end  he  would  send  from  Italy  re- 
cruits who  were  uncontaminated.  The  former 
members  of  the  Italian  armed  forces,  through  the 
events  which  had  taken  place,  had  suffered  a  shock 
and  were  still  ill  as  a  result.  The  worst  was  the 
attitude  of  the  people  between  24  and  40  years  of 
age.  The  best  were  the  children.  Even  the 
64-year-old  Senator  Ricci,  the  most  prominent  rep- 
resentative of  Italian  journalism,  had  placed  him- 
self wholly  in  the  service  of  the  new  Italy.  The 
work  of  conciliation  was  now  in  progress.  There 
were,  however,  still  a  large  number  of  desperate 
characters,  for  example,  all  the  students.  Univer- 
sity professors  from  Bologna  had  told  him  that 
the  students  were  studying  very  zealously,  but  that 
from  the  political  point  of  view  they  were  indif- 


1046 


Department  of  State  Bulletin      •      December  8,    1946 


ferent,  although  some  improvement  was  begiixning 
to  be  shown  in  that  respect. 

The  Duce  was  prepared  to  call  up  the  class  of 
1914  for  Gauleiter  Sauckel,  the  classes  of  1916  and 
1917  for  Reich  Marshal  Goring,  and  to  place  them 
at  their  disposal.  He  further  agreed  that  20 
classes  (the  Duce  said  20  classes  in  so  many 
words)  should  be  called  up  and  employed  in  labor 
battalions. 

The  morale  of  the  Italian  people  reacted  very 
sharply  to  news  about  the  progress  of  the  war. 
After  tlie  successes  of  Cassino  and  Nettuno  the 
morale  had  improved.  He  now  intended  to  start 
a  propaganda  campaign  in  the  various  cities  and 
among  the  various  classes  in  Italy.  He  wanted 
to  speak  himself,  otherwise  the  people  would  be- 
lieve that  the  Duce  was  dead  and,  looking  at  it 
in  retrospect,  tJiis  was  actually  the  case,  for  the 
Mussolini  of  yesterday  was  dead  and  it  was  the 
Mussolini  of  tomorrow  who  was  alive.  His  deep- 
est conviction  was  that  Germany  could  never  lose 
the  war.  This  theme  must  be  the  basis  for  all 
propaganda. 

When  the  Fiihrer  inquired  about  public  opinion 
in  Eome,  the  Duce  said  that  Rome  had  many 
aspects.  There  was  the  Black  City  of  the  Papacy, 
the  White  City  of  the  aristocrats,  and  in  addition 
the  manifold  gi-oups  of  the  population,  some  of 
whom  had  come  to  Rome  only  after  it  had  been 
declared  to  be  an  open  city  which  had,  after  his 
betrayal,  been  the  greatest  sin  of  Badoglio.  By 
the  declaration  of  Rome  to  be  an  open  city  a  divi- 
sion had  arisen  among  the  Italian  population,  and 
after  the  first  bombing  of  Rome  on  July  19,  1943 
many  Italians  had  rejoiced. 

The  Fiihrer  here  interjected  that  after  the  heavy 
bombing  of  Berlin  an  analogous  procedure  had 
occurred,  for  tlie  fame  of  Berlin  as  the  capital  of 
the  Reich  had  never  been  so  well  established  in 
southern  and  western  Germany  as  at  the  present 
when  the  splendid  conduct  of  the  Berliners  was 
being  demonstrated.  On  his  birthday  foreign 
newspapers  had  reported  with  astonishment  that 
Berlin  had  been  turned  by  its  inhabitants  into  a 
sea  of  waving  banners. 

The  Duce  said  that  it  would  be  better  for  the 
Italian  units  to  undergo  an  extended  period  of 
training  in  Germany  than  for  these  units  to  be 
sent  into  action  with  insufficient  training. 


The  Fiihrer  remarked  that  in  our  case  the  young 
people  had  had  to  be  especially  well  trained,  for 
they  were  idealists  and  not  so  prudent  as  the  older 
age  groups,  and  thus  in  action  they  had  suffered 
terrible  losses.  The  Fiihrer  himself  had  been  a 
volunteer  in  1914  and  he  had  gone  through  tlie 
experience  when  his  unit  at  Ypres  had  been  re- 
duced in  a  single  action  from  3,400  men  to  Gil. 
A  better-trained  unit  would  have  lost  at  most  only 
200  men. 

The  Duce  said  further  that  the  Italian  officei-s 
must,  of  course,  all  be  Fascists,  but  that  during 
their  period  of  service  in  the  armed  forces  their 
political  activity  would  be  interrupted.  Previ- 
ously there  had  been  rivalry  among  the  officers  as 
to  who  was  the  oldest  party  member.  From  this 
rivalry  personal  conflicts  had  often  arisen. 

The  Fiihrer  stated  that  the  same  arrangement 
existed  with  us.  The  officers  swore  allegiance  to 
the  State,  to  our  ideology,  and,  in  addition  to  all 
that,  with  us,  to  the  person  of  the  Fiihrer  as  well. 
The  Fiihrer  would  like  to  have  the  Italian  units 
trained  in  Germany  pledge  allegiance  to  the  per- 
son of  the  Duce,  for  a  bond  to  a  person  was  the 
strongest  type  of  tie. 

Marshal  Graziani  here  interjected  that  the  Ger- 
man command  in  Italy  was  satisfied  with  the 
Italians  who  had  been  assigned  to  them  as  workers 
or  in  other  capacities. 

The  Fiihrer  stated  that  the  chief  of  the  OT 
[Organisation  Todt],  Dorsch,  had  described  the 
Italians  as  very  good  workers. 

Ambassador  Rahn  said  that  this  could  also  be 
attributed  to  the  fact  that  the  Italians  had  been 
trained  to  continue  working  even  under  heavy 
bombing  and  also  to  defend  themselves  against 
enemy  air  attacks. 

The  Fiihrer  related  that  the  French  had  sup- 
plied us  140,000  Spanish  Reds  for  employment  in 
the  OT.  Since  with  us  each  one  could  hold  his 
own  opinion  and  those  people  were  treated  very 
considerately,  these  Spanish  Reds  had  shown 
themselves  very  willing  and  conducted  themselves 
well.  The  OT  was  really  a  revolutionary  organ- 
ization. It  was  entirely  without  class  distinction 
and  in  every  OT  barracks  there  hung  the  picture 
of  Todt  which  showed  him  as  a  road  worker. 
(Oontiwaed  on  page  1061) 


1047 


THE  UNITED  NATIONS 


Investigation  of  Assault  on  Members  of  Ukrainian  Delegation 

EXCHANGE  OF  LETTERS   BETWEEN  THE  UKRAINIAN   MINISTER 
OF  FOREIGN   AFFAIRS  AND  THE  SECRETARY  OF  STATE  > 


November  22, 19!fi. 
Dear  Mr.  Secretary: 

As  the  Chairman  of  the  Delegation  of  the 
Ukrainian  S.S.R.  to  the  General  Assembly  of  the 
United  Nations,  I  have  the  honor  to  inform  you 
of  the  following : 

On  the  twentieth  of  November  of  this  year,  in 
the  city  of  New  York,  two  members  of  the  Dele- 
gation of  the  Ukrainian  S.S.R.,  Messrs.  A.  D. 
Voina  and  G.  D.  Stadnik,  were  assaulted  by  un- 
known malefactors,  as  a  result  of  which  Mr.  Stad- 
nik received  a  serious  wound  in  the  thigh  from 
an  explosive  bullet  and  is  at  present,  after  having 
been  operated,  in  the  Roosevelt  Hospital,  where, 
according  to  the  conclusion  reached  by  the  doc- 
tors, he  will  be  confined  approximately  3  months, 
and  will  remain  an  invalid  for  life.  The  entire 
circumstances  of  this  assault,  as  is  clear  from  tlie 
statements  of  the  victims,  Voina  and  Stadnik,  leads 
one  to  believe  that  this  is  not  a  case  of  burglary 
but  a  premeditated  attempt  on  the  life  of  two 
Delegates  to  the  Assembly  of  the  United  Nations. 

In  the  first  place,  the  fact  that  this  assault  took 
j)lace  in  the  fruit  store  across  from  the  Plaza 
Hotel,  where  A.  D.  Voina  and  G.  D.  Stadnik 
usually  went  to  purchase  fruit  at  definite  times 
after  work,  supports  this  explanation  of  the  as- 


'  Publication  of  both  letters,  together  with  a  copy  of  the 
memorandum  from  the  Police  Commissioner  to  the  Mayor 
of  the  City  of  New  York,  was  authorized  by  the  Secretary 
of  State.  They  were  released  to  the  press  by  the  United 
States  Delegation  of  the  Council  of  Foreign  Ministers  on 
Nov.  28,  1946. 


sault.  In  the  second  place,  the  assailants,  who,  in 
the  official  version,  intended  to  rob,  did  not  take 
any  valuables  from  A.  D.  Voina  and  G.  D.  Stad- 
nik, but,  having  accomplished  their  business, 
IJeacefully  went  into  the  street. 

Finally,  it  is  difficult  to  suppose  that  a  small 
shop  with  the  small  daily  profit  of  a  score  or  two 
dollars  would  be  the  real  attraction  for  the 
burglars. 

The  Delegation  of  the  Ukrainian  S.S.R.  calls  to 
your  attention  the  fact  that  such  acts,  directed 
against  the  lives  and  security  of  members  of  the 
Delegations  of  the  United  Nations,  take  place  in 
the  locality  of  the  United  Nations  Organization, 
and  furthermore,  the  malefactors  have  not  been 
apprehended  to  date. 

By  virtue  of  the  aforementioned  reasons,  the 
Delegation  of  the  Ukrainian  S.S.R.  to  the  General 
Assembly  of  the  United  Nations  requests  that  you, 
Mr.  Secretary  of  State,  take  steps  with  a  view  to 
the  immediate  investigation  by  the  American  au- 
thorities of  the  attempt  on  the  life  of  two  of  its 
members,  and  the  bringing  to  justice  of  the  guilty 
parties,  being  certain  that  you  will  inform  it  of 
the  measures  taken  with  respect  thereto. 

Accept  [etc.]  D.  Manuilskt 

November  27, 19^6. 
My  Dear  Mr.  Manuh.sky  : 

I  have  your  letter  of  November  22  with  refer- 
ence to  the  shooting  of  Mr.  Stadnik  on  the  night 
of  November  20. 


1048 


Department  of  State  Bulletin      •      December  8,   1946 


THE  UNITED  NATIONS 


The  Acting  Secretai-y  of  State  has  heretofore 
conveyed  to  the  Representative  of  your  Govern- 
ment in  Washington  the  sincere  regret  of  the  Gov- 
ernment of  the  United  States  that  Mr.  Stadnik 
should  have  been  the  victim  of  such  a  criminal  act. 
I  wish  to  add  my  personal  regret  and  ask  that  you 
extend  to  Mr.  Stadnik  my  sincere  sympathy. 

I  enclose  you  copy  of  a  Report  submitted  by  the 
Police  Commissioner  to  the  Mayor,  which  will  give 
you  the  status  of  the  investigation. 

Wliile  we  deeply  regret  that  a  Delegate  to  the 
General  Assembly  should  have  been  the  victim  of 
this  crime,  I  know  you  will  be  glad  to  leara  that  in 
the  opinion  of  the  Police  Commissioner,  based 
upon  the  evidence  of  the  eye  witnesses,  it  was  not, 
as  you  feared,  a  premeditated  attempt  to  kill  two 
members  of  your  Delegation. 

The  police  authorities  are  of  the  opinion  that  had 
the  criminals  intended  killing  Mr.  Stadnik  and 
Mr.  Voina,  it  is  more  probable  that  they  would 
have  waylaid  the  two  Delegates  on  the  street  be- 
tween the  hotel  and  the  store  where  the  shooting 
occurred  instead  of  waiting  for  them  in  a  store 
where  there  were  bright  lights  and  where  there 
were  several  persons  to  witness  the  shooting. 

The  police  authorities  also  called  my  attention  to 
the  fact  that  if  the  purpose  of  the  two  men  was 
to  kill  either  Mr.  Stadnik  or  Mr.  Voina,  they  were 
within  a  few  feet  of  the  two  Delegates  and  could 
easily  have  killed  them,  but  instead  while  making 
their  exit  shot  Mr.  Stadnik  in  the  thigh. 

The  fact  that  the  primary  purpose  of  the  crimi- 
nals was  robbery  and  not  to  kill  the  two  Delegates 
does  not  lessen  their  crime  and  certainly  it  does 
not  lessen  my  regret  that  one  of  your  representa- 
tives should  have  been  the  victim  of  such  a  crimi- 
nal act. 

Since  receiving  your  letter,  I  have  talked  to 
the  Police  Commissioner  of  New  York  City,  who 
assures  me  that  they  are  doing  everything  in  their 
power  to  apprehend  the  perpetrators  of  this 
crime.  They  will  keep  me  advised  of  the  progress 
of  the  investigation  and  I  will  ask  that  you  also 
be  kept  informed.  It  is  my  earnest  hope  that 
the  criminals  will  be  apprehended  and  punished 
for  their  crime. 

I  trust  that  Mr.  Stadnik's  injury  may  not  prove 


as  serious  as  you  now  fear.     Please  extend  to  him 
my  hope  for  his  continued  improvement. 
With  assurances  [etc.].  James  F.  Btenes 

[Enclosure] 

THE  POLICE  COMMISSIONER 
CITY  OF  NEW  YORK 

November  25,  1946. 
Memorandum  for:  His  Honor,  The  Mayor 
Subject :    Shooting  of  Gregory  Stadnik,  Ukraine  Dslegate 
to  U.N.,  during  perpetration  of  hold-up  in  delicatessen 
at  36  W.  58th  Street,  Man. 

At  about  12 :  20  a.m.,  November  21st,  1946,  two  unknown 
men  entered  premises,  a  delicatessen  store,  at  36  West 
58th  Street,  Manhattan.  Present  in  the  store  at  that 
time  were  the  clerk,  Joseph  Braunspiegel,  122.j  Sheridan 
Avenue,  Bronx,  and  an  unknown  woman.  The  unknown 
men  pointed  revolvers  at  Braunspiegel  and  ordered  him 
to  the  rear  of  the  store  where  they  took  his  wallet  con- 
taining $65.00  and  closed  the  door  on  him. 

At  this  point  another  unknown  woman  entered  the 
store  and  was  herded  into  a  corner  of  the  store  with  the 
first  woman  who  was  present  at  the  time  the  perpe- 
trators entered.  From  the  younger  of  the  women  they 
took  $7.00  and  from  the  second  woman  who  entered  the 
store  they  took  her  purse,  opened  It  and  presumably  took 
some  money,  the  exact  amount  of  which  Is  unknown. 

During  the  time  the  above  was  taking  place,  Gregory 
Stadnik  and  Alexis  Voina,  Ukraine  Delegates  to  the 
United  Nations  Assembly,  both  residing  at  the  Plaza  Hotel, 
entered  the  store  to  make  a  purchase.  As  they  were 
about  to  enter  the  premises  one  of  the  unknown  men  said 
"come  in".  As  they  entered  the  unknown  men  pointed 
revolvers  at  them  and  ordered  them  to  raise  their  hands. 

Both  Stadnik  and  Voina  are  of  stocky  build  and  it  is 
believed  that  the  perpetrators  judged  them  to  be  detec- 
tives or  that  they  were  slow  in  obeying  the  command  of 
the  perjietrators  to  raise  their  hands,  because  they  Imme- 
diately discharged  a  shot  which  struck  Gregory  Stadnik 
in  the  right  thigh. 

The  perpetrators  then  left  the  store  and  made  their 
escape  in  an  unknown  manner. 

Delegate  Stadnik  was  attended  by  Dr.  Otto  of  Roosevelt 
Hospital,  removed  to  said  hospital  and  operation  per- 
formed to  remove  the  bullet.  His  condition  was  not 
serious. 

Mr.  Robert  Clark,  Agent  in  Charge  of  the  State  Depart- 
ment, and  Mr.  Frank  Begley,  Chief  Security  Officer,  United 
Nations  Assembly,  were  immediately  notltled  of  the  occur- 
rence. 

The  perpetrators  were  described  as  follows: 

No.  1 — About  25  years  of  age ;  5'  8"  ;  165  lbs  ;  dark  com- 
plexion ;  spoke  with  an  accent ;  wore  grey  fedora  hat  and 
brown  topcoat. 

No.  2— About  25  years  of  age ;  5'  8"  or  7"  ;  100  lbs ;  dark 
complexion. 


1049 


THE   UNITED  NATIONS 


Both  of  these  men  were  armed  and  both  are  apparently 
Italian  or  Spanish.  Alarm  No.  21223  has  been  trans- 
mitted for  these  men. 

Investigation 

Immediately  upon  notification  of  this  incident,  a  thor- 
ough search  of  the  entire  vicinity  of  the  location  was  made 
by  uniformed  and  detective  forces  in  an  attempt  to  appre- 
hend the  perpetrators.  All  facilities  of  this  Department 
were  used  in  this  search  including  radio  motor  patrol  cars 
and  detective  cruiser  cars.  The  search  was  under  the 
immediate  supervision  of  Assistant  Chief  Inspector 
O'Brien  and  Acting  Deputy  Chief  Inspector  Rothengast. 

Ten  (10)  picked  detectives  have  been  assigned  to  this 
case,  two  of  whom  speak  Spanish,  in  an  efCort  to  obtain 
some  information  as  to  the  identity  of  those  responsible 
for  the  Commission  of  the  crime. 

The  unidentified  woman  has  been  interviewed  by  Ass't. 
D.  A.  Burns,  New  York  County. 

This  woman  had  ordered  a  few  things  in  the  store,  had 
changed  her  mind  and  was  slow  in  making  her  purchases 
when  the  perpetrators  entered. 

After  they  placed  the  clerk  in  the  rear  room,  they  took 
this  woman's  purse,  opened  it  and  extracted  $7.00  there- 
from. 

This  woman  will  cooperate  with  the  police  in  an  effort 
to  make  an  identification  of  the  perpetrators  when  con- 
fronted by  suspects.  Both  the  District  Attorney  and  the 
girl  herself,  due  to  her  profession,  explicitly  requested  that 
her  name  not  be  divulged  in  any  press  releases. 

The  wallet  which  was  taken  from  the  clerk  of  the  store 
at  the  time  of  the  hold-up  was  found  at  2 :  00  p.m.,  Novem- 
ber 21st,  on  the  floor  of  the  Guild  Studios  located  at  148 
West  32nd  St.,  by  Connie  Liquori  who  lives  at  4608  10th 
Avenue,  Brooklyn. 

This  wallet  was  received  by  Mr.  Braunspiegel  through 
the  mail,  this  morning.  It  was  mailed  to  him  by  Anne 
Ermeti,  476  Sanford  Avenue,  Newark,  N.J.,  an  employee  of 
the  Guild  Studios. 

All  employees  of  the  Guild  Studios  are  now  being  in- 
vestigated and  will  be  taken  to  the  Bureau  of  Criminal 
Identification  to  view  the  pictures  in  an  effort  to  identify 
any  persons  who  were  in  that  store  on  the  date  of  the 
occurrence. 

The  wallet  when  found  contained  no  money  but  identi- 
fication was  made  of  the  owner  through  papers  therein 
and  an  automobile  operator's  license  bearing  the  name  of 
the  clerk. 

The  clerk  of  the  store  has  viewed  the  photographs  in  the 
Bureau  of  Criminal  Identification  Modus  Operandi  File  at 
Police  Headquarters  but  failed  to  pick  out  any  picture  as 
one  of  a  possible  suspect. 

Efforts  are  being  made  to  identify  and  locate  the  second 
woman  who  entered  the  store  during  the  hold-up. 

Two  members  of  this  Department  are  assigned  to  screen 


'  For  article  by  Mr.  Morlock  on  the  Commission  on  Nar- 
cotic Drugs,  see  BtrLLETiN  of  Nov.  17, 1946,  p.  885. 


the  prisoners  appearing  in  the  line-up.  These  men  pick 
out  any  prisoners  who  answer  the  description  of  the  per- 
petrators and  question  them. 

Detectives  have  been  assigned  to  the  Parole  Board  to 
examine  the  records  of  parolees  recently  discharged  from 
prison  in  an  effort  to  identify  the  perpetrators. 

Efforts  are  being  made  to  have  Mr.  Voina  appear  at  the 
Bureau  of  Criminal  Identification  to  view  photographs 
on  file. 

Act.  Sergeant  Butts,  Bureau  of  Ballistics,  has  reported 
that  the  bullet  removed  from  the  thigh  of  Mr.  Stadnik 
was  broken  into  three  (3)  parts  and  appears  to  be  a  .38 
caliber  lead  pellet.    This  bullet  is  badly  deformed. 

Assignment  of  the  ten  detectives  to  this  case  will  be 
continued  and  every  special  attention  will  be  given  this 
matter  and  every  effort  made  to  identify  and  arrest  the 
perpetrators  of  this  crime. 

Abthub  W.  Waixandee 

Police  Commissioner 


U.S.  Representatives  and  Advisers  to 
Commission  on  Narcotic  Drugs  of 
ECOSOC 

[Released  to  the  press  November  29] 

Tlie  Department  of  State  on  November  29  an- 
nounced that  Harry  J.  Anslinger,  United  States 
representative  on  the  Commission  on  Narcotic 
Drugs  of  the  Economic  and  Social  Council  of  the 
United  Nations,  which  held  its  first  session  begin- 
ning November  27,  1946  at  Lake  Success,  New 
York,  was  accompanied  by  George  A.  Morlock, 
Department  of  State,  and  John  W.  Bulkley,  Cus- 
toms Bureau,  Treasury  Department,  as  advisers, 
and  Miss  Julia  H.  Renfrew  of  the  Narcotics  Bu- 
reau, Treasury  Department,  as  assistant.^ 

Other  countries  represented  on  the  Commission 
are :  Canada,  China,  Egypt,  France,  India,  Iran, 
Mexico,  Netherlands,  Peru,  Poland,  Turkey, 
Union  of  Soviet  Socialist  Republics,  United  King- 
dom, and  Yugoslavia. 

The  Commission  on  Narcotic  Drugs  will  take 
action  on  matters  relating  to  its  organization  and 
is  expected  to  discuss  and  advise  the  Economic 
and  Social  Council  in  regard  to  problems  concern- 
ing the  reestablishment  of  the  international  con- 
trol of  narcotic  drugs  at  pre-war  levels,  the  illicit 
traffic,  the  sujipression  of  the  use  of  opium  for 
smoking  and  eating,  and  the  limitation  of  the  pro- 
duction of  narcotic  raw  materials. 


1050 


Department  of  State  Bulletin      •      December  8,   1946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings 


In  Session  as  of  December  1,  1946 

Far  Eastern  Commission 

United  Nations: 

Security  Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

UNRRA  -  Intergovernmental  Committee  on  Refugees  (IGCR) : 
Joint  Planning  Committee 

General  Assembly 

Telecommunications  Advisory  Committee 

ECOSOC:  Commission  on  Narcotic  Drugs. 

German    External    Property    Negotiations    With    Portugal    (Safe- 
haven) 

PICAO: 
Divisional 

Communications  Division   .    .    .■ 

Search  and  Rescue  Division 

International  Conference  on  Trade  and  Employment,  First   Meet- 
ing of  the  Preparatory  Committee 

Inter-Allied  Trade  Board  for  Japan 

FAO:  Preparatory   Commission  To  Study  World  Food  Board^Pro- 
posals 

Council  of  Foreign  Ministers 

Inter-Allied  Reparations  Agency  (lARA) :  Meetings  on  Conflicting 

Custodial  Claims 

t 

UNESCO: 

"Mouth"  Exhibition 

General  Conference,  First  Session 

International  Whaling  Conference 


ILO  Industrial  Committee  on  Building,  Civil  Engineering  and  Public 

Works 


Washington 

Lake  Success 

Lake  Success 

Lake  Success .    .    .    .    . 
Washington  and  Lake 

Success 
Flushing  Meadows    .    . 

Lake  Success 

Lake  Success 

Lisbon 

Montreal 

Montreal 

London   

Washington 

Washington 

New  York 

Brussels 

Paris 

Paris 

Washington 

Brussels 


February  26 

March  25 
March  25 
June  14 
July  25 

October  23 
November  10 
November  27 

September  3 


November  19 
November  26 

October  15-November 
26 

October  24 

October  28 

November  4 
November  6 


Novembei^December 
November     19-Decem- 
ber  10  (tentative) 

November     20-Decem- 
ber  2 

November     25-Decem- 
ber3 


Prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


1051 


Calendar  of  Meetings — Continued 


Scheduled  December  1946  -  February  1947 

Inter- American  Commission  of  Women ;  Fifth  Annual  Assembly     .    . 

PICAO: 
Divisional 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division  .    .    . 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division 

Accident  Investigation  Division 

Airworthiness  Division 

Airline  Operating  Practices  Division 

Regional 

South  Pacific  Regional  Air  Navigation  Meeting 

UNRRA  Council:   Sixth  Session 

Caribbean  Commission 

United  Nations: 

Meeting  of  Postal  Experts 

Meeting    of    Governmental    Experts    on    Passport    and    Frontier 

Formalities 
Economic  and  Social  Council: 

Drafting  Committee  of  International  Trade  Organization,  Pre- 
paratory Committee 
Economic  and  Employment  Commission 

Social  Commission 

Subcommission   on    Economic    Reconstruction   of   Devastated 

Areas 
Human  Rights  Commission 

Population  Commission , 

Statistical  Commission 

Commission  on  the  Status  of  Women 

Transport  and  Communications  Commission 

Non-governmental  Organizations  Committee 

ECOSOC,  Fourth  Session  of 

Intergovernmental  Committee  on  Refugees  (IGCR):  Sixth  Plenary 
Session 

Meeting  of  Medical  and  Statistical  Commissions  of  Inter-American 
Committee  on  Social  Security 

Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education 

ILO  Industrial  Committee  on  Petroleum  Production  and  Refining .   . 


Washington 

Montreal  . 

Montreal  . 

Montreal  . 

Montreal  . 

Montreal  . 

Montreal  . 

Melbourne . 
Washington 
Curajao  .    . 

New  York  . 
Geneva   .    . 

Lake  Success 

Lake  Success 

Lake  Success 

Geneva   .    . 

Lake  Success 

Lake  Success 

Lake  Success 

Lake  Success 

Lake  Success 

Lake  Success 

Lake  Success 
London   .    . 

Washington 

Caracas  .  . 
Caracas  .  . 
Lima   .    .    . 


December  2-12 


December  3 

January  7 
January  14 
February  4 
February  18 
February  25 

February  1 
December  10 
December  10 

December  10 
January  14-29 


January  20-February  28 

(tentative) 

January  20-February  5 
(tentative) 

January  20-February  5 
(tentative) 

January  27-February  13 
(tentative) 

January  27-February  1 1 
(tentative) 

January  27-February  1 1 
(tentative) 

February    6-20    (tenta- 
tive) 

February  12-27  (tenta- 
tive) 

February  17-28 
(tentative) 

February  25-27 
(tentative) 

February  28 

December  16 


January  6-11 

January  12-24 
January  12-24 
February  3-12 


1052 


Department  of  State  Bulletin      •      December  8,    1946 


Activities  and  Developments 


MEETING  OF  ILO  INDUSTRIAL  COMMITTEE 
ON  TEXTILES 

[Released  to  the  press  by  the  ILO  November  25] 

Concluding  its  initial  nine-day  session  at  Brus- 
sels, Belgium,  the  International  Labor  Organiza- 
tion's Industrial  Committee  on  Textiles  adopted  a 
declaration  emphasizing  that  the  essential  prob- 
lem of  the  industry  was  to  satisfy  the  accumulated 
need  for  textiles  throughout  the  world,  according 
to  a  report  received  November  25  at  ILO  head- 
quarters in  Montreal. 

At  the  same  time,  the  declaration  said,  the  in- 
dustry must  be  modernized,  working  conditions 
must  be  improved,  and  social-security  measures 
extended. 

The  session,  held  under  the  chairmanship  of 
Radi  Abou  Seif  Radi,  Egyptian  Under  Secretary 
of  Social  Affairs,  brouglit  together  government, 
management,  and  labor  representatives  of  17  of 
the  chief  textile-producing  countries.  The  meet- 
ing is  being  followed  by  a  similar  session  of  the 
ILO's  Industrial  Committee  for  Building,  Civil 
Engineering  and  Public  "Works.  Eight  such  in- 
ternational committees  for  the  world's  principal 
industries  form  part  of  the  ILO's  machinery. 

At  its  closing  plenary  sitting,  the  Textile  Com- 
mittee declared  that  in  view  of  the  industry's  es- 
sential nature  an  important  place  must  be 
reserved  for  its  needs  in  current  international  dis- 
cussions on  the  problems  of  reconstruction. 

On  the  recommendation  of  two  subcommittees, 
detailed  resolutions  were  adopted  on  wages,  hours 
of  work,  recruiting  for  the  industry,  vocational 
training,  and  social  welfare  and  security,  includ- 
ing the  extension  of  social  services,  the  improve- 


ment of  working  conditions,  and  holidays  with 

pay. 

The  Committee  also  went  on  record  as  drawing 
attention  to  the  necessity  for  an  urgent  increase 
in  the  production  of  textile  machinery. 

Representatives  of  a  number  of  countries  with 
manpower  shortages  expressed  the  desire  that  the 
Committee  study  with  particular  care  the  ques- 
tions of  recruiting  and  vocational  training.  It 
was  agreed  that  at  subsequent  sessions  these  prob- 
lems should  be  examined  in  the  light  of  reports 
and  recommendations  made  by  the  International 
Labor  Office. 

In  a  special  resolution  the  Committee  declared 
that  measures  must  be  taken  to  prevent  unfair 
competition  by  the  industries  of  Germany  and 
Japan. 


100th  SESSION  OF  THE  GOVERNING  BODY  OF 
THE  INTERNATIONAL  LABOR  OFFICE  > 

At  the  100th  Session  of  the  Governing  Body  of 
the  International  Labor  Office  which  was  held  at 
Montreal,  Canada,  on  October  7, 1946,  Guildhaume 
Myrddin  Evans,  C.B.,  Deputy  Secretary,  Ministry 
of  Labor  and  National  Service  of  the  United  King- 
dom, was  reelected  Chairman  of  the  Governing 
Body  by  unanimous  vote.  Mr.  Evans  was  nomi- 
nated for  the  second  term  by  the  United  States 
Government  representative,  David  A.  Morse. 

The  Governing  Body  agreed  to  the  establishment 
of  an  expert  committee  on  indigenous  labor  in  ac- 
cordance with  the  recommendations  of  the  Third 
Conference  of  American  States  Members  held  in 
Mexico  City  in  April  of  this  year.  Preliminary 
discussions  concerning  a  suggested  regional  meet- 
ing for  the  Near  and  Middle  East  were  authorized 
by  the  Governing  Body  following  recommenda- 
tions originating  with  the  Egyptian  Government. 

Plans  were  made  for  holding  the  Sixth  Interna- 
tional Conference  of  Labor  Statisticians  at  Mon- 
treal, probably  in  August  1917. 

^  Prepared  by  the  Division  of  International  Conferences 
in  collaboration  with  the  Division  of  International  Labor, 
Social  and  Health  Affairs,  Department  of  State. 


1053 


ACTIVITIES  AND   DEVELOPMENTS 


THIRD  MEETING  OF  RUBBER  STUDY  GROUP 

[Released  to  the  press  on  November  29] 

The  third  meeting  of  the  Kubber  Study  Group, 
comprising  representatives  of  the  Governments 
of  France,  the  Netherlands,  the  United  Kingdom, 
and  the  United  States,  to  discuss  common  problems 
arising  from  the  production  or  consumption  of 
rubber,  took  place  at  The  Hague  on  November 
25-28,  1946. 

Pieter  Honig,  director  of  the  Netherlands  Indies 
Rubber  Fund,  presided  over  the  meeting.  The 
French  Delegation  was  led  by  M.  Peter,  Director 
for  Economic  Affairs,  Colonial  Ministry.  R.  D. 
Fennelly,  Under  Secretary,  Raw  Materials  De- 
partment, Board  of  Trade,  led  the  British  Dele- 
gation, while  the  United  States  Delegation  was 
led  by  Donald  D.  Kennedy,  Chief,  International 
Resources  Division,  Department  of  State. 

Further  studies  of  the  prospective  world  nib- 
ber  situation  were  presented  to  the  group  on  be- 
half of  the  participating  governments.  These  in- 
cluded the  latest  information  on  the  U.S.  synthetic 
industry  and  reports  on  conditions  in  the  Far 
East. 

The  total  world  production  in  1946  is  estimated 
at  1,700,000  to  1,800,000  tons  made  up  of  940,000 
tons  of  synthetic  rubber  and  760,000  to  860,000  tons 
of  natural  rubber.  Discussion  took  place  on  the 
difficulties  experienced  in  the  natural  rubber  pro- 
duction areas  and  the  measures  being  taken  to 
overcome  them.  There  are  serious  shortages  of 
labor  and  food  in  some  areas  and  a  general  short- 
age of  consumer  goods  which  is  hindering  produc- 
tion. Stocks  of  natural  rubber  in  producing  areas 
at  the  beginning  of  1946  were  estimated  to  be 
340,000  tons,  and  it  is  expected  that  the  bulk  of 
these  will  be  shipped  by  the  end  of  the  year. 

The  group  considers  that  supplies  of  natural 
rubber  becoming  available  in  manufacturing  coun- 
tries from  all  areas  in  the  world  during  1947  might 
reach  approximately  1,200,000  tons  as  compared 
with  850,000  tons  during  1946.  Looking  to  a 
longer  period,  the  group  estimated  that  during 
1948  there  was  a  good  prospect  of  the  production 
of  1,500,000  tons  of  natural  rubber  and  arrivals 
in  consuming  countries  of  1,400,000  tons. 


Assuming  that  the  recommendations  of  the  In- 
ter-Agency Policy  Committee  on  Rubber  are  car- 
ried out  by  the  United  States  Government,  this 
would  give  a  total  world  potential  production  of 
natural  and  synthetic  rubber  of  about  2,000,000 
tons. 

Without  making  any  provision  for  increased 
working  stocks  or  for  any  strategic  stockpiling 
the  group  estimated  that  the  world  consumption 
of  natural  and  synthetic  rubber  would  amount  to 
about  1,600,000  tons  in  1946, 1,700,000  tons  in  1947, 
and  1,675,000  tons  in  1948.  This  estimate  depends 
on  the  maintehance  of  a  high  level  of  economic  ac- 
tivity in  consuming  countries  but  assumes  that 
there  will  be  no  sudden  large  developments  of  the 
use  of  rubber. 

The  disequilibrium  between  the  productive 
capacity  of  the  world  and  its  demands  for  con- 
sumption which  was  foreseen  at  the  first  meeting 
of  the  group,  while  not  anticipated  for  1947,  is 
still  contemplated  as  a  possibility  in  the  course  of 
two  or  three  years. 

Discussion  at  the  group  meeting  suggests  that 
there  will  be  a  wide  range  of  uses  for  which  natural 
rubber  may  be  better  suited  than  synthetic  and 
another  range  in  which  synthetic  may  be  prefer- 
able to  natural.  Between  these,  however,  there 
may  well  be  an  area  in  which  satisfactory  results 
may  be  expected  from  eitlier  kind  of  rubber  and 
where  manufacturers  are  likely  to  be  guided  in 
tlieir  preference  by  the  relative  costs  of  the  two 
materials.  In  otlier  cases  national  policy  may  de- 
termine the  amount  of  synthetic  rubber  used.  The 
group  made  special  reference  to  the  field  for  in- 
creased use  of  natural  rubber  in  the  expansion  of 
tlie  group's  membership  which  was  considered  in 
tlie  light  of  the  work  of  the  Preparatory  Commit- 
tee of  the  International  Conference  on  Trade  and 
Employment  and  the  participating  delegations 
agreed  to  recommend  to  their  respective  goveim- 
ments  that  membership  should  be  open  to  all  coun- 
tries substantially  interested  in  the  production  and 
consumption  of  rubber. 

The  terms  of  reference  of  the  group  provide  that 
other  interested  governments  shall  be  kept  in- 
formed of  its  work,  and  steps  will  be  taken  to  this 
end. 

It  is  expected  that  a  further  meeting  of  the 
group  will  be  desirable  in  the  middle  of  1947. 


1054 


Department  of  State  Bulletin      •      December  8,   7946 


ACTIVITIES  AND   DEVELOPMENTS 


UNITED  NATIONS  POSTAL  EXPERTS  MEETING  ■ 

A  meeting  of  postal  representatives  is  being  held 
in  New  York  on  December  10,  1946,  under  the 
auspices  of  the  United  Nations,  to  prepare  an 
agreement  in  connection  with  bringing  the  Uni- 
versal Postal  Union  into  relation  with  the  United 
Nations.  The  agreement  will  be  negotiated  be- 
tween the  United  Nations  and  the  Universal  Postal 
Union.  This  meeting  is  the  direct  result  of  the 
Transport  and  Communications  Commission's 
recommendation  to  the  Economic  and  Social 
Council  that  such  a  meeting  be  held.  The  United 
Nations  General  Assembly,  in  turn,  issued  the  in- 
vitations. Delegates  representing  the  Post  Office 
Department  and  the  Department  of  State  are  ex- 
pected to  attend. 


MEETING  OF  THE  CARIBBEAN   COMMISSION' 

The  four  national  sections  of  the  Caribbean 
Commission  consisting  of  representatives  from 
France,  the  Netherlands,  the  United  Kingdom,  and 
the  United  States  will  meet  in  Curasao,  Nether- 
lands West  Indies,  on  December  10, 1946  to  discuss 
the  activities  of  the  Commission's  newly  estab- 
lished Secretariat.  Principal  items  on  the  agenda 
will  include  rules  of  procedure  for  the  Commission 
and  the  West  Indian  Conference,  and  the  appor- 
tionment of  the  budget.  The  meeting  will  be 
largely  devoted  to  the  implementation  of  the  rec- 
ommendations of  the  second  session  of  the  West 
Indian  Conference  which  was  held  in  St.  Thomas, 
Virgin  Islands  of  the  United  States,  in  Februarv 
1946.  ^ 

The  Caribbean  Commission  is  an  international 
advisory  body,  resulting  from  the  recent  expansion 
of  the  original  Anglo-American  Caribbean  Com- 
mission. It  serves  to  coordinate  the  activities  of 
the  four  member  powers  in  their  efforts  to  im- 
prove the  economic  and  social  well-being  of  Carib- 
bean inhabitants. 

The  Curagao  gathering  will  be  the  third  meet- 
ing of  the  newly  reorganized  body,  the  second  hav- 
ing taken  place  at  Washington  in  July  1946.  The 
session  is  expected  to  last  four  or  five  days. 


PREPARATORY  COMMITTEE  FOR 
INTERNATIONAL    TRADE    AND 
EMPLOYMENT  CONFERENCE 


Resolution  on  Interim  Commodity  Committee 

Text  of  resolution  on  the  Interim  Commodity 
Committee  adopted  at  the  plenary  session  of  the 
Preparatoi^  Committee  of  the  International  Con- 
ference on  Trade  and  Employment  in  London 
on  Novemher  26 

Whereas  certain  difficulties  of  the  kind  referred 
to  in  the  draft  chapter  on  intergovernmental  com- 
modity arrangements  appended  to  the  report  of 
the  Preparatory  Committee  have  already  occurred 
in  respect  of  certain  primary  commodities  and  the 
governments  concerned  are  already  taking  action 
on  the  general  lines  proposed  in  that  chapter  and 
Whereas  similar  difficulties  may  occur  in  re- 
spect of  other  primary  commodities  and 

Whereas  the  Preparatory  Committee  is  agreed 
that  it  is  desirable  that  action  taken  in  respect  of 
such  commodities  should  proceed  on  the  general 
lines  proposed  in  the  draft  chapter: 

The  Preparatory  Committee  of  the  Interna- 
tional Conference  on  Trade  and  Employment 
recommends  that, 

In  so  far  as  intergovernmental  consultation  or 
action  in  respect  of  particular  commodities  is 
necessary  before  the  international  trade  organ- 
ization is  established,  the  governments  concerned 
should  adopt  as  a  guide  the  draft  chapter  on  inter- 
governmental commodity  arrangements  appended 
to  the  report  of  the  Committee  and  request  the 
Secretary-General  of  the  United  Nations,  pending 
the  establishment  of  the  international  trade  organ- 
ization, to  appoint  an  interim  coordinating  com- 
mittee for  international  commodity  arrangements 
to  consist  of  the  executive  secretary  of  the  Pre- 
paratory Committee  for  an  international  confer- 
ence on  trade  and  employment  as  chairman,  a 
representative  from  the  Food  and  Agriculture  Or- 
ganization to  be  concerned  with  agricultural  pri- 

"  Prepared  by  the  Division  of  International  Conferences. 


1055 


ACTIVITIES  AND   DEVELOPMENTS 

mary  commodities  and  a  person  to  be  selected  at 
the  discretion  of  the  Secretary-General  to  be  con- 
cerned with  non-agricultural  primary  commod- 
ities, this  committee  to  keep  informed  of  inter- 
governmental consultation  or  action  in  this  field 
and  to  facilitate  by  appropriate  means  such  con- 
sultation or  action. 

Statement  by  Clair  Wilcox* 

Today  we  come  to  the  end,  not  of  one  meeting 
but  of  six.  We  have  completed  a  series  of  con- 
ferences on  international  economic  policy  dealing 
respectively  with  employment,  industrial  develop- 
ment, commercial  relations,  restrictive  business 
practices,  commodity  arrangements,  and  the  es- 
tablishment of  a  new  organization  for  world  trade. 
We  have  dealt  with  a  subject-matter  that  presents 
in  its  combination  of  diversity,  complexity,  and 
political  sensitivity  a  problem  so  difficult  that  it 
might  well  have  defied  the  negotiator's  art.  Yet 
on  every  major  issue  that  has  been  before  us  in 
every  one  of  these  conferences  we  have  come,  al- 
most all  of  us,  to  an  identity  of  views.  We  have 
worked  steadily  and  quietly  in  an  atmosphere  of 
cordial  cooperation  where  each  has  sought  to  find 
his  own  interest  in  a  purpose  that  is  common  to 
us  all,  and  we  have  completed  our  task  within  the 
time  that  we  allotted  to  it  when  we  met. 

We  have  arrived  at  wide  agreement  speaking 
as  experts  without  committing  our  Governments 
on  nine  tenths  or  more  of  the  text  of  a  new  charter 
for  world  trade,  employment,  and  economic  devel- 
opment. 

I  am  happy  that  the  preparatory  work  that  was 
done  within  my  own  Government  has  contributed 
to  this  result.  But  I  am  equally  happy  that  the 
draft  that  is  now  taking  form  has  a  better  balance, 
a  greater  realism,  and  a  finer  precision  than  the 
one  with  which  we  began. 

The  document  that  is  emerging  will  give  ex- 
pression not  to  the  common  denominator  but  to 


^  Made  before  the  final  plenary  session  of  the  Prepara- 
tory Committee  for  the  International  Trade  and  Employ- 
ment Conference  in  London  on  Nov.  26,  1946,  and  released 
to  the  press  on  the  same  date.  Mr.  Wilcox  is  Chairman 
of  the  U.  S.  Delegation. 


the  highest  common  denominator  of  our  views. 
The  principles  on  which  we  have  built  are  sound ; 
our  work  has  been  well  done;  we  have  gone  far- 
ther and  faster,  I  am  sure,  than  any  one  of  us 
had  dared  to  hope  was  possible  six  weeks  ago. 

We  have  made  a  good  beginning,  but  it  is  only 
a  beginning.  The  instrument  that  we  have  forged 
in  London  must  be  polished  this  winter  in  New 
York,  hardened  with  the  alloy  of  trade  negotia- 
tions next  spring  in  Geneva,  tested  in  the  con- 
ference of  many  nations  that  will  follow,  accepted 
by  world  opinion,  and  put  into  operation  by  gov- 
ernments. The  way  ahead  of  us  is  long  and  may 
be  difficult,  but  we  are  facing  in  the  right  direc- 
tion, and  we  have  taken  the  first  sure  steps  toward 
our  common  goal,  and  in  this  there  is  great  promise 
for  a  worried  and  a  weary  world. 

As  we  have  struggled  here  with  the  technical- 
ities of  unconditional  most- favored-nation  treat- 
ment, disequilibrium  in  the  balance  of  payments, 
non-discrimination  in  the  administration  of  quan- 
titative restrictions,  and  procedures  to  be  followed 
in  multilateral  selective  negotiations  on  tariffs 
and  preferences,  we  have  not  lost  sight,  I  trust,  of 
the  deeper  problems  that  underlie  these  mysteries. 
For  the  questions  that  we  have  really  been  dis- 
cussing are  whether  there  is  to  be  economic  peace 
or  economic  war,  whether  nations  are  to  be  drawn 
together  or  torn  apart,  whether  men  are  to  have 
work  or  be  idle,  whether  their  families  are  to  eat 
or  go  hungry,  whether  their  children  are  to  face 
the  future  with  confidence  or  with  fear. 

Our  answer  to  all  these  questions  is  written  in 
the  charter  for  the  world  to  read. 

In  conclusion,  Mr.  Chairman,  I  should  like  to 
express  for  my  colleagues  and  myself  our  grati- 
tude for  the  many  courtesies  that  have  been  shown 
us  during  these  meetings,  our  admiration  of  the 
men  with  whom  we  have  worked  both  day  and 
night  over  the  past  six  weeks,  our  affection  for 
those  whom  we  have  come  to  know  as  personal 
friends,  our  deep  appreciation  of  the  spirit  of 
good-will  that  has  animated  all  the  deliberations 
of  this  committee  from  the  beginning  to  the  end. 
We  are  pleased  and  we  are  proud  to  have  been 
associated  with  such  a  group  in  such  an  enterprise. 


1056 


Department  of  State  Bulletin      •      December  8,    1946 


THE  RECORD  OF  THE  WEEK 


United  States  Position  on  Polish  Elections 


[Released  to  the  press  November  25] 

Text  of  note  delivered  hy  the  Ainerican  Charge 
d' Affaires  in  Poland,  Gerald  Keith,  to  the  Polish 
Foreign  Office  on  November  22 

Excellency  : 

I  have  been  instructed  to  inform  you  that  my 
Government  has  taken  note  of  the  announcement 
that  the  Polish  Government  of  National  Unity  has 
fixed  January  19,  1947  as  the  date  on  which  gen- 
eral elections  will  be  held  in  Poland.  In  this  con- 
nection, my  Government  recalls  that  Ambassador 
Lange's  note  of  April  24,  1946  stated  that  in  ac- 
cordance with  the  Potsdam  Agreement  of  August 
2,  1945,  which  provided  that  elections  would  be 
held  as  soon  as  possible,  elections  would  take  place 
this  year.  Although  my  Government  is  surprised 
that  the  Polish  Government  would  fail,  without 
explanation,  to  fulfill  this  formal  assurance,  its 
chief  concern  is  not  with  any  particular  date  but 
with  the  discharge  of  its  responsibility  under  the 
decisions  taken  at  the  Crimea  and  Potsdam  con- 


ferences with  respect  to  the  holding  of  free  elec- 
tions in  Poland. 

The  importance  which  the  United  States  Gov- 
ernment attaches  to  the  carrying  out  of  these  de- 
cisions has  repeatedly  been  brought  to  the  atten- 
tion of  the  Polish  Government.  In  his  note  of 
August  19,  1946,  to  which  no  reply  has  been  re- 
ceived, Ambassador  Lane  outlined  certain  points 
which  the  United  States  Government  considers  es- 
sential for  the  carrying  out  of  free  elections.  In 
view  of  the  disturbing  reports  which  it  has  re- 
ceived concerning  the  preparations  for  the  elec- 
tions, my  Government  has  instructed  me  again  to 
inform  Your  Excellency  that  the  Government  of 
the  United  States  expects  that  equal  rights  and 
facilities  in  the  forthcoming  election  campaigns 
and  in  the  elections  themselves  will  be  accorded  to 
all  democratic  and  anti-Nazi  parties  in  accordance 
with  the  Potsdam  Agreement.  My  Government 
could  not  otherwise  regard  the  terms  of  the  Yalta 
and  Potsdam  decisions  as  having  been  fulfilled. 


U.S.  Position  on  Rumanian  Election  Results 


[Released  to  the  press  November  26] 

At  the  Crimea  conference  in  1945  the  Govern- 
ments of  the  United  States,  the  Union  of  Soviet  So- 
cialist Republics,  and  the  United  Kingdom  agreed 
jointly,  to  assist  the  people  of  liberated  Europe 
with  a  view  to  the  earliest  possible  establishment 
through  free  elections  of  governments  responsive 
to  the  will  of  those  people.  Subsequently,  pur- 
suant to  agreement  reached  at  Moscow  in  December 
1945  between  the  same  powers,  representatives  of 
the  three  Governments  met  in  Rumania  and  ob- 


tained assurances  from  the  Rumanian  Government 
that  the  latter  would  hold  free  and  unfettered 
elections  as  soon  as  possible  on  the  basis  of  uni- 
versal and  secret  ballot. 

The  Rumanian  Government  held  elections  on 
November  19, 1946.  The  Department  of  State  has 
now  received  extensive  reports  concerning  the 
conduct  of  those  elections,  and  the  information 
contained  therein  makes  it  abundantly  clear  that, 
as  a  result  of  manipulations  of  the  electoral  regis- 
ters, the  procedures  followed  in  conducting  the 


1057 


THE  RECORD  Of  THE   WEEK 


balloting  and  the  connting  of  votes,  as  well  as  by 
intimidation  through  teri'orism  of  large  democratic 
elements  of  the  electorate,  the  franchise  was  on 
that  occasion  effectively  denied  to  important  sec- 
tions of  the  population.  Consequently,  the  United 
States  Government  cannot  regard  those  elections 
as  a  compliance  by  the  Rumanian  Government  with 
the  assurances  it  gave  the  United  States,  United 
Kingdom,  and  Union  of  Soviet  Socialist  Republics 
Governments  in  implementation  of  the  Moscow 
decision. 


Situation  in  Procurement  of  Grain  for 
Export  Abroad 

[Released  to  the  press  by  the  White  House  November  29] 

The  President  on  November  29  called  attention 
to  the  favorable  situation  in  the  procurement  of 
grain  for  export  to  people  in  need  abroad,  to  the 
difficulties  in  rail  transportation  of  grain  for  this 
purpose,  and  to  the  modification  in  the  restric- 
tions on  domestic  use  of  grain. 

Exports  of  grain,  together  with  wheat  pur- 
chased or  under  contract  by  the  Department  of 
Agriculture  and  amounts  to  be  shipped  as  flour, 
are  sufficient  to  reach  the  original  goal  of  267  mil- 
lion bushels  for  the  year  ending  June  30,  1947. 
Good  crops  of  all  grains  and  a  record  corn  crop 
made  it  possible  later  to  raise  this  goal  to  a  total 
of  400  million  bushels  of  wheat,  corn,  and  other 
grains. 

It  now  appears  that  it  would  be  possible  to  make 
available  for  export  as  much  as  550  million  bushels 
of  all  grains  if  sufficient  transportation  could  be 
obtained.  However,  owing  largely  to  the  short- 
age of  boxcars,  there  are  difficulties  even  in  the 
movement  of  as  much  as  400  million  bushels. 

In  view  of  the  continuing  urgent  need  for  food 
abroad,  the  Office  of  Defense  Transportation  is 
being  asked  by  the  President  to  make  every  effort 
to  supply  the  necessary  transportation  for  export 
grain  and,  if  necessary,  to  provide  preferential 
treatment  to  move  grain  for  this  purpose. 

Because  of  the  favorable  grain-supply  situation 

'  For  recommendations  by  Ambassatlor  Pauley  on  Jap- 
anese reparations,  see  Bttlletin  of  Nov.  24,  1946,  p.  957. 

'  For  Report  of  the  Mission  on  Japanese  Combines,  see 
Department  of  State  publication  2628. 


and  in  the  light  of  transportation  difficulties,  modi- 
fications in  the  restrictions  on  the  domestic  use  of 
grain  are  being  announced  by  Secretary  of  Agri- 
culture Clinton  P.  Anderson. 

The  Department  of  Agriculture  will  take  the 
following  actions :  ■ 

1.  Remove  the  limitation  on  the  domestic  dis- 
tribution of  flour. 

2.  Permit  brewers,  for  the  quarter  beginning 
December  1,  1946,  to  use  as  much  grain  as  in  the 
cori'esponding  months  of  1945  and  1946,  but  re- 
tain the  prohibition  against  their  use  of  wheat  and 
the  limitation  on  the  use  of  rice.  ■ 

3.  Permit  distillers  to  use  unlimited  quantities 
of  corn  below  grade  3,  but  retain  the  prohibition 
against  their  use  of  wheat  and  the  limitation  on 
their  use  of  rye. 


I 


Consultations  on  Japanese  Reparations 
Program 

STATEMENT  BY  ACTING  SECRETARY  ACHESON 

[Released  to  the  press  on  November  29] 

Mr.  Pauley,  personal  representative  of  the  Pres- 
ident on  reparations,  with  the  rank  of  Ambassador, 
has  completed  his  report  embodying  recommenda- 
tions to  the  United  States  Government  for  a  Jap- 
anese reparations  settlement.^  His  report  is  being 
used  as  a  basis  for  United  States  Government 
study  of  its  position  on  the  matter,  and  close  at- 
tention is  being  paid  to  the  report  as  a  whole, 
including  Ambassador  Pauley's  comments  on  the 
control  of  the  Zaibatsu,^  agrarian  reform,  balance 
of  trade,  and  levels  of  industry. 

International  consultations  are  now  in  progress 
with  interested  governments  which  the  United 
States  Government  believes  will  lead  to  an  early 
determination  of  the  manner  in  which  a  repara- 
tions program  may  be  promptly  executed. 

The  Department  of  State  continues  to  liope  for 
the  broadest  possible  inter-Allied  support  in  the 
formulation  of  directives  upon  which  the  Supreme 
Commander  for  the  Allied  Powers  will  base  the 
execution  of  a  reparations  program. 


1058 


Department  of  State  Bulletin      •      December  8,    1946 


International  Cooperation  for  1947  Relief  Effort 


BY  C.  TYLER  WOOD  > 


The  plan  I  am  advocating  is  a  simple  and  direct 
one.  It  is  designed  specifically  to  meet  the  par- 
ticular situation  which  will  confront  us  in  1947, 
just  as  UNRRA  was  designed  to  meet  the  very 
different  situation  immediately  following  the  war. 

I  propose  that  each  nation  should  immediately 
consider  what  it  can  contribute  to  the  common 
1947  relief  effort.  It  should  discuss  its  plans  in- 
formally with  others,  both  those  planning  to  help 
and  those  needing  help,  to  obtain  their  views  and 
to  coordinate  its  activities  with  all  others  con- 
cerned. The  Secretariat  of  the  United  Nations 
should  be  used  as  a  clearing  house  by  all  of  us. 
The  United  States  would  keep  the  Secretary-Gen- 
eral fully  informed  of  what  we  were  doing,  and 
others  should  do  the  same. 

Now,  why  do  I  think  this  is  the  way  to  do  the 
job  in  1947?  For  the  same  reason  that  I  believe 
in  using  a  saw  when  I  have  wood  to  cut  and  in 
using  a  hammer  when  I  want  to  drive  a  nail — 
you  do  a  better  job  when  you  use  the  right  tool  for 
that  job. 

That  simple  rule  was  followed  when  we  helped 
design  UNRRA.  Then  right  after  the  war  chaos 
threatened,  and  all  the  liberated  nations  needed  all 
they  could  get  as  fast  as  it  could  be  given  them. 
In  these  countries  there  were  no  governments  to 
collect  or  buy  supplies,  no  food,  no  medicines,  and 
no  transportation  to  distribute  them.  UNRRA, 
to  which  the  United  States  has  contributed  $2,700,- 
000,000 — nearly  three  times  the  total  contributions 
of  all  other  nations  combined — was  designed  to 
step  into  this  particular  breach.  It  did  so  mag- 
nificently, as  Mr.  La  Guardia  and  I  saw  on  our 
trip  together  this  summer.  Trains  are  running, 
fields  have  been  plowed  and  harvested,  essential 
utilities  are  operating  again. 

The  first  battle  in  the  campaign  to  conquer  the 
economic  ravages  of  the  war  has  been  won.  Now 
the  problem  is,  in  most  cases,  not  urgent  relief  but 
further  recovery  and  reconstruction. 

If  the  world  is  to  win  this  battle,  we  and  others 


must  help  the  countries  struggling  upward.  But 
most  of  them  don't  need  free  relief  of  the  type  pro- 
vided by  UNRRA.  The  further  rebuilding  of  a 
railroad,  additions  to  the  generating  capacity  of 
a  country,  improved  mechanization  of  coal 
mines — these  are  income-producing  projects  and 
should  be  financed  through  loans  and  not  through 
free  grants. 

We  have  taken  the  lead  again  in  providing  the 
tools  for  this.  As  a  result  the  International  Bank 
and  the  Monetary  Fund  will  assist  nations  in  ob- 
taining the  foreign-exchange  credits  needed  for 
reconstruction  and  for  stabilizing  their  currencies. 
The  capital  of  these  two  institutions  will  amount 
to  15  billion  dollars,  of  which  we  provide  about  6 
billion  dollars.  Then  there  is  our  Export-Import 
Bank  and  the  direct  foreign  loans  made  by  us, 
amounting  to  nearly  10  billion  dollars  more. 

What  then  remains  to  be  done?  Do  not  these 
measures  make  any  further  free  grants  unneces- 
sary?' Are  we  wasting  our  time  in  talking 
about  it  ? 

No,  we  are  not,  for  there  will  be  a  real  need.  A 
few  countries  will  still  need  free  grants,  for  they 
are  not  yet  far  enough  on  the  road  to  recovery  to 
get  along  otherwise.  They  will  need  these  grants 
very  urgently  and  promptly  in  the  period  between 
late  winter  and  early  summer  when  their  harvests 
begin  to  come  in. 

Remember,  many  need  help,  but  only  a  few  need 
free  assistance.  But  in  the  board  of  nations  sug- 
gested by  Mr.  La  Guardia,  each  nation's  repre- 
sentative will  be  instructed  to  get  all  the  free  as- 
sistance he  can,  and  his  political  life  may  depend 
upon  his  success.  The  result  will  be  log-rolling — 
those  who  don't  need  free  help  will  get  some — 
those  who  do  need  it  desperately  will  get  less  than 
they  need.     We  cannot  afford  to  let  this  happen  in, 

'  An  address  delivered  on  the  "Town  Meeting  of  the 
Air"  in  Plymouth,  Mass.,  on  Nov.  28,  194G,  and  released 
to  the  press  on  the  same  date.  Mr.  Wood  is  Special  As- 
sistant to  the  Under  Secretary  of  Slate  for  Economic 
Affairs. 


1059 


THE  RECORD   OF  THE   WEEK 


the  case  of  the  short-term  emergency  program  we 
are  discussing.  We  have  seen  examples  of  this  in 
UNRRA.  I  know  of  one  country  which  still  has  a 
substantial  amount  of  supplies,  mostly  equipment, 
coming  from  UNRRA.  You  could  take  all  these, 
turn  them  into  food,  and  send  it  to  another 
UNRRA  counti'y.  This  second  country  would 
still  not  be  eating  so  well  as  the  first  does  now.  But 
you  can't  make  the  adjustment  thoroughly  and 
quickly  through  a  board  of  nations.  If  you  think 
you  could,  I'd  like  to  resign  my  job  on  the  Central 
Committee  of  UNRRA  and  let  you  try  it. 

Take  another  case.  Suppose  a  country  were 
building  up  a  large  army  or  using  its  plants  and 
raw  materials  to  make  tanks  and  weapons  instead 
of  using  them  to  provide  for  the  needs  of  its  peo- 
ple. Should  they  get  free  assistance  when  they 
can  help  themselves  ?  No  board  of  nations  would 
act  quickly  enough  to  deny  or  to  stop  free  relief 
in  such  a  case. 

Some  people  are  saying — ^let's  be  frank  about 
it — that  we  wish  to  retain  control  over  the  way 
our  funds  are  spent  because  we  intend  to  use  food 
as  a  political  weapon.  I  categorically  repudiate 
this — our  past  record  and  what  we  do  in  the  future 
will  give  a  convincing  answer.  But  we  do  insist 
that  tlie  food  we  provide  be  not  used  by  others  for 
political  purposes  either.  We  want  to  be  sure  that 
it  goes  to  the  hungry  and  not  just  to  those  who 
vote  right.  The  drive  to  keep  food  out  of  politics 
must  go  down  a  two-way  street. 

There  is  one  other  practical  advantage  of  our 
plan.  The  needed  funds  must  be  available  during 
the  latter  part  of  this  winter,  when  UNRRA  ship- 
ments start  running  out.  Thei-e  is  barely  enough 
time  for  action  by  Congress  after  it  convenes  in 
January.  The  complication  of  an  international 
board  or  agency  would  greatly  prolong  the  de- 
bate and  might  indeed  defeat  the  effort  to  obtain 
funds. 

Are  we  turning  our  backs  on  international  coop- 
eration if  we  follow  the  plan  I  suggest?  I'll  let 
.you  decide  this.  Just  remember  that  I  am  pro- 
posing full  consultation  with  all  other  nations  con- 
cerned, and  suggest  that  we  use  the  Secretariat 
of  the  United  Nations  as  a  clearing  house  for  in- 
formation to  help  us  in  coordinating  our  efforts. 
This  is  international  cooperation,  in  a  form  best 
designed  to  deal  with  the  problems  we  face.    We 


are  actively  supporting  international  cooperation 
across  the  board  in  the  International  Refugee  Or- 
ganization— against  great  opposition  I  may  say — 
in  FAO,  in  the  International  Trade  Organization. 
It  would  take  more  time  than  I  have  to  list  them 
all. 

The  plan  I  have  outlined  is  the  most  practical 
that  can  be  designed  to  meet  the  particular  situa- 
tion we  face.  It  is  flexible  and  adaptable.  Its 
very  directness  and  simplicity  should  ensure  ob- 
taining the  needed  funds  as  quickly  as  possible  and 
their  use  where  they  are  most  needed,  without  dis- 
crimination on  political,  racial,  or  any  other 
grounds.  It  involves  the  kind  of  international 
cooperation  needed  in  this  case.  I  hope  it  will 
win  the  support  of  the  people  of  this  country. 


Negotiations  With  Philippine  Govern- 
ment on  Income  and  Estate  Taxes 

[Released  to  the  press  December  1] 

Negotiations  looking  to  the  conclusion  of  a  con- 
vention with  the  Government  of  the  Philippines 
relating  to  income  and  estate  taxes  of  the  two 
countries  are  expected  to  open  at  Manila  early  in 
January. 

Prior  to  that  time  the  delegation  of  technical 
experts  which  will  assist  Ambassador  Paul  V. 
McNutt  in  the  negotiations  would  be  glad  to  confer 
with  interested  parties  or  to  receive  statements 
and  suggestions  from  them  concerning  problems 
in  tax  relations  with  the  Philippines.  Communi- 
cations in  this  connection  should  be  addressed  to 
Eldon  P.  King,  Special  Deputy  Commissioner, 
Bureau  of  Internal  Revenue,  Washington  25,  D.  C. 

Foreign  Commerce  Weekly 

The  following  articles  of  interest  to  readers  of 
the  BtJLLETiN  appeared  in  the  November  23  issue  of 
the  Foreign  Commerce  Weeklij,  a  publication  of  the 
Department  of  Commerce,  copies  of  which  may  be 
obtained  from  the  Superintendent  of  Documents, 
Government  Printing  Office,  for  15  cents  each : 

"Swiss  Industrial  Plants :  Character,  Scope,  Aims", 
by  Adlai  M.  Ewing,  senior  economic  analyst,  Ameri- 
can Legation,  Bern,  Switzerland. 

"War  Gave  'Nutmeg  Isle'  Bigger  Spice-Trade  Role", 
by  Charles  H.  Whitaker,  second  secretai-y  and  vice 
consul,  American  Consulate,   Montevideo,   Uruguay. 


I 


1060 


Departmenf  of  State  Bulletin      •      December  8,    1946 


Mexico  Pays  Fifth   Instalment   Under 
Claims  Convention 

[Released  to  the  press  November  26] 

The  Ambassador  of  Mexico  presented  to  the 
Assistant  Secretary  of  State  for  American  Re- 
public Affairs  on  November  26  the  Mexican  Gov- 
ernment's check  for  $2,500,000  (U.  S.  currency) 
representing  the  fifth  annual  instalment  due  the 
United  States  under  the  claims  convention  con- 
cluded November  19,  1941/  The  Assistant  Sec- 
retary of  State  requested  the  Ambassador  to  con- 
vey to  his  Government  an  expression  of  this  Gov- 
ei-nment's  appreciation. 

Under  the  terms  of  the  convention,  Mexico 
agreed  to  pay  the  United  States  $40,000,000  (U.  S. 
currency)  in  settlement  of  certain  property  claims 
of  citizens  of  the  United  States  against  the  Gov- 
ernment of  Mexico,  as  described  in  the  convention. 
Payments  heretofore  made  amount  to  $16,000,000. 
With  the  present  payment  of  $2,500,000  the  bal- 
ance remaining  to  be  paid  amounts  to  $21,500,000, 
to  be  liquidated  over  a  period  of  years  by  the  an- 
nual payment  by  Mexico  of  not  less  than  $2,500,000 
(U.  S.  currency). 


German  Documents— Continued  from  page  IO47 

Todt  had  brought  it  about  that  the  road  workers, 
who  previously  in  Germany  had  been  disdained, 
had  been  filled  with  a  notable  espt-it  de  corps. 
There  was  certainly  a  difference  whether  a  person 
was  being  employed  by  private  capital  or  was 
working  in  the  common  interest. 

Field  Marshal  Keitel  confirmed  the  fact  that 
120,000  Italians  were  being  employed  along  with 
6,000  German  workers  in  Italy. 

The  Fiihrer  said  that  he  considered  it  would  be 
better  if  the  Italian  units  were  not  used  in  combat 
immediately  after  their  period  of  training,  but 
were  doubled  and  tripled,  so  that  with  these  12 
divisions  the  basis  of  the  State  could  be  established. 

The  Fiihrer  summed  up  the  position  in  Italy, 
concluding  that  all  the  problems  which  presented 
themselves  would  be  solved  in  due  course,  that 
everything  must  be  done  to  improve  the  position 
oi  the  Duce  and  that  accordingly  the  psychological 
aspect  of  the  problem  must  be  looked  to  as  well. 


THE  RECORD   Of  THE   WEEK 

The  Fiihrer  had  decided  once  and  for  all  to  rely 
on  the  Duce,  and  he  had  broken  off  all  other  rela- 
tions with  Italy.  Everything  would  be  done,  but 
with  the  proviso  that  our  own  conduct  of  the  war 
did  not  suffer  thereby.  We  now  intended  to  estab- 
lish gigantic  airplane  factories  below  the  surface 
of  the  earth  in  order  to  protect  Italy  with  the 
fighters  and  bombers  which  would  be  manufac- 
tured therein.  This  would  all  take  place  while  we 
were  mobilizing  all  our  forces,  as  no  other  state 
with  the  exception  of  Finland  had  done.  If  Am- 
bassador Rahn  should  transmit  to  the  Fiihrer  the 
Duce's  wishes,  the  Fiihrer  would  see  that  they 
were  fulfilled,  if  it  were  at  all  possible,  but  if  their 
fulfilment  were  not  possible,  then  he  would  tell  the 
Duce  so  frankly  and  give  the  reasons  therefor. 
The  Fiihrer  in  this  terrific  historic  struggle  took 
a  broader  view  than  that  from  a  church  steeple. 
He  was  not  going  to  haggle  over  square  meters  or 
over  100  or  200  men  where  it  was  a  question  of 
existence  or  non-existence  and  when  the  horde  of 
international  Jewry  was  assailing  us.  Either 
Europe  would  be  destroyed  or  it  would  become  a 
blossoming  continent.  The  English  and  the 
Americans  would  have  enough  of  war  for  a  long 
time,  and  in  order  to  maintain  their  States  they 
would  have  to  take  over  a  great  deal  from  us.  The 
thoughts  of  the  Fiihrer  both  by  day  and  by  night 
were  directed  toward  victory.  Hungary,  Ru- 
mania, and  Finland  were  not  closely  related  to  us 
in  outlook.  Italy  was  the  first  and,  even  today, 
still  the  only  one  of  our  allies  who  was  closely 
bound  to  us  in  world  outlook.  That  was  why  the 
Fiihrer  in  his  own  interest  understandably  and 
naturally  wanted  to  fulfil  all  of  the  wishes  of  the 
Duce.  It  was  likewise  not  good  to  have  to  stand 
against  the  world  alone.  One  must  think  also  of 
his  own  end.  The  Duce  and  he  were  certainly  the 
two  best-hated  men  in  the  world,  and  in  case  the 
enemy  got  possession  of  the  Duce  they  would  carry 
him  off  with  a  cry  of  triumph  to  Washington. 
Germany  and  Italy  must  conquer,  otherwise  both 
countries  and  peoples  would  go  down  to  ruin 
together. 

•  Von  Sonnleithneb 

Berghof,  April  23, 19Jt4. 

'  BtjixETiN  of  Nov.  22,  1&41,  p.  400.    Treaty  Series  980. 


1061 


Understanding  the  United  States  Abroad 

BY  RICHARD  H.  HEINDEL 


The  use  of  information  and  culture  as  an  inte- 
gi-al  part  of  the  conduct  of  foreign  relations  pays 
daily,  practical  tribute  to  the  best  products  of 
civilization.  The  facilitating  and  supplementary 
program  in  the  Government  does  not  obscure  the 
influences  which  have  flowed  outward  from  this 
country,  through  all  channels,  to  all  points  of  the 
earth,  since  Columbus. 

The  United  States  Government's  official  foreign 
cultural-relations  policy  might  be  said  to  have 
originated  in  1840  in  a  joint  resolution  of  Congress 
which  provided  for  the  exchange  of  duplicate  pub- 
lications in  the  Libi-ai7  of  Congress  for  other 
works  in  foreign  libraries.  A  hundred  years 
later,  quite  fittingly,  this  country,  which  pioneered 
in  extending  library  services  for  its  own  people, 
began  developing  American  libraries  abroad  as  an 
acceptable  instrument  for  promoting  understand- 
ing of  the  United  States.  There  are  now  85  U.S. 
Information  Libraries  of  various  sizes  in  41  coun- 
tries. During  the  last  year  these  libraries  were 
used  by  about  4,000,000  people.  The  basic  book 
collections  are  used  twice  over  every  30  days.  In 
many  instances  they  have  led  to  the  expansion  of 
the  democratic  idea  of  a  public  library. 

There  ai'e  in  addition  72  cultural  mstitutes  and 
branches  in  the  Western  Hemisphere.  One  of  their 
important  activities  is  to  develop  the  teaching  of 
the  American  version  of  the  English  language. 
The  centers  were  used  by  over  800,000  people  last 
year,  and  had  a  student  enrolment  of  60,000. 
Fifty-six  percent  of  their  expenses  are  met  locally. 
Activities  of  the  centers  are  varied.    They  include 


'  Excerpts  from  an  address  delivered  before  the  Second 
General  Session  of  the  annual  meeting  of  the  National 
Council  for  the  Social  Studies  in  Boston,  Mass.,  on  Nov. 
29,  1946.  For  complete  text  of  the  address,  see  Depart- 
ment of  State  press  release  846  of  Nov.  27,  1946.  Dr.  Hfein- 
del  is  Chief,  Division  of  Libraries  and  Institutes,  Office  of 
International  Information  and  Cultural  Affairs,  Depart- 
ment of  State. 


film  showings,  musical  evenings,  and  baseball 
clubs;  in  several  countries  the  center  has  intro- 
duced the  idea  of  open  forums  and  panel 
discussions. 

Grants  have  been  made  to  40  American  spon- 
sored or  affiliated  schools,  and  another  400  schools 
have  been  aided  with  educational  materials  from 
this  country.  Thousands  of  publications,  including 
documents,  have  been  distributed  or  exchanged 
with  other  countries.  The  translation  of  150  books, 
including  an  up-to-date  history  of  the  United 
States  in  Arabic,  has  been  added  where  commer- 
cial arrangements  were  inadequate.  Art  exhibits 
and  musical  scores  and  recordings  have  been  dis- 
tributed as  a  result  of  many  requests  from  the 
field.  Sometimes  these  programs  are  described  as 
long-range,  but  this  should  not  mislead  us.  All  of 
them  have  an  immediate  effect  and  a  lasting  result. 

Available  estimates  indicate  that  approximately 
10  million  people  each  month  attend  OIC  film 
showings  of  newsreels  and  documentaries.  A  mo- 
bile motion-picture  unit  working  out  of  Chengtu, 
China,  made  a  1,000  mile  trip  during  July,  reach- 
ing an  estimated  50,000  people  in  small  villages. 
I  believe  also  the  Government  of  Yugoslavia,  with 
film  strips  produced  by  the  Pictures  Branch  of  the 
U.S.  Department  of  Agriculture,  continues  to  train 
veterinarians  in  the  treatment  of  the  diseases  of 
domestic  animals. 

Radio  broadcasts  in  22  languages  are  now 
beamed  to  reach  an  estimated  audience  of  millions. 
These  broadcasts  include  educational  programs 
such  as  Radio  University  where  specialists  conduct 
round-table  discussions. 

There  are  also  2  daily  editions  of  a  wireless 
bulletin,  approximately  7,000  words  each,  which 
go  to  GO  overseas  missions  by  wireless  and  to  200 
other  points  by  airmail.  These  bulletins  carry 
texts  of  official  statements  and  documentary  news 
of  cultural  significance.  The  one  magazine  pub- 
lished is  the  Russian  language  Amerika.  The  So- 
viet Government  recently  authorized  an  increase 


1062 


Department  of  State  Bulletin      •      December  8,   1946 


in  its  circulation  to  50,000  copies,  which  are  sold 
on  newsstands. 

There  is  an  element  of  cooperation  and  recipro- 
cal interest  and  exchange  in  all  these  programs. 
There  are  however  some  programs  which  are  spe- 
cifically labeled  as  cooperative  and  often  conducted 
bilaterally  in  agreement  with  other  countries. 

About  35  bureaus  of  12  Government  agencies 
conduct  scientific  and  technical  field  projects  in 
other  countries.  These  include  agricultural  re- 
search, child  welfare,  public  health,  civil  aviation, 
education,  anthropology,  and  the  like.  This  year 
approximately  200  U.S.  Government  officials  are 
engaged  in  cooperative  scientific  and  technical 
projects  with  other  governments.  Taking  all  these 
cooperative  projects  together,  more  than  half  of 
the  total  expenses  are  paid  by  the  cooperating  for- 
eign countries. 

In  the  exchange  of  students  and  teachers,  the 
government's  role  is  that  of  a  catalytic  agent. 
Last  year,  of  the  10,000  foreign  students  in  this 
country,  only  315  were  here  on  official  awards  or 
gi-ants.  Official  awards  were  given  to  some  200 
government  and  industrial  "trainees".  Fifty  spe- 
cialists and  professors  came  to  this  country  for 
lectures  or  advanced  studies  in  the  official  pro- 
gram, and  70  American  professors  were  sent  to 
teach  abroad.  Grants  were  made  for  foreign  study 
to  10  students,  the  first  to  go  since  the  war. 

In  this  official  exchange-of-persons  program — 
and  this  includes  scientific  and  technical  personnel 
as  well  as  students,  teachers,  and  leaders — we  are 
now  limited  to  exchanges  with  the  other  American 
republics.  Peacetime  authority  for  such  exchanges 
was  given  by  Congress  in  1939  as  part  of  the  good- 
neighbor  policy.  Similar  authority  for  the  rest  of 
the  world  was  contained  in  a  bill,  introduced  by 
Congressman  Bloom  last  year,  known  as  the  Cul- 
tural Kelations  Bill.  Unfortunately  this  legisla- 
tion, after  successfully  passing  the  House  and  re- 
ceiving the  approval  of  the  Senate  Foreign  Rela- 
tions Committee,  died  with  the  last  session  of  Con- 
gress. It  is  expected  that  a  similar  bill  will  be  in- 
troduced when  Congress  reconvenes. 

The  field  force  to  carry  out  these  programs  con- 
sists of  375  Americans  and  some  1,400  local  em- 
ployees. The  Americans,  who  are  known  as  public- 
Eiffairs  officers,  cultural  officers,  information  offi- 


THE  RECORD   OF  THE   WEEK 

cers,  or  librarians,  are  the  specialists  who  are  on 
the  spot  to  interpret  current  American  develop- 
ments and  our  cultural  heritage. 

If  the  American  people  did  not  have  some  faith 
and  some  very  good  reasons  for  believing  in  the 
value  of  American  culture,  it  would  be  folly  to 
take  the  trouble  to  see  that  other  people  knew  any- 
thing whatsoever  about  the  United  States.  We 
believe  that  story  is  worth  telling !  Furthermore, 
we  believe  it  can  be  told  without  vanity,  distor- 
tion, pressure,  or  depreciation  of  others.  The  proc- 
ess of  telling  or  teaching  may  be  just  as  much  a 
contribution  to  international  peace  as  the  story 
itself. 

There  is  nothing  incompatible  between  the  ob- 
jectives of  this  program  and  the  closely  related 
objectives  of  the  United  Nations  Educational, 
Scientific  and  Cultural  Organization  (UNESCO) 
which  is  now  meeting  in  Paris.  Since  ignorance 
is  multilateral,  its  dispersion  must  involve  all 
countries.  This  is  what  UNESCO  hopes  to  do. 
The  bilateral  approach  through  the  OIC  is  a  con- 
tribution to  the  world's  store  of  knowledge  and 
will  be  needed  to  supplement  and  carry  forward 
the  more  general  objectives  of  UNESCO. 

In  the  day-to-day  presentation  of  the  full  and 
fair  picture  of  the  United  States,  a  fundamental 
question  arises  which  is  not  new  to  social  scientists. 
What  portions  or  elements  of  American  life  are 
interesting,  effective,  important,  valid,  or  relevant 
in  foreign  countries?  We  could  know  more  about 
this  subject.  So  far  the  answer  seems  to  be  that 
some  choices  must  be  made.  In  some  places  labor 
has  more  meaning  than  agriculture,  arts  more  va- 
lidity than  science,  political  science  more  impor- 
tance (and  more  trouble)  than  technology. 

American  social  studies  are  a  very  important 
l^art  of  the  composite  picture.  The  very  nature  of 
history,  economics,  political  science,  and  the  like 
make  them  difficult  to  handle  internationally.  By 
the  same  token  the  teachers  of  social  studies  in  this 
country  have  an  important  role  to  play  in  the 
interpretation  of  other  nations  and  in  the  field  of 
international  relations.  Science,  music,  painting — 
even  the  novel — may  have  an  immediate  interna- 
tional acceptance ;  the  same  may  some  day  be  true 
about  a  textbook  in  social  studies. 


1063 


Publication  of  "Papers  Relating  to  the  Foreign  Relations 
of  the  United  States,  1931'%  Volume  II 

REVIEWED  BY  E.  R.  PERKINS^ 


A  documentary  record  of  relations  between  the 
United  States  and  individual  countries  of  the 
American  republics,  Europe,  the  Near  East,  and 
Africa  during  the  year  1931  is  contained  in  the 
volume  of  Foreign  Relatioiis  released  by  the  De- 
partment of  State  on  December  13.  The  other  two 
volumes  of  the  series  for  1931  have  already  been 
released.  Volume  I,  containing  the  general  multi- 
lateral sections  and  those  relating  to  individual 
countries  alphabetically  arranged  through  Chile, 
was  released  on  December  6.  (Reviewed  in  the 
Bulletin,  December  1,  1946,  page  982.)  Volume 
III,  which  deals  with  conditions  in  the  Far  East, 
was  released  on  June  23,  1946.  (Bulletin,  June 
30,  1946,  page  1129.)  Sections  on  relations  with 
countries  not  included  in  these  other  two  volumes 
are  contained  in  volume  II,  alphabetically  ar- 
ranged. As  usual  in  Foreign  Relations  volumes,  a 
list  of  papers  giving  briefly  the  substance  of  each 
document  and  a  carefully  prepared  index  facilitate 
the  use  of  the  mass  of  data  contained  in  more  than 
a  thousand  pages. 

The  Department  of  State  was  called  upon  to 
determine  its  attitude  regarding  conditions  of  ^do- 
litical  unrest  and  revolution  which  started  in  1930 
and  continued  to  spread  among  a  number  of 
American  republics  throughout  the  year  1931.  In 
each  case  active  intervention  was  avoided. 

Nearest  at  hand  of  the  ti-oubled  areas  was  Cuba 
where  dissatisfaction  with  the  regime  of  President 
Machado  continued  unabated  and  where  constitu- 
tional guaranties  were  suspended.  Ambassador 
Guggenheim  held  numerous  conferences  with 
Cuban  political  leaders  and  sought  to  persuade 
Macliado  to  adopt  a  program  of  reform.  The 
Ambassador  was  instructed,  however,  not  to  par- 
ticipate in  any  way  in  any  negotiations  between 
the  Opposition  and  the  Government.  (Page  56.) 
The  end  of  the  year  saw  no  settlement  of  the 
problem,  but  later,  in  1933,  the  Machado  regime 
was  overthrown. 

Other  centers  of  unrest  and  revolution  in  Latin 


'  Dr.  Perkins  is  Editor  of  Foreign  Relations,  Division  of 
Historical  Policy  Research,  Office  of  Public  Affairs,  De- 
partment of  State. 

1064 


America  were  Ecuador,  El  Salvador,  Guatemala, 
Honduras,  Panama,  and  Peru.  In  Ecuador, 
temporary  sanctuary  was  given  in  the  American 
Legation  to  the  former  President  and  his  family. 
Following  two  changes  in  the  executive  authority, 
presidential  elections  were  held  which  the  Lega- 
tion reported  were  "orderly,  free,  and  fair".  In 
determining  its  policy  with  respect  to  the  revolu- 
tion in  El  Salvador  the  Government  of  the  United 
States  was  guided  by  the  provisions  of  the  Central 
American  treaty  of  1923  regarding  the  non-recog- 
nition of  governments  coming  into  power  through 
revolution.  (Pages  173,  203.)  Recognition  was 
not  extended  by  the  United  States  until  January 
1934  after  other  Central  American  republics  had 
recognized  the  Government  of  El  Salvador.  (De- 
partment of  State  Press  Releases,  January  27, 
1934,  page  51.) 

Following  a  revolution  in  Guatemala  in  1930, 
the  United  States,  acting  in  concert  with  three 
Central  American  republics,  extended  recogni- 
tion to  the  new  Guatemalan  Government  which 
was  considered  constituted  in  a  constitutional 
manner.  During  an  unsuccessful  insurrection  in 
Honduras  the  United  States  Government  gave  its 
moral  support  to  the  constituted  Government,  to 
which  alone  shipment  of  arms  was  authorized. 
Warships  were  sent  to  Honduras,  but  it  was  an- 
nounced that  the  American  forces  would  limit 
themselves  to  making  provisions  for  the  safety  of 
American  lives  and  property  in  the  coast  towns. 
(Pages  559-561, 571.)  "Wlien  revolution  broke  out 
in  Panama  the  American  Minister,  with  the  a]i- 
proval  of  the  Department  of  State,  refrained  from 
calling  out  troops  requested  by  the  Panamanian 
President.  (Pages  890,  891.)  The  Department 
authorized  the  continuance  of  ordinary  diplomatic 
relations  with  the  new  government,  considering 
that  it  was  constitutional  and  stable,  and  that  "the 
ordinary  standards  of  international  law  for  the 
recognition  of  new  governments  would  appear  to 
be  met  with".  (Pages  903-904.)  Likewise,  the 
new  revolutionary  government  in  Peru  was  rec- 
ognized on  the  basis  of  a  report  and  recommenda- 

Department  of  Sfafe  Bulletin      •      December  8,   1946 


THE  RECORD  OF  THE   WEEK 


tioii  from  the  American  Ambassador.     (Pages 
s)19-921.) 

While  the  Government  of  the  United  States  was 
ivoiding  intervention  in  these  new  revolutions  in 
neighboring  i-epublics,  it  was  also  taking  steps 
looking  toward  the  termination  of  its  long  inter- 
►'ention  in  Haiti.  On  August  5,  1931  an  agree- 
nent  between  the  United  States  and  Haiti  was 
iigned  for  the  Haitianization  of  the  public  serv- 
ces.  (Page  50.5.)  The  Minister  to  Haiti  had 
ilready  been  authorized  to  inform  the  Haitian 
jrovernment  that  "the  Government  of  the  United 
■States  desires  to  withdraw  the  forces  of  occupa- 
ion  at  the  earliest  moment  when  it  feels  it  can 
)roperIy  do  so,  but  that  it  does  not  consider  it 
)racticable  at  the  present  time  to  attempt  to  fix 
ny  definite  date  or  program".  (Page  546.)  The 
American  Government  did,  however,  object  to 
Haitian  budgetary  laws  passed  without  prior  ac- 
ord  of  the  American  Financial  Adviser.  (Pages 
10  ff.) 

In  Xicaragua,  too,  the  American  Government 
ras  seeking  to  end  the  period  of  intervention. 
The  Marines  continued  to  assist  in  the  suppression 
>i  bandit  activities,  but  the  Guardia  Naeional  was 
leing  strengthened  preparatory  to  the  withdrawal 
f  the  Marines.  In  the  meantime  the  United 
States  insisted  that  so  long  as  the  Guardia  was 
lirected  by  American  officers  it  should  not  try 
^^icaraguan  civilians. 

Diplomatic  relations  of  the  United  States  are 
isually  thought  of  in  terms  of  the  protection  of 
American  citizens  or  interests  in  foreign  lands, 
t  is  well  to  remember  that  occasionally  things 
:o  wrong  in  the  United  States  for  citizens  of 
ther  countries,  and  then  foreign  diplomatic  mis- 
ions  in  Washington  feel  called  upon  to  make  rep- 
esentations.     There  are  such  occasions  recorded 
the  volume  under  review.     Burglary  and  as- 
ult  committed  at  the  Salvadoran  Legation  in 
ashington  was  one  such  incident.     (Pages  212- 
16.)     A  more  serious  aflFair  was  the  fatal  shoot- 
ig  of  two  Mexican  students  by  deputy  sheriffs 
t  Ardmore,  Oklahoma.    One  of  the  victims  was 
nephew  of  President  Rubio  of  Mexico.    The  stu- 
Hents  were  traveling  through  the  town  by  automo- 
ile  and  were  mistaken  for  bandits  for  whom  the 
eputy  sheriffs  were  looking.     No  conviction  of 
lie  perpetrators  of  the  fatal  mistake  was  obtained. 


The  incident  was  settled  in  1933  when  an  act  of 
Congress  was  approved  to  pay  families  of  the  vic- 
tims $30,000  "as  an  act  of  grace  and  without  refer- 
ence to  the  legal  liability  of  the  United  States". 
(Pages  708-726.)  Other  representations  of  the 
Mexican  Government  to  protect  its  interests  in 
tlie  United  States  involved  the  arrest  and  sentence 
of  a  Mexican  vice  consul  at  Chicago  (pages  726- 
729),  and  a  suit  in  the  Supreme  Court  of  New 
York.  (Pages  729-736.)  In  both  cases  tlie  De- 
Ijartment  of  State  supported  the  Mexican  view. 

Other  subjects  relating  to  the  American  repub- 
lics recorded  in  this  volume  include  petroleum  in- 
terests in  Colombia  and  financial  matters  in  Co- 
lombia, the  Dominican  Republic,  and  Uruguay. 

In  the  European  field  the  outstanding  subjects 
of  American  diplomacy  in  1931  were  the  efforts 
of  the  United  States  to  prevent  the  financial  col- 
lapse of  Euroj^e  and  the  problem  of  reducing  or 
limiting  armaments.  These  questions,  however, 
are  covered  in  volmne  I,  previously  released.  It 
is  there  that  one  should  look  for  the  most  signifi- 
cant cori'espondence  on  relations  with  France, 
Great  Britain,  Germany,  and  Italy.  Much  of  the 
corresi^ondence  printed  in  the  country  sections 
for  Europe  in  volume  II  relates  to  the  prosaic 
routine  of  diplomacy,  the  promotion  and  protec- 
tion of  American  business  interests. 

Visitors  of  note  to  Washington  in  1931  were  the 
French  Premier,  Pierre  Laval,  and  the  Italian 
Foreign  Minister,  Dino  Grandi.  (Pages  237-258, 
643-650.)  The  files  of  the  Department  of  State 
reveal  little  regarding  the  details  of  the  conversa- 
tions of  these  visitors  with  President  Hoover  and 
Secretary  Stimson  beyond  those  contained  in  the 
public  statements  issued  at  the  time.  Secretary 
Stimson  did  confide  in  Sir  Ronald  Lindsay,  the 
British  Ambassador,  that  the  American  and 
French  Governments  were  in  surprising  accord  on 
financial  matters  but  that  as  to  disarmament  and 
the  consideration  of  any  adjustment  of  the  politi- 
cal instability  of  Europe  the  results  of  the  conver- 
sations with  Laval  had  been  disappointing. 
(Page  254.) 

Fascist  and  Nazi  activities  recorded  in  this 
volume  were  sources  of  minor  irritation  rather 
than  serious  causes  of  trouble.  In  Germany  Nazi 
demonstrations  caused  a  temporary  banning  of  the 
moving  picture,  All  Quiet  on  the  Western  Front. 


1065 


THE  RECORD   OF  THE  WEEK 


In  reply,  the  Social  Democrats,  with  Communist 
and  other  support,  passed  a  resolution  through  the 
Reichstag  that  the  prohibition  was  unjustifiable. 
Nevertheless  Ambassador  Sackett  urged  that  fur- 
ther controversy  be  avoided.  Word  was  passed  to 
a  representative  of  the  picture  industry,  who  re- 
plied that  the  company  was  "going  slow."  The 
ban  in  Germany  was  lifted  after  deletions  in  the 
picture  were  made  and  a  letter  received  from  the 
comjDany  saying  that  in  the  future  the  expurgated 
German  version  would  be  used  for  presentation 
throughout  the  world.     (Pages  309-317.) 

Other  relations  with  Germany  recorded  in  this 
volume  hark  back  to  World  War  I  more  than  they 
forecast  World  War  II.  A  debt  moratorium  and 
the  possible  sale  of  surplus  American  wheat  and 
cotton  to  strengthen  the  financial  conditions  of 
Germany  are  discussed,  and  claims  arising  from 
the  Black  Tom  and  KingHJand  sabotage  cases  still 
figure  in  the  correspondence.  One  is  reminded  by 
papers  relating  to  treaties  of  the  United  States 
with  Baden  and  Wiirttemberg  signed  in  1868,  that 
Germany,  as  a  centralized  state,  is  of  recent  origin. 

Unjustifiable  arrests  of  American  citizens 
caused  vigorous  representations  to  the  Italian 
Government.  An  extreme  case  was  that  of  an 
American  citizen  arrested  on  board  an  Italian  ship 
in  New  York  Harbor  for  an  alleged  disparaging 
remark  about  Mussolini,  kept  confined  during  the 
entire  voyage  to  Italy,  and  then  incarcerated  in 
a  prison  in  Naples.    (Page  633.) 

Italian  protests  against  articles  in  an  Italian 
language  paper  in  the  United  States  attacking  the 
Fascist  Government  were  met  with  references  to 
constitutional  guaranties  of  free  speech.  (Pages 
637-640.)  The  Secretary  of  State  did,  however, 
express  the  regrets  of  the  American  Government 
for  reflections  against  Mussolini  in  a  speech  by 
Maj.  Gen.  Smedley  Butler  of  the  Marines.  (Pages 
640-643.) 

Diplomatic  relations  between  the  United  States 
and  the  Soviet  Union  had  not  been  established 
in  1931.  The  papers  j^rinted  under  the  section 
for  Russia  relate  to  citizenship  status  of  Ameri- 
can nationals  exercising  political  rights  in  Russia 
and  the  issue  of  non-immigration  visas  for  entry 
into  the  United  States  of  persons  coming  from 
Russia. 

Revolution  swept  King  Alfonso  from  the  throne 


of  Spain  and  a  republican  government  was  pro- 
claimed. Within  a  few  days  the  United  States 
followed  the  lead  of  several  European  powers  in 
extending  recognition.  Spanish  tariff  discrimi- 
nations and  reciprocal  claims  were  other  subjects 
of  correspondence  relating  to  Spain. 

Alleged  obligations  for  military  service  by 
naturalized  American  citizens  returning  to  their 
native  country  were  under  discussion  with  Greece 
and  Yugoslavia. 

In  the  Near  East,  relations  with  Turkey  were 
strengthened  by  a  treaty  of  establishment  and  so- 
journ. The  Kingdom  of  Hejaz  and  Nejd,  prede- 
cessor of  the  present  Saudi  Arabia,  was  recog- 
nized by  the  United  States,  and  a  commercial 
agreement  was  proposed.  Extraterritorial  privi- 
leges were  under  discussion  with  Egypt  and  Ethio- 
pia. Low  cotton  prices  led  the  Egyptian  Govern- 
ment to  i^ropose  joint  action  with  the  United  States 
to  regulate  production  of  that  crop. 

Other  parts  of  Africa  calling  for  diplomatic 
attention  were  Morocco  and  Liberia.  In  the  for- 
mer, American  interests  were  involved  in  both  the 
French  and  Spanish  Zones  as  well  as  in  Tangier 
Pending  settlement  of  American  claims,  the 
United  States  refused  to  recognize  the  Spanish 
Protectorate.  International  control  for  Liberia 
was  under  consideration,  and  the  United  States 
continued  to  withhold  recognition  from  the  Bar- 
clay administration. 

The  above  is  by  no  means  a  complete  listing  of 
all  the  subjects  covered  by  the  correspondence  pre- 
sented in  this  volume.  Other  items  include  treaty 
negotiations,  claims  cases,  and  promotion  of  Amer- 
ican financial  and  business  interests.  Varied  in- 
deed are  the  problems  presented  to  the  Department! 
of  State  in  the  course  of  a  year. 

Papers  Relating  to  the  Foreign  Relations  of  the 
United  States,  1931,  volume  II,  was  prepared  in 
the  former  Division  of  Research  and  Publication 
under  the  direction  of  E.  Wilder  Spaukling,  Chief 
of  that  Division,  and  E.  R.  Perkins,  Editor  of 
Foreign  Relations.  Sections  on  American  repub- 
lics were  compiled  by  Victor  J.  Farrar  and  those 
on  the  Near  East  and  Africa  by  Jolui  Gilbert  Reid. 
The  chief  compiler  of  the  sections  on  European 
countries  was  Gustave  A.  Nuermberger,  although 
contributions  were  also  made  by  several  former 
members  of  the  Foreign  Relations  staff. 


1066 


Department  of  State  Bulletin 


December  8,   194C 


THE  RECORD  OF  THE   WEEK 


Earthquake  Areas  in  Peru  Inspected  by 
(Vmbassador  Cooper 


[Released  to  the  press  November  27] 

The  Ambassador  to  Peru,  Prentice  Cooper,  ac- 
:ompanied  by  the  Peruvian  Minister  of  Public 
Works  and  several  members  of  the  Embassy  staff, 
returned  to  Lima  on  November  23  from  a  six-day 
inspection  tour  of  the  areas  in  northern  Peru 
stricken  by  the  earthquake  of  November  10. 

The  trij),  which  was  made  in  part  by  plane,  auto- 
nobile,  horseback,  and  muleback  through  rugged 
Mountainous  country,  was  widely  and  favorably 
publicized  by  the  Peruvian  press.  The  earthquake 
irea  lay  at  an  elevation  of  from  10,000  to  13,000 
Feet.  While  spending  the  night  at  a  point  in  the 
A.ndes  ajjproximately  12,500  feet  above  sea-level, 
;he  party  experienced  one  severe  earthquake  and 
J6  tremoi's. 

The  tour  was  arranged  to  provide  a  first-hand 
3stimate  of  life  and  property  losses  in  order  to 
provide  for  prompt  and  effective  Amei'ican  relief 
ictivities.  The  party  distributed  emergency  sup- 
plies of  food,  medicine,  and  other  articles  and  gave 
issurances  that  other  needed  supjilies  would  be 
noved  to  the  areas  as  quickly  as  transportation 
facilities  would  permit.  Aside  from  personal  in- 
terviews with  countless  persons.  Ambassador 
Doo2)er  made  several  impromptu  talks  and  stressed 
Jiat  the  people  of  the  United  States  were  happy 
to  cooperate  with  the  Goveriunent  and  people  of 
Peru  in  rendering  every  assistance  to  earthquake 
sufferers.  Keports  from  Peru  indicated  that  the 
pisit  of  the  Ambassador  created  a  profound  im- 
pression upon  the  sufferers  and  that  it  constituted 
I  further  magnificent  demonstration  of  the  good- 
svill  existing  between  the  two  nations. 

Prior  to  leaving  for  the  earthquake  areas  the 
Ambassador  had  cabled  the  American  Red  Cross 
for  supplies.  In  visiting  the  city  of  Ti-ujillo  on 
the  tour,  he  discovered  that  a  large  quantity  of 
medical  supplies  from  the  American  Red  Cross 
had  been  flown  there  nonstop  from  the  Canal  Zone 
in  an  Army  C-54  plane.  The  Ambassador  was 
thus  able  to  direct  the  immediate  forwarding  of 
these  much-needed  supplies  to  the  stricken  area  by 
truck  and  muleback.     Supplies  included  bandages. 


antiseptics,     sulphathiozole,     tetanus     antitoxin, 
splints,  cots,  blankets,  and  other  articles. 

Since  returning  to  Lima  the  Ambassador  has 
conferred  with  officials  of  the  Peruvian  Govern- 
ment and  representatives  of  the  American  Red 
Cross  concerning  relief  activities.  Following  his 
return  another  planeload  of  relief  supplies  has 
been  flown  from  the  Canal  Zone  to  the  city  of 
Trujillo  and  the  supplies  are  in  the  process  of 
distribution. 


U.S.  To  Help  Fight  Disease  Outbreak 
in  Panama 

[Released  to  the  preBS  November  25] 

Two  ofiicers  of  the  U.  S.  Public  Health  Service, 
Dr.  James  A.  Steele,  chief  of  the  Veterinary 
Public  Health  Section,  and  Dr.  Karl  Habel,  virus 
expert  of  the  National  Institute  of  Health,  arrived 
in  Panama  on  November  25  to  assist  in  controlling 
an  outbreak  of  suspected  equine  encephalomyelitis 
in  humans  and  horses. 

The  Public  Health  Service  received  the  request 
for  assistance  from  Dr.  Hugh  S.  Cumming  of 
the  Pan  American  Sanitary  Bureau,  in  answer  to 
a  request  from  the  Panamanian  Embassy  in  Wash- 
ington. Dr.  Steele  completed  all  arrangements 
for  the  trip  with  the  cooperation  of  the  Pan 
American  Sanitary  Bureau,  the  Department  of 
State,  the  Army,  and  the  Navy.  The  Navy  pro- 
vided a  special  plane  for  the  two  health  officers. 

Dr.  Steele  and  Dr.  Habel  took  guinea  pigs,  rats, 
and  serum  to  conduct  epidemiological  studies  at 
the  scene  of  the  outbreak  in  the  interior  of  Pan- 
ama. They  will  advise  on  control  measures  in  the 
area  where  the  outbreak  occurred  and  will  bring 
back  specimens  for  study  in  the  laboratories  of 
the  National  Institute  of  Health  at  Bethesda, 
Maryland. 

Equine  encephalomyelitis  attacks  the  central 
nervous  system  and  in  advanced  cases  is  similar 
to  poliomyelitis.  It  may  attack  nearly  all  animals 
and  is  transmitted  by  mosquitoes.  Vaccination  of 
animals  and  control  of  the  mosquito  population 
are  accepted  methods  of  preventing  this  disease. 

Dr.  Steele  and  Dr.  Habel  expect  to  return  to 
Washington  shortly. 


1067 


International  Agreement  Executed  by  the  President 


OPINION  OF  THE  ATTORNEY  GENERAL^ 


A  joint  resolution,  approved  by  the  President,  is  plainly 
a  law  of  the  United  States. 

Pi'oposed  agreement  establishing  United  Nations'  head- 
quarters, when  executed  by  the  President  pursuant  to  a 
joint  resolution  of  the  Congress,  will  have  the  same 
binding  effect  as  a  treaty  in  superseding  inconsistent 
State  and  local  laws. 

August  W,  1946. 
The  Secretakt  of  State. 

My  Dear  Mr.  Secretary  :  By  letter  dated  July 
9,  1946,  you  have  asked  for  my  opinion  ■with  re- 
spect to  the  following  question : 

"Would  tlie  enclosed  agreement  when  executed 
by  the  President  pursuant  to  authorization  by  a 
joint  resolution  of  the  Congress  operate  as  the 
supreme  law  of  the  land  superseding  any  in- 
consistent State  or  local  laws  with  the  same  effect 
in  that  regard  as  a  treaty  ratified  by  and  with  the 
advice  and  consent  of  the  Senate?" 

The  draft  agreement  referred  to,  dated  June  20, 
1946,  would  be  between  the  United  States  and  the 
United  Nations.  It  would  create  a  zone  in  which 
the  headquarters  of  the  United  Nations  would  be 
located,  and  would  define,  broadly,  the  rights, 
privileges  and  obligations  of  the  parties  in  connec- 
tion therewith.  At  its  present  stage  of  negotia- 
tion, the  agreement  does  not  specify  the  size  of  the 
zone  or  its  precise  location  within  the  borders  of 
the  United  States.  Your  letter  indicates  that  it 
has  not  yet  been  determined  whether  the  agree- 
ment will  take  the  form  of  a  treaty  or  be  executed 
by  the  President  pursuant  to  a  joint  resolution  of 
the  Congress. 

In  this  connection,  representatives  of  the  United 
Nations  have  asked  you  whether  the  proposed 
agreement,  in  the  event  that  it  is  authorized  by  a 
joint  resolution  of  the  Congress,  would  have  the 
same  binding  eflTect  as  a  treaty,  in  superseding  in- 
consistent State  and  local  laws.  It  is  your  view 
that  an  agreement  executed  by  the  President,  pur- 
suant to  such  a  joint  resolution,  would  have  the 

'  Opinions  of  the  Attorneys  General,  vol.  40,  no.  111. 


effect  indicated,  and  you  desire  to  have  my  opinion 
in  the  matter.     I  concur  fully  in  your  position. 

The  question  you  have  asked  is  confined  to  the 
particular  agreement  now  before  me,  and  does  not 
require  me  to  consider  whether  or  not  there  are 
circumstances  under  which  a  given  international 
compact  must  take  the  form  of  a  treaty.  It  is  suf- 
ficient to  say  that  the  proposed  agreement  is  clear- 
ly within  the  constitutional  authority  of  the  Fed- 
eral Government,  and  may,  with  full  legal  effect, 
be  executed  as  a  legislative  executive  agreement. 

The  Constitution  of  the  United  States  expresslj 
provides  in  clause  2  of  Article  VI  that 

"This  Constitution,  and  the  laws  of  the  United 
States  which  shall  be  made  in  pursuance  thereof : 
and  all  treaties  made,  or  which  shall  be  made,  un- 
der the  authority  of  the  United  States,  shall  be 
the  supreme  law  of  the  land;  and  the  judges  in 
every  state  shall  be  bound  thereby,  any  thing  in 
the  Constitution  or  laws  of  any  state  to  the  con- 
trary notwithstanding." 

It  is  thus  axiomatic  that  where  there  is  a  con- 
flict between  a  State  or  local  law  and  a  treaty, 
the  State  or  local  law  must  yield.  Ware  v.  Ilyl- 
ton,  3  Dall.  199,  236-237,  242-243,  282  (179G); 
Asakum.  v.  Seattle,  265  U.S.  332,  341  (1924) ;  1 
Willoughby,  The  Constitutional  Law  of  the  TJnite^d, 
States  (2d  ed.  1929),  section  76.  It  is  equally 
well  established  that  such  a  State  or  local  law  nuist 
give  way  to  a  conflicting  Federal  statute.  Gib- 
Ions  V.  bgden,  9  Wlieat.  1,  210-211  (1824)  ;  Hines 
V.  DavldowHz,  312  U.S.  52,  62-68  (1941) ;  1  Wil- 
loughby, op.  cit.  supra.  A  like  rule  applies  wKere 
the  conflict  is  occasioned  by  Federal  executive  ac- 
tion authorized  by  an  act  of  Congress.  Case  v. 
Bowles,  327  U.S.  92,  102,  66  Sup.  Ct.  438,  443 
(1946)  ;  the  Shreveport  Case,  234  U.S.  342  (1914) ; 
Wisconsin  R.  R.  Comm.  v.  C.,B.  &  Q.  R.  R.  Co., 
257  U.S.  563  (1922) ;  35  Op.  A.  G.  110. 

Since  a  joint  resolution,  approved  by  the  Presi- 
dent, is,  plainly,  a  law  of  the  United  States  (Wells 
V.  United  States,  257  Fed.  605,  610-611  (C.  C.  A. 
9)  (1919),  it  follows  that  an  otherwise  valid  joint 


1068 


Deparfmenf  of  Slafe  Bulletin      •      December  8,    1946 


jsolution  authorizing  execution  of  the  proposed 
^reenient  will  supei-sede  State  or  local  laws  in- 
jnsistent  with  the  joint  resolution  or  the  agree- 
lent.     Cases  cited  supra. 

The  Supreme  Court  has  pointed  out  that  if  in- 
srnational  understandings  could  be  vitiated  by 
tate  laws,  the  United  States  would  be  open  to  a 
•harge  of  national  perfidy."  United  States  v. 
ehnont,  301  U.S.  324,  331  ( 1937) .  The  need  for 
ipremacy  of  Federal  action  in  the  field  of  foreign 
fairs  is,  therefore,  if  anything,  greater  than  with 
spect  to  exclusively  domestic  concerns.  Hines 
Davidowitz,  312  U.S.  52,  6S  (19il). 
Thus,  the  Supreme  Court  held  in  the  Belmont 
-SB  that  the  laws  of  New  York,  otherwise  appli- 
ble  to  the  disposition  of  a  bank  deposit,  must 
eld  to  a  conflicting  Executive  agreement  with 
foreign  government  executed  by  the  President 
irsuant  to  authority  vested  in  him  by  the  Con- 
itution.  Mr.  Justice  Sutherland,  speaking  for 
e  Court,  said  in  part  (331-332)  : 

"Plainly,  the  external  powers  of  the  United 
ates  are  to  be  exercised  without  regard  to  state 
ws  or  policies.  The  supremacy  of  a  treaty  in 
is  respect  has  been  recognized  from  the  begin- 
ng-  •  •  •  the  same  rule  would  result  in  the 
se  of  all  international  compacts  and  agreements 
om  the  very  fact  that  complete  power  over  in- 
rnational  affairs  is  in  the  national  government 
id  is  not  and  cannot  be  subject  to  any  curtail- 
ent  or  interference  on  the  part  of  the  several 
ites.  Compare  United  States  v.  Chirtis-Wright 
vport  Corp.,  299  U.S.  304,  316,  et  scq.  In  re- 
ect  of  all  international  negotiations  and  com- 
ets, and  in  respect  of  our  foreign  relations  gen- 
ally,  state  lines  disappear.  As  to  such  purpo.ses 
e  State  of  New  York  does  not  exist.  Within 
e  field  of  its  powers,  whatever  the  United  States 
jhtfully  undertakes,  it  necessarily  has  warrant 
consunmiate.     .     .     . 

A  similar  conclusion  with  respect  to  the  same 
jecutive  agreement  was  subsequently  reached  in 
lited  States  v.  Pink,  315  U.S.  203  (1942),  in 
lich  the  Supreme  Court,  per  Mr.  Justice  Douo-- 
i,  stated,  in  part,  the  following  (230-233)  : 

■'  'All  constitutional  acts  of  power,  whether  in 
3  executive  or  in  the  judicial  department,  have 
much  legal  validity  and  obligation  as  if  they 


THE  RECORD  OF  THE   WEEK 

proceeded  from  the  legislature,  .  .  .'  The 
Federalist,  No.  64.  A  treaty  is  a  'Law  of  the  Land' 
under  the  supremacy  clause  (Art  VI,  CI.  2) 
of  the  Constitution.  Such  international  compacts 
and  agreements  as  the  Litvinov  Assignment  have  a 
similar  dignity.  United  States  v.  Belmont,  supra, 
301  U.S.  at  p.  331.  See  Corwin,  The  President, 
Office  &  Powers  (1940),  pp.  228-240. 

".  .  .  But  state  law  must  yield  when  it  is  in- 
consistent with,  or  impairs  the  policy  or  provisions 
of,  a  treaty  or  of  an  international  compact  or  agree- 
ment. See  Ni-elsen  v.  Johnson,  279  U.S.  47.  Then, 
the  power  of  a  State  to  refuse  enforcement  of  rights 
based  on  foreign  law  which  runs  counter  to  the 
public  policy  of  the  forum  {Griffin  v.  McCoach, 
313  U.S.  498,  506)  must  give  way  before  the  supe- 
rior Federal  policy  evidenced  by  a  treaty  or  inter- 
national compact  or  agreement.  Santovincemo  v. 
Egan,  supra,  284  U.S.  30 ;  United  States  v.  Bel- 
mont, supra.     .     .     . 

"We  recently  stated  in  Bines  v.  Davidowitz,  312 
U.S.  52,  68,  that  the  field  which  affects  international 
relations  is  'the  one  aspect  of  our  government  that 
from  the  first  has  been  most  generally  conceded 
imperatively  to  demand  broad  national  authority'; 
and  that  any  state  power  which  may  exist  'is  re- 
stricted to  the  narrowest  of  limits.'  There,  we 
were  dealing  with  the  question  as  to  whether  a  state 
statute  regulating  aliens  survived  a  similar  federal 
statute.  We  held  that  it  did  not.  Here,  we  are 
dealing  with  an  exclusive  federal  function.  If 
state  laws  and  policies  did  not  yield  before  the 
exercise  of  the  external  powers  of  the  United 
States,  then  our  foreign  policy  might  be  thwarted. 
These  are  delicate  matters.  If  state  action  could 
defeat  or  alter  our  foreign  policy,  serious  conse- 
quences might  ensue.  The  nation  as  a  whole  would 
be  held  to  answer  if  a  State  created  difficulties  with 
a  foreign  power.  Cf.  Chy  Lung  v.  Freeman,  92 
U.S.  275,  279-280.  Certainly,  tlie  conditions  for 
'enduring  friendship'  between  the  nations,  which 
the  policy  of  recognition  in  tliis  instance  was  de- 
signed to  effectuate,  are  not  likely  to  flourish 
where,  contrary  to  national  policy,  a  lingering  at- 
mosphere of  hostility  is  created  by  state  action." 

The  agreement  involved  in  the  Belmont  and  Pink 
cases,  and  given  precedence  over  conflicting  State 
policy,  was  not  predicated  on  an  act  of  Congress. 
Hence,  there  can  be  no  doubt  that  the  proposed 


1069 


THE   RECORD  OF  THE  WEEK 


agreement,  if  executed  pursuant  to  congressional 
authority,  will  supersede  incompatible  State  and 
local  laws.  As  the  Supreme  Court  stated,  in  the 
Belmont  case,  "it  is  inconceivable"  that  State  con- 
stitutions. State  laws,  and  State  policies  "can  be 


interposed  as  an  obstacle  to  the  effective  operation 
of  a  federal  constitutional  power."  (301  U.S^ 
324,  332.) 

Sincerely  yours, 

JaSIES  p.  McGlt;\NERT, 

Acting  Attorney  General 


Validity  of  Commercial  Aviation  Agreements 

OPINION  OF  THE  ATTORNEY  GENERAL 

interest.     Under  these  agreements,  before  foreigr 
air  carrier  permits  are  issued  by  the  United  States 


There  are  many  classes  of  agreements  with  foreign  coun- 
tries which  are  not  required  to  he  formulated  as 
treaties. 

Section  802  of  the  Civil  Aeronautics  Act  of  1938  (52  Stat. 
973)  clearly  anticipates  the  making  of  agreements  with 
foreign  countries  concerning  civil  aviation. 

The  jurisdiction  of  the  Civil  Aeronautics  Board  in  con- 
nection with  the  granting  of  permits  is  not  affected  by 
any  of  the  civil  aviation  agreements  which  have  been 
concluded,  and  the  Board  must  still  pass  upon  the 
qualifications  of  applicants.  However,  the  Board  must 
act  within  the  broad  policy  declared  in  the  agreements. 

June  18,  1946. 
The  Secretary  of  State. 

Mt  Dear  Mr.  Secretary  :  I  refer  to  your  request 
for  my  views  concerning  the  validity  of  existing 
commercial  aviation  agreements  to  which  the 
United  States  is  a  party. 

The  agreements  in  question  were  discussed  by 
the  President  in  his  message  to  the  Congress  of 
June  11,  1946,  urging  ratification  of  the  Conven- 
tion on  International  Civil  Aviation.  I  refer 
particularly  to  the  following  statement. 

"The  Convention  makes  no  attempt  to  cover 
controversial  questions  of  commercial  aviation 
rights.  It  leaves  these  questions  to  be  settled  by 
other  international  agreements,  which  are  entirely 
independent  of  the  Convention,  and  which  pro- 
vide for  the  reciprocal  exchange  of  commei'cial  air 
transport  rights.  Under  authority  vested  in  me, 
I  have  actively  undertaken  to  consummate  such 
agreements,  in  order  to  assure  the  most  favorable 
development  of  international  civil  aviation. 
Naturally,  agreements  of  tliis  nature  to  which  the 
United  States  is  a  party  are  consistent  with  the 
requirements  of  the  Civil  Aeronautics  Act,  are 
valid  under  its  terms,  and  fully  protect  the  public 


'  No  opinion  is  asked  or  offered  on  the  question  whether 
the  Administrator  of  Civil  Aeronautics  is  or  is  not  entitled 
to  be  advised  and  consulted  with  re.spect  to  the  negotiatioo 
of  agreements  covered  by  section  802. 


to  foreign  airlines,  they  must  qualify  under  the 
provisions  of  the  Civil  Aeronautics  Act." 

The  President  consulted  me  in  connection  witl 
the  above  statement,  and  it  was  made  with  my  f  ul 
approval. 

It  is  recognized  that  there  are  many  classes  o: 
agreements  with  foreign  countries  which  are  no 
required  to  be  formulated  as  treaties.  Of  par 
ticular  pertinence  to  the  question  here  is  tha 
class  of  executive  agreements  which  are  enteret 
into  in  accordance  with,  and  within  the  scope  oi 
authority  vested  in  the  executive  branch  by  legis 
lation  enacted  by  the  Congress.  Notable  example 
of  agreements  which  fall  within  this  class  arc 
postal  conventions  and  reciprocal  trade  agree 
ments. 

The  agreements  referred  to  by  the  President  ir 
his  message  of  June  11  were  executed  under  th( 
authority  vested  in  him  by  the  Constitution  anc 
statutes,  including  the  Civil  Aeronautics  Act  oJ 
1938  (approved  June  23, 1938,  c.  601,  52  Stat.  973: 
49  U.S.C.  401  et  seq.).  Section  802  of  the  aci 
clearly  anticipates  the  making  of  agreements  witl 
foreign  countries  concerning  civil  aviation,  and 
provides  that,  "the  Secretary  of  State  shall  advis£ 
the  Authority  [now  Civil  Aeronautics  Board: 
Keorganization  Plan  No.  IV,  54  Stat.  1235]  of.l 
and  consult  with  the  Authority  [Board]  concern- 
ing, the  negotiation  of  any  agreements  witli  for- 
eign governments  for  the  establishment  or  develop- 
ment of  air  navigation,  including  air  routes  and 
services."  ^ 

Having  anticipated  the  possibility  of  agree- 
ments with  foreign  countries  and  having  pre- 
scribed the  manner  of  arriving  at  such  agreements, 
the  1938  act,  in  section  1102,  provides  that  the  Civil 
Aeronautics  Board,  in  exercising  its  i^owers  and 
performing  its  duties,  "shall  do  so  consistently  with 


1070 


Depatiment  of  Sfafe  Bulletin      •      December  8,   1946] 


THE  RECORD   OF  THE   WEEK 


any  obligation  assumed  by  the  United  States  in 
my  treaty,  convention,  or  agreement  that  may  be 
in  force  between  the  United  States  and  any  foreign 
country."  Moreover,  under  section  801,  the  Presi- 
ient  is  required  to  make  the  final  decision  with 
•espect  to  the  grant  or  denial  of  a  permit  to  a  for- 
eign carrier. 

The  foregoing  statutory  provisions  make  it  clear 
hat  the  Congress  contemplated  the  consummation 
)f  agreements  with  foreign  nations  relating  to  in- 
ei'national  civil  aviation. 

The  only  argument  which,  so  far  as  I  know,  has 
)een  advanced  that  existing  agreements  in  this 
ield  are  not  valid  is  based  on  section  402  of  the 
Divil  Aeronautics  Act  of  1938.  That  section  pro- 
'ides  that  "no  foreign  air  carrier  shall  engage  in 
'oreign  air  transportation  unless  there  is  in  force 
,  permit  issued  by  tlie  Authority  [Board]  author- 
zing  such  carrier  so  to  engage."  Such  a  permit 
nay  be  issued  by  the  Board  "if  it  finds  that  such 
■arrier  is  fit,  willing,  and  able  properly  to  perform 
uch  air  transjDortation  and  to  conform  to  the  pro- 
dsions  of  this  chapter  and  the  rules,  regulations, 
md  requirements  of  the  Authority  [Board]  here- 
mder,  and  that  such  transportation  will  be  in  the 
Dublic  interest."  However,  as  I  have  previously 
ndicated  any  action  taken  by  the  Board  is  subject 
o  approval  or  disapproval  by  the  President  under 
ection  801  of  the  statute  and,  therefore,  it  is  the 
'resident,  rather  than  the  Board,  who  makes  the 
inal  decision. 

I  understand  that  it  is  the  position  of  the  De- 
lartment  of  State  that  the  jurisdiction  of  the  Civil 
Aeronautics  Board  in  connection  with  the  grant- 
ng  of  permits  is  not  affected  by  any  of  the  civil 
viation  agreements  which  have  been  concluded, 
nd  that  tlie  Board  in  each  case  must  still  decide 
whether  the  applicant  carrier  is  a  suitable  airline 
or  performance  under  the  requested  permit  and 
rhether  the  issuance  of  the  permit  would  meet  the 
ther  requirements  of  the  statute.  It  is  also  the 
osition  of  your  Department  that  where  an  agree- 
lent  with  a  foreign  nation  exists,  the  Board,  pur- 
iiant  to  section  1102,  must  act  "consistently  with 
ny  obligation  assumed  by  the  United  States"  in 
uch  agreement  and,  therefore,  within  the  broad 
olicy  declared  in  the  agreement.  The  ultimate 
ecision,  of  course,  under  section  801,  must  be 
lade  by  the  President. 


I  concur  in  the  position  taken  by  the  Depart- 
ment of  State.  None  of  the  existing  executive 
agreements  purports  to  waive  the  necessity  of  pro- 
ceeding under  section  402  of  the  Civil  Aeronautics 
Act  of  1938,  and  I  am  informed  that  the  procedure 
specified  in  that  section  is  in  fact  complied  with  by 
the  Civil  Aeronautics  Board  whether  or  not  there 
is  in  existence  an  agreement  with  the  foreign  coun- 
try involved. 

Sincerely  yours, 

Tom  C.  Clark 

U.S.  Member  of  International  Fisheries 
Commission  Designated 

[Released  to  the  press  November  25] 

Acting  Secretary  of  State  Acheson  announced 
on  November  25  that  the  President  has  desig- 
nated IMilton  C.  James,  assistant  director  of  the 
Fish  and  Wildlife  Service  of  the  Department  of 
the  Interior,  as  United  States  member  of  the  In- 
ternational Fisheries  Commission  (United  States 
and  Canada)  to  fill  the  position  left  vacant  by  the 
resignation  of  Charles  E.  Jackson.  The  other 
United  States  member  of  the  Commission  is  Ed- 
ward W.  Allen  of  Seattle,  Washington. 

The  International  Fisheries  Commission  func- 
tions under  the  convention  between  the  United 
States  and  Canada,  signed  at  Ottawa  on  January 
29, 1937,  for  the  preservation  of  the  halibut  fishery 
of  the  North  Pacific  Ocean  and  Bering  Sea.^ 

Landing  Ship  Tank  Sold  to  Venezuela 

[Released  to  the  press  November  25] 

A  LST  (landing  ship  tank)  was  transferred  to 
the  Government  of  Venezuela  on  November  25  in 
ceremonies  at  the  Norfolk  Navy  Yard. 

This  marked  the  first  transfer  to  a  Latin  Amer- 
ican Government  under  the  plan  whereby  a  num- 
ber of  minor  naval  vessels  are  being  sold  to  other 
American  republics  under  the  Surplus  Property 
Act. 

Formerly  LST  907,  the  ship  was  taken  over  by 
a  Venezuelan  crew. 

Capt.  Kenneth  W.  Heinrich  of  the  Office  of 
Foreign  Liquidation  Commissioner,  Department 
of  State,  represented  the  Department  at  the  trans- 
fer ceremonies. 


■  Treaty  Series  917. 


1071 


Economic  Affairs  Page 

Nationalization  Program  in  Czechoslovakia. 

Article  by  Miriam  E.  Oatman     .  '  .    .    .      1027 
Sixth   Session   of  the   Council   of   UNRRA. 

Article  by  David  Persinger 1032 

Twenty-ninth   Session    of   the   International 

Labor  Conference.     An  Article    ....      1034 
Meeting   of   ILO    Industrial    Committee   on 

Textiles 1053 

100th  Session  of  the  Governing  Body  of  the 

International  Labor  Office 1053 

Third  Meeting  of  Rubber  Study  Group  .  .  1054 
Meeting  of  the  Caribbean  Commission  .  .  .  1055 
Preparatory     Committee    for    International 

Trade  and  Employment  Conference: 
Resolution  on  Interim  Commodity   Com- 
mittee        1055 

Statement  by  Clair  Wilcox 1056 

LT.S.     Member    of     International     Fisheries 

Commission  Designated 1071 

Landing  Ship  Tank  Sold  to  Venezuela  .    .    .      1071 

General  Policy 

U.S.  Position  on  Polish  Elections 1057 

U.S.  Position  on  Rumanian  Election  Results.     1057 
Situation  in  Procurement  of  Grain  for  Ex- 
port Abroad 1058 

International    Cooperation    for    1947    Relief 

Effort.     By  C.  Tyler  Wood 1059 

Earthquake    Areas    in    Peru    Inspected    by 

Ambassador  Cooper 1067 

The  United  Nations 

Investigation    of    Assault    on    Members    of 
Ukrainian  Delegation: 
Exchange  of  Letters  Between  the  Ukrain- 
ian   Minister  of   Foreign   Affairs  and 

the  Secretary  of  State 1048 

U.S.  Representatives  and  Advisers  to  Com- 
mission on  Narcotic  Drugs  of  ECOSOC     1050 


The  United  Nations — Continued  Page 

United  Nations  Postal  Experts  Meeting    .    .      1055 

German  Documents 

German  Documents:  Conferences  With  Axis 

Leaders,  1944 1040 

Occupation  Matters 

Consultations  on  Japanese  Reparations  Pro- 
gram. Statement  by  Acting  Secretary 
Acheson 1058 

Treaty  Information 

Negotiations  With  Philippine  Government  on 

Income  and  Estate  Taxes 1060 

Mexico  Pays  Fifth  Instalment  Under  Claims 

Convention 1061 

International  Agreement  Executed  by  the 
President.  Opinion  of  the  Attorney 
General 1068 

Validity  of  Commercial  Aviation  Agreements. 

Opinion  of  the  Attorney  General.    .    .    .      1070 

International  Organizations  and  Con- 
ferences 

Calendar  of  Meetings 1051 

Educational,  Scientific,  and  Cultural 
Affairs 

Understanding  the  U.S.  Abroad.  By  Rich- 
ard H.  Heindel 1062 

U.S.   To  Help    Fight    Disease    Outbreak    in 

Panama 1067 

Addresses  and  Statements  of  the  Week        1039 

Publications 

Foreign  Commerce  Weekly 1060 

Publication  of  "Papers  Relating  to  the  For- 
eign Relations  of  the  U.S.,  1931",  Vol.  II. 
Reviewed  bv  E.  R.  Perkins 1064 


itio/H 


Miriam  E.  Oatman,  author  of  the  article  on  the  nationalization 
program  in  Czechoslovakia,  is  an  economist  in  the  Division  of 
Research  for  Europe,  Office  of  European  Affairs,  Department  of 
State. 

David  Persinger,  author  of  the  article  on  the  Sixth  Council 
Session  of  UNRRA,  is  Secretary  to  the  United  States  Delega- 
tion  to  UNRRA,  Department  of  State. 

The  German  documents  in  this  issue  were  selected  and  trans- 
lated by  J.  S.  Beddie,  an  Officer  in  the  Division  of  Historical 
Policy  Research,  Office  of  Public  Affairs,  Department  of  State. 


U.  S.  GOVERNMENT  PRINTING  OFFICE:  >94$ 


JAe/  ^eha^tmeni/  ^(w  tnaie/ 


DISCUSSION  ON  GERMAN  AND  AUSTRIAN  PEACE 
TREATIES 1082 

TOWARD    EFFECTIVE    INTERNATIONAL    ATOMIC 

ENERGY     CONTROL       •       Statement   and    Proposals    by 
Bernard  M.  Baruch 1088 

ECONOMIC  INTEGRATION  OF  U.S.  AND  U.K. 

ZONES   IN  GERMANY     •     Memorandum  of  Agreement  .  1102 

AMERICAN  COTTON  FOREIGN  POLICY    •     Article  by 

James  Gilbert  Evans 1075 


Vol.  XV,  No.  389 
December  15,  1946 


For  complete  contents  see  Lack  cover 


U.    5.    iUI  lKIhIuHUCHI     ur    uOOutr.Lli 


JAN  4  1947 


^•"•f  o. 


Me  Qje/iwri^e^  ^/ 9i:aie    JOULllGllIl 


Vol.  XV,  No.  389    :    Publication  2709 
December  15,  1946 


For  sale  by  the  Superintendent  of  Documents 

U.  S.  Government  Printing  Office 

Washington  25,  D.  C. 

Subscription: 
62  issues,  $3.50;  single  copy,  10  cents 

Published  with  the  approval  of  the 
Director  ol  the  Bureau  of  the  Budget 


The  Department  of  State  BULLETIIS, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  of 
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partment of  State  and  the  Foreign 
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I 


AMERICAN  COTTON  FOREIGN  POLICY 


iy  James  Gilbert  Evans 


A  resolution  of  the  International  Cotton  Advisory  Com- 
mittee at  its  Fifth  Meeting  {May  7-H,  J946)  recommended 
the  establishment  of  an  executive  committee  consisting  of 
representatives  of  12  member  countries.  The  organization 
meeting  of  the  Executive  Committee  awaits  approval  of  this 
action  by  the  governments  proposed  for  membership.  Under 
its  terms  of  reference,  the  Executive  Committee  will  coop- 
erate with  the  Food  and  Agriculture  Organization  of  the 
United  Nations  and  with  other  international  organizations 
concerned  with  world  cotton  problems. 


Cotton  Export  Programs 

All  cotton  moved  freely  into  international  trade 
before  the  depression  beginning  in  1929,  except  for 
sporadic  purchases  by  the  Egyptian  Government 
in  support  of  the  prices  of  the  long-staple  varieties 
produced  in  that  country.  Price  relationships 
between  the  various  growths  and  grades  and  the 
relative  quantities  carried  over  from  one  season 
to  another  were  determined  by  world  market 
forces. 

The  Federal  Farm  Board  inaugurated  the  first 
United  States  cotton  price-support  program  in 
August  1929  under  the  Agricultural  Marketing 
Act  of  that  year.  Its  operations  were  conducted 
in  a  period  of  deepening  industrial  depression  and 
resulted  in  heavy  financial  losses.  Cotton  loan  and 
purchase  operations  of  the  Board  tended  to  cause 
a  differential  between  American  and  foreign  cot- 
ton prices.  Some  shipments  of  American  cotton 
into  the  export  markets  on  behalf  of  the  Board 
constituted  in  effect  a  subsidization  of  export  sales. 

After  the  adoption  of  the  United  States  cotton 
production-control  and  price-support  progi-am 
under  the  Agricultural  Adjustment  Act  of  1933, 
this  Government's  financing  and  holding  of  carry- 
over stocks  as  a  means  of  supporting  prices  became 


an  important  factor  in  the  world  cotton  market. 
United  States  carry-over  stocks  served  as  a  partial 
buffer  for  the  entire  woT:-ld  supply-and-demand 
situation  in  that  this  country  exported  cotton  only 
to  the  extent  that  supplies  from  other  countries 
could  not  satisfy  the  import  market. 

Following  the  record  world  cotton  crop  of  36 
million  bales  in  1937,  world  market  prices  fell 
below  the  level  of  prices  in  the  United  States  as 
supported  by  the  Commodity  Credit  Corporation 
loan  program.  Consequently,  export  sales  of 
American  cotton  were  greatly  reduced  in  1938 
while  carry-over  stocks  available  for  domestic 
consumption  and  export  were  at  the  all-time  high 
of  13  million  bales  on  August  1,  1939.  An  export 
differential  or  subsidy  program  providing  for  the 
payment  of  li/,  cents  a  pound  was  therefore  put  in 
operation  on  July  27  of  that  year.  The  i^repara- 
tion  for  war  in  Europe  in  1939  created  an  abnormal 
demand  for  cotton  and,  in  part,  was  responsible 
for  the  opportunity  to  export  5.8  million  bales 
before  the  termination  of  the  program  with  the 
gradual  withdrawal  of  the  subsidy  in  1940. 
Funds  required  for  this  program  were  provided 
under  section  32  of  Public  Law  320  (74th  Con- 
gress), which  makes  a  portion  of  the  receipts  from 
customs  revenues  available  to  the  Secretary  of 


1075 


Agriculture  for  payments  in  connection  with  agri- 
cultural export  and  other  programs. 

The  President,  by  proclamation  on  September 
5,  1939,  imposed  import  quotas  on  most  staples 
and  kinds  of  cotton  and  on  certain  kinds  of  cotton 
waste  September  20,  1939  in  accordance  with  sec- 
tion 22  of  the  Agricultural  Adjustment  Act  of 
1933  as  amended.  The  proclamation  was  based 
on  aji  investigation,  which  the  Tariff  Commission 
had  been  requested  to  make,  disclosing  that  the 
imposition  of  quotas  was  necessary  to  prevent 
imports  from  making  or  tending  to  make  the 
domestic  cotton  program  ineflPective  as  operated 
under  the  Soil  Conservation  and  Domestic  Allot- 
ment Act  of  1935  as  amended.  The  direct  pur- 
pose of  import  quotas  was  to  prevent  foreign  cot- 
ton from  displacing  American  cotton  in  the 
domestic  market  after  the  adoption  of  the  export- 
subsidy  program.  Harsh  or  rough  cottons  of  less 
than  3^4  inches  in  staple  length,  chiefly  used  in 
the  manufacture  of  blankets  and  blanketing,  other 
than  linters,  were  excluded  from  the  quota. 
Cottons  having  a  staple  of  1  n/ie  inches  or  more 
in  length  were  suspended  from  quota  limitations 
by  proclamation  of  December  19,  1940.  Basic 
global  quotas  have  remained  in  effect  since  1939 
but  the  allotment  of  quotas  to  individual  countries 
for  cotton  with  staple  length  1  i/g  inch  or  more 
but  less  than  1  h/ig  inch  was  suspended  by  procla- 
mation INIarch  31,  1942. 

A  barter  arrangement,  which  involved  an  ex- 
change of  600,000  bales  of  government-owned 
cotton  for  a  quantity  of  rubber  equivalent  in 
value,  was  negotiated  in  1939  with  the  United 
Kingdom  as  a  defense  measure.' 

After  1940,  the  war  cut  off  some  of  the  major  im- 
porting countries  from  supplies  and  the  export 
mai-ket  almost  disappeared.  Cotton  prices  in  the 
various  exporting  countries  did  not  remain  at 
comparable  levels.  The  United  States  followed 
a  domestic  price-support  policy  which  tended  to 
raise  cotton  to  the  "parity"  level  and  above  the 
price  of  comparable  cottons  in  other  countries. 

In  order  to  put  its  cotton  in  a  competitive  po- 
sition, especially  in  the  Canadian  market,  the 
United  States  again  adopted  an  export  program 
in  September  1941.     Funds  provided  for  under 


'  Department  of  State  Press  Releases,  June  24,  1939, 
p.  547. 


section  32  were  used  for  payments.  About  400,000 
bales  had  been  sold  for  export  at  four  cents  or 
more  under  comparable  open-market  prices  and  a 
cash  export  payment  of  from  two  to  three  cents  a 
pound  had  been  made  on  233,000  bales  exported 
to  Canada  when  this  program  was  terminated  in 
March  1942.  From  that  time  until  November 
1944  United  States  cotton  exports  were  largely 
under  lend-lease  except  to  Canada  where  shipping 
difficulties  made  other  cottons  relatively  unavail- 
able. Price  relationships  remained  unfavorable 
to  United  States  cotton  in  other  export  markets. 
Carry-over  stocks  on  August  1,  1944  totaled 
10,600,000  bales. 

With  respect  to  surplus  agricultural  commodi- 
ties, the  Surplus  Property  Act  (1944)  provides 
that,  "The  Commodity  Credit  Corporation  may 
dispose  of  or  cause  to  be  disposed  of  for  cash  or 
its  equivalent  in  goods  or  for  adequately  secured 
credit,  for  export  only,  at  competitive  world  prices, 
any  farm  commodity  or  product  .  .  ."  Under 
this  provision,  the  Commodity  Credit  Corpora- 
tion announced  on  November  15,  1944  an  ex- 
port program  designed  to  make  United  States 
cotton  available  in  the  importing  countries.  Since 
that  time,  the  Commodity  Credit  Corporation 
has  stood  ready  to  furnish  cotton  for  export  at 
four  cents  below  the  average  price  on  the  10  spot 
markets.  Since  May  1, 1946  section  32  funds  have 
been  used  for  the  subsidy  payments.  Up  to  Sep- 
tember 1,  1946  about  3,419,000  bales  had  been  reg- 
istered for  export  under  this  program. 

Arrangements  were  concluded  in  1946  whereby 
cotton  owned  by  the  Commodity  Credit  Corpora- 
tion would  be  supplied  to  Japan  and  the  Ameri- 
can-occupied zone  in  Germany,  in  exchange  for 
cotton  textiles  to  be  exported  from  those  areas. 
Approximately  890,000  bales  will  have  been 
shipped  to  Japan  and  220,000  bales  to  Germany 
under  these  arrangements  by  the  end  of  this  year. 

Export-Import  Bank  loans  specifically  ear- 
marked for  the  purchase  of  American  cotton  have 
been  granted  to  China,  Italy,  Czechoslovakia,  the 
Netherlands,  and  Finland.  Should  the  funds 
made  available  under  these  loans  be  fully  utilized, 
approximately  580,000  bales  of  American  cotton 
would  be  purchased. 

Under  present  legislation,  price-support  loans 
on  cotton  will  be  available  at  921/2  percent  of 


1076 


Department  of  State  Bulletin      •      December  15,  J  946 


parity  for  at  least  two  years  after  the  official 
declaration  of  the  end  of  the  war.  Cotton  prices 
in  the  10  spot  markets  have  been  above  parity 
since  October  1945. 

International  Cotton  Agreement  Policy 
of  the  United  States 

Tlie  first  suggestion  of  a  conference  to  negotiate 
an  international  cotton  agreement  was  made  in 
1931  by  the  Government  of  Egypt.  The  United 
States  refused  to  participate  in  such  a  conference 
since  at  that  time  stress  was  placed  upon  the  neces- 
sity for  an  adjustment  of  production  to  the  de- 
mand situation  and  no  legislation  giving  author- 
ity to  control  production  in  the  United  States  had 
then  been  enacted. 

After  the  passage  of  the  Agricultural  Adjust- 
ment Act  in  1933,  the  United  States  attempted  to 
improve  the  world  cotton  situation  by  restricting 
its  own  production  and  by  accumulating  govern- 
ment-held stocks  in  support  of  a  price  floor.  The 
Secretary  of  Agriculture  pointed  out  that  this 
country  could  not  continue  in  this  role  indefinitely 
and  on  a  number  of  occasions  stressed  the  need 
for  an  international  cotton  agreement.  In  1939, 
with  the  adoption  of  the  export-subsidy  program, 
the  United  States  invited  other  cotton-producing 
countries  to  meet  in  Washington  for  a  discussion 
of  the  world  cotton  situation.  This  conference, 
known  as  the  International  Cotton  Meeting,  was 
held  September  6-9,  1939.  A  resolution  adopted 
by  the  countries  represented  indicated  that,  had 
war  not  broken  out  in  Europe,  steps  would  have 
been  recommended  to  achieve  an  agreement  de- 
signed to  improve  the  unbalanced  conditions  of 
the  world  cotton  market.  As  an  interim  measure 
the  establishment  of  an  advisory  committee  to 
>  undertake  the  following  functions  was  recom- 
mended: "(a)  to  observe  and  keep  in  touch  with 
developments  in  the  world  cotton  situation,  and 
(6)  to  suggest,  as  and  when  advisable,  to  the  Gov- 
ernments represented  on  it  any  measure  suitable 
and  practicable  for  the  achievement  of  ultimate 
international  collaboration."  At  the  first  three 
meetings  of  the  International  Cotton  Advisory 
Committee,  set  up  as  a  result  of  this  recommenda- 
tion, (April  1,  1940;  October  17,  1940;  April  11, 
1941) ,  action  was  confined  to  a  review  of  the  world 
cotton  situation. 

In  1941  the  Inter-American  Financial  and  Eco- 


nomic Advisory  Committee  of  the  Pan  American 
Union  requested  the  views  of  this  Government  on 
two  fundamental  questions  of  cotton  policy, 
namely :  "(a)  whether  it  is  desirable  for  each  coun- 
try to  endeavor  to  work  out  its  own  situation  inde- 
pendently or  whether  the  various  countries  should 
take  uniform  cooperative  action;  and  (b)  whether 
an  approach  along  cooperative  lines  should  in- 
clude only  the  cotton  exporting  countries  of  this 
Hemisphere  or  whether  it  is  advisable  to  seek  the 
cooperation  of  other  countries  outside  the 
Americas." 

To  this  inquiry  Secretary  Hull  replied  (April 
23,  1941)  as  follows: 

"The  Government  of  the  United  States  believes 
that  the  International  cotton  problem  should  be 
worked  out  on  the  basis  of  cooperative  action  by 
formal  agreement  among  the  various  producing 
and  exporting  countries  .  .  .  outside  the  Amer- 
icas as  well  as  those  in  the  Western  Hemisphere. 
The  attitude  of  this  Government  on  the  first  point 
is  based  on  the  view  that  the  only  alternative  to  co- 
operative action  will  ultimately  be  cut-throat  com- 
petition in  the  available  world  markets  ...  As 
to  the  second  point,  this  Government  considers 
that  the  problem  should  be  approached  on  an  in- 
ternational rather  than  a  purely  inter-American 
basis  for  the  reason  that  two  of  the  leading  cotton 
exporting  countries,  India  and  Egypt,  are  outside 
this  Hemisphere." 

Early  in  1945  the  United  States  took  the  initi- 
ative in  convening  the  Fourth  Meeting  of  the 
International  Cotton  Advisory  Committee  which 
was  held  in  Washington  April  2-14,  1945.^^ 

At  this  Fourth  Meeting,  the  International  Cot- 
ton Advisory  Committee  approved  the  following 
resolution : 

Whereas,  The  International  Cotton  Advisory 
Committee  has  found  that  a  burdensome  world 
surplus  of  cotton  exists. 

Whereas,  Many  of  the  cotton-producing  na- 
tions which  are  at  present  members  of  the  Inter- 
national Cotton  Advisory  Committee  are  facing 
problems  and  difficulties  originating  from  certain 
measures  adopted  by  other  member  nations  to  deal 
with  cotton  surpluses  by  unilateral  action,  and 

Whereas,    International  collaboration   in  the 


=  Bulletin  of  Apr.  22,  1945,  p.  772. 


1077 


management  and  liquidation  of  the  world  export- 
able surplus  is  preferable  to  any  form  of  unilateral 
action  on  the  part  of  the  governments  of  indi- 
vidual exporting  countries  in  disposing  of  their 
own  surplus  supplies, 
It  is  resolved: 

1.  That  all  other  United  and  Associated  Nations 
substantially  interested  in  the  production,  expor- 
tation, or  importation  of  cotton  be  invited  to  des- 
ignate representatives  on  the  International  Cotton 
Advisory  Committee. 

2.  That  the  International  Cotton  Advisory 
Committee  at  its  present  session  recommend  to 
tlie  Governments  of  Brazil,  Egypt,  France,  India, 
the  United  Kingdom  and  the  United  States  that 
they  appoint  within  one  month  representatives 
to  serve  as  a  special  study  group. 

3.  That  the  study  group  as  soon  as  appointed 
organize  and  begin  work  on  a  report  to  be  presented 
to  the  goverimients  represented  on  the  Interna- 
tional Cotton  Advisory  Committee  within  three 
months  of  the  date  of  the  first  meeting  of  the  study 
group,  the  report  to  include  definite  proposals  for 
international  collaboration. 

4.  That  the  study  group  in  preparing  its  re- 
port keep  in  mind  the  following  considerations: 

(a)  That  effective  international  management 
of  the  cotton  surplus  would  require  the  collabo- 
ration of  the  governments  of  countries  substan- 
tially dependent  upon  imports  as  well  as  of 
producing  and  exporting  countries ; 

(b)  That  an  effective  international  arrange- 
ment looking  toward  a  reduction  in  excess  sup- 
plies would  require  the  regulation  of  one  or 
more  of  the  following — exports,  export  prices 
and  production. 

(c)  That  the  formulation  of  a  plan  for  inter- 
national action  would  take  fully  into  account 
ways  and  means  of  expanding  the  consumption 
of  cotton. 

5.  That  as  soon  as  practicable  after  the  submis- 
sion of  the  report  of  the  study  group  to  the  gov- 
ernments represented  on  the  International  Cotton 
Advisory  Committee,  the  Committee  be  convened 
to  consider  the  report  and  take  such  action  on  it 
as  may  be  deemed  to  be  appropriate. 


'  Bulletin  of  May  26, 1946,  p.  887. 


The  International  Cotton  Study  Group,  ap- 
pointed pursuant  to  this  resolution,  came  together 
for  a  series  of  meetings  in  July  1945  and  again  in 
January  and  Febi'uary  1946.  The  Group  found  it- 
self unable  at  the  time,  however,  to  recommend  an 
agreed  plan  for  international  collaboration  as  con- 
templated in  the  resolution,  and  so  reported  to  the 
International  Cotton  Advisory  Committee.  The 
Group  recommended  that  the  study  of  interna- 
tional cotton  problems  be  continued  and  suggested 
that  the  Committee  consider  formalizing  its  or- 
ganization to  enable  it  to  keep  the  world  situation 
under  constant  review  and  to  discuss  current  inter- 
national problems  of  cotton  susceptible  of  prompt 
adjustment. 

The  Fifth  Meeting  of  the  International  Cotton 
Advisory  Committee,  May  7-14,  1946  was  con- 
vened by  the  Chairman  to  receive  the  report  of 
the  Study  Group  and  to  review  again  the  world 
cotton  situation.  The  action  taken  at  the  Fifth 
Meeting  reflects  the  pi'esent  foreign  cotton  policy 
of  the  members  of  the  Ad\asory  Committee.  Al- 
though recognizing  that  some  improvement  in  the 
world  cotton  situation  had  occurred  since  the 
Fourth  Meeting  a  year  earlier,  the  Advisoi-y  Com- 
mittee found  that  a  substantial  surplus  of  cotton 
still  existed  and  considered  it  desirable  to  carry 
forward  the  study  of  proposals  for  international 
collaboration.  The  establishment  of  an  executive 
committee  of  the  International  Cotton  Advisory 
Committee,  consisting  of  representatives  of  12 
member  governments  divided  equally  between  cot- 
ton exporting  and  importing  countries,  was  recom- 
mended.^ 

The  terms  of  reference  of  the  Executive  Com- 
mittee which  is  now  in  process  of  organization 
are  (1)  to  establish  practical  cooperation  with  the 
Food  and  Agriculture  Organization  of  the  United 
Nations  and  with  other  international  organiza- 
tions concerned  with  the  world  cotton  situation; 
(2)  to  provide  a  medium  for  exchange  of  views 
in  regard  to  current  developments;  (3)  to  develop 
further  the  work  on  methods  of  international 
cooperation;  and  (4)  to  create  and  maintain  at 
Washington  a  secretariat  for  the  purpose  of  sup- 
plying complete,  authentic,  and  timely  statistics 
on  world  cotton  production,  trade,  consumption, 
stocks,  and  prices. 


1078 


Departmenf  of  Sfafe  Bullefin      •      December  15,  1946 


PICAO  MIDDLE  EAST  REGIONAL  AIR  NAVIGATION  MEETING 


hy  Glen  A.  Gilbert 


Nearly  all  countries  acknowledge  the  fact  that  civil  avia- 
tion, developed  in  volume  and  on  a  world-wide  basis,  will 
be  an  important  factor  in  breaking  down  barriers  between 
countries  and  in  promoting  understanding  and  friendship 
between  peoples.  The  following  article  discusses  the  rec- 
ommendations in  the  fields  of  operations,  air-traffic  control, 
meteorology,  communications,  search  and  rescue,  and  aero- 
dromes, air  routes,  and  ground  aids — covering  procedures, 
facilities,  and  services  that  toere  agreed  upon  at  the  Middle 
East  regional  meeting. 


The  fourth  in  a  series  of  ten  regional  air  naviga- 
tion meetings  of  tlie  Provisional  International 
Civil  Aviation  Organization  (PICAO)  was  held 
at  Cairo,  Egypt,  from  October  1  to  October  19, 
1946.  Eighteen  nations  interested  in  civil  aviation 
in  the  Middle  East  sent  representatives  to  the 
Middle  East  Regional  Air  Navigation  Meeting. 
They  were :  Afghanistan,  Belgium,  China,  Egypt, 
Ethiopia,  France,  Greece,  India,  Iran,  Iraq,  Italy, 
Lebanon,  the  Netherlands,  Syria,  Transjordania, 
Union  of  South  Africa,  the  United  Kingdom,  and 
the  United  States.  The  following  international 
organizations  were  represented :  the  International 
Commission  for  Air  Navigation  (ICAN),  the  In- 
ternational Air  Transport  Association  (lATA), 
the  International  Meteorological  Organization 
(IMO),  the  International  Telecommunications 
Union  (ITU),  and  the  Federation  Aeronautique 
Internationale  (FAI). 

The  United  States  Delegation,  headed  by  Glen 
A.  Gilbert  of  the  Civil  Aeronautics  Administration 
(CAA),  numbered  32  persons  and  included  rep- 
resentatives of  all  interested  Government  agencies, 
as  well  as  representatives  of  United  States  airlines, 
the  Air  Transport  Association,  and  Aeronautical 


Eadio,  Incorporated.  Principal  spokesmen  for 
the  United  States  were:  Clifford  P.  Burton 
(CAA)  for  air  traffic  control;  L.  Ross  Hayes 
(CAA)  for  aeronautical  telecomm.unications  and 
aids  to  air  navigation;  James  F.  Angier  (CAA) 
for  aerodromes,  air  routes,  and  ground  aids; 
Norman  R.  Hagen  (Weatlier  Bureau)  for  mete- 
orology; Raymond  F.  Nicholson  (CAA)  for  flight 
operations;  and  Lt,  Comdr.  J.  D.  McCubbin 
(United  States  Coast  Guard)  for  search  and 
rescue. 

Operations 

In  the  field  of  fliglit  operations  agreement  was 
reached  as  to  basic  standards  for  the  establishment 
of  uniform  instrument  approach  procedures  at 
each  international  aerodrome,  based  in  general  on 
the  same  standards  which  have  been  developed 
within  the  United  States  for  instrument  approach 
pi-ocedures.  Altimeter  setting  procedures  were 
formulated  to  insure  that  all  aircraft  would  have 
altimeters  set  to  read  elevation  above  sea  level, 
based  on  barometric  pressure  at  selected  locations 
reduced  to  sea-level  pressure,  with  altimeter  set- 
ting information,  as  provided  in  this  country, 
available  for  landing  purposes.    Visual  signals  to 


1079 


be  used  between  aircraft  in  flight  when  radio  com- 
munications between  them  is  not  in  effect  were  also 
agreed  upon.  These  signals  were  accepted  pro- 
visionally for  regional  use  as  far  as  they  were  im- 
mediately practicable,  subject  to  the  ultimate  adop- 
tion by  PICAO  for  world-wide  use.  This  set  of 
signals  was  particularly  significant  in  the  Middle 
East  region  where  difficulties  have  occurred  when 
radio  communications  between  aircraft  of  differ- 
ent nationalities  did  not  exist,  and  where  it  was 
found  that  no  international  procedures  for  visual 
signaling  between  aircraft  had  ever  been  used. 

One  of  the  most  controversial  subjects  in  the 
field  of  flight  operations  was  the  system  of  units 
of  measurements  to  be  employed  in  the  Middle  East 
region.  It  was  finally  decided  to  use  a  composite 
system  employing  English  and  metric  units  as  well 
as  the  nautical  mile  and  knots.  This  system  differs 
from  that  chosen  for  the  European-Mediterranean 
region,  and  the  difficulties  which  have  been  encoun- 
tered in  developing  regional  units  of  measurement 
to  be  employed  in  aviation  point  to  the  urgent  ne- 
cessity of  the  early  development  of  units  which 
will  be  employed  uniformly  on  a  world-wide  basis. 

Air  Traffic  Control 

The  deliberations  on  air-traffic  control  in  the 
Middle  East  region  resulted  in  conclusions  which 
were  very  satisfactory  from  the  viewpoint  of  the 
United  States.  A  significant  aspect  of  these  de- 
cisions was  the  fact  that  boundaries  for  flight 
safety  regions  for  air-traffic  control  service  were 
not  required  to  follow  national  boundaries  as  had 
been  the  case  in  the  European-Mediterranean  re- 
gion; all  decisions  in  this  respect  in  the  Middle 
East  region  were  based  solely  on  technical  con- 
siderations. The  boundaries  of  seven  flight  safety 
regions  were  agreed  upon,  with  control  areas  for 
each  flight  safety  region  confined  to  areas  around 
principal  aerodromes.  In  view  of  prevailing  good 
weather  in  the  Middle  East  as  well  as  the  com- 
parative lightness  in  traffic  density,  it  was  not  con- 
sidered necessary  to  develop  complete  control  ai'ea 
protection,  such  as  that  provided  in  the  United 
States  along  routes  between  aerodromes.  It  was 
agreed  that  control  centers  for  each  of  the  flight 
safety  regions  would  be  located  at  Malta,  Cairo, 
Khartoum,  Basra,  Aden,  Karachi,  and  Bangalore. 
In  addition,  approach  control  was  recommended 
for  13  locations  within  the  Middle  East  region. 

1080 


Based  on  PICAO  Rules  of  the  Air  and  Air  Traffic 
Control  Standards,  supplemental  procedures  were 
agreed  upon  with  regard  to  filing  of  flight  plans, 
position  reporting,  flight  altitudes,  and  similar 
rules. 

Meteorology 

From  a  meteorological  viewpoint,  the  regional 
meeting  found  that  only  about  half  of  the  facilities 
required  for  international  civil  aviation  in  this 
region  are  now  available.  Additional  meteoro- 
logical facilities  considered  necessary  include :  (1) 
185  surface  and  upper-air  observation  stations; 
(2)  four  meteorological  aircraft  reconnaissance 
flights  daily;  and  (3)  a  stationary  ship  which 
would  be  located  in  the  Arabian  Sea.  In  addition, 
it  was  recommended  that  seven  radio-electric  sta- 
tions be  established  to  detect  atmospheric  static 
caused  by  lightning;  these  would  also  be  very 
valuable  in  locating  and  forecasting  thunderstorm 
activity.  Because  of  the  vast  desert  areas  in  the 
Middle  East  and  the  consequent  liazards  to  flying 
personnel,  it  was  recommended  that  a  substantial 
number  of  weather  stations  (perhaps  several 
dozen)  be  located  in  the  desert  areas  at  intervals 
of  approximately  250  miles. 

The  meteorological  representatives  of  the  vari- 
ous nations  attending  agreed  upon  the  location  for 
main  and  dependent  meteorological  offices,  to- 
gether with  procedures  for  the  preparation  and 
exchange  of  meteorological  reports,  forecasts,  and 
warnings,  as  well  as  procedures  for  the  dissemina- 
tion of  meteorological  information  both  to  aircraft 
in  flight  and  to  main  meteorological  offices.  This 
latter  procedure  provides  for  a  network  of  thirty 
sub-area  radio  broadcast  stations  and  six  area  radio 
broadcast  stations.  Under  this  plan,  aircraft  in 
flight,  as  well  as  ground  stations,  will  cojiy  mete- 
orological information  transmitted  according  to 
predetermined  schedules  from  the  various  radio 
stations  which  will  utilize  international  meteoro- 
logical codes  and  employ  radiotelegraph. 

Communications 

In  the  field  of  aeronautical  telecommunications 
and  radio  aids  to  air  navigation,  the  meeting 
adopted  many  of  the  technical  recommendations 
agreed  upon  at  previous  regional  meetings.  This 
included  the  use  of  118.1  mc.  as  the  standard  VHF 
frequency  to  be  employed  in  the  aerodrome  control 

Depattmeni  of  State  Bulletin      •      December  15,  1946 


i 


towers  at  all  international  regular  and  alternate 
aerodromes.  In  addition,  the  United  States 
recommendations  to  use  8280  kc.  and  500  kc.  for 
emergency  HF  and  MF  channels,  respectively, 
were  adopted.  Fi-equencies  for  air-ground  com- 
munications were  agreed  upon  for  each  route  in 
the  Middle  East  region,  recognizing  that  certain 
adjustments  may  subsequently  be  necessary  on  the 
basis  of  exjjerience.  Existing  navigational  aids 
were  carefully  studied  and  additional  aids  were 
recommended,  based  on  the  combined  use  of  non- 
directional  beacons  and  radio  ranges,  high-fre- 
quency, very  high-frequency  and  medium-fre- 
quency direction  finding  and  instrument  landing 
systems.  Each  state  was  urged  to  maintain  in 
operation  such  facilities  as  are  now  located  in  its 
territory  and  to  take  early  action  in  providing 
additional  facilities  required,  notifying  PICAO 
if  any  assistance  is  needed  from  that  organization 
in  meeting  requirements. 

Plans  for  point-to-point  communication  facili- 
ties necessary  for  air  traffic  control,  search  and 
rescue,  and  meteorological  services  were  fully  de- 
veloped, as  well  as  communications  procedures  to 
be  employed  in  operating  the  point-to-jDoint  and 
air-ground  services. 

Search  and  Rescue 

For  search  and  rescue,  the  meeting  reconnnended 
five  rescue  coordination  centers  to  coordinate  in- 
formation concerning  aircraft  in  distress  and  to 
utilize  the  various  search  and  rescue  facilities 
available  to  the  fullest  possible  extent.  The  loca- 
tions were  agreed  upon  for  six  rescue-alerting 
centers  tied  into  the  rescue  coordination  centers 
by  appropriate  communication  channels.  Other 
recommendations  for  search  and  rescue  included 
locations  for  long-range,  medium-range,  and 
short-range  search  and  rescue  aircraft  as  well  as 
for  surface  rescue  craft.  Procedures  for  pro- 
viding this  service  in  the  region,  as  well  as  emer- 
gency procedures  to  be  followed  by  aircraft,  were 
also  formulated. 

Aerodromes,  Air  Routes,  and  Ground  Aids 

Twenty-one  regular  land  aerodromes  for  long- 
range  operation  were  designated  as  well  as  alter- 
nate land  aerodromes  for  long-range  operations, 
regular  and  alternate  land  aerodromes  for  me- 


dium-range operations,  and  regular  land  aero- 
dromes for  short-range  operations,  making  a  total 
of  60  land  aerodromes  and  six  water  aerodromes 
designated  for  the  use  of  international  aircraft 
in  the  Middle  East.  Proposed  and  existing  sched- 
uled airline  routes  were  listed,  and  tabulations  of 
frequency  of  operations  for  1946  and  1947  were 
prepared  in  order  to  present  a  fairly  accurate  pic- 
ture of  present  and  anticipated  air  traffic  activity 
in  the  region.  Each  aerodrome  designated  for 
use  of  international  civil  aviation  within  the  region 
was  assigned  a  PICAO  reference  letter  to  indicate 
the  standards  to  which  the  aerodrome  should  be 
brought.  Each  state  was  asked  to  compare  its 
aerodromes  with  the  appropriate  PICAO  stand- 
ards and  to  make  required  improvements  as  soon 
as  possible. 

The  i-ecommendations  in  each  of  the  six  fields 
covering  procedures,  facilities,  and  services  agreed 
upon  at  the  meeting,  as  briefly  outlined  in  the  fore- 
going, have  been  forwarded  to  the  Interim  Coun- 
cil of  PICAO  for  approval.  After  action  has  been 
taken  by  the  Interim  Council  concerning  the  final 
reports  of  the  meeting,  each  state  concerned  will 
be  asked  to  implement  the  recommendations  in 
accordance  with  the  approval  or  plan  of  action 
specified  by  the  Council. 

General  Observations 

Preparation  for  this  meeting  on  behalf  of  the 
United  States  was  accomplished  by  the  United 
States-PICAO  Technical  Committee  on  PICAO 
Regional  Route  Service  Organizations,  which 
functions  within  the  framework  of  the  Air  Co- 
ordinating Committee.  The  fact  that  all  princi- 
pal members  of  the  United  States  Delegation  had 
been  in  most  or  all  of  the  previous  three  regional 
air-navigation  meetings  resulted  in  their  wide 
personal  acquaintance  with  representatives  of 
other  govermnents,  which  in  turn  promoted  the 
effective  presentation  of  the  United  States  view- 
point. 

The  Middle  East  is  an  area  in  which  there  are 
many  small  states.  Up  to  the  present  time  PICAO 
has  followed  the  jDrinciple  that  the  air-naviga- 
tion facilities  and  services  required  in  any  portion 
of  the  world  should  be  supplied  by  the  state  in 
which  the  particular  facility  or  service  was  to  be 
located.  It  appears  likely  that  in  this  region 
(Continued  on  page  10S3) 


724173—46- 


1081 


COUNCIL  OF  FOREIGN  MINISTERS 


Meeting  of  Council  of  Foreign  Ministers 


DISCUSSIONS  ON   GERMAN  AND  AUSTRIAN  PEACE  TREATIES 
AND   ON    LIMITATION    OF    OCCUPATION   FORCES  IN  EUROPE 


Questions  Relating  to  Germany 

PLANS    FOR   DISCUSSION   OF   GERMAN   QUESTION 
AND  PROPOSED  AGENDA  FOR  NEXT  MEETING 

Proposals  hy  the  United  States  Delegation  ^ 

I.  Special  Deputies  shall  be  appointed  by  the 
Council  of  Foreign  Ministers  to  consider  German 
problems  assigned  to  them  by  the  Ministers. 

II.  Procedure  for  considering  the  views  of  other 
States  directly  interested  in  a  German  settlement. 
The  Special  Deputies  shall  hear  the  views  of  the 
Belgian,  Czechoslovak,  Danish,  Luxembourg, 
Netherlands,  and  Polish  Governments  and  of  such 
other  Governments  who  may  wish  to  present  their 
views.  These  views  shall  be  heard  and  considered 
by  the  Deputies  prior  to  any  tentative  decisions  by 
the  Foreign  Ministers.  Such  hearings  shall  be 
preliminary  to  such  subsequent  consultation  with 
these  States  as  may  be  determined  by  the  Council 
of  Foreign  Ministers. 

III.  The  Allied  Control  Authority  shall  be 
asked  to  submit  a  report  to  the  Council  of  Foreign 
Ministers  at  its  next  meeting  on  the  following  ques- 
tions (a)  the  form  and  scope  of  a  provisional  Ger- 
man govermnent  and  (b)  the  establishment  of 
central  agencies  and  other  problems  connected  with 
the  economic  and  political  future  of  Germany 
under  quadripartite  government. 

IV.  The  treaty  with  Austria  and  related 
matters. 

V.  Limitation  of  European  occupation  forces. 

VI.  The  next  meeting  of  the  CFM  shall  be  held 


^  Submitted  to  the  Council  of  Foreign  Ministers  at  its 
meeting  In  New  York,  N.  T.,  on  Dec.  6,  1946. 


at on  .    The  agenda  for  that  shall 

include  the  following: 

1.  Future  boundaries  of  Germany  including  dis- 
position of  the  Saar. 

2.  Continued  demilitarization  of  Germany — 
United  States  proposed  Four  Power  Ti'eaty  and 
other  measures  necessary  for  the  economic  and  mil- 
itary control  of  Germany. 

3.  Establishment  of  central  agencies  and  other 
problems  connected  with  the  economic  and  politi- 
cal future  of  Germany  under  quadripartite  gov- 
ernment. 

4.  The  form  and  scope  of  a  provisional  German 
government  and  character  of  the  permanent  Ger- 
man government  to  be  developed. 

5.  General  outline  of  the  peace  treaty  with 
Germany. 

6.  The  treaty  with  Austria  and  related  matters. 

7.  Limitation  of  European  occupation  forces  in 
so  far  as  not  settled  at  present  meeting. 

8.  Other  agreed  items. 

Questions  Relating  to  Austria 

Proposals  hy  the  United  States  Delegation  ^ 

I.  Special  Deputies  of  the  Council  of  Foreign 
Ministers  shall  be  appointed  for  Austria. 

II.  These  Special  Deputies  shall  draft  a  treaty 
for  presentation  to  the  Foreign  Ministers  recog- 
nizing the  independence  of  Austria.  Wlien  prop- 
erly applicable  this  treaty  shall  follow  the  provi- 
sions agreed  upon  in  the  Balkan  draft  peace 
treaties.  In  drafting  the  Austrian  treaty  consid- 
eration shall  be  given  to  the  proposals  already 
submitted  by  the  American  and  British  Govern- 


I 


1082 


Department  of  State  Bulletin      •      December  J  5,  7946 


COUNCIL  OF  FOREIGN  MINISTERS 


ments  as  well  as  any  further  proposals  -which  may 
be  submitted  by  other  members  of  the  Council  of 
Foreign  Ministers. 

III.  The  Eeport  of  these  Deputies  for  Austria 
shall  be  considered  at  the  next  meeting  of  the 
Council  of  Foreign  Ministers.  Particular  atten- 
tion shall  be  given  to  the  i^roblem  of  German 
assets  in  Austria  insofar  as  the  Special  Deputies 
are  unable  to  resolve  it. 

IV.  Pending  conclusion  of  the  treaty  recogniz- 
ing the  independence  of  Austria,  the  occupation 
forces  of  each  of  the  four  occupying  powers  sliall 
be  limited  to  a  maximum  of  10,000  each. 

Limitation  of  European  Occupational  Forces 

Proposals  hi/  the  United  States  Delegation 

The  approaching  conclusion  of  treaties  with  the 
ex-satellite  States  calls  for  a  consideration  of  the 
number  and  location  of  Allied  occupation  forces 
in  Europe. 

To  further  our  common  objective  of  restoring 
conditions  of  peace,  it  is  proposed  that  agreed 
ceilings  be  placed  upon  the  number  of  Allied  oc- 
cupation troops  which  may  be  retained  in  Euro- 
pean countries  after  the  conclusion  of  the  treaties 
with  the  ex-satellite  States. 

For  study  and  consideration  hj  the  Council  the 
following  ceilings  are  suggested  for  forces  as  of 
April  1,  1947,  with  the  understanding  that  such 
ceilings  will  in  the  absence  of  unforeseen  difficul- 
ties be  reduced  by  25  to  331/3%  by  April  1,  1948. 
This  is  subject  to  such  earlier  withdrawal  from 
Austria,  Hungary  and  Rumania  as  may  be  re- 
quired by  the  Austrian  treaty. 

Ge-i-many  (Allied  Occupation):  U.S.,  140,000; 
U.K.,  140,000;  France,  70,000  (approximate  exist- 
ing forces  not  subject  to  reduction  in  1948) ; 
U.S.S.R.,  200,000. 

Poland  (Protection  of  Communication  Lines)  : 
U.S.S.R.,  20,000. 

Austria  (Aid  for  Re-establishment  of  Inde- 
pendence) :  U.S.,  U.K.,  France  and  U.S.S.R., 
10,000  each. 

Hungary  (Protection  of  Communication  Lines 
pending  Austrian  treaty) :  U.S.S.R.,  5,000. 

Rumania  (Protection  of  Commxmication  Lines 
pending  Austrian  treaty)  :  U.S.S.R.,  5,000. 


PICAO  Air  Meeting — Continued  from  ■page  1081 

many  of  the  states  asked  to  provide  services 
needed  for  international  civil  aviation  may  be 
financially  unable  to  do  so  and,  furthermore,  that 
they  lack  the  technical  personnel  necessary  to  op- 
erate and  maintain  these  services.  It  is  obvious 
from  the  results  of  this  meeting  that  if  uniform 
facilities  and  services  for  international  civil  avia- 
tion are  to  be  available  throughout  a  substantial 
portion  of  the  world,  it  will  be  necessaiy  for  the 
International  Civil  Aviation  Organization  (when 
established  in  accordance  with  the  International 
Civil  Aviation  Convention)  to  play  an  active  part 
in  providing  air-navigation  facilities  and  services 
where  they  cannot  be  provided  by  states.  This 
problem  is  now  being  considered  by  PICAO,  and 
the  United  States  has  established  a  subcommittee 
under  the  Air  Coordinating  Committee  to  deter- 
mine the  position  of  this  country. 

The  United  States  is  acknowledged  as  a  leader 
in  the  international  civil  aviation  field.  The  ad- 
vice and  recommendations  made  by  representa- 
tives of  this  country  in  connection  with  the  tech- 
nical problems  involved  in  international  civil  avi- 
ation have  been  well  received.  This  leadership, 
however,  imposes  upon  the  United  States  an  obli- 
gation to  help  other  countries  if  progress  is  to  be 
continued. 

Nearly  all  countries  acknowledge  the  fact  that 
civil  aviation,  developed  in  volume  and  on  a 
world-wide  basis,  will  be  an  important  factor  in 
breaking  down  barriers  between  countries  and  in 
promoting  understanding  and  friendship  between 
peoples.  Recognizing  the  tremendous  stake  that 
the  United  States  has  in  maintaining  world  peace, 
it  appears  that  any  assistance  that  we  can  appro- 
priately give  other  countries  in  fostering  and  en- 
couraging the  development  of  international  civil 
aviation. is  a  wise  expenditure  of  our  resources. 
The  United  States  Government,  as  well  as  the 
aviation  industry,  should  collaborate  and  cooper- 
ate to  the  fullest  possible  extent  in  providing  help 
to  other  countries  in  the  field  of  international 
civil  aviation.  This  country  is  on  the  threshold 
of  an  era  where  air  commerce,  fully  utilized,  can 
mean  to  the  Nation  and  to  the  world  what  sea 
commerce  has  meant  in  the  years  gone  by. 


1083 


THE  UNITED  NATIONS 


Meeting  of  General  Assembly 


PROPOSAL  OF  U.S.    DELEGATION    ON    REGULA- 
TION AND  REDUCTION  OF  ARMAMENTS' 

1.  With  a  view  to  strengthening  international 
peace  and  security  in  conformity  with  the  purposes 
and  principles  of  the  United  Nations,  the  General 
Assembly  recognizes  the  necessity  of  an  early  gen- 
eral regulation  and  reduction  of  armaments.  Ac- 
coi'dingly,  the  General  Assembly  recommends  that 
the  Security  Council  give  prompt  consideration  to 
working  out  the  practical  measures,  according  to 
their  priority,  which  are  essential  to  provide  for 
the  general  regulation  and  reduction  of  armaments 
pursuant  to  international  treaties  and  agreements 
and  to  assure  that  such  regulation  and  reduction 
will  be  generally  observed  by  all  participants  and 
not  unilaterally  by  only  some  of  the  participants. 

2.  The  General  Assembly  recognizes  that  essen- 
tial to  the  general  regulation  and  reduction  of 
armaments  is  the  early  establishment  of  inter- 
national control  of  atomic  energy  and  other  mod- 
ern technological  discoveries  to  ensure  their  use 
only  for  peaceful  purposes.  Accordingly,  in  order 
to  ensure  that  the  general  regulation  and  reduc- 
tion of  armaments  are  directed  towards  tlie  major 
weapons  of  modern  warfare  and  not  merely  to- 
wards the  minor  weaj^ous,  the  General  Assembly 
recommends  that  the  Security  Council  give  first 
consideration  to  the  report  which  the  Atomic 
Energy  Commission  will  make  to  the  Security 

'  Released  to  the  press  by  the  U.S.  Delegation  to  the 
United  Nations  on  Nov.  30,  1046. 

■  Summary  from  Senator  Tom  Connally's  statement  on 
the  reduction  of  armaments  made  before  Committee  1 
(Political  and  Security)  of  the  General  Assembly  on  Nov. 
29,  1946.  For  complete  text  of  the  statement,  see  press 
release  84,  Nov.  29,  1946,  of  the  U.  S.  Delegation  to  the 
United  Nations.  Senator  Connally  is  a  member  of  the 
U.  S.  Delegation  to  the  United  Nations. 


Council  before  December  31,  194G,  and  facilitate 
the  progress  of  the  work  of  that  Commission. 

3.  The  General  Assembly  furtlier  recognizes 
that  essential  to  the  general  regulation  and  reduc- 
tion of  armaments  is  the  provision  of  practical  and 
effective  safeguards  by  way  of  insjiection  and  other 
means  to  protect  complying  states  against  the 
hazards  of  violations  and  evasions.  Accordingly 
the  General  Assembly  recommends  to  the  Security 
Council  that  it  give  prompt  consideration  to  the 
working  out  of  proposals  to  provide  such  practical 
and  effective  safeguards  in  connection  with  the 
control  of  atomic  energy  and  other  limitation  or 
regulation  of  armaments. 

4.  Tlie  General  Assembly  calls  upon  the  govern- 
ments of  all  states  to  render  every  possible  assist- 
ance to  the  Security  Council  and  the  Atomic 
Energy  Commission  in  order  to  promote  the  estab- 
lishment of  international  peace  and  collective 
security,  with  the  least  diversion  for  armaments 
of  the  world's  human  and  economic  resources. 

U.S.  POSITION  ON  GENERAL  DISARMAMENT  > 

1.  The  United  States  desires  that  really  effec- 
tive action  be  taken  by  this  Assembly  with  respect 
to  the  general  reduction  of  armaments. 

2.  The  United  States  attaches  first  importance 
to  the  necessity  for  reaching  agreement  in  the 
Atomic  Energy  Commission  with  the  utmost  dis- 
patch on  specific  proposals  to  control  the  use  of 
atomic  energy,  in  accordance  with  the  Assembly's 
first  action  on  disarmament  ten  months  ago  when 
it  adopted  the  atomic  energy  resolution. 

3.  The  United  States  also  attaches  great  im- 
portance to  the  elimination  of  other  major  weap- 
ons adaptable  to  mass  destruction  in  accordance 
with  the  same  resolution. 


1084 


Department  of  State  Bulletin 


December  15,  7946 


THE  UNITED  NATIONS 


4.  The  United  States  will  never  again  make 
the  mistake  of  disarming  unilaterally.  Disarma- 
ment must  be  multilateral  and  it  must  be  pro- 
gressive. 

5.  We  must  go  further  than  the  mere  outlawry 
of  the  use  of  deadly  weapons  in  modern  warfare 
if  we  are  to  protect  peace-loving  states  against  the 
use  of  such  weapons  bj'  aggressor  nations. 

G.  Effective  safeguards  by  way  of  inspection 
and  other  means  to  protect  complying  states 
against  the  hazards  of  violation  and  evasion  are 
an  absolutely  essential  part  of  any  effective  dis- 
armament program. 

7.  Experience  has  clearly  demonstrated  that 
without  an  effective  system  of  collective  security 
in  accordance  with  the  United  Nations  Charter, 


extensive  disarmament  would  be  both  impractical 
and  unsafe. 

8.  Consequently,  any  plans  for  the  reduction  of 
armaments  must  be  closely  related  to  the  conclu- 
sion of  the  special  armed  forces  agreements  pro- 
vided for  in  Article  43.  The  United  States  urges 
the  conclusion  of  these  agreements  at  the  earliest 
practicable  time. 

The  United  States  has  long  stood  for  disarma- 
ment. It  so  stands  today.  Its  vision  stretches  over 
ravished  lands  and  shattered  homes.  Its  heart  is 
moved  by  the  maimed  and  wounded  who  shall 
bear  to  the  grave  the  badge  of  their  war  service. 
It  looks  into  the  future  and  would  save  future  gen- 
erations from  the  blood  and  tragedy  and  misery  of 
inhuman  war. 


The  Spanish  Question 


U.  S.  DRAFT  RESOLUTION  ON  SPAIN' 


The  people  of  the  United  Nations,  at  San  Fran- 
cisco, Potsdam,  and  London,  condemned  the 
Franco  regime  in  Spain  and  decided  that  as  long 
as  that  regime  remains,  Spain  may  not  be  ad- 
mitted to  the  United  Nations. 

The  people  of  the  United  Nations  assure  the 
Sjianish  people  of  their  enduring  sympathy  and 
of  the  cordial  welcome  awaiting  them  when  cir- 
cumstances enable  them  to  be  admitted  to  the 
United  Nations. 

Therefore 

The  General  Assembly  of  the  United  Nations, 

Convinced  that  the  Franco  Fascist  Government 
of  Spain,  which  was  imposed  by  force  upon  the 
Spanish  people  with  the  aid  of  the  Axis  powei-s 
and  which  gave  material  assistance  to  the  Axis 
powers  in  the  war,  does  not  represent  the  Spanish 
people,  and  by  its  continued  control  of  Spain  is 
making  impossible  the  participation  of  the  Spanish 
people  with  the  peoples  of  the  United  Nations  in 
international  affairs ; 

Recommends  that  the  Franco  Government  of 
Spain  be  debarred  from  membership  in  inter- 
national agencies  set  up  at  the  initiative  of  the 
United  Nations,  and  from  participation  in  con- 
ference or  other  activities  which  may  be  arranged 
by  the  United  Nations  or  by  these  agencies,  until 


a  new  and  acceptable  government  is  formed  in 
Spain. 

The  General  Assembly  further, 

desiring  to  secure  the  participation  of  all  peace- 
loving  peoples,  including  the  people  of  Spain,  in 
the  community  of  nations 

recognizing  that  it  is  for  the  Spanish  people  to 
settle  the  form  of  their  government ;  places  on  rec- 
ord its  profound  conviction  that  in  the  interest 
of  Spain  and  of  world  co-operation  the  people  of 
Spain  should  give  proof  to  the  world  that  they 
have  a  government  which  derives  its  authority  from 
the  consent  of  the  governed ;  and  that  to  achieve 
that  end  General  Franco  should  surrender  the 
powers  of  government  to  a  provisional  govern- 
ment broadly  representative  of  the  Spanish  peo- 
ple, committed  to  respect  freedom  of  speech,  re- 
ligion, and  assembly  and  to  the  prompt  holding 
of  an  election  in  which  the  Spanish  people,  free 
from  force  and  intimidation  and  regardless  of 
party,  may  express  their  will. 

And  invites  the  Spanish  people  to  establish  the 
eligibility  of  Spain  for  admission  to  the  United 
Nations. 


•  General  Assembly  Doc.  A/C.l/lOO,  Dec.  2,  1946.  The 
resolution  was  introduced  in  Committee  1  (Political  and 
Security)  on  Dec.  2  by  Senator  Tom  Connally,  member  of 
the  United  States  Delegation  to  the  United  Nations,  on  be- 
half of  the  United  States. 


1085 


THE  UNITED  NATIONS 


STATEMENT  BY  SENATOR  TOM  CONNALLY' 


Mr.  Chairman  and  Fellow  Delegates  :  Yester- 
day, on  behalf  of  the  United  States  Delegation, 
it  was  my  privilege  to  present  to  this  Committee 
for  its  consideration  a  resolution  relating  to  the 
Spanish  question.  Today,  with  your  permission, 
I  would  like  to  examine  briefly  the  resolution  we 
have  introduced  and  explain  the  position  the 
United  States  has  taken. 

The  attitude  of  the  United  States  toward  the 
Franco  regime  is  well  known.  We  have  made 
that  perfectly  clear  at  San  Francisco,  Potsdam, 
and  London  and  on  other  occasions.  Its  fascist 
origins,  nature,  and  policies  are  completely  alien 
to  our  way  of  life.  We  reaffirm  the  basic  concept 
of  the  inherent  worth  of  the  individual  which  such 
totalitarianism  denies,  and  we  advocate  the  estab- 
lishment of  effective  democracy  in  all  nations, 
where  through  free  elections  the  people  can  select 
their  governments  and  representatives. 

It  is  for  these  reasons  that  we  are  unalterably 
opposed  to  the  Franco  regime,  its  totalitarian 
character,  and  its  suppression  of  human  rights 
and  freedoms.  We  would  like  to  see  it  replaced 
by  a  democratic  government  chosen  by  the  freely 
expressed  will  of  the  Spanish  people. 

We  are  convinced  however  that  the  restoration 
of  the  Government  of  Spain  to  the  Spanish  people 
cannot  be  achieved  through  action  by  the  General 
Assembly  involving  pressure  such  as  that  pro- 
posed in  two  of  the  resolutions  under  considera- 
tion. The  Polish  Delegation  proposes  that  mem- 
bers of  the  United  Nations  terminate  diplomatic 
relations  with  the  Franco  regime.  The  Byelorus- 
sian Delegation  apparently  does  not  consider  that 
this  form  of  moral  condemnation  will  be  adequate 
to  achieve  the  objective  and  would  amend  the  pro- 
posal to  include  the  termination  of  economic  re- 
lations. In  the  opinion  of  the  Delegation  of  the 
United  States,  both  proposals  are  inherently  de- 
fective and  would  not  lead  to  the  realization  of  the 
common  objective. 

'Made  before  Committee  1  (Political  and  Security) 
on  Dec.  3,  1946,  and  released  to  the  press  by  the  U.  S. 
Delegation  to  the  United  Nations  on  tlie  same  date. 
See  also  Senator  Austin's  speech  before  the  General 
Assembly  on  Oct.  30,  1946  (Bulletin  of  Nov.  24,  1946, 
p.  934). 


The  proponents  of  a  break  of  relations  have  not 
explained  the  sequence  of  events  which  they  hope 
would  follow  and  how  these  events  would  con- 
tribute to  the  desired  end.  For  its  part  the 
United  States  Delegation  believes  that  such  a 
measure  would  produce  no  result  beyond  cutting 
off  the  Spanish  people  from  communication  with 
the  rest  of  the  world  and  thus  making  worse  their 
present  condition.  More  extreme  coercive  meas- 
ures such  as  the  application  of  economic  sanctions 
against  Spain  would,  in  the  long  run,  almost  cer- 
tainly produce  economic  and  political  chaos  in 
that  country.  Political  and  economic  chaos  in 
Spain  would  undoubtedly  lead  to  wide-spread 
civil  strife.  We  would  not  desire  to  impose  upon 
the  General  Assembly  the  responsibility  of  a 
course  of  action  leading  to  economic  and  political 
chaos  whicli  could  not  be  prevented  from  degen- 
erating into  civil  war  with  serious  international 
complications,  which  would  array  different  Span- 
ish factions  against  each  other  and  enlist  in  vaiy- 
ing  degrees  the  support  of  different  members  of 
the  United  Nations.  The  United  States  does  not 
believe  that  such  conditions,  particularly  at  a  time 
when  the  economic  and  political  reconstruction  of 
Europe  is  of  paramount  importance,  would  con- 
tribute either  to  the  development  of  a  democratic 
regime  in  Spain  or  to  the  cause  of  international 
peace  and  security. 

The  coercive  measures  proposed  are  the  appro- 
priate methods  set  out  in  the  Charter  for  dealing 
with  threats  to  and  breaches  of  the  peace.  The 
Security  Council  has  already  considered  this  ques- 
tion of  a  threat  to  peace.  After  a  full  examina- 
tion of  the  facts,  the  Council  defeated  by  a  vote  of 
7  to  4  a  Polish  resolution  which  called  on  the 
members  of  the  United  Nations,  under  chapter 
VII  of  the  Charter,  to  sever  diplomatic  relations 
witii  the  Franco  Government.  In  our  view  the 
situation  has  not  changed.  We  do  not  believe 
Spain  is  a  present  threat  to  the  peace.  We  do  not, 
therefore,  favor  either  the  Polish  or  the  Byelo- 
russian resolutions  or  any  similar  proposals  de- 
signed to  bring  forceful  coercion  to  bear  on  the 
development  of  the  situation  in  S^Jain. 

We  are,  of  course,  ready  to  take  our  part  in  any 
action  that  may  be  necessary  against  the  Franco 


1086 


Deparlmenf  of  State  Bulletin      •      December  IS,  1946 


THE  UNITED   NATIONS 


regime,  under  the  Charter,  when  and  if  it  is  found 
to  constitute  a  threat  to  the  peace.  We  believe 
that  the  Council,  which  is  able  to  take  prompt 
and  effective  action  on  behalf  of  all  the  members 
of  the  United  Nations,  should  keep  that  aspect  of 
the  question  under  the  closest  surveillance  in 
order  that  it  may  be  ready  at  all  times  to  take 
whatever  action  may  be  necessaiy.  Experience 
has  shown  that,  under  circumstances  favorable  to 
them,  totalitarian  regimes  can  become  a  danger  to 
neighboring  states  and  ultimately  to  world  peace. 

Our  resolution  sets  forth  clearly  the  action 
which  we  feel  the  General  Assembly  can  and 
should  take  at  this  time.  First,  the  Assembly 
should  confirm  and  complete  the  banishment  of 
the  Franco  regime  from  the  organized  community 
of  nations.  To  this  end  it  should  not  only  con- 
tinue to  deny  the  regime  admission  to  the  United 
Nations,  but  should  exclude  it  from  membership 
in  all  international  agencies  set  up  at  the  initia- 
tive of  the  United  Nations,  and  from  participation 
in  international  conferences,  until  an  acceptable 
government  is  formed  by  the  people  of  Spain. 

Secondly,  the  Assembly  should  express  its  pro- 
found conviction  that  the  Spanish  people  them- 
selves, through  their  united  action,  should  peace- 
fully restore  self-government  in  Spain.  This 
could  be  accomplished,  following  the  withdrawal 
of  Franco,  by  the  establishment  of  an  interim  gov- 
ernment under  which  the  Spanish  people  could 
hold  a  free  election.  We  are  confident  that  the 
democratic  ideals  of  the  Spanish  people  will  re- 
assert themselves  to  create  the  foundation  of  a 
stable  government,  based  on  the  will  of  the  people 
and  dedicated  to  the  pi-omotion  of  their  funda- 
mental rights  and  liberties.  It  is  our  expectation 
that  in  this  manner  the  people  of  Spain  will  be 
able  to  find  a  solution  which  will  make  it  possible 
for  Spain  to  resume  an  honorable  place  in  the 
family  of  nations. 

In  conclusion,  Mr.  Chaii-man,  I  would  like  to 
summarize  vei'y  briefly  the  position  of  the  United 
States  with  respect  to  the  Spanish  question. 


1.  We  are  opposed  to  Franco  and  welcome  any 
democratic  change  in  Spain  which  protects  basic 
human  rights  and  fi-eedoms. 

2.  We  shall  take  part  in  any  necessary  action 


against  the  Franco  regime,  under  the  United 
Nations  Charter,  if  and  when  this  regime  becomes 
a  threat  to  international  peace  and  security. 

3.  Pending  such  an  eventuality,  we  are  opposed 
to  coercive  measures  by  the  United  Nations,  such 
as  a  severance  of  diplomatic  relations  or  the  im- 
position of  economic  sanctions,  because  they  would 
either  aid  Franco  by  uniting  the  Spanish  people 
against  outside  interference  or  would  precipitate 
the  Spanish  peojjle  themselves  into  the  disaster  of 
civil  war  with  unknown  but  inevitably  costly 
consequences. 

4.  We  shall  join  in  continuing  to  oppose  the  ad- 
mission of  the  Franco  regime,  not  only  to  the 
United  Nations  but  to  any  international  agencies 
set  up  at  the  initiative  of  the  United  Nations. 

5.  Finally,  we  believe  that  the  Spanish  people 
should  determine  their  own  destiny.  Following 
the  withdrawal  of  the  Franco  regime,  it  is  our  hope 
that  they  will  establish  a  provisional  government 
and  hold  a  free  election  so  that  Spain  may  once 
again  assume  her  rightful  place  as  a  member  of 
the  family  of  nations. 

In  yesterday's  debate,  Mr.  Chairman,  a  number 
of  delegations  expressed  their  opposition  to  any 
action  by  the  United  Nations  which  might  con- 
stitute intervention  in  the  internal  affairs  of  Spain. 
Let  me  reassure  the  members  of  the  Committee  on 
this  point.  The  United  States  is  fully  committed 
to  the  fundamental  principle  of  non-intervention. 
It  is  a  basic  tenet  of  our  foreign  policy.  Our  reso- 
lution in  no  way  violates  this  fundamental  px'in- 
ciple.  The  government  of  Spain  belongs  to  the 
Spanish  people,  and  it  is  for  them  to  determine 
the  form  of  government  they  shall  have  and  the 
people  who  shall  administer  it.  We  are  not  here 
proposing  intervention.  The  United  Nations  in 
this  resolution  would  simply  explain  to  the  Span- 
ish people  in  the  clearest  possible  terms  why  their 
country  is  not  at  present  eligible  for  membership 
and  full  participation  in  the  community  of  nations, 
and  the  conditions  which  they  themselves  must 
create  in  order  to  remove  those  obstacles. 

It  seems  to  the  United  States  that  this  proposed 
course  of  action  is  both  prudent  and  wise  and  the 
one  most  likely  to  accomplish  the  end  we  all  desire. 
It  is  submitted  for  your  serious  consideration  and 
we  hope  that  it  will  meet  with  your  approval. 


1087 


Toward  Effective  International  Atomic  Energy  Contror 

STATEMENT  BY  U.S.  REPRESENTATIVE  TO  ATOMIC  ENERGY  COMMISSION^ 


My  Fellow  Members  of  the  Atomic  Enekgt 
Commission  : 

The  primary  responsibility  for  originating  a 
system  to  protect  the  world  against  the  atomic 
bomb  has  been  placed  squarely  in  our  hands.  Re- 
gardless of  discussions  elsewhere,  the  Atomic 
Energy  Commission  cannot  escape  its  duty.  Our 
task  came  to  us  from  three  high  sources — first,  the 
meeting  in  Washington,  November  a  year  ago,  of 
the  chiefs  of  state  of  the  United  States,  Canada, 
and  the  United  Kingdom ;  second,  the  meeting  of 
the  foreign  ministers  of  the  United  States,  the 
United  Kingdom,  and  the  Soviet  Union,  in  Moscow 
last  December;  third,  the  definitive  resolution  of 
the  General  Assembly  in  London  last  January. 

I  note  that  the  debates  on  disarmament  in  the 
General  Assembly  have  followed  closely  the  pro- 
posals laid  down  by  the  United  States  on  June  14 
before  this  body.  It  remains,  however,  the  respon- 
sibility of  this  Commission  to  submit  definite  plans 
to  the  Security  Council.  It  is  to  that  business  I 
address  myself.  I  entreat  all  to  join  in  the  enter- 
prise so  that  we  may  show  speed,  as  well  as  vision, 
in  our  assignment. 

The  stakes  are  greater  than  ever  before  offered 
mankind — peace  and  security.  For  who  can 
doubt,  if  we  succeed  in  controlling  the  atomic 
weapon,  that  we  can  go  on  to  the  control  of  other 
instruments  of  mass  destruction?  The  elimina- 
tion of  war  itself  is  within  the  range  of  possibility. 
I  repeat :  "The  man  who  learns  to  say  A  can  learn, 
if  he  chooses,  the  rest  of  the  alphabet,  too." 

But  we  must  make  a  beginning.  Let  us  delay 
no  longer.  The  awakened  conscience  of  humanity 
is  our  goal.  In  all  my  life,  now  past  the  biblical 
allotment  of  three  score  and  ten  years,  never  before 


'This  .statement  and  the  proposals  will  appear  as  De- 
partment of  State  publication  2713. 

*The  U.S.  Representative,  Bernard  M.  Barueh,  made 
this  statement  before  the  Commission  in  New  Yorl^,  N.Y., 
on  Dec.  5,  1946. 


have  I  seen  so  rich  an  oppoi'tunity  for  deathless 
service  as  is  presented  to  us  here.  I  want  my  coun- 
try associated  with  victory  in  this  great  crusade. 

For  myself,  as  I  look  upon  a  long  past  and  too 
short  a  future,  I  believe  the  finest  epitaph  would 
be  —  "He  helped  to  bring  lasting  peace  to  the 
world." 

But  we  must  have  whole-hearted  and  not  half- 
way measures.  The  world  is  not  to  be  fooled  by 
lip  service.  The  world  will  resent  and  reject  de- 
ception. We  must  march  together  in  the  bonds  of 
a  high  resolve.     We  dare  not  wait  too  long. 

I  do  not  intend,  at  this  time,  to  debate  the  plan 
that  we  are  about  to  offer  here,  in  broad  outline.  I 
shall  content  myself  with  comments  as  to  the  im- 
perative necessity  for  speed. 

I  beg  you  to  remember  that  to  delay  may  be  to 
die.  I  beg  you  to  believe  that  the  United  States 
seeks  no  special  advantage.  I  beg  you  to  hold 
fast  to  the  principle  of  seeking  the  good  of  all, 
and  not  the  advantage  of  one. 

We  believe  that  the  original  proposals  of  the 
United  States,  made  on  June  14th,  were  generous 
and  just.  Through  the  acid  test  of  deliberation 
and  debate,  before  this  Commission  and  before 
the  public  opinion  of  the  world,  they  have  been 
proven  so.  In  the  long  and  protracted  series  of 
70-odd  meetings  of  this  Commission  and  its  vari- 
ous committees,  studying  all  phases  of  the  sub- 
ject, we  have  found  inherent  and  inevitable  in 
any  treaty  that  is  to  be  written,  covering  this 
subject,  three  major  elements: 

1.  The  erection  of  an  international  authority 
which  shall  effectively  prevent  the  manufacture 
and  use  of  atomic  bombs  for  war  purposes,  and 
which  shall  develo^J  the  use  of  atomic  energy  for 
social  gain. 

2.  The  right  of  free  and  full  international  in- 
spection in  support  of  these  purposes. 

3.  The  definite  agreement  that  once  a  treaty 


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THE  UNITED  NATIONS 


becomes  effective,  providing  for  deterrents  against 
offenses  and  punishments  for  offenders,  there  can 
be  no  veto  to  protect  willful  violators,  or  to  ham- 
per the  operations  of  the  international  authority. 

However  much  one  may  seek  to  escape  from 
these  primaries,  always  the  discussion,  no  matter 
where  held,  has  come  back  to  them.  We  have 
heard  words  that  sometimes  seemed  to  be  steering 
us  away  from  our  goal,  only  later  to  hear  others 
that  led  us  back  toward  it. 

The  outline  here  presented  is  the  bone  and  the 
sinew  of  any  effective  international  control  that 
may  be — that  shall  be — that  must  he  established 
if  the  civilized  world  is  not  to  be  ended;  if  the 
peoples  are  to  live  in  security  instead  of  being 
paralyzed  by  fear. 

Time  is  two-edged.  It  not  only  forces  us 
nearer  to  our  doom,  if  we  do  not  save  ourselves, 
but,  even  more  horrendous,  it  habituates  us  to 
existing  conditions  which,  by  familiarity,  seem 
less  and  less  threatening. 

Once  our  minds  have  been  conditioned  to  that 
sort  of  thinking,  the  keen  edge  of  danger  is 
blunted,  and  we  are  no  longer  able  to  see  the  dark 
chasm  on  the  brink  of  which  we  stand. 

Action  at  this  time  may  well  change  hope  to 
confidence.  How  can  it  profit  any  of  us  to  avoid 
the  issue,  unless  by  so  doing,  we  seek  a  special  ad- 
vantage; unless  a  chaos  of  fear  will  help  partic- 
ular ambitions? 

Let  us  assume  a  report  of  the  nature  described 
in  the  American  proposals  is  placed  before  the 
Security  Council,  together  with  such  additions 
thereto  as  this  body  may  desire.  In  it  there  will 
not  be  found  a  derogation  of  the  dignity  or  might 
of  any  nation.  On  the  contrary,  the  plan  will  build 
up,  in  all  the  world,  a  new  and  greater  strength 
and  dignity  based  on  the  faith  that  at  last  security 
is  in  sight;  that  at  last  men  can  walk  erect  again, 
no  longer  bent  over  by  the  numbing  fear  the  atom 
bomb  strikes  into  their  hearts. 

The  price  we  have  set  upon  the  surrender  of  the 
absolute  weapon  is  a  declaration  of  peaceful  intent 
and  of  interdependence  among  the  nations  of  the 
world,  expressed  in  terms  of  faith  and  given 
strength  by  sanctions — punishments  to  be  meted 
out  by  concerted  action  against  willful  offenders. 


That  is  one  of  the  great  principles  of  the  United 
Nations — justice  for  all,  supported  by  force.  But 
there  can  be  no  unilateral  disarmament  by  which 
America  gives  up  the  bomb,  to  no  result  except  our 
own  weakening.    That  shall  never  be. 

It  is  for  us  to  accept,  or  to  reject — if  we  dare, 
this  doctrine  of  salvation.  It  springs  from  stark 
necessity,  and  that  is  inexorable.  My  country,  first 
to  lay  down  a  plan  of  cooperative  control,  welcomes 
the  support  of  those  countries  which  have  already 
indicated  their  affirmative  positions.  We  hope  for 
the  adherence  of  all. 

We  seek  especially  the  participation  of  the  So- 
viet Union.  We  welcome  the  recent  authoritative 
statements  of  its  highest  representatives.  From 
these,  we  are  justified  in  concluding  that  it  no 
longer  regards  the  original  American  proposals 
unacceptable,  as  a  whole  or  in  their  separate  parts, 
as  its  member  of  this  body  stated  at  an  earlier 
meeting. 

I  repeat  —  we  welcome  cooperation  but  we 
stand  upon  our  basic  principles  even  if  we  stand 
alone.  We  shall  not  be  satisfied  with  pious  pro- 
testations lulling  the  peoples  into  a  false  sense  of 
security.  We  aim  at  an  effective  plan  of  control 
and  will  not  accept  anything  less. 

The  time  for  action  is  here.  Each  of  us  perceives 
clearly  what  must  be  done.  We  may  differ  as  to 
detail.  We  are  in  accord  as  to  purpose.  To  the 
achievement  of  that  purpose,  I  present  a  program 
in  the  form  of  resolutions,  which  have  been  placed 
before  you. 

I  do  not  ask  you  to  discuss  or  vote  on  these  pro- 
posals at  this  time.  They  are  now  presented  for 
your  study  and  consideration.  But  I  do  ask  the 
Chairman  to  call  a  meeting  of  this  Commission, 
as  early  as  convenient,  to  debate,  if  necessary,  and 
to  act  upon  the  findings  and  recommendations  con- 
tained in  these  resolutions,  so  that  the  position  each 
nation  takes  on  them  may  be  recorded  in  this  Com- 
mission's report  which  must  be  drafted  by  Decem- 
ber 20,  and  presented  to  the  Security  Council  by 
December  31. 

I  shall  now  read  these  resolutions. 


724173 — IG- 


1089 


THE  UNITED  NATIONS 


Proposals  by  the  United  States  Representative  for  the  Consideration  of  the  Atomic  Energy  Commission  of 

Certain  Items  to  be  Included  Among  the  Findings  and  Recommendations  in  the  Forthcoming 

Report  of  the  Commission  to  the  Security  Council 


Pursuant  to  the  resolution  of  this  Commission  passed 
at  its  meeting  held  November  13,  1946,  the  Report  of  the 
Proceedings,  Findings  and  Recommendations  of  this  Com- 
mission to  be  submitted  to  the  Security  Council  by  De- 
cember 31,  194G,  consists  of  three  parts : 
Paet  I,  a  Summary  of  the  Proceedings  together  with 
the  Records  of  this  Commission  and  of  its  Commit- 
tees and  Subcommittees ; 
Part  II,  certain  Fiudings  of  this  Commission  based  upon 

its  deliberations  to  date ;  and 
Part  III,  certain  Recommendations  of  this  Commission 
based  upon  its  Findings  to  date ; 

Resolved,  that  Part  II  of  said  report  shall  contain, 
among  others,  the  following  Findings  of  the  Commission : 

Part  II  Findings 
Based  upon  the  proposals  and  information  presented  to 
the  Commission,  upon  the  hearings,  proceedings  and  de- 
liberations of  the  Commission  to  date,  and  upon  the  pro- 
ceedings, discussions  and  reports  of  its  several  committees 
and  subcommittees,  all  as  set  forth  in  Part  I  of  this  report, 
the  Commission  has  made  the  following  findings: 

(1)  That  scientifically,  technologically  and  practically 
it  is  feasible, 

(o)  to  extend  among  "all  nations  the  exchange  of 
basic  scientific  information  on  atomic  energy  for  peace- 
ful ends",  * 

(&)  to  control  "atomic  energy  to  the  extent  necessary 
to  ensure  its  use  only  for  peaceful  purposes",  * 

(c)  to  accomplish  "the  elimination  from  national 
armaments  of  atomic  weapons",  *  and 

(d)  to  provide  "effective  safeguards  by  way  of  in- 
spection and  other  means  to  protect  complying  states 
against  the  hazards  of  violations  and  evasions."  * 

(2)  That  effective  control  of  atomic  energy  depends 
upon  effective  control  of  the  production  and  use  of 
uranium,  thorium  and  their  fissionable  derivatives.  Ai>- 
propriate  mechanisms  of  control  to  prevent  their  unauthor- 
ized diversion  or  clandestine  production  and  use,  including 
Inspection,  accounting,  supervision,  licensing  and  manage- 
ment, must  be  applied  through  the  various  stages  of  the 
processes  from  the  time  these  minerals  are  severed  from 
the  ground  to  the  time  they  become  fissionable  materials 
and  are  used. 

(3)  That,  whether  the  ultimate  fissionable  product  be 
destined  for  peaceful  or  destructive  u.ses,  the  productive 
processes  are  identical  and  inseparable  up  to  a  very  ad- 
vanced stage  of  manufacture.  Thus,  the  control  of  atomic 
energy  to  ensure  its  use  for  peaceful  purposes,  the  elimi- 
nation of  atomic  weapons  from  national  armaments,  and 
the  provision  of  effective  safeguards  to  protect  complying 

♦Quotations  are  from  the  Commission's  Terms  of  Ref- 
erence, as  set  forth  in  article  V  of  the  Resolution  pro- 
viding for  this  Commission,  passed  by  the  General 
Assembly  on  Jan.  24,  1946. 


states  against  the  hazards  of  violations  and  evasions  must 
be  accomplished  through  a  single  unified  international 
system  of  control  designed  to  carry  out  all  of  these  related 
purposes. 

(4)  That  the  development  and  use  of  atomic  energy  are 
not  essentially  and  exclusively  matters  of  domestic  con- 
cern of  the  Individual  nations,  but  rather  have  predom- 
inantly international  implications  and  repercussions. 

(5)  That  an  effective  system  of  control  of  atomic  en- 
ergy must  be  international  in  scope,  and  must  be  estab- 
lished by  an  enforceable  multilateral  agreement  (herein 
called  "the  treaty")  which  in  turn  must  be  administered 
by  an  international  agency  within  the  United  Nations, 
possessing  adequate  powers  and  properly  organized,  _ 
staffed,  and  equipped  for  the  purpose.  ■ 

Only  by  such  a  system  of  international  control  can  the 
development  and  use  of  atomic  energy  be  freed  from 
nationalistic  rivalries  with  consequent  risks  to  the  safety 
of  all  peoples.  Only  by  such  a  system  can  the  benefits  of 
widespread  exchange  of  scientific  knowledge  and  of  the 
peaceful  uses  of  atomic  energy  be  assured.  Only  such  a 
system  of  control  would  merit  and  enjoy  the  confidence  of 
the  people  of  all  nations. 

(6)  That  an  international  agreement  outlawing  the 
production,  possession  and  use  of  atomic  weapons  is  an 
essential  part  of  any  such  system  of  international  control 
of  atomic  energy.  An  international  convention  to  this 
effect,  if  standing  alone,  would  fail  (a)  "to  ensure"  the 
use  of  atomic  energy  "only  for  peaceful  purposes"  *  and 
(6)  to  provide  for  "effective  safeguards  by  way  of  in- 
spection and  other  means  to  protect  complying  states 
against  the  hazards  of  violations  and  evasions,"  *  and 
thus  would  fail  to  meet  the  requirements  of  the  terms  of 
reference  of  the  Commission.  To  be  effective,  such  an 
agreement  must  be  an  integral  part  of  a  treaty  providing 
for  a  comprehensive  system  of  international  control  and 
must  be  fortified  by  adequate  guarantees  and  safeguards 
in  the  form  of  international  supervision,  inspection  and 
control  adequate  to  ensure  the  carrying  out  of  the  terms 
of  the  convention  and  "to  protect  complying  states  against 
the  hazards  of  violations  and  evasions."  * 

Further  Resolved,  that  Part  III  of  said  report  shaU 
contain,  among  others,  the  following  recommendations : 

Part  III  Recommendations 

Based  upon  the  Findings  of  the  Commission  set  forth 
in  Part  II  of  this  report,  the  Commission  makes  the  fol- 
lowing Recommendations  to  the  Security  Council  with 
respect  to  the  matters  covered  by  the  Terms  of  Reference 
of  the  Commission,  which  Recommendations  are  inter- 
dependent and  not  severable,  constituting  together  and  as 
a  whole,  the  fundamental  principles  and  basic  organiza- 
tional mechanisms  necessary  to  attain  the  objectives  set 
forth  in  the  Commission's  Terms  of  Reference. 

(1)  There  should  be  a  strong  and  comprehensive  inter- 


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THE  UNITED  NATIONS 


national  system  of  control  of  atomic  energy  aimed  at  at- 
taining the  objectives  set  forth  in  tlie  Commission's 
Terms  of  Reference. 

(2)  Such  a  system  of  international  control  of  atomic 
energy  should  be  established  and  its  scope  and  functions 
defined  by  a  treaty  in  which  all  of  the  nations  members 
of  the  United  Nations  should  be  entitled  to  participate 
with  the  same  rights  and  obligations.  The  international 
control  system  should  be  declared  operative  only  when 
those  members  of  the  United  Nations  necessary  to  assure 
its  success,  by  signing  and  ratifying  the  treaty,  bind  them- 
selves to  accept  and  support  It. 

(3)  The  treaty  should  Include,  among  others,  pro- 
visions 

(o)  Establishing,  in  the  United  Nations,  an  inter- 
national authority  (hereinafter  called  "the  authority") 
possessing  powers  and  chai'ged  with  responsibility 
necessary  and  appropriate  for  effective  administration 
of  the  terms  of  the  treaty,  and  for  the  prompt  carry- 
ing out  of  its  day-to-day  duties.  Its  rights,  powers, 
and  responsibilities,  as  well  as  its  relation  to  the  several 
organs  of  the  United  Nations,  should  be  clearly  estab- 
lished and  defined  by  the  treaty.  Such  powers  should 
be  sufficiently  broad  and  flexible  to  enable  the  authority 
to  deal  with  new  developments  that  may  hereafter 
arise  in  the  field  of  atomic  energy.  In  particular,  the 
authority  shall  be  responsible  for  extending  among  all 
nations  the  exchange  of  basic  .scientific  information  on 
atomic  energy  for  peaceful  ends,  for  preventing  the  use 
of  atomic  energy  for  destructive  purposes  and  for  stim- 
ulating its  peaceful  beneficent  uses  for  the  benefit  of 
the  people  of  all  nations. 

The  authority  should  have  positive  research  and 
developmental  responsibilities  in  order  to  remain  in  the 
forefront  of  atomic  knowledge  so  as  to  render  the  au- 
thority more  effective  in  promoting  the  beneficent  uses 
of  atomic  energy  and  in  eliminating  its  destructive  ones. 
The  exclusive  right  to  carry  on  atomic  research  for  de- 
structive purposes  should  be  vested  in  the  authority. 

Decisions  of  the  authority  pursuant  to  the  powers 
conferred  upon  it  by  the  treaty  should  govern  the  oi^era- 
tions  of  national  agencies  for  the  control  of  atomic 
energy.  In  carrying  out  its  prescribed  fvinctions,  how- 
ever, the  authority  should  interfere  as  little  as  necessary 
with  the  operations  of  national  agencies  for  the  control 
of  atomic  energy,  or  with  the  economic  jilans  and  the 
private,  corporate  and  state  relationships  in  the  several 
countries. 

(6)  Affording  the  duly  accredited  repi-esentatives  of 
the  authority  unimpeded  rights  of  ingress,  egress  and 
access  for  the  performance  of  their  inspections  and 
other  duties  into,  from  and  within  the  territory  of  every 
participating  nation,  unhindered  by  national  or  local 
authorities. 

(c)  Prohibiting  the  manufacture,  possession,  and 
use  of  atomic  weapons  by  all  nations  parties  thereto 
and  by  all  of  their  nationals. 

(d)  Providing  for  disposal  of  any  existing  stocks  of 
atomic  bombs. 


(e)  Specifying  the  means  and  methods  of  determin- 
ing violations  of  its  terms,  stigmatizing  such  violations 
as  international  crimes,  and  establishing  the  nature  of 
the  measures  of  enforcement  and  punishment  to  be  im- 
posed upon  individuals  and  upon  nations  guilty  of  vio- 
lating its  provisions. 

The  judicial  or  other  processes  for  determination  of 
violations  of  the  treaty  and  of  punishment  therefor, 
should  be  swift  and  certain.  Serious  violations  of  the 
treaty  should  be  reported  immediately  by  the  authority 
to  the  nations  party  to  the  treaty  and  to  the  Security 
Council.  In  dealing  with  such  violations,  the  permanent 
members  of  the  Security  Council  should  agree  not  to 
exercise  their  power  of  veto  to  protect  a  violator  of  the 
terms  of  the  treaty  from  the  consequences  of  his  wrong 
doing. 

The  provisions  of  the  treaty  would  be  wholly  ineffec- 
tual if,  in  any  such  situations,  the  enforcement  provi- 
sions of  the  treaty  could  be  rendered  nugatory  by  the 
veto  of  a  state  which  has  voluntarily  signed  the  treaty. 

(4)  The  treaty  should  embrace  the  entire  program  for 
putting  the  system  of  international  control  of  atomic 
energy  into  effect  and  should  provide  a  schedule  for  the 
completion  of  the  transitional  process  over  a  period  of 
time,  .step  by  step  in  an  orderly  and  agreed  sequence  lead- 
ing to  the  full  and  effective  establishment  of  international 
control  of  atomic  energy.  In  order  that  the  transition 
may  be  accomplished  as  rapidly  as  possible  and  with 
safety  and  equity  to  all,  this  Commission  should  supervise 
the  transitional  process,  as  prescribed  in  the  treaty,  and 
should  be  empowered  to  determine  when  a  particular 
stage  or  stages  have  been  completed  and  subsequent  ones 
are  to  commence. 


Scientific  Information  on 
Atomic  Energy 

On  December  13  the  Department  of  State  re- 
leased a  document  of  particular  significance,  the 
fifth  publication  in  its  United  States  and  United 
Nations  Report  Series.  The  book  is  entitled  The 
International  Control  of  Atomic  Energy:  Scien- 
tific Information  Transmitted  to  the  United 
Nations  Atomic  Energy  Commission,  June  H, 
19^6 -October  H,  191^6.  Prepared  in  the  office 
of  Bernard  M.  Baruch,  United  States  Representa- 
tive on  the  United  Nations  Atomic  Energy  Com- 
mission, it  combines  in  original  form  the  six 
volumes  of  scientific  information  wliich  were 
transmitted  to  the  Commission  by  Mr.  Baruch  as 
a  basis  for  study.  Dr.  Richard  C.  Tolman,  Scien- 
tific Adviser  to  the  United  States  Representative, 
supervised  the  preparation  of  all  the  volumes. 


109] 


Recommendations  of  United  IVIaritime  Consultative  Council 
Submitted  to  United  Nations 


[Released  to  the  press  December  4] 

At  the  request  of  the  United  Maritime  Consul- 
tative Council,  the  United  States  Government  on 
December  1,  1946  formally  transmitted  to  Trygve 
Lie,  Secretary-General  of  the  United  Nations,  the 
recommendations  which  the  Council  adopted  at 
its  second  and  final  session  held  in  Washington 
October  24-30, 1946. 

In  June  1946  the  Secretary-General  had  re- 
quested by  telegram  the  views  of  the  United 
Maritime  Consultative  Council,  then  meeting  in 
Amsterdam,  on  the  question  of  the  establishment 
of  a  world-wide  intergovernmental  shipping  or- 
ganization. The  Council  appointed  a  committee 
to  consider  in  detail  the  possible  constitution, 
scope,  and  procedures  of  such  an  organization. 
The  committee,  which  consisted  of  representatives 
from  Belgium,  Canada,  France,  Netherlands, 
Norway,  Poland,  United  Kingdom,  and  the 
United  States,  met  in  London  on  July  18,  1946 
and  prepared  a  draft  plan  and  report  for  the 
consideration  of  the  Council. 

The  Coimcil  at  its  Washington  meeting  in  Oc- 
tober agreed  to  recommend  that  an  intergovern- 
mental maritime  consultative  organization  should 
be  established  as  a  specialized  agency  of  the 
United  Nations.  It  agreed  further  that  each 
member  government  should  take  appropriate  ac- 
tion in  requesting  the  Economic  and  Social  Coun- 
cil of  the  United  Nations  to  convene  a  conference 
of  all  interested  governments  for  the  purpose  of 
adopting  a  constitution  for  the  proposed  organi- 
zation. As  an  interim  measure  pending  the 
establishment  of  a  j^^'manent  organization,  the 
Council  recommended  that  a  Provisional  Maritime 
Consultative  Council  be  established. 

The  proposed  permanent  organization  would 
provide  machinery  for  cooperation  among  gov- 
ernments in  the  field  of  governmental  regulation 
and  practices  relating  to  technical  matters  affect- 
ing shipping,  would  encourage  the  general  adop- 


tion of  the  highest  practicable  standards  in  mat- 
ters concerning  maritime  safety  and  efficiency  of 
navigation,  would  encourage  the  removal  from 
shipping  of  all  forms  of  discriminatory  action 
and  unnecessary  restrictions  by  governments  en- 
gaged in  international  trade,  and  would  provide 
for  the  consideration  of  any  general  interna- 
tional shipping  problems  that  may  be  referred 
to  it  by  the  United  Nations.  The  proposed  or- 
ganization would  be  consultative  and  advisorj' 
in  nature.  Matters  suitable  for  settlement 
through  normal  processes  of  international  ship- 
ping would  not  be  referred  to  it. 

It  is  contemplated  that  the  Provisional  Coun- 
cil, a  temporary  consultative  and  advisory  organi- 
zation in  which  the  United  States  has  accepted 
membership,  would  provide  an  interim  forum 
for  the  consideration  of  shipi^ing  problems  and 
would  also  advise  on  matters  relating  to  the  draft 
constitution  for  a  permanent  intergovernmental 
maritime  organization.  The  Provisional  Council 
would  meet  from  time  to  time  pursuant  to  invi- 
tations from  the  member  governments.  It  would 
have  no  headquarters  or  staff  of  its  own,  func- 
tioning in  mucli  the  same  manner  as  did  its  pre- 
decessor, the  United  Maritime  Consultative 
Council,  which  expired  October  31, 1946. 


Resignation  of  Eugene  Meyer  as 
President  of  international  Bank 

Eugene  Meyer,  president  of  the  International 
Bank  for  Reconstruction  and  Development,  an- 
nounced on  December  4  that  he  had  submitted  his 
resignation  to  the  executive  directors  of  the  Bank, 
effective  December  18,  1946,  or  such  earlier  date 
as  his  successor  may  be  elected  and  take  office,  and 
that  it  had  been  accepted. 


1092 


Department  of  State  Bulhfin      •      December  15,  ?  946 


Recommendations  of  the  United  Maritime  Consultative  Council 
to  Member  Governments 


Department  of  State, 
Washington,  December  3, 19Jf6. 
Tlie  Honorable  ^  .  .  . 

My  De.vr  Mr.  ...  :  On  March  5, 1946, 1  wrote 
a  letter  to  you  in  which  I  outlined  certain  recom- 
mendations of  the  wartime  United  Maritime  Ex- 
ecutive Board.  One  of  these  recommendations 
provided  for  the  establishment  of  a  temporary  con- 
sultative council  for  the  purpose  of  study  of  any 
sliipping  problem  which  might  arise  during  the 
period  of  transition  from  United  Maritime  Au- 
thority controls  to  free  commercial  shipping,  such 
council  to  possess  no  executive  powers. 

The  United  Maritime  Consultative  Council, 
which  resulted  from  those  recommendations,  held 
its  second  and  final  session  in  Washington,  October 
24—30,  inclusive,  and  expired  October  31,  1946,  by 
its  own  terms  of  reference.  The  Council  at  its 
Washington  meeting  had  before  it  a  request  from 
the  Secretary  General  of  the  United  Nations  for 
the  views  of  the  United  Maritime  Consultative 
Council  on  the  establishment  of  a  world-wide  in- 
tergovernmental shipping  organization. 

The  Council  agi-eed  to  recommend  to  its  eighteen 
member  governments  the  establishment  through 
the  machinery  of  the  United  Nations  of  a  per- 
manent shipping  organization  within  a  defined 
scope  excluding  matters  which  are  suitable  for  set- 
tlement through  the  normal  processes  of  interna- 
tional sliipping  business.  As  a  temporary  measure 
pending  the  establishment  of  a  permanent  organi- 
zation, the  Council  recommended  the  formation  of 
a  Provisional  Maritime  Consultative  Coimcil.  The 
proposed  Provisional  Council  would  provide  an 
interim  forum  for  the  consideration  of  shipping 
problems  of  a  teclmical  and  regulatory  nature 
when  referred  to  it  by  governments,  and  for  the 
consideration  of  shipping  problems  of  broader 
scope  when  referred  to  it  by  the  United  Nations. 
It  would  also  advise  on  matters  relating  to  the 
draft  constitution  for  a  permanent  intergovern- 
mental maritime  organization.    Its  powers  would 


be  consultative  and  advisory  and,  like  the  proposed 
permanent  organization,  it  would  not  handle  mat- 
ters suitable  for  settlement  through  the  normal 
processes  of  international  shipping  business.  The 
Provisional  Council  would  be  informal  and  would 
not  require  any  direct  appropriation  of  funds  from 
member  governments  since  it  would  have  no  head- 
quarters or  staff  of  its  own.  The  United  States 
has  accepted  membership  in  the  Pi'ovisional 
Council. 

The  United  Maritime  Consultative  Council  sent 
to  the  Secretary  General  of  the  United  Nations 
a  brief  telegram  informing  the  Secretary  General 
of  its  action  and  stating  that  the  text  of  its  rec- 
ommendations would  follow.  It  requested  that  the 
United  States  transmit  the  text  of  these  recom- 
mendations to  the  Secretary  General  on  December 
1,  1946.  It  is  probable  that  these  documents  will 
be  released  during  the  next  few  days,  and  I  desire 
you  and  your  colleagues  to  be  informed  in  advance 
of  publication.  I  shall  keep  you  informed  regard- 
ing developments  arising  out  of  the  recommenda- 
tions transmitted  to  the  Secretary  General  of  the 
United  Nations  concerning  the  establishment  of 
a  permanent  intergovernmental  maritime  organi- 
zation. 

If  you  desire  any  further  information  with  re- 
spect to  any  of  these  matters,  I  should  be  glad  to 
supply  it. 

Sincerely  yours. 

Dean  Acheson, 
Acting  Secretary 
Enclosures : 

1.  UMCC  2/39— Recommendations  of  the  United  Mari- 
time Consultative  Council  to  Member  Governments. 


'  Identical  letters  were  sent  to  Representative  Schuyler 
Otis  Bland,  Chairman,  House  Committee  on  the  Merchant 
Marine  and  Fisheries;  Representative  Sol  Bloom,  Chair- 
man, House  Committee  on  Foreign  Affairs ;  Senator  Tom 
Connally,  Chairman,  Senate  Committee  on  Foreign  Rela- 
tions; and  Senator  Josiah  W.  Bailey,  Chairman.  Senate 
Committee  on  Commerce. 


724173—46 4 


1093 


THE  UNITED   NATIONS 


2.  UMCC  2/29— Draft  Convention  for  an  Inter-Govern- 
mental Maritime  Consultative  Organization. 

3.  UMCC   2/35 — Agreement   for   Provisional   Maritime 
Consultative  Council. 

Restricted  Revision  of 
UMCC  2/39  (Final) 


UNITED  MARITIME  CONSULTATIVE  COUNCIL, 
WASHINGTON,  D.  C. 

Recommendations    of    the    United    Maeitime 

CONSTJLTAITV'E     CoUNCIL    TO     MeMBER     Go\'ERN- 

MENTS 

Adopted  October  SO,  191,6 

The  United  Maritime  Consultative  Council  during  its 
second  and  final  Session,  being  unanimously  of  the  opinion 
that  an  Inter-Governmental  Maritime  Consultative  Or- 
ganization is  required  as  a  permanent  agency  in  the  ship- 
ping field,  recommends  to  the  Member  Governments  that — 

(1)  an  Inter-Governmental  Maritime  Consultative 
Organization  should  be  established  as  a  siiecialized  agency 
of  the  United  Nations,  as  set  forth  in  the  draft  convention 
for  an  Inter-Governmental  Maritime  Consultative  Organi- 
zation annexed  hereto ; 

(2)  each  Member  Government  take  appropriate  action 
in  requesting  the  Economic  and  Social  Council  to  convene 
a  conference  of  all  interested  governments  for  the  purpose 
of  adopting  a  constitution  for  an  Inter-Governmental 
Maritime  Consultative  Organization  as  set  forth  in  the 
annexed  draft  convention ; 

(3)  in  view  of  the  fact  that  the  United  Maritime  Con- 
sultative Council  will  cease  to  exist  on  October  31,  1946, 
a  Provisional  Maritime  Consultative  CouncU  should  be  set 
up  forthwith  in  accordance  with  the  annexed  Agreement 
for  the  establishment  of  a  Provisional  Maritime  Consulta- 
tive Council ; 

(4)  government  members  of  the  United  Maritime 
Consultative  Council  .should  accept  as  soon  as  possible  the 
Agreement  for  a  Provisional  Maritime  Consultative  Coun- 
cil by  notification  to  the  government  of  the  United  King- 
dom in  accordance  with  Article  V  (1)  thereof. 


Restricted  UMCC  2/29 

(Final  Document)  October  30,  1946 


UNITED   MARITIME   CONSULTATIVE   COUNCIL, 
WASHINGTON,  D.  C. 

The  annexed  Draft  Convention  for  a  permanent  Inter- 
Governmental  Maritime  Consultative  Organization  was 
agreed  by  the  Second  Session  of  the  United  Maritime 
Consultative  Council  for  recommendation  to  the  Member 

1094 


Governments   and   through   them   to   the   Economic   and 
Social  Council  of  the  United  Nations. 

DR.;vrT  Convention  for  an  Inter-Goveenmental 
Maritime  Consui/tateve  Organization 

The  Governments  party  to  the  present  Convention 
hereby  establish  the  Inter-Governmental  Maritime  Con- 
sultative Organization  (hereinafter  referred  to  as  "the 
Organization"). 

Part  I.  Inter-Governmental  Maritime 
Consultative  Organization 

Article  I.  Scope  and  Pwrposes  of  the  Organization 
The  scope  and  purposes  of  the  Organization  are : 

i.  to  provide  machinery  for  cooperation  among  Gov- 
ernments in  the  field  of  Governmental  regulation  and 
practices  relating  to  technical  matters  of  all  kinds  affect- 
ing shipping  engaged  in  international  trade,  and  to  en- 
courage the  general  adoption  of  the  highest  practicable 
standards  in  matters  concerning  maritime  safety  and 
efficiency  of  navigation ; 

ii.  to  encourage  the  removal  of  all  forms  of  discrimina- 
tory action  and  unnecessary  restrictions  by  Governments 
affecting  shipping  engaged  in  international  trade  so  as  to 
promote  the  availability  of  shipping  services  to  the  com- 
merce of  the  world  witliout  discrimination ; 

iii.  to  provide  for  the  consideration  by  the  Organiza- 
tion of  any  shipping  problems  of  an  international  char- 
acter involving  matters  of  general  principle  that  may  be 
referred  to  the  Organization  by  the  United  Nations. 
Matters  which  are  suitable  for  settlement  through  the 
normal  processes  of  international  shipping  business  are 
not  within  the  scoi)e  of  the  Organization ; 

iv.  to  provide  for  the  exchange  of  information  among 
Governments  on  matters  under  consideration  by  the 
Organization. 

Article  II.  Fv/nctions 

Section  1.  The  functions  of  the  Organization  shall  be 
consultative  and  advisoi-y. 

Section  2.  In  order  to  achieve  the  objectives  set  out  in 
Article  I,  the  functions  of  the  Organization  in  relation  to 
matters  within  its  scope  shall  be — 

(a)  to  consider  and  make  recommendations  upon 
matters  arising  imder  Subsections  i  and  ii  of  Article  I 
that  may  be  remitted  to  it  by  Member  Governments,  by 
organs  of  the  United  Nations,  or  by  other  intergovern- 
mental organizations,  or  upon  matters  referred  to  it  under 
Subsection  iii  of  Article  I  ; 

(b)  to  draft  conventions,  agreements,  or  other  suit- 
able instruments,  and  to  recommend  these  to  Governments 
and  to  intergovernmental  organizations,  and  to  convene 
such  conferences  as  may  l>e  necessary ; 

(c)  to  provide  machinery  for  consultation  and  ex- 
change of  information  among  Member  Governments. 

Section  S.  In  those  matters  which  appear  to  the  Organ- 
ization suitable  for  settlement  through  the  normal  proc- 


Department  of  State  Bulletin 


December  15,  1946 


I 


THE  UNITED  NATIONS 


esses  of  international  shipping  business,  the  Organization 
shall  so  recommend. 

{Article  III.  Membership 
Section  1.  Membership  of  the  Organization  shall  be  open 
to  those  members  of  the  United  Nations  which  sign  this 
Convention  without  reservation  as  to  subsequent  formal 
acceptance  or  which,  having  signed  this  Convention  with 
such  reservation,  later  deposit  with  the  Secretary-General 
of  the  United  Nations  their  instruments  of  acceptance. 

Section  2.  Membership  is  also  open  to  any  other  peace- 
loving  states,  not  Members  of  the  United  Nations,  upon 
recommendation  of  the  Council  by  a  two-thirds  majority 
vote  of  the  Members  of  the  Assembly  present  and  voting, 
subject  to  the  Conditions  of  the  Agreement  between  the 
Organization  and  the  United  Nations,  pursuant  to  Article 
XI  of  this  Convention.] 


Note. — ilatter  in  brackets  [  ]  is  reserved  for  further 
consideration. 

Article  IV.  Organs 
The   Organization    shall   consist   of   an   Assembly;    a 
Coimeil ;  a  Maritime  Safety  Committee,  and  such  other 
subsidiary  organs  as  may  be  established  by  the  Organiza- 
tion from  time  to  time ;  and  a  Secretariat. 

Article  V.  The  Assembly 

Section  1.  The  Assembly  shall  consist  of  delegates  of  all 
Member  Governments.  Each  Member  Government  shall 
be  entitled  to  one  vote. 

Section  2.  Regvilar  meetings  of  the  Assembly  shall  take 
place  at  least  once  every  two  years.  Extraordinary  meet- 
ings shall  be  convened  within  sixty  days  whenever  one- 
third  of  the  Member  Governments  give  notice  to  the  Sec- 
retary-General that  they  desire  a  meeting  to  be  arranged, 
or  at  any  time  if  deemed  necessary  by  tlie  Council. 

Section  3.  A  majority  of  the  Member  Governments 
shall  constitute  a  quorum  for  the  meetings  of  tlie  As- 
sembly. Except  as  otherwise  provided  in  this  Conven- 
tion or  as  may  be  provided  expressly  in  other  Conventions 
which  confer  powers  on  the  Assembly,  decisions  shall  be 
by  majority  vote  of  the  Member  Governments  present  and 
voting. 

Section  J/.  The   functions  of  the  Assembly  shall  be — 

(a)  to  elect  at  each  meeting  its  President  and  other 
officers  from  among  its  Members ; 

(b)  to  determine  its  own  rules  of  procedure  except 
as  otherwise  provided  herein ; 

(c)  to  establish  any  temporary  or,  upon  recom- 
mendation of  the  Council,  permanent  subsidiary  bodies  it 
may  consider  to  be  necessary  in  addition  to  the  Maritime 
Safety  Committee; 

(d)  to  elect  the  Member  Governments  to  be  repre- 
sented on  the  Council,  as  provided  in  Section  1  of  Article 
VI; 

(e)  to  receive  and  consider  the  reports  of  the  Coun- 
cil, and  to  decide  ujwn  any  question  referred  to  it  by  the 
Council ; 


(f)  to  vote  the  budget  and  determine  the  financial 
arrangements  of  the  Organization,  in  accordance  with 
Article  X ; 

(g)  to  review  the  expenditures  and  approve  the  ac- 
counts of  the  Organization  ; 

(h)  to  perform  the  functions  of  the  Organization, 
provided  that  any  recommendation  by  the  Assembly  on 
matters  under  Sections  2  (a)  or  2  (b)  of  Article  II  shall 
require  a  majority  vote  including  the  concurring  votes 
of  a  majority  of  the  Member  Governments  represented 
on  the  Council ; 

(i)  to  refer  or  to  delegate  to  the  Council  any  matter 
within  the  scope  of  the  Organization ; 

(j)  to  provide  the  opportunity  for  exchange  of  infor- 
mation and  of  views  among  Member  Governments  on 
questions  within  the  scope  of  the  Organization ; 

(k)  [Insert  powers  necessary  to  establish  a  Mari- 
time Safety  Committee.] 


Note. — Matter  in  brackets  []  is  reserved  for  further 
consideration. 

Article  VI.  The  Council 

Section  1.  The  Council  shall  consist  of  sixteen  Mem- 
ber Governments  to  be  elected  by  the  Assembly.  Eight 
shall  be  Governments  of  nations  with  the  largest  interest 
in  the  provision  of  international  shipping  services.  Four 
shall  be  Governments  of  other  maritime  nations  with  the 
largest  interest  in  international  trade.  The  four  remain- 
ing members  shall  be  elected  with  regard  to  the  desir- 
ability of  adequate  geographical  representation  on  the 
Council. 

Section  2.  Member  Governments  chosen  by  the  As- 
sembly to  be  represented  on  the  Council  shall  be  so  rep- 
resented until  the  end  of  the  next  regular  meeting  of  the 
Assembly.  Vacancies  on  the  Council  occurring  between 
regular  meetings  of  the  Assembly  shall  be  filled  by  the 
Council  which  shall  invite  another  Member  Government 
to  serve  the  unexpired  term  of  the  Member  Government 
withdrawing.  Governments  shall  be  eligible  for  reelec- 
tion. No  Government  shall  have  more  than  one  vote  on 
the  Council. 

Section  3.  The  Council  shall  elect  its  Chairman  and 
adopt  its  own  rules  of  procedure  other  than  those  speci- 
fied herein.  Twelve  members  shall  constitute  a  quorum. 
The  Council  shall  meet  as  often  as  may  be  necessary  for 
the  efficient  discharge  of  Its  duties  upon  the  summons 
of  its  Chairman  or  upon  request  by  not  less  than  four  of 
its  members.  It  shall  meet  at  such  places  as  may  be 
convenient. 

Section  4.  Any  Member  Government  not  represented  on 
the  Council  shall  be  informed  of  any  item  on  the  Council's 
Agenda  in  which  such  Government  is  directly  concerned. 
Such  a  Government  may  participate  in  the  deliberations 
of  the  Council  on  such  an  item  but  shall  not  be  entitled 
to  vote. 

Section  5.  The  Council  shall  receive  the  Maritime 
Safety    Committee's   recommendations   and    reports    and 


1095 


THE  UNITED  NATIONS 


shall  transmit  them  to  the  Assembly  or  to  Governments 
when  the  Assembly  is  not  in  session,  together  with  the 
Council's  comments  ami  recommendations. 

Section  6.  The  Council,  with  the  approval  of  the  As- 
sembly, shall  appoint  a  Secretary-General.  The  Council 
shall  also  make  provision  for  the  appointment  of  such 
other  personnel  as  may  be  necessary,  and  determine  the 
terms  and  conditions  of  service  of  the  Secretary-General 
and  other  personnel,  which  terms  and  conditions  shall 
conform  as  far  as  possible  with  those  of  other  United 
Nations  organizations. 

Section  7.  The  Council  shall  make  a  report  to  the  As- 
sembly at  each  meeting  of  all  action  taken  since  the  pre- 
vious meeting  of  the  Assembly. 

Section  S.  The  Council  shall  submit  to  the  Assembly 
the  budget  estimates  and  the  financial  statements  of  the 
Organization,  together  with  its  comments  and  recommenda- 
tions. 

Section  9.  The  Council  shall  conclude  the  agreements  or 
arrangements  covering  the  Organization's  relationship 
with  other  organizations,  as  provided  for  in  Article  XI, 
which  shall  require  the  confirmation  of  the  Assembly. 

Section  10.  Between  meetings  of  the  Assembly,  the 
Council  shall  perform  all  the  functions  of  the  Organiza- 
tion provided  for  in  Section  2  of  Article  II. 

[^Article  VII.  Maritime  Safety  Cormnittee 

Section  1.  The  Maritime  Safety  Committee  shall  con- 
sist of  fourteen  Member  Governments  selected  by  the 
Assembly  from  the  governments  of  those  nations  having 
an  important  interest  in  maritime  safety,  of  which  not 
less  than  eight  shall  be  the  largest  shipowning  nations, 
and  the  remainder  shall  be  selected  so  as  to  ensure  ade- 
quate representation  of  other  nations  with  important 
interests  in  maritime  safety  and  of  major  geographical 
areas.      Membership   of   the   Committee   shall   be   for   a 

period  of  years.     Governments  shall  be  eligible  for 

reelection. 

Section  2.  Subject  to  the  provisions  of  Section  5  of  Ar- 
ticle VI,  the  committee  shall  have  the  duty  of  considering 
any  matter  within  the  scope  of  the  Organization  and  con- 
cerned with  aids  to  navigation,  construction  and  equipment 
of  vessels,  manning  from  a  safety  standpoint,  rules  for  the 
prevention  of  collisions,  handling  of  dangerous  cargoes, 
maritime  safety  procedures  and  requirements,  hydro- 
graphic  information,  logbooks  and  navigational  records, 
marine  casualty  investigation,  salvage  and  rescue,  and  any 
other  matters  directly  affecting  maritime  safety.  These 
duties  shall  include  the  task  of  establishing  working  rela- 
tionships with  other  intergovernmental  bodies  concerned 
with  transport  and  communications  as  may  further  the 
object  of  the  organization  in  promoting  safety  of  life  at 
sea  and  facilitate  the  coordination  of  activities  in  the  fields 
of  shipping,  aviation,  and  telecommunications  with  respect 
to  safety  and  rescue.  The  committee  shall  make  regular 
reports  to  the  Council  and  make  its  recommendations  in 
respect  of  all  such  matters  in  accordance  with  the  pro- 
cedure in  Section  5  of  Article  VI. 

Note. — The  foregoing  sections  of  this  Article  are  tenta- 

1096 


tively  suggested,  since  the  scope  and  functions  of  the  Mari- 
time Safety  Committee  will  be  developed  on  the  basis  of 
the  type  of  a  draft  convention  emerging  from  the  contem- 
plated technical  conferences.  ] 

Article  VIII.  The  Secretariat 

Section  1.  The  Secretariat  shall  comprise  the  Secretary- 
General  and  such  staff  as  the  Organization  may  require. 
The  Secretary-General  shall  be  appointed  by  the  Council 
pursuant  to  Article  VI.  The  Secretary-General  shall  be 
the  chief  administrative  officer  of  the  Organization. 

Section  2.  The  Secretary-General  shall  appoint  such 
staff  as  may  be  necessary  for  the  efficient  discharge  of  the 
functions  of  the  Organization,  under  regulations  to  be 
established  by  the  Council.  In  engaging  his  staff,  the 
Secretary-General  shall  secure  such  diversity  of  nation- 
ality as  is  compatible  with  efficient  performance  of  their 
duties. 

Section  S.  The  Secretariat  shall  maintain  all  such  rec- 
ords as  may  be  necessary  for  the  efficient  discharge  of  the 
functions  of  all  branches  of  the  Organization  and  shall 
prepare,  collect,  and  circulate  such  papers,  documents, 
agenda,  minutes,  and  information  for  the  work  of  the 
Assembly,  the  Council,  and  its  subsidiary  organs. 

Section  4-  The  Secretary-General  shall  keep  Member 
Governments  informed  with  respect  to  all  activities  of  the 
Organization.  Each  Member  Government  may  appoint 
one  or  more  representatives  for  the  purpose  of  communi- 
cation with  the  Secretary-General. 

Section  5.  In  the  performance  of  their  duties  the  Secre- 
tary-General and  the  staff  shall  not  seek  or  receive  instruc- 
tions from  any  Government  or  from  any  authority  external 
to  the  Organization.  They  shall  refrain  from  any  action 
which  might  reflect  on  their  position  as  international 
officers.  Each  Member  of  the  Organization  on  its  part 
undertakes  to  respect  the  exclusively  international  char- 
acter of  the  Secretary-General  and  the  staff  and  not  to 
seek  to  influence  them. 

Se<;tion  6.  The  Secretary-General  shall  perform  such 
other  tasks  as  may  be  assigned  to  him  by  this  Convention, 
by  the  Assembly,  and  by  the  Council. 

Article  IX.  Legal  Capacity.,  Privileges.!  and 
Immv/nitiea 

[Section  1.  The  Organization  shall  enjoy  in  the  territory 
of  each  of  its  Members  such  legal  capacity  as  may  be  neces- 
sary for  the  exercise  of  its  functions  and  the  fulfillment  of 
its  purposes. 

Section  2.  (a)  The  Organization  shall  enjoy  in  the  ter- 
ritory of  each  of  its  Members  such  privileges  and  immu- 
nities as  are  necessary  for  the  fulfillment  of  its  purposes. 

(b)  Representatives  of  the  Members  of  the  Organiza- 
tion, including  alternates,  advisers,  oflBcials  and  employees 
of  the  Organization,  shall  similarly  enjoy  such  privileges 
and  immunities  as  are  necessary  for  the  independent  ex- 
ercise of  their  functions  in  connection  with  the  Organiza- 
tion. 

Section  S.  Such  legal  capacity,  privileges  and  immunities 

Department  of  State  Bulletin      •      December  75,  1946 


J 


THE  UNITED  NATIONS 


shall  be  defined  in  a  separate  agreement  to  be  prepared  by 
the  Organization  in  consultation  with  the  Secretary-Gen- 
eral of  the  United  Nations  and  concluded  among  the 
Members.  ] 


Note. — Matter  in  brackets  [  ]  is  reserved  for  further 
consideration. 

Article  X.  Finances 

Section  1.  Each  Member  Government  shall  bear  the 
salary,  travel,  and  other  expenses  of  its  own  delegation 
to  the  Assembly  and  of  its  representatives  on  the  Council, 
on  Committees,  and  on  subsidiary  working  groups. 

Section  2.  The  Council  shall  cause  to  be  prepared  the 
annual  budget  estimates  of  the  Organization,  and  a  state- 
ment of  the  Organization's  accounts,  including  all  receipts 
and  expenditures,  which  shall  be  submitted  to  the  As- 
sembly in  accordance  with  Section  8  of  Article  VI. 

Section  3.  Subject  to  any  agreement  between  the  Or- 
ganization and  the  United  Nations,  the  Assembly  shall 
review  and  approve  the  budget  estimates.  [The  Assembly 
shall  apportion  the  expenses  among  the  Members  in  ac- 
cordance with  a  scale  to  be  fixed  by  the  Assembly.] 

Section  If.  Funds  shall  be  advanced  by  each  Member 
Government  to  cover  the  initial  expenses  of  the  Organi- 
zation, which  shall  be  credited  to  its  contribution. 

Section  5.  Any  Member  Government  which  fails  to  dis- 
charge within  one  year  from  the  date  on  whicli  a  budget 
is  approved  by  the  Assembly  its  financial  obligations  to 
the  Organization  resulting  from  that  budget  sliall  have 
no  vote  in  the  As.sembly  or  the  Council,  except  that  the 
Assembly  may,  at  its  discretion,  waive  this  provision. 

Article  XI.  Relationships  With  Other 
Organizations 

Section  1.  The  Organization  shall  be  brought  into  rela- 
tionship with  the  United  Nations  in  accordance  with  Ar- 
ticle .j7  of  the  Charter  of  the  United  Nations  as  the  spe- 
cialized agency  in  the  field  of  shipping.  This  relationship 
shall  be  effected  through  an  agreement  with  the  United 
Nations  under  Article  63  of  the  Charter  of  the  United 
Nations,  which  agreement  shall  be  concluded  by  the  Coun- 
cil as  provided  in  Section  9  of  Article  VI. 

Section  2.  The  Organization  may,  on  matters  within  its 
scope,  enter  into  relationships  with  other  intergovernmen- 
tal organizations  whose  interests  and  activities  are  related 
to  its  purposes. 

Section  3.  The  Organization  may,  on  matters  within  its 
scope,  make  suitable  arrangements  for  consultation  and 
cooperation  with  nongovernmental  international  organi- 
zations. 

Article  XII.  Headquarters  of  the  Organization 

Section  1.  The  headquarters  of  the  Organization  shall 
be  established  at . 

Part  II.    Provisions  Relating  to  Maritime  Safety 

Article  XIII 
(It  is  contemplated  that  provisions  relating  to  maritime 


safety  will  be  developed  by  a  technical  conference  on  this 
subject) 

Part  III.     The  Convention  in  General 

lArticle  XIV.  Entry  Into  Force 

The  present  Convention  shall  come  into  force  when  16 
nations,  of  which  5  shall  each  have  a  total  tonnage  of  not 
less  than  1,000,000  gross  tons  of  shipping,  have  become 
parties  to  it  in  accordance  with  Article  XV.] 


Note. — Matter  in  brackets  [  ]  is  reserved  for  further 
consideration. 

[Article  XV.  Accessions  and  Denunciations 

Section  1.  Subject  to  the  provisions  of  Article  III,  Gov- 
ernments may  become  parties  to  this  Convention  by — 

(i)  signature  without  reservations  as  to  subsequent 
formal  acceptance; 

(ii)   signature  subject  to  formal  acceptance;  or 
(iii)  acceptance. 

Acceptance  shall  be  effected  by  the  deposit  of  a  formal 
instrument  with  the  Secretary-General  of  the  United 
Nations. 

Section  2.  Tlie  present  Convention  may  be  denounced  on 
behalf  of  any  Member  Government,  insofar  as  that  Mem- 
ber Government  is  concerned,  at  any  time  after  the  expira- 
tion of  three  years  from  the  date  on  which  the  Convention 
comes  into  force  with  respect  to  that  Member  Government. 
Denunciations  shall  be  effected  by  notification  in  writing 
addressed  to  the  Secretary-General  of  the  Organization. 
The  Secretary-General  of  the  Organization  shall  notify 
all  Member  Governments  and  the  Secretary-General  of  the 
United  Nations  thereof,  stating  the  date  on  which  such 
denunciation  is  effective.  Any  such  denunciation  shall  be 
effective  twelve  months  after  the  date  on  which  notification 
is  received  by  the  Secretary-General  of  the  Organization.] 

[Article  XVI.  Interpretation 

Section  1.  The  English  and  French  texts  of  this  Conven- 
tion shall  be  equally  authentic. 

Section  2.  Any  question  or  dispute  concerning  the  inter- 
pretation or  application  of  this  Convention  shall  be  settled 
by  the  Assembly  or  in  such  other  manner  as  the  parties  to 
such  dispute  agree  or,  failing  such  mode  of  settlement, 
shall  be  referred  to  the  International  Court  of  Justice  in 
accordance  with  Article  90  of  the  Charter  of  the  United 
Nations.] 

[Article  XVII.  Amendments 

Texts  of  proposed  amendments  to  this  Convention  shall 
be  communicated  by  the  Secretary-CJeneral  to  Menilier  Gov- 
ernments at  least  six  months  in  advance  of  their  consid- 
eration by  the  Assembly.  Amendments  shall  become 
effective  upon  receiving  the  approval  of  two-thirds  ma- 
jority of  the  Assembly,  including  the  concurring  votes  of 
a  majority  of  the  Member  Governments  represented  on 
the  Council ;  provided  however,  that  amendments  involv- 


1097 


THE  UNITED  NATIONS 


Ing  new  obligations  for  Member  Governments  sliall  take 
effect  in  respect  of  Member  Governments  which  have  ac- 
cepted them  when  not  less  than  two-thirds  of  the  total 
number  of  Member  Governments  have  indicated  their 
approval.  If,  in  its  opinion,  the  amendment  is  of  such 
a  nature  as  to  justify  this  course,  the  Assembly  in  its 
resolution  recommending  adoption  may  provide  that  any 
Member  Government  which  has  not  accepted  within  a 
specified  period  after  the  amendment  has  come  Into  force 
shall  thereupon  cease  to  be  a  member  of  the  Organization 
and  a  party  to  the  Convention.] 


Note. — Matter  in  brackets  [  ]  is  reserved  lor  further 
consideration. 


Restricted  Revision  of  UMCC  2/35 
Final  Document  October  30, 1946 

UNITED  MARITIME   CONSULTATIVE   COUNCIL, 
WASHINGTON,   D.   C. 

Agreement  for  Provisional  Maritime 
consultativb  cottncil 

Article  I.    Scope  and  Purposes 

The  Provisional  Maritime  Consultative  Council  shall  be 
established  as  a  temporary  organization  pending  the  es- 
tablishment of  a  permanent  intergovernmental  agency  In 
the  maritime  field — 

i.  to  provide  machinery  for  cooperation  among  Gov- 
ernments in  the  field  of  Governmental  regulation  and  prac- 
tices relating  to  technical  matters  of  all  kinds  affecting 
shipping  engaged  in  international  trade,  and  to  encourage 
the  general  adoption  of  the  highest  practicable  standai-ds 
in  matters  concerning  maritime  safety  and  eflSciency  of 
navigation ; 

ii.  to  encourage  the  removal  of  all  forms  of  discrimi- 
natory action  and  unneces.sary  restrictions  by  Govern- 
ments affecting  shipping  engaged  in  international  trade 
so  as  to  promote  the  availability  of  shipping  services  to 
the  commerce  of  the  world  without  discrimination ; 

ill.  to  provide  for  the  consideration  by  the  Council 
of  any  sliipping  problems  of  an  international  character 
involving  matters  of  general  principle  that  may  be  referred 
to  the  Council  by  the  United  Nations.  Matters  which  are 
suitable  for  settlement  through  the  normal  processes  of 
international  shipping  business  are  not  within  the  scope 
of  the  Council. 

iv.  to  provide  for  the  exchange  of  information  among 
Governments  on  matters  under  consideration  by  the 
Council. 

Article  II.  Functions 

The  functions  of  the  Provisional  Maritime  Consultative 
CouncD,  which  shall  be  consultative  and  advisory,  shall 
be— 

(a)  To  consider  and  make  recommendations  on  any 
matter  within  its  scoi)e  as  set  forth  in  Sections  (i)  and 
(it)  of  Article  I. 


(b)  To  consider  and  make  recommendations  on  mat- 
ters within  its  scope  upon  the  request  of  any  organ  of 
the  United  Nations  or  other  intergovernmental  specialized 
agency. 

(c)  To  advise  on  matters  relating  to  the  draft  con- 
stitution for  a  i)ermanent  intergovernmental  maritime 
organization. 

Article  III.  Membership 

Membership  in  the  Council  shall  consist  of  those  gov- 
ernments which  notify  the  Government  of  the  United 
Kingdom  of  their  acceptance  of  this  Agreement,  being 
either  governments  members  of  the  UMCC  or  govern- 
ments members  of  the  United  Nations. 

Article  IV,  Organization 

(1)  The  Council  shall  consist  of  all  Member  Govern- 
ments. 

(2)  The  Council  may  elect  an  Executive  Committee 
consisting  of  twelve  member  governments  which  shall 
exercise  such  functions  ag  may  be  delegated  to  it  by  the 
Council.  The  Executive  Committee  shall  not  be  estab- 
lished by  the  Council  until  at  least  twenty  governments 
have  accepted  this  agreement. 

(3)  The  Council  shall  at  each  session  determine  the 
host  government  and  the  time  for  its  next  meeting.  Upon 
the  request  of  not  less  than  four  of  the  members  the 
Chairman  shall  summon  the  Coimcil  for  an  earlier  date. 

The   Government  of  shall   convene   the   first 

meeting  of  tlie  Coimcil  at  any  time  after  March  1,  1947. 

(4)  The  host  Government  arranged  for  each  session 
shall  designate  a  Chairman  who  shall  hold  office  until  the 
host  Government  for  the  next  following  session  has  been 
decided,  and  shall  provide  the  necessary  secretariat  for 
meetings  held  within  its  territory. 

(5)  Decisions  of  the  Council  shall  be  taken  by  a  ma- 
jority of  those  present  and  voting.  Ten  Members  shall 
constitute  a  quorum.  The  Council  shall  otherwise  deter- 
mine its  own  rules  of  procedure. 

Article  V.  Entry  Id  to  Force 

(1)  This  agreement  shall  remain  open  for  acceptance 
in  the  archives  of  the  Government  of  the  United  King- 
dom and  shall  enter  into  force  when  twelve  Governments, 
of  which  five  shall  each  have  a  total  tonnage  of  not  less 
than  1,000,000  g.  t.  of  shipping  have  accepted  it. 

(2)  As  soon  as  this  agreement  has  come  into  force,  a 
copy  of  the  agreement  together  with  the  names  of  the 
Governments  who  have  accepted  it  shall  be  sent  by  the 
Government  of  the  United  Kingdom  to  the  Secretary-Gen- 
eral of  the  United  Nations  for  registration  in  accordance 
with  Article  102  of  the  Charter  of  the  United  Nations.      ■ 

Article  VI.  Termination 

This  agreement  shall  cease  to  have  effect  upon  the  entry 
into  force  of  a  constitution  for  a  permanent  intergovern- 
ment  maritime  organization  or  if  the  membership  falls 
below  twelve.  A  member  government  may  withdraw  at 
any  time  upon  six  months'  notice  to  the  Government  of 
the  United  Kingdom. 


1098 


Department  of  Stale  Bulletin      •     December  15, 7946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings  ^ 


In  Session  as  of  December  8, 1946 

Far  Eastern  Commission 


United  Nations: 

Security  Council 

Military  Staflf  Committee 

Commission  on  Atomic  Energy 

UNRRA- Intergovernmental  Committee  on  Refugees  (IGCR), 

Joint  Planning  Committee 
General  Assembly 


Telecommunications  Advisory  Committee 

Economic  and  Social  Council:  Commission  on  Narcotic  Drugs 

German  External  Property  Negotiations: 

With  Portugal  (Safehaven) 

With  Spain 


Inter-Allied  Trade  Board  for  Japan 

FAO:  Preparatory  Commission  To  Study  World  Food  Board  Pro- 
posals 

Council  of  Foreign  Ministers 


Inter- Allied  Reparations  Agency  (lARA) :  Meetings  on  Conflicting 
Custodial  Claims 


UNESCO: 

"Month"  Exhibition 


General  Conference,  First  Session  . 

PICAO: 
Divisional 

Communications  Division   .    . 


Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division  . 

Inter- American  Commission  of  Women:  Fifth  Annual  Assembly 


Washington 

February  26 

Lake  Success 

March  25 

Lake  Success 

March  25 

Lake  Success 

June  14 

Washington  and  Lake 

July  25 

Success 

Flushing  Meadows   .    . 

October  23-December  11 

(tentative) 

Lake  Success 

November  10 

Lake  Success 

November     27-Decem- 

ber  10  (tentative) 

Lisbon 

September  3 

Madrid 

November  12 

Washington 

October  24 

Washington 

October  28 

New  York 

November  4 

Brussels 

November  6 

Paris 

November  21-Dec em- 

ber 20 

Paris 

November   19-Decem- 

ber  10 

Montreal 

November  19-Dec  em- 

ber 7 

Montreal 

November  26 

Montreal 

December  3 

Washington 

December  2-12 

'  Prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


1099 


Calendar  of  Meetings — Continued 

Scheduled  for  December  1946  -  February  1947 

UNRRA  Council,  Sixth  Session 

Caribbean  Commission 

United  Nations: 

Meeting  of  Postal  Experts 

Meeting  of  Governmental  Experts  on  Passport  and  Frontier  For- 
malities 

Economic  and  Social  Council  ' 

Drafting  Committee  of  International  Trade  Organization,  Pre- 
paratory Committee 

Economic  and  Employment  Commission 

Social  Commission 

Subcommission  on  Economic  Reconstruction  of  Devastated 
Areas 

Human  Rights  Commission 

Population  Commission 

Statistical  Commission 

Commission  on  the  Status  of  Women 

Transport  and  Communications  Commission 

Non-governmental  Organizations  Committee 

ECOSOC,  Fourth  Session  of 

Intergovernmental  Committee  on  Refugees  (IGCR) :  Sixth  Plenary 
Session 

European  Central  Inland  Transport  Organization   (ECITO),  Sixth 
Session  of  the  Council 

Meeting  of  Medical  and  Statistical  Commissions  of  Inter- American 
Committee  on  Social  Security 

PICAO: 

Divisional 

Personnel  Licensing  Division • 

Aeronautical  Maps  and  Charts  Division 

Accident  Investigation  Division 

Airworthiness  Division 

Airline  Operating  Practices  Division 

Regional 

South  Pacific  Regional  Air  Navigation  Meeting 


Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education    .    .    .    . 
ILO  Industrial  Committee  on  Petroleum  Production  and  Refining. 


Washington 
Curagao  .    . 


New  York 
Geneva    . 


Montreal 

Montreal  . 

Montreal  . 

Montreal  . 

Montreal  . 

Melbourne . 

Caracas  .  . 

Caracas  .  . 

Lima   .    .  . 


December  10 
December  10 

December  10 
January  14-29 


Lake  Success 

January  20-February  28 

Lake  Success 

January  20-February  5 

Lake  Success 

January  20-February  5 

Geneva 

January  27-February  13 

Lake  Success 

January  27-February  11 

Lake  Success 

January  27-February  11 

Lake  Success 

February  6-20 

Lake  Success 

February  12-27 

Lake  Success 

February  17-28 

Lake  Success 

February  25-27 

Lake  Success 

February  28 

London 

December  16 

Paris 

December  18 

Washington 

January  6-11 

January  7 
January  14 
February  4 
February  18 
February  25 

February  1 
January  12-24 
January  12-24 
February  3-12 


'  ECOSOC  Committee  and  Commission  dates  are  tentative. 


1100 


Department  of  Stafe  Bulletin      •      December  J  5,  1946 


Activities  and  Developments 


PICAO  EUROPEAN-IVIEDITERRANEAN  AIR- 
TRAFFIC  CONTROL  CONFERENCE' 

The  PICAO  Conference  of  the  Air  Traffic  Con- 
trol Committee,  European-Mediterranean  Region, 
which  met  at  Paris,  October  28  to  November  2, 
19-16,  was  held  to  complete  air-traffic  control  plans 
for  the  European-Mediterranean  region.  The 
PICAO  EurojDean  Area  Route  Services  Organiza- 
tion Conference,  which  met  at  Paris  in  April- 
May,  1946,  had  been  unable  to  complete  that  sec- 
tion of  the  agenda  covering  air-traffic  control. 

The  Conference  was  attended  by  the  following 
states:  Czechoslovakia,  Denmark,  Finland, 
France,  Ireland,  Italy,  Luxembourg,  Nethei'lands, 
Norway,  Portugal,  Spain,  Sweden,  Switzerland, 
United  Kingdom,  United  States,  and  Yugoslavia. 
Representatives  were  also  present  from  the  Inter- 
national Commission  for  Air  Navigation 
(ICAN),  the  International  Air  Transport  Asso- 
ciation (lATA),  and  the  Combined  Air  Traffic 
Advisory  Committee  (CATAC(E) ).  Clifford  P. 
Burton,  consultant,  International  Air  Traffic  Con- 
trol, Civil  Aeronautics  Administration,  repre- 
sented the  United  States  Government  at  this  Con- 
ference. 

The  meeting  developed  an  air  route  or  airway 
system  for  the  European-Mediterranean  region 

(including  Ireland)  similar  to  the  system  now 
utilized  in  the  United  States.  Only  the  heavily 
traveled  air  routes  were  designed  as  control  areas, 
owing  to  the  lack  of  facilities  necessary  for  air 
navigation  and  air-traffic  control.  This  concept 
is  new  to  tlie  European-Mediterranean  region  and, 
if  successful,  points  the  way  toward  world-wide 
adoption  of  such  techniques  and  procedures.  The 
British  Isles  were  not  included  in  the  plan,  since 
the  United  Kingdom  did  not  concur  in  the  concept 
agreed  to  by  all  the  other  i-epresentatives.  The 
European-Mediterranean  region  plan  was  inte- 
grated with  the  nearly  identical  air-traffic  control 

plans  for  the  United  States  -  occupied  portion  of 
Germany. 


The  quadrantal  system  of  flight  altitiides  and 
the  existing  PICAO  procedures  for  air  naviga- 
tion services  were  adopted  with  slight  modifica- 
tions. The  plan  calls  for  progressive  implementa- 
tion by  each  state  with  a  concluding  date  given  as 
January  1,  1947. 

INTERNATIONAL  WHALING  CONFERENCE' 

The  International  Wlialing  Conference  was 
held  at  Wasliington  from  November  20  to  Decem- 
ber 2,  1946  to  consider  problems  pertaining  to  the 
conservation  of  world  whale  stocks.  Representa- 
tives of  19  countries  participated  in  the  Confer- 
ence. The  following  14  countries  were  represented 
by  plenipotentiaiy  delegations:  Argentina,  Aus- 
tralia, Brazil,  Canada,  Chile,  Denmark,  France, 
Netherlands,  New  Zealand,  Norway,  Peru,  Union 
of  Soviet  Socialist  Republics,  United  Kingdom, 
and  the  United  States.  Observer  delegations  rep- 
resented the  following  five  countries:  Iceland, 
Ireland,  Portugal,  Sweden,  and  the  Union  of 
South  Africa. 

The  final  documents  of  the  Conference  are: 
(1)  an  international  whaling  protocol;  (2)  an 
international  whaling  convention;  (3)  a  final  act. 
The  results  of  the  meeting,  embodied  in  these 
documents,  may  be  summarized  as:  the  codifica- 
tion and  expansion  of  existing  international  con- 
servation regulations  which  pertain  to  whaling; 
and  the  establishment  of  an  international  whaling 
commission  to  amend  these  regulations  from  time 
to  time  in  the  future  as  conditions  may  require. 

Since  regulations  jDreviously  adopted  are  al- 
ready in  effect  for  the  1946-1947  whaling  season, 
the  protocol  agreed  to  at  this  Conference  will  be 
applicable  to  the  1947-1948  whaling  season,  and 
the  convention  will  apply  to  the  1948-1949  and 
subsequent  whaling  seasons.  The  final  documents 
will  remain  open  for  signature  until  December  16, 
1946. 


'  Prepared  by  the  Division  of  International  Conferences 
in  collaboration  with  the  Civil  Aeronautics  Administra- 
tion. 

'  Prepared  by  the  Division  of  International  Conferences 
in  collaboration  wiUi  the  Division  of  International 
Resources. 


1101 


THE  RECORD  OF  THE  WEEK 


Economic  Integration  of  U.S.  and  U.K.  Zones  in  Germany 


[Released  to  the  press  December  3] 

Secretary  Bja-nes  and  the  British  Foreign  Sec- 
retai'y,  Ernest  Bevin,  made  public  on  December 
3  the  agreement  which  they  have  signed  on  behalf 
of  their  respective  Governments  which  provides 
for  the  full  economic  integration  of  the  United 
States  and  the  United  Kingdom  zones  of  occupa- 
tion in  Germany  and  comes  into  effect  on  January 
1, 1947. 

The  two  Secretaries  of  State  declared  that  they 
considered  this  agreement  a  first  step  in  the  eco- 
nomic unification  of  Germany  as  a  whole  which 
they  hope  will  lead  to  discussions  with  the  other 
occupying  powers  for  the  extension  of  these  or 
similar  arrangements  to  the  other  zones  of  occu- 
pation. 

They  stated  that  the  United  States  and  the 
United  Kingdom  have  become  equal  partners  in 
treating  the  two  zones  as  a  single  area. 

The  agreement  contemplates  an  economic  pro- 
gram designed  to  make  the  area  self-sustaining 
in  three  years.  By  this  program  it  is  expected 
not  only  to  decrease  the  costs  of  occupation  for  the 
area  but  also  to  make  possible  the  gradual  resto- 
ration of  a  healthy  non-aggressive  German  econ- 
omy which  will  contribute  materially  to  the  eco- 
nomic stability  of  Europe. 

Text  of  the  agreement  follows : 

MEMORANDUM  OF  AGREEMENT' 

Representatives  of  the  two  Governments  have 
met  at  Washington  to  discuss  the  questions  arising 
out  of  the  economic  fusion  of  their  zones  of  oc- 
cupation in  Germany.  They  have  taken  as  the 
basis  of  their  discussion  the  fact  that  the  aim  of 


'  Signed  on  Dec.  2, 1946. 
1102 


the  two  Governments  is  to  achieve  the  economic 
unitjr  of  Germany  as  a  whole,  in  accordance  with 
the  agi-eement  reached  at  Potsdam  on  2nd  Augiist, 
1945.  The  arrangements  set  out  hereunder,  for 
the  United  States  and  United  Kingdom  Zones, 
should  be  regarded  as  the  first  step  towards  the 
achievement  of  the  economic  unity  of  Germany  as 
a  whole  in  accordance  with  that  agreement.  The 
two  Governments  are  ready  at  any  time  to  enter 
into  discussions  with  either  of  the  other  occupying 
powers  with  a  view  to  the  extension  of  these  ar- 
rangements to  their  zones  of  occupation. 

On  this  basis,  agreement  has  been  reached  on  the 
following  paragraphs : 

1.  Date  of  inception.  This  agreement  for  the 
economic  fusion  of  the  two  zones  shall  take  effect 
on  1st  January,  1947. 

2.  Pooling  of  resources.  The  two  zones  shall  be 
treated  as  a  single  area  for  all  economic  purposes. 
The  indigenous  resources  of  the  area  and  all  im- 
ports into  the  area,  including  food,  shall  be  pooled 
in  oi'der  to  produce  a  common  standard  of  living. 

3.  G  erma  n  administrative  agencies.  The 
United  States  and  United  Kingdom  Commanders- 
in-Chief  are  responsible  for  setting  up  under  their 
joint  control  the  German  administrative  agencies 
necessary  to  the  economic  unification  of  the  two 
zones. 

4.  Agency  for  foreign  trade.  Eesponsibility 
for  foreign  trade  will  rest  initially  with  the  Joint 
Export-Import  Agency  (United  States-United 
Kingdom)  or  such  other  agency  as  may  be  estab- 
lished by  the  two  Commanders-in-Chief.  This 
responsibility  shall  be  transferred  to  the  German 
administrative  agency  for  foreign  trade  under 
joint  supervision  to  the  maximum  extent  permitted 

Department  of  State  Bullefin      •      December  75,  1946 


I 


THE  RECORD  OF  THE   WEEK 


by  the  restrictions  existing  in  foreign  countries  at 
any  given  period.  (All  references  in  tliis  agree- 
ment to  the  Joint  Export-Import  Agency  shall 
apply  to  this  agency  or  to  any  agency  established 
by  the  two  Commanders-in-Chief  to  succeed  it.) 

5.  Basis  of  econotnic  planning.  The  aim  of  the 
two  Governments  is  the  achievement  by  the  end  of 
1949  of  a  self-sustaining  economy  for  the  area. 

6.  Sharing  of  financial  responsihility.  Subject 
to  the  provision  of  the  necessary  appropriations, 
the  Govermnents  of  the  United  States  and  the 
United  Kingdom  will  become  responsible  on  an 
equal  basis  for  costs  of  approved  imports  bi'ought 
into  account  after  31st  December,  1946  (including 
stocks  on  liand  financed  by  the  respective  Govern- 
ments) ,  insofar  as  those  cannot  be  paid  for  from 
other  sources,  in  accordance  with  the  following 
provisions : 

{a)  For  this  purpose  the  imports  of  the  area 
shall  be  divided  into  two  categories :  those  imports 
required  to  prevent  disease  and  unrest  (Category 
A),  which  are  financed  in  decreasing  amounts  by 
appropriated  funds;  and  those  further  imports 
(including  raw  materials),  however  financed, 
whicli  will  be  required  if  the  economic  state  of  the 
area  is  to  recover  to  an  extent  sufficient  to  achieve 
the  aim  laid  down  in  paragraph  5  of  this  Agree- 
ment (Category  B). 

( ft )  It  is  the  intention  cvf  the  two  Governments 
that  the  full  cost  of  Category  A  imports  shall  be 
defrayed  as  soon  as  possible,  subject  to  sub-para- 
graph (c)  below,  from  the  proceeds  of  exports. 
Any  portion  of  the  cost  of  Category  A  imports 
which  is  not  met  by  export  proceeds  will  be  de- 
frayed by  the  two  Govermnents  in  equal  shares 
from  appropriated  funds. 

(c)  The  proceeds  of  exports  from  the  area  shall 
be  collected  by  the  Joint  Export-Import  Agency 
and  shall  be  used  primarily  for  the  provision  of 
Category  B  imports  until  there  is  a  surplus  of  ex- 
port proceeds  over  the  cost  of  these  imports. 

{d)  In  order  to  provide  funds  to  procure  Cate- 
gory B  imports : 

(i)  The  Government  of  the  United  King- 
dom will  make  available  to  the  Joint  Export-Im- 
port Agency  the  sum  of  $29,300,000  in  settlement 
of  the  understanding  reached  in  September,  1945, 
for  the  pooling  of  the  proceeds  of  exports  from  the 


two  zones  in  proportion  to  import  expenditures, 
which  shall  be  credited  to  the  United  States  contri- 
bution. 

(ii)  In  addition  to  this  sum  the  accumu- 
lated proceeds  of  exports  fi^om  the  United  States 
Zone  (estimated  at  $14,500,000),  will  be  made 
available  to  the  Joint  Export-Import  Agency  for 
the  purchase  of  Category  B  imports. 

(iii)  The  Government  of  the  United  King- 
dom will  provide  Category  B  goods  at  the  request 
of  the  Joint  Export-Import  Agency  to  a  value 
equal  to  that  of  the  United  States  contribution 
under  sub-paragraphs  (i)  and  (ii)  above. 

(iv)  The  Governments  of  the  United  States 
and  the  United  Kingdom  will  make  available  to 
the  Joint  Export-Import  Agency  in  like  amounts 
their  respective  shares  of  the  sum  to  be  used  for 
financing  purchases  of  essential  commodities  for 
the  German  economy  under  the  provisions,  and 
upon  ratification  by  the  Government  of  Sweden,  of 
the  accord  dated  18th  July,  1946,  between  the 
Governments  of  the  United  States,  the  United 
Kingdom  and  France  on  the  one  hand  and  of 
Sweden  on  the  other. 

(v)  Any  further  sums  which  are  agreed 
by  the  Joint  Export -Import  Agency  to  be  required 
for  the  purchase  of  Category  B  imports  shall  be 
provided  by  the  two  Governments  on  an  equal  basis 
in  such  manner  as  they  may  agree.  To  the  extent 
that  either  Government  advances  sums  for  the 
purchase  of  raw  materials  for  processing  and  re- 
export on  special  terms  as  regards  security  and 
repayment,  the  other  Government  may  advance 
equal  sums  on  similar  terms. 

(e)  The  costs  incurred  by  the  two  Governments 
for  their  two  zones  before  1st  January,  1947,  and 
for  the  area  thereafter,  shall  be  recovered  from 
future  German  exports  in  the  shortest  practicable 
time  consistent  with  the  rebuilding  of  the  German 
economy  on  healthy  non-aggressive  lines. 

7.  Relaxation  of  harriers  to  trade.  With  a  view 
to  facilitating  the  expansion  of  German  exports, 
barriers  in  the  way  of  trade  with  Germany  should 
be  removed  as  rapidly  as  world  conditions  permit. 
To  the  same  end  the  establishment  of  an  exchange 
value  for  the  mark  should  be  undertaken  as  soon 
as  this  is  practicable;  financial  reform  should  be 

1103 


THE   RECORD  OF  THE   WEEK 


effected  in  Germany  at  an  early  date;  and  the  ex- 
change of  full  technical  and  business  communica- 
tions between  Germany  and  other  countries  should 
be  facilitated  as  soon  as  possible.  Potential  buy- 
ers of  German  goods  should  be  provided  access 
to  both  zones  to  the  full  extent  that  facilities 
permit,  and  normal  business  channels  should  be 
restored  as  soon  as  possible. 

8.  Procurement.  The  determination  of  import 
requirements  shall  be  the  responsibility  of  the 
Joint  Export-Import  Agency.  The  procurement 
of  these  requirements  shall  be  dealt  with  as  follows : 

(i)  Procurement  of  Category  A  imports  to 
the  extent  that  they  are  financed  from  appropri- 
ated funds  of  either  Government  shall  be  the  re- 
sponsibility of  that  Government. 

(ii)  Procurement  of  Category  B  imports 
and  of  Category  A  imports  to  the  extent  that  they 
are  not  financed  by  appropriated  funds  shall  be 
the  responsibility  of  the  Joint  Export-Import 
Agency,  with  such  assistance  from  the  two  Gov- 
ernments as  may  be  desired. 

Unless  otherwise  agreed,  subject  to  the  provisions 
of  this  paragraph,  procurement  shall  be  from  the 
most  economical  source  of  supply.  However,  the 
sources  shall  be  selected  to  the  fullest  extent  practi- 
cable, so  as  to  minimise  the  drain  on  the  dollar 
resources  of  the  United  Kingdom. 

The  two  Governments  will  establish  a  joint 
committee  in  Washington  with  the  following 
resjionsibilities : 

(a)  In  tlie  case  of  commodities  in  short  supply, 
to  support  the  requirements  of  the  Joint  Export- 
Import  Agency  before  the  appropriate  authorities. 

(6)  To  determine,  where  necessary,  sources  of 
supply  and  to  designate  procurement  agencies  hav- 
ing regard  to  the  financial  responsibilities  and 
exchange  resources  of  the  two  Govermnents. 

With  respect  to  sub-paragraph  (a)  above,  the  two 
Governments  agree  to  assist  the  committee  in  ob- 
taining the  requirements  of  the  Joint  Export- 
Import  Agency  having  regard  to  all  other  legiti- 
mate claims  on  available  world  su^iply.  With  re- 
spect to  sub-paragraph  (&)  above,  where  the  finan- 
cial responsibility  rests  with  one  Government,  and 
the  designated  source  of  supply  is  the  territory 
under  the  authority  of  the  other  Government,  the 

1104 


latter,  if  so  requested,  will  accept  responsibility 
for  procuring  those  supplies  as  agent  for  the 
former. 

9.  Currency  and  hanking  arrangements.  The 
Bipartite  Finance  Committee  (United  States- 
United  Kingdom)  will  be  authorized  to  open  ac- 
counts with  appi'oved  banks  of  the  countries  in 
which  the  Joint  Export-Import  Agency  is  operat- 
ing, provided  that  agreements  are  negotiated  with 
those  countries  for  credit  balances  to  be  trans- 
ferred on  demand  into  dollars  or  sterling.  The 
Bipartite  Finance  Committee  will  be  authorised 
to  accept  payment  of  balances  in  either  dollars  or 
sterling,  whichever,  in  the  judgment  of  the  Joint 
Export-ImiJort  Agency,  may  be  better  utilized  in 
financing  essential  imports. 

10.  Food.  The  two  Governments  will  support, 
to  the  full  extent  that  appropriated  and  other 
funds  will  permit,  an  increase  in  the  present  ration 
standard  to  1800  calories  for  the  normal  consumer 
as  soon  as  the  woi'ld  food  supply  permits.  This 
standard  is  accepted  as  the  minimum  which  will 
support  a  reasonable  economic  recovery  in  Ger- 
many. However,  in  view  of  the  current  world 
food  supply,  a  ration  standard  of  1550  calories 
for  the  normal  consumer  must  be  accepted  at 
present. 

11.  Imports  for  displaced  persons.  Subject  to 
any  international  arrangements  which  may  sub- 
sequently be  made  for  the  maintenance  of  dis- 
placed persons,  the  maintenance  of  displaced 
persons  within  both  zones  from  the  German  econ- 
omy shall  not  exceed  the  maintenance  of  German 
citizens  from  this  economy.  Supplementary  ra- 
tions and  other  benefits  which  may  be  provided 
for  displaced  persons  in  excess  of  those  available 
to  German  citizens  must  be  brought  in  to  Germany 
without  cost  to  the  German  economy. 

12.  Duration.  It  is  the  intention  of  the  two  Gov- 
ernments that  this  agreement  shall  govern  their 
mutual  arrangements  for  the  economic  adminis- 
tration of  the  area  pending  agreement  for  the 
treatment  of  Germany  as  an  economic  unit  or 
until  amended  by  mutual  agreement.  It  shall  be 
reviewed  at  yearly  intervals. 

James  F.  Btenes 
Ernest  Bevin 


Department  ot  State  Bulletin      •      December  15,  1946 


1 


Conference  on  the  Palestine  Situation 


STATEMENT  BY  THE  SECRETARY  OF  STATE 


[Released  to  the  press  December  7] 

Some  weeks  ago  I  stated  that  while  Mr.  Bevin 
was  in  New  York  I  would  discuss  with  him  the 
Palestine  situation.  Since  that  time  Mr.  Bevin  and 
I  have  had  several  conferences  on  the  subject. 
Among  other  things,  he  advised  me  that  a  meeting 
is  scheduled  in  London  in  January',  to  which  meet- 
ing the  representative  leaders  of  Jews  and  Arabs 
have  been  invited.  "With  reference  to  that  meeting 
there  has  been  an  exchange  of  the  following  com- 
munications : 

December  2, 1946 — letter  from  Mr.  Byrnes  to  Mr. 
Bevin. 

December  2, 1946 — letter  from  Mr.  Bevin  to  Mr. 
Byrnes. 

After  investigation,  it  is  my  opinion  that  a  per- 
manent solution  of  the  very  serious  Palestine  prob- 
lem will  be  greatly  facilitated  if  there  is  a  free  and 
full  conference  between  the  reiDresentatives  of  the 


British  Government  and  the  Jewish  and  Arab 
leaders. 

Mr.  Bevin's  letter  is  assurance  that  the  confer- 
ence in  January  will  offer  an  opportunity  for  the 
conferees  to  meet  on  terms  of  equality  to  discuss 
whatever  j^ro^Dosals  the  several  conferees  desire  to 
have  discussed. 

In  view  of  his  assurances,  I  think  that  the  leaders 
of  the  Jews  and  Arabs  should  attend  the  confer- 
ence and  discuss  the  whole  problem. 

In  September  His  Majesty's  Government  invited 
the  United  States  to  send  an  observer  to  the  confer- 
ence. At  that  time  we  could  not  see  our  way  clear 
to  accept  the  invitation.  Mr.  Bevin  has  orally  re- 
newed the  invitation  of  his  Government  and  in 
view  of  the  assurances  contained  in  his  letter,  the 
United  States  Government  feels  that  the  leaders 
of  the  Jews  and  Arabs  should  attend  the  confer- 
ence. If  they  do,  the  United  States  will  accept  the 
invitation  to  have  an  observer  at  that  conference. 


EXCHANGE  OF  LETTERS  BETWEEN  THE  SECRETARY  OF  STATE  AND 
THE  BRITISH  FOREIGN  SECRETARY 


[Released  to  the  press  December  7] 

December  8, 1946. 
Dear  Ernest: 

Referring  to  your  letter  of  November  29  as  to  the 
Palestine  matter,  I  note  your  statement  that  His 
Majesty's  Government  will  study  more  carefully 
all  suggestions  submitted  at  the  Conference. 

The  Jewish  leaders,  with  whom  I  have  recently 
conferred,  regardless  of  views  formerly  held  by 
them,  now  regard  the  partition  proposal  as  the 


most  practical  long-term  solution.  My  opinion  is 
that  before  agreeing  to  attend  the  Conference  in 
January,  they  would  want  to  be  assured  specifically 
that  the  partition  proposal  favored  by  them  would 
be  fully  considered  by  His  Majesty's  Government. 
I  wish  that  you  would  let  me  know  whether  the 
British  are  prepared  to  give  serious  consideration 
to  alternative  proposals  offered  by  the  conferees. 
Sincerely  yours, 

James  F.  Byrnes 


1105 


THE  RECORD   OF  THE   WEEK 


UNITED   KINGDOM   DELEGATION   TO   THE 
COUNCIL  OF  FOREIGN  MINISTERS 

Neio  York,  2nd  Deceinber,  lOJfi. 
Dear  James  : 

Thank  you  for  your  letter  of  December  2  about 
the  Palestine  Conference. 

I  am  very  pleased  to  have  the  opportunity  of 
assuring  you  that  all  proposals  made  by  the  Arab, 
Jewish,  and  British  Delegations  at  the  Conference 
will  be   given   equal   status   on   the   Conference 


agenda.  His  Majesty's  Government  do  not  regard 
themselves  as  committed  in  advance  to  their  own 
proposals.  Nor,  of  course,  are  they  prepared  to 
commit  themselves  in  advance  to  any  other  pro- 
posals. 

His  Majesty's  Government  will  be  ready  to  con- 
sider every  possibility  of  reaching  an  agreed  settle- 
ment, and  will  study  most  carefully  all  subjects 
submitted  to  the  Conference. 

Yours  sincerely,  ■ 

Ernest  BE^aN 


U.S.  Position  on  Repatriation  of  Prisoners  of^War 

STATEMENT  BY  THE  SECRETARY  OF  STATE' 


In  the  closing  days  of  the  war,  the  number  of 
German  soldiers  made  prisoners  of  war  increased 
to  such  an  extent  as  to  present  a  serious  problem 
behind  our  lines.  To  relieve  this  problem,  our 
militar}^  officials  transferred  to  the  custody  of 
France,  Belgium,  the  Netherlands,  and  Luxem- 
bourg a  large  number  of  these  prisoners.  There- 
fore, the  United  States  Government  feels  a  respon- 
sibility for  their  release. 

Eecent  figures  show  that  of  the  prisoners  taken 
by  the  American  forces  and  assigned  to  other 
countries,  there  remain  in  France,  620,000;  Bel- 
gium, 40,000;  Netherlands,  10,000;  Luxembourg, 
4,000. 

In  France,  whei-e  the  largest  number  of  pris- 
oners of  war  were  transferred,  there  remain  on  the 
farms  approximately  280,000;  in  the  coal  mines 
approximately  40,000;  while  the  balance  are  em- 
ployed in  varied  occupations. 

Secretary  Byrnes  has  called  to  the  attention 
of  these  several  governments  that  under  the  letter 
and  the  spirit  of  the  Geneva  convention,  these 
prisoners  should  be  returned  as  soon  as  possible 
after  the  cessation  of  active  hostilities,  and  the 
time  has  arrived  to  arrange  for  their  return  to 
Germany. 

The  War  Department  has  repatriated  all  pris- 

'  Released  by  the  Secretary  of  State  in  New  York, 
N.Y.,  on  Dec.  5, 1946. 


1106 


oners  of  war  who  were  in  the  United  States,  ex- 
cept 153  Germans  and  22  Italians  (or  a  total  of 
175)  who  are  in  the  United  States  only  because 
they  are  in  hospitals  or  disciplinary  institutions. 

Under  direct  control  of  the  American  forces 
in  Europe,  there  are  about  96,000  German  pris- 
oners of  war,  including  those  in  Germany.  Steps 
are  being  taken  to  release  these  prisoners  at  an 
early  date. 

Secretary  Byrnes  has  requested  the  several 
European  governments  to  release  under  a  grad- 
uated program  the  674,000  German  prisoners  of 
war  transferred  to  Allied  nations.  The  program 
will  be  completed  in  every  country  not  later  than 
October  1,  1947.  Consideration  has  been  given 
to  the  continuing  need  of  manpower  in  the  eco- 
nomic rehabilitation  of  the  liberated  nations,  and 
therefore  there  will  be  an  orderly  withdrawal  of 
the  prisoners  of  war  by  occupational  groups  in  a 
manner  which  will  least  disturb  the  economic  re- 
habilitation of  Europe. 

Belgium  and  Luxembourg  have  advised  Secre- 
tary Byrnes  that  they  can  complete  the  repatriation 
of  prisoners  in  their  custody  by  next  July.  The 
Netherlands  expressed  accord  with  the  program. 
"Wliile  the  Secretary  has  not  yet  received  a  formal 
reply  from  France,  he  feels,  as  a  result  of  conver- 
sations with  officials  of  the  French  Government, 
that  France  is  in  accord  with  the  objectives. 


Department  of  Sfafe  BuUeVm      •      December  15,  1946 


I 


U.S.  Position  Regarding  UNRRA 

BY  ACTING  SECRETARY  ACHESON > 


No  country  should  be  given  free  relief  unless  it 
has  adopted  all  reasonable  measures  to  help  itself. 

Under  any  impartial  application  of  this  test, 
some  of  the  UNRRA  countries  would  be  ruled 
out. 

If  a  country  is  maintaining  a  large  army  which 
has  to  be  fed  and  supplied  and  which  is  non-pro- 
ductive, should  such  a  country  be  eligible  for 
free  relief? 

The  maintenance  of  such  an  army  may  be  the 
right  of  any  country,  just  as  any  country  may 
experiment  as  it  chooses  with  its  economic  system 
even  though  doing  so  may  play  havoc  with  pro- 
duction. But  in  that  case  should  it  ask  or  expect 
gifts  of  food  and  supplies  from  other  countries? 

Should  a  country  expect  other  countries  to  fur- 
nish it  with  tractors  and  agricultural  implements 
at  a  time  when  it  is  emplojdng  its  manufacturing 
facilities  for  building  tanks  and  other  weapons  of 
warfare  ? 

The  United  States  Government  is  pressing  for- 
ward in  the  United  Nations  with  an  international 
organization  to  care  for,  repatriate,  or  resettle 
refugees.  This  is  because  the  facts  warrant  such 
an  organization.  But  the  United  States  does  not 
believe  that  post-UNRRA  relief  should  be  con- 
ducted by  an  UNRRA  type  of  organization. 

It  is  now  quite  evident  that  many  countries, 
which,  when  liberated,  had  no  organized  machin- 
ery for  procuring  and  shipping  needed  supplies 
are  now  able  to  perform  these  services  for  them- 
selves. The  sooner  these  countries  take  over  the 
complete  responsibility  for  their  own  buying  and 
shipping  the  better  it  will  be  for  them  and  for 
everybody  concerned.  Wlien  a  country  can  do 
these  things  for  itself,  it  can  usually  do  them 
better  and  cheaper  than  any  international  organ- 
ization which  may  be  set  up  for  that  purpose. 

UNRRA's  other  function  was  the  provision  of 
foreign  money  to  countries  which  lacked  the 
means  to  pay  for  food  and  other  imported 
supplies. 


A  moment's  reflection  should  convince  anyone 
that  there  has  been  a  vast  improvement  in  this 
field  also. 

Most  of  the  liberated  countries  are  gradually 
regaining  their  export  trade. 

In  addition  to  this  normal  method  of  provid- 
ing foreign  purchasing  power,  the  United  States 
and  other  countries  have  by  loans  and  otherwise 
added  enormously  to  the  foreign-exchange 
resources  of  the  world. 

In  the  past  18  months,  the  United  States  Gov- 
ernment alone  has  supplied  foreign  exchange  in 
the  following  important  particulars :  3  billions  of 
dollars  through  loans  by  the  Export-Import  Bank, 
3%  billions  of  dollars'  credit  to  the  British  Gov- 
ernment which  will  be  spent  all  over  the  world,  6 
billions  of  dollars  as  the  United  States  contribu- 
tion to  the  Bretton  Woods  institutions,  several 
billions  of  dollars'  credit  for  financing  lend-lease 
inventories  and  pipelines  and  the  sale  abroad  of 
surplus  property  on  credit.  Thus,  including  con- 
tributions to  UNRRA,  the  United  States  Govern- 
ment has  made  available  a  total  of  nearly  20  bil- 
lion dollars  to  assist  in  restoring  and  stabilizing 
the  economies  of  other  countries.  Many  other 
countries  have  contributed  to  the  capital  of  the 
International  Bank  for  Reconstruction  and  Devel- 
opment and  to  the  International  Monetary  Fund. 
Indeed,  these  two  institutions  will  have  at  their 
disposal  some  15  billions  of  dollars  with  which  to 
give  assistance  to  United  Nations  countries  having 
need  of  such  assistance  for  reconstruction,  devel- 
opment, and  the  stabilization  of  their  currencies. 
These  two  international  financial  institutions  have 
now  been  organized  and  are  ready  for  operation. 

It  will  thus  be  seen  that  measures  have  been 
definitely  taken  for  the  provision  of  a  total  of 
about  30  billion  dollars  of  foreign  exchange. 

It  has  been  charged  that  the  United  States  is 
abandoning  international  cooperation  in  refusing 
to  participate  in  relief  on  an  international  basis. 


'Excerpts  from  an  address  broadcast  over  the  NBC 
network  on  Dec.  8,  194G,  for  complete  text  of  which  see 
Department  of  Stale  press  release  8S1   of  Dec.  7,  194C. 


1107 


THE  RECORD  OF  THE  WEEK 


It  has  also  been  charged  that  the  United  States 
intends  to  use  food  as  a  political  weapon. 

The  plan  of  the  United  States  for  continuation 
of  such  relief  as  may  be  necessary  in  1947  is  very 
simple. 

It  should  be  remembered  that  comparatively  few 
countries  will  continue  to  require  relief  after  the 
early  months  of  1947  when  UNRRA  completes  its 
task.  There  will  probably  be  only  three  or  four 
countries  in  Europe  which  can  qualify  as  requir- 
ing free  relief  in  order  to  avoid  suffering  and 
hardship. 

The  United  States  proposal  is  that  each  nation 
should  immediately  consider  wliat  it  can  con- 
tribute to  the  common  1947  relief  effort.  The 
Administration  will  recommend  to  Congress  a 
generous  appropriation  for  this  purpose.  Each 
counti"y  should  discuss  its  plans  with  others,  both 
those  planning  to  help  and  those  needing  help,  to 
obtain  their  views  and  to  coordinate  its  activities 
with  all  others  concerned.  The  Secretariat  of  the 
United  Nations  should  be  used  as  a  clearing  house 
by  all  such  countries.  The  United  States  would 
keep  the  Secretary-General  fully  informed  of 
what  it  is  doing,  and  others  should  do  the  same. 

In  this  manner,  nations  receiving  free  relief 
must  prove  their  need  for  it,  and  they  can  be  held 
to  a  much  closer  and  fairer  accountability  of  the 
use  of  food  and  other  free  supplies.  Those  in 
power  will  be  compelled  to  distribute  relief  food 
on  the  basis  of  need.  They  will  not  be  allowed  to 
feed  their  political  supporters  and  starve  their 
political  opponents. 

The  people  of  tlie  United  States  and  the  Con- 
gress of  the  United  States  have  made  up  their 
minds  that  the  relief  problems  of  the  near  future 
are  not  of  a  character  which  would  warrant  grants 
of  enormous  sums  of  money  from  the  United 
States  Treasury  under  conditions  which  would 
leave  little  or  no  effective  control  by  the  grantor 
of  these  funds. 

The  people  of  the  United  States  are  determined 
that  they  will  not  send  free  shipments  of  great 
quantities  of  food,  trucks,  tractors,  and  other  sup- 
plies of  all  kinds,  many  of  which  they  desperately 
need  themselves,  to  countries  which  are  diverting 
their  manpower  and  facilities  away  from  the  pro- 
duction of  the  necessities  of  life  which  they  are 
asking  others  to  supply. 


If  the  American  people  can  be  led  to  believe 
that  this  policy  constitutes  the  use  of  food  as  a 
political  weapon,  then  they  do  not  deserve  their 
reputation  for  native  shrewdness  and  common 
sense. 

Czechoslovakia  Extends  Deadline 
For  Tax  Returns 

[Released  to  the  press  December  6] 

The  Department  of  State  has  been  informed  by 
the  American  Embassy  at  Prague  that  the  No- 
vember 30  deadline  for  filing  returns  in  connec- 
tion with  the  increase  in  jDroperty  values  and 
capital  levy  tax  has  been  extended  to  March  31, 
1947  for  persons  who  do  not  reside  within  the 
territory  of  the  Czechoslovak  Republic. 

Formal  notification  of  the  extension  of  the 
deadline  was  made  to  the  Embassy  on  December  3 
by  the  Czechoslovak  Foreign  Office.  The  increase 
in  property  values  and  capital  levy  tax  was  con- 
tained in  Czech  law  no.  134  of  May  15, 1946. 

Information  available  to  the  Department  of 
State  regarding  other  aspects  of  the  law  is  printed 
in  the  Bulletin  of  November  17,  1946,  page  915. 

U.  S.  -  Netherlands  Commercial 
Policy  Agreement 

[Released  to  the  press  December  5] 

On  Novemhcr  21,  19If6  notes  were  exchanged  he- 
tioeen  the  Ambassador  of  the  Netherlands  and  the 
Acting  Secretary  of  State,  embodying  an  agree- 
ment between  the  N etherlands  Government  and  the, 
Government  of  the  United  States  concerning  com- 
mercial policy.  In  the  agreement  the  two  Govern- 
ments declare  that  fending  the  conclusion  of  nego- 
tiations at  the  proposed  general  international 
conference  on  trade  and  employment,  expected  to 
occur  in  the  latter  part  of  191,7,  it  will  be  their 
policy  to  abstain  from  adopting  new  measures 
which  would  prejudice  the  objectives  of  the  con- 
ference. 

November  21,  19^6. 
Excellency  : 

I  have  the  lienor  to  make  the  following  state- 
ment of  the  understanding  reached  during  the  dis- 
cussions concerning  the  "Proposals  for  Expansion 
of  World  Trade  and  Employment",  transmitted 
to  tile  Netherlands  Government  by  the  Govern- 
ment of  the  United  States  of  America,  and  the 


1108 


Department  of  State  Bulletin      •      December  75,  1946 


THE  RECORD  OF  THE  WEEK 


general  international  conference  on  trade  and  em- 
ployment contemplated  by  those  Proposals. 

Pending  the  conclusion  of  the  negotiations  at 
this  conference,  the  Netherlands  Government  and 
the  Government  of  the  United  States  of  America 
zleclare  it  to  be  their  policy  to  abstain  from  adopt- 
ing new  measures  which  would  prejudice  the  ob- 
jectives of  the  conference.  In  this  connection  your 
Government  has  indicated  that  it  may  need  to 
adopt  special  measures  for  the  Netherlands  and 
for  the  Netherlands  Indies  in  view  of  the  extraordi- 
Qary  conditions  consequent  upon  the  termination 
of  the  war.  My  Government  recognizes  that  it 
may  be  necessary  for  the  Netherlands  Govern- 
ment to  take  certain  emergency  measures  during 
the  post-war  transitional  period,  and  in  fact  has 
provided  for  such  measures  in  the  aforementioned 
Proposals.  Any  such  emergency  measures  would 
not,  of  course,  prejudice  the  objectives  of  the  con- 
ference. It  is  understood,  moreover,  that  modi- 
fications in  the  Netherlands  customs  tariff,  on  the 
basis  of  the  Customs  Agreement  of  September  5, 
1944  between  the  Governments  of  the  Netherlands, 
Belgium  and  Luxembourg,  would  not  be  considered 
new  measures,  since  a  result  of  this  customs  agree- 
ment will  be  that  the  general  level  of  tariff  rates 
for  the  three  countries  as  a  whole  will  not  be  raised. 
Our  two  Governments  shall  afford  each  other  an 
adequate  opportunity  for  consultation  regarding 
proposed  measures  falling  within  the  scope  of  this 
paragraph. 

I  have  the  honor  to  suggest  that  this  note  and 
Your  Excellency's  reply  confirming  the  foregoing 
shall  be  regarded  as  constituting  an  agreement  be- 
tween our  two  Governments  concerning  this 
matter. 

Accept  [etc.]  Dean  Acheson 


Sm: 


November  21,  191fi. 


I  have  the  honor  to  acknowledge  the  receipt  of 
your  note  of  today's  date  in  regard  to  the  under- 
standing reached  during  the  recent  discussions 
concerning  the  proposed  general  international  con- 
ference on  trade  and  employment,  and  hereby 
confirm  your  statement  of  the  understanding 
reached  as  therein  set  out. 

Accept  [etc.]  A.  Loudon 


United    States   and    Italy,   1936-1946: 
Documentary  Record 

Progress  toward  the  drafting  of  the  treaty  of 
peace  with  Italy  at  the  current  New  York  meeting 
of  the  Council  of  Foreign  Ministers  lends  timely 
interest  to  a  recent  Department  of  State  publica- 
tion entitled  United  States  and  Italy,  1936  - 191^6: 
Documentary  Record.  The  documents  contained 
in  this  236-page  volume  present  a  chronological 
review  of  American  relations  with  Italy  beginning 
with  a  statement  by  Count  Ciano  on  October  25, 
1936  proclaiming  the  establishment  of  the  "Kome- 
Berlin  Axis"  and  ending  with  an  address  by  Secre- 
tary Byrnes  on  May  20,  1946  reporting  progress 
made  toward  peace  with  Italy  at  the  Paris  meeting 
of  the  Council  of  Foreign  Ministers. 

The  subject  matter  may  be  divided  broadly  into 
three  periods :  1936^1,  covering  this  Government's 
efforts  to  keep  Fascist  Italy  out  of  the  European 
War;  1941-45,  covering  the  conduct  of  the  war 
with  Italy  and  with  the  German  armies  in  Italy ; 
and  finally  1945^6,  covering  post-war  efforts  to 
solve  outstanding  problems  involved  in  the  crea- 
tion of  a  just  and  enduring  peace.  Several  docu- 
ments published  here  for  the  first  time  are:  the 
protocol  signed  November  9,  1943  relating  to  the 
Italian  armistice;  the  Instrument  of  Local  Sur- 
render of  German  Forces  in  Italy ;  and  the  Sug- 
gested Directive  to  Deputies  from  the  Council  of 
Foreign  Ministers  on  the  treaty  of  peace  with  Italy. 

Explanatory  footnotes,  documentary  appen- 
dixes, and  maps  afford  background  information, 
make  clear  the  significance  of  many  of  the  docu- 
ments, and  provide  essential  connecting  links  in 
the  development  of  the  diplomatic  and  military 
events.  The  volume  was  compiled  and  annotated 
by  Mrs.  Velma  H.  Cassidy  of  the  Division  of  His- 
torical Policy  Kesearch,  Department  of  State. 

Copies  of  United  States  and  Italy,  1936-19^6: 
Documentary  Record  (Department  of  State  publi- 
cation 2669,  European  Series  17)  may  be  obtained 
from  the  Superintendent  of  Documents,  Govern- 
ment Printing  Office,  Washington  25,  D.C.,  for 
65  cents  each. 


1109 


Full  Productivity  and  World  Trade 


BY  WILLARD  L.  THORP' 


I 


A  number  of  elements  are  involved  in  the 
effective  functioning  of  an  economic  system : 
namely,  resources,  manpower,  capital,  technical 
knowledge,  immediate  organization,  and  the  gen- 
eral environmental  condition.  .  .  .  Under  every 
heading,  there  are  tragic  lines  and  reasons  why 
the  mention  of  full  productivity  is  anachronistic. 

Resources 

At  first  glance  it  might  seem  that  the  war 
could  have  very  little  effect  upon  the  sources  of 
raw  materials  available  to  any  national  economy. 
However,  that  is  not  true  for  total  war.  In  the 
case  of  agriculture,  for  example,  the  very  earth 
itself  has  lost  of  its  productivity.  Five  years 
without  fertilizer  has  demonstrated  the  impor- 
tance of  the  maintenance  of  the  soil,  and  a  small 
fraction  of  the  acreage  still  has  dangerous  mines 
and  unexploded  bombs  and  shells  plainted  in  it. 
In  the  great  food-producing  areas  in  Poland  and 
Russia  the  scorched-earth  policy  and  the  havoc 
wreaked  by  the  invaders  reduced  production 
levels  far  below  normal.  The  damage  done  to  ir- 
rigation and  drainage  projects  in  countries  like 
Italy  and  Greece  and  to  the  dikes  in  the  low  coun- 
tries of  Western  Europe  took  millions  of  Europe's 
best  acres  out  of  cultivation.  And  tlie  livestock 
picture  in  Europe  is  one  of  the  unhappiest  aspects 
of  the  agricultural  scene. 

To  consider  another  raw-material  item,  one  of 
the  most  pervasive  problems  in  Europe  is  that  of 
coal.  There  are  many  factors  responsible  for  the 
slow  recovery  of  coal  production  in  the  Euhr,  but 
certainly  one  of  them  is  the  amount  of  destruction 
done  to  the  mining  facilities  during  the  war. 


'  Excerpts  from  an  address  made  before  the  Society  for 
the  Advancement  of  Management  in  New  York,  N.Y.,  on 
Dec.  6,  1946.  For  complete  text  of  the  address,  see  De- 
partment of  State  press  release  S69  of  Dec.  6.  Mr.  Thorp 
is  Assistant  Secretary  of  State  for  Economic  Affairs. 


And    coal    is    a    primary    commodity    in    every 
economy  in  Europe. 

It  is  also  important  to  note  that  no  country  in 
the  world  relies  exclusively  upon  its  own  resources 
but  every  one  must  import  some  part  of  its  raw- 
material  requirements.  Wlien  the  foreign-trade 
machinery  breaks  down  and  nations  are  unable  to 
obtain  the  cotton  and  the  hides  and  the  silk  and 
the  copper  and  the  potash  which  they  need,  it  has 
all  the  effect  of  an  actual  destruction  of  these  re- 
sources for  them.  So  we  must  start  our  review 
of  the  economic  difficulties  in  many  foreign  coun- 
tries, recognizing  that  they  do  not  have  the  same 
supplies  of  materials  and  readily  available  re- 
sources to  work  with  as  they  have  been  accus^ 
tomed  to  in  the  past.  I 

Manpower 

There  are  all  too  many  reasons  for  there  to  be  a 
limitation  on  productivity.  Millions  were  killed 
and  wounded.  Other  millions  died  of  maltreat- 
ment or  starvation.  Still  other  millions  have 
never  returned  to  their  homes  where  their  work 
habits  were  established — the  hundreds  of  thou- 
sands of  war  prisoners  still  held  in  work  camps  in 
other  countries  and  the  hundreds  of  thousands  of 
displaced  persons  in  Austria  and  Germany.  But 
even  those  who  are  back  at  home  are  not  really 
capable  of  full  productivity.  They  have  lived  and 
are  living  on  limited  and  restricted  diets  for  too  i 
long.  Too  many  of  them  are  physically  unable  : 
to  do  the  work  which  they  used  to  do. 

Here  we  have  one  of  those  tragic  vicious  circles 
which  appear  all  too  often.  Men  are  unable  to  do 
a  full  day's  work  because  of  the  lack  of  nutrition;  : 
the  failure  to  do  a  full  day's  work  either  limits  the 
food  which  is  grown  or  limits  the  goods  produced 
which  can  be  used  to  buy  food. 

To  these  basic  tragic  elements  should  be  added 
a  number  of  others  in  the  manpower  area — the 
lack  of  housing,  for  example,  for  many  cities  had 
four  out  of  every  five  houses  destroyed  in  the  war. 


1110 


Departmenf  of  State  Bulletin      •      December  75,  7946 


THE   RECORD   OF  THE   WEEK 


)r  even  the  lack  of  such  ordinary  items  as  bi- 
ycles.  I  am  told  that  in  the  Netherlands  one  of 
he  great  obstacles  to  the  resumption  of  economic 
etivity  was  that  so  many  workmen  who  were  ac- 
ustomed  to  bicycle  to  work  had  liad  their  bicycles 
eized  by  the  invaders. 

It  is  probably  a  correct  generalization  that  the 
lanpower  problem  in  Europe  is  not  based  on  the 
ctual  number  of  men  and  women  available ;  there 
re  probably  as  many  at  work  as  in  193S.  The 
umber  of  registered  unemploj^ed  is  low  compared 
?ith  pre-war,  and  in  some  countries  there  are  seri- 
us  shortages  of  skilled  workers.  But  the  rate  of 
bsenteeism  is  very  high,  and  for  many  reasons 
he  average  output  per  worker  is  substantially  be- 
Dw  what  it  was  before  the  war.  What  does  full 
iroductivity  mean  for  such  people  ? 

iapital 

Here  we  face  the  direct  effect  of  bombing  and 
helling,  much  of  whicli  was  aimed  at  the  destruc- 
ion  of  the  economic  potential  of  the  countries  in- 
olved.  Beyond  the  direct  war  damage  itself  is 
he  inevitable  process  of  looting  and  the  effect  of 
'arious  reparation  progi-ams  on  the  defeated 
lations. 

Of  course,  the  industry  of  producing  statistics 
,lso  has  not  recovered  from  the  war.  Only  rather 
ough  estimates  are  available.  However,  in  the 
ountries  in  Western  Europe,  one  may  place  the 
iverage  damage  to  structures  and  movable  wealth 
.t  something  like  20  percent  of  the  pre-war  na- 
ional  wealth.  But  as  one  goes  eastward  the  pic- 
ure  becomes  progressively  more  serious.  In  the 
ase  of  Western  Germany  and  Greece  it  probably 
vas  nearer  •>0  percent,  and  probably  exceeds  one 
lalf  of  the  total  pre-war  national  wealth,  exchid- 
ng  land,  in  Western  Russia,  Poland,  and  part  of 
Jugoslavia. 

One  must  also  keep  in  mind  the  fact  that  for  the 
vhole  war  period,  there  was  over-use  and  under- 
naintenance  of  capital  goods.  Unskilled  per- 
;onnel  contributed  its  share  to  the  damage.  In 
;he  case  of  rolling  stock,  where  the  length  of  life 
s  never  very  long,  the  lack  of  repair  was  almost 
IS  important  a  factor  in  diminishing  the  amount 
)f  effective  and  available  equipment  as  was  direct 
ivar  damage. 

Capital  also  is  something  which  is  involved  in  a 


vicious  circle,  since  capital  helps  to  produce  more 
capital — a  kind  of  compound-interest  operation. 
Wlien  one  thinks  of  the  tremendous  efforts  made 
over  the  last  30  years  by  the  Soviet  Union,  with  its 
great  natural  resources  to  build  up  its  capital,  and 
realizes  that  even  at  the  end  of  the  next  five-year 
plan  it  will  still  reach  only  about  one  third  of  the 
level  of  wealth  already  achieved  by  the  United 
States,  one  realizes  the  difficulty  and  gi'adualness 
of  capital  accumulation.  And  machines  depend 
upon  machines.  The  operation  of  capital  equip- 
ment requires  a  whole  series  of  maintenance  items, 
spare  parts,  and  the  like.  This  process  is  sadly 
disorganized.  To  rebuild  this  system  of  supply 
for  machineiy  will  be  a  long  and  difficult  task. 

Capital  is  a  word  which  refers  in  our  usage  both 
to  machinery  and  the  like  and  to  funds  which  may 
be  used  to  purchase  such  items.  Many  countries 
have  little  of  either.  And  our  high  level  of  pro- 
ductivity in  the  United  States  is  probably  due  less 
to  superior  labor  or  resources  than  it  is  to  the  in- 
genious ways  in  which  capital  has  been  used  in  the 
process  of  production.  This  has  taken  a  long  time 
to  accomplish,  and  we  too  would  have  trouble  in 
recovering  if  we  should  suddenly  lose  a  substantial 
part  of  it. 

Technical  Knowledge 

One  of  the  less  heralded  accomplishments  of  the 
war  was  the  extent  to  which  technical  knowledge 
was  pooled.  The  United  States  and  the  United 
Kingdom  in  particular  made  available  to  each 
other  their  forward  steps  in  technology  and 
speeded  up  rapidly  the  cumulative  operation  of 
scientific  progress.  But  there  are  whole  areas  of 
the  world  which  during  this  same  period  were  cut 
off  from  these  new  developments.  I  offer  an  illus- 
tration from  a  business  firm  in  a  country  in  Central 
Europe  which  had  drawn  up  plans  for  its  recon- 
struction. Its  govei'nment  purchasing  mission  in 
this  country  endeavored  to  place  an  order  for  the 
necessary  machines.  Much  to  its  dismay  it  dis- 
covered that  the  machines  were  no  longer  manufac- 
tured and  that  an  entirely  new  and  different  proc- 
ess had  taken  their  place.  That  was  completely 
unknown  to  the  manufacturer  in  that  European 
country. 

While  I  have  been  talking  about  technical 
knowledge  at  the  higher  level,  it  should  also  be 


nil 


THE  RECORD   Of  THE  WEEK 


noted  that  for  a  number  of  years  young  men  have 
not  moved  in  the  usual  numbers  to  take  up  their 
apprenticeship  in  coal  mines,  textile  mills,  and  the 
like.  There  are  millions  of  such  individuals  whose 
only  technical  skill  is  to  make  war  and  who  must 
now  be  educated  to  the  technique  of  making  goods. 

All  of  you  know  that  it  is  not  enough  to  possess 
the  necessary  elements  to  produce  goods.  There 
must  be  organization.  You  are  familiar  with  the 
accounting  term  of  a  "going  concern".  That  is 
one  case  where  the  whole  is  equal  to  more  than  the 
sum  of  its  parts.  One  serious  aftermath  of  the 
war  is  the  disruption  of  the  actual  and  immediate 
organizations  necessary  to  do  business.  Of  course, 
it  may  be  that  one  of  the  other  essential  elements 
is  missing.  There  may  be  the  machines  and  the 
labor  and  the  knowledge  but  no  raw  materials. 
But  it  also  may  be  that  there  is  no  one  with  the 
knowledge  and  the  energy  and  the  authority  to 
bring  the  elements  together  into  a  creative  whole. 

I  suspect  that  one  of  the  reasons  that  we  were 
able  to  produce  so  magnificently  during  the  war 
was  that  we  kept  our  "going  concerns"  going, 
and  we  shifted  them  from  one  line  of  production 
to  another  with  confidence  because  the  tested  or- 
ganization was  there. 

Organization 

This  problem  of  organization  is  perhaps  great- 
est in  the  defeated  countries.  The  program  for 
removing  Fascists  and  Nazis  from  positions  of 
authority  has  meant  the  removal  of  many  of  the 
individuals  who  would  normally  have  provided 
the  experience  and  continuity  for  the  resumption 
of  economic  activities.  I  certainly  do  not  wish 
to  quarrel  with  this  policy.  It  would  be  much  too 
dangerous  to  allow  such  people  to  continue  in 
positions  of  authority,  but  the  fact  remains  that 
it  will  take  time  to  replace  them  with  individuals 
of  equal  effectiveness. 

Environmental  Conditions 

Many  of  these  countries  have  been  going 
through  what  amounts  to  a  revolution.  Some  of 
them  are  operating  with  coalition  governments, 
including  so  many  varied  elements  as  to  make 
it  difficult  for  them  to  move  vigorously  in  any 
single  direction.  National  budgets  are  far  from 
balanced,  and  already  we  have  seen  severe  infla- 
tion in  Greece  and  Hungary  and  partial  inflation 


in  other  countries.  Transportation,  which  is  sc 
essential  to  carrying  on  all  types  of  economic  op- 
eration, is  limited  by  shortages  of  rolling  stocl 
and  damaged  port  facilities.  Everywhere  then 
are  foreign-exchange  controls,  and  many  coun 
tries  are  making  drastic  efforts  to  keep  their  inter- 
national  payments  in  balance  by  elaborate  systems 
of  foreign-trade  restriction.  The  environment  is 
hardly  conducive  to  effective  economic  operation 

These  six  elements  in  the  economic  process  leac 
to  full  productivity.  We  cannot  provide  them  al 
to  other  countries.  We  cannot  actually  create  f  ul 
productivity  elsewhere,  but  we  can  do  many  thingi 
to  assist  the  process. 

In  the  economic  field,  there  is  the  Internationa 
Trade  Organization,  suggested  by  the  Unitec 
States  many  months  ago  and  recently  considered 
at  some  length  by  the  representatives  of  17  coun- 
tries at  a  conference  in  London.  Its  purpose  is 
the  creating  of  conditions  leading  more  directlj 
to  the  expansion  of  world  trade  and  employment 
It  is  concerned  with  the  reduction  of  barriers  tc 
trade,  both  those  created  by  governments,  like 
tariffs  and  quota  systems,  and  those  created  bj 
l^rivate  groups,  like  the  allocation-of-the-market 
agreements  made  by  cartels.  The  International 
Trade  Organization  would  also  tackle  those  great 
and  difficult  problems  which  arise  when  particu- 
lar commodities  produced  in  many  countries  de- 
velop conditions  of  biu-densome  surpluses.  In 
general,  it  would  be  a  .continuing  internatioiuil 
agency  concerned  with  the  problems  arising  in 
connection  with  the  international  exchange  of 
goods  and  services. 

Thus  we  have  a  broad  international  economic 
program,  aimed  not  only  at  helping  countries  to 
recover  something  like  their  normal  economic  life 
but  also  at  creating  a  world  environment  con- 
ducive to  the  expansion  of  world  trade  and  the 
upward  trend  of  living  standards  everywhere. 
This  can  well  be  called  an  American  program, 
not  so  much  because  its  broad  outlines  happen 
to  have  been  developed  largely  in  the  United 
States  but  because  it  is  so  consistent  with  our  own 
concepts  of  economic  progress. 

It  is  obvious  that,  in  world  terms,  full  produc-  j 


1112 


Department  of  Stafe  Bulletin      •      December  15,  1946 


THE  RECORD   OF  THE  WEEK 


i^ity  cannot  be  achieved  if  each  nation  endeavors 
attain  self-sufficiency — if  the  flow  of  raw  ma- 
rials  and  finished  goods  is  governed  by  the  ini- 
)sition  of  artificial  interferences  rather  than  by 
e  operation  of  economic  forces.  We  could  raise 
.nanas  in  greenhouses  in  the  United  States,  but 
I  world  economic  efficiency  expert  would  recom- 
end  it. 

High  barriers  to  trade,  like  those  which  were 
lilt  in  the  late  twenties  and  thirties,  have  no 
ace  in  a  world  concerned  with  raising  the  stand- 
d  of  living.  We  do  not  like  to  see  energy  wasted, 
'e  do  not  like  to  see  opportunities  lost.  We  have 
kind  of  "instinct  of  workmanship"  which  makes 
ill  productivity  a  goal  worth  striving  for.  We 
ould  not  impose  our  system  on  other  countries, 
it  we  do  want  to  give  them  the  opportunity  to 
eate  the  environment  in  which  this  objective  can 
!  achieved. 

nited  States  Interest  in  India 

rATEMENT  BY  ACTING  SECRETARY  ACHESON 

[Released  to  the  press  on  December  3] 

The  United  States  awaits  with  deep  concern  the 
itcome  of  the  current  talks  in  London  between 
,e  Indian  political  leaders  and  the  British  Gov- 
nment.  I  feel  most  strongly  that  it  will  be  in 
le  interest  of  India,  as  well  as  of  the  whole  world, 
ir  its  leaders  to  grasp  this  opportunity  to  estab- 
sh  a  stable  and  peaceful  India. 
Tlie  crux  of  the  internal  problem  now  confront- 
ig  India  appears  to  arise  fi'om  differences  of 
Dinion  between  the  two  principal  parties  as  to 
le  conditions  under  which  provinces  can  elect  to 
lin  or  remain  out  of  sub-federations  in  northwest 
id  northeast  India.  I  am  confident  that  if  the 
idian  leaders  show  the  magnanimous  spirit  the 
jcasion  demands  they  can  go  forward  together 
1  the  basis  of  the  clear  provisions  on  this  point 
mtained  in  the  constitutional  plan  proposed  by 
le  British  Cabinet  Mission  last  spring  to  forgo 
1  Indian  federal  union  in  which  all  elements  of 
18  population  have  ample  scope  to  achieve  their 
gitimate  political  and  economic  aspirations. 
The  United  States  has  long  taken  a  sympathetic 
iterest  in  the  progressive  realization  of  India's 


political  destiny.  It  has  welcomed'  the  forward- 
looking  spirit  behind  the  comprehensive  programs 
of  industrial  and  agricultural  advancement  re- 
cently formulated  in  that  country.  Lastly,  by  our 
recent  establishment  of  full  diplomatic  relations 
with  the  interim  government  of  India,  we  have 
expressed  in  tangible  form  our  confidence  in  the 
ability  of  the  Indian  leaders  to  make  the  vital  de- 
cisions that  lie  immediately  ahead,  with  full 
awareness  that  their  actions  at  this  moment  in  his- 
tory may  directly  affect  world  peace  and  pros- 
perity for  generations  to  come. 

Visit  of  Former  Siamese  Regent 

His  Excellency  Pridi  Banomyong,  former  Re- 
gent and  former  Prime  Minister  of  Siam,  and 
Madame  Pridi  arrived  in  Washington  on  Satur- 
day, December  7,  and  will  stay  at  the  Blair-Lee 
House  as  guests  of  the  Government  until  Wednes- 
day, December  11. 

Air-Transport  Agreements  With 
Australia  and  New  Zealand 

The  Department  of  State  announced  that  on 
December  3  the  United  States  concluded  bilateral 
air-transport  agreements  with  Australia  and  New 
Zealand,  climaxing  several  months  of  discussions 
in  Washington  between  the  Department  and  the 
Civil  Aeronautics  Board  and  the  Australian  and 
New  Zealand  representatives.^  The  agreements 
were  signed  on  behalf  of  the  United  States  by 
Acting  Secretary  of  State  Dean  Acheson  and 
Ambassador  Norman  Makin.  Capt.  Edgar  C. 
Johnston,  Assistant  Director  General  of  Civil 
Aviation,  signed  for  Australia,  while  the  New 
Zealand  Minister,  Sir  Carl  Berendsen,  and  John 
S.  Reid,  First  Secretary  of  Legation,  signed  for 
New  Zealand. 

The  route  to  be  operated  by  the  American 
air  service  to  Australia  will  proceed  from  the 
Pacific  Coast  to  Sydney  via  Honolulu,  Canton 
Island,  the  Fiji  Islands,  and  an  optional  stop  at 

'  For  texts  of  the  agreements,  see  Department  of  State 
press  release  861  of  Dec.  3,  1946. 


1113 


THE   RECORD   OF  THE  WEEK 


New  Caledonia,  with  provision  for  an  extension 
from  Sydney  to  Melbourne  at  such  time  as  the 
latter  is  designated  as  a  terminal  for  international 
air  services.  The  route  to  New  Zealand  follows 
the  foregoing  route  to  Australia  as  far  as  the  op- 
tional stop  at  New  Caledonia,  and  there  branches 
to  Auckland.  Pan  American  World  Airways 
System  is  the  American  company  certificated  by 
the  Civil  Aeronautics  Board  to  operate  to  both 
Australia  and  New  Zealand. 

The  Australian  airline  will  operate  to  San 
Francisco  via  an  optional  stop  at  New  Caledonia, 
the  Fiji  Islands,  Canton  Island,  and  Honolulu, 
with  an  optional  extension  from  San  Francisco 
to  Vancouver.  The  New  Zealand  service  is 
authorized  over  the  same  route,  omitting  the  op- 
tional stop  at  New  Caledonia. 

The  agreements  permit  Australia  and  New 
Zealand  to  designate  a  single  airline  to  exercise 
jointly  the  respective  rights  granted  by  the  United 
States  to  those  two  Governments,  provided  sub- 
stantial ownership  and  effective  control  of  such 
airline  are  vested  in  nationals  of  the  two 
countries. 

Most  of  the  provisions  in  the  two  agreements 
are  identical,  a  number  of  them  being  based  on 
the  standard  clauses  drafted  at  the  Chicago 
aviation  conference  in  1944.  Also  included  are 
certain  provisions  contained  in  the  United  States- 
British  air-transport  agreement  signed  at  Ber- 
muda in  February  1946,^  such  as  those  relating  to 
settlement  of  disputes,  Fifth-Freedom  traffic,  and 
determination  of  rates. 


U.S.  Reclaims  Burma  Lend-Lease  Lead 

To  ease  a  serious  lead  shortage  in  this  countrj', 
the  Government  of  the  United  States  has  obtained 
450  tons  of  pig  lead  of  lend-lease  origin  located 
at  Rangoon,  Burma,  the  Department  of  State  an- 
nounced on  December  6. 

The  lead,  to  be  returned  to  the  United  States 
shortly  by  the  Reconstruction  Finance  Corpora- 
tion, was  part  of  a  former  lend-lease  shipment 
destined  for  China  which  never  arrived  there  be- 
cause of  the  wartime  Japanese  occupation  of 
Burma. 


"  Bulletin  of  Apr.  7, 1946,  p.  5S4. 


Fur  Limitation  Rumor  Denied 

[Released  to  the  press  December  61 

It  has  been  brought  to  the  attention  of  the  De- 
partment of  State  that  a  rumor  is  being  widely 
circulated  in  fur-trade  circles  of  the  United  States 
and  Canada  that  the  Government  of  the  Unitec 
States  intends  to  impose  restrictive  quotas  on  im- 
ports of  fox  furs  and  mink,  limiting  their  import 
to  15  percent  of  the  amounts  entering  from  any 
country  in  the  pre-war  period. 

There  is  no  substance  whatsoever  to  this  rumor 


"Nazi  Conspiracy  and  Aggression" 
Volume  VII 

Volume  VII,  the  fifth  of  a  set  of  eight  volumes 
entitled  A^azi  Conspiracy  and  Aggression,  has  been 
released  for  publication  by  the  Office  of  Chief  ol 
Counsel  for  Prosecution  of  Axis  Criminality,  the 
War  Department  announced  on  November  30.  The 
books  are  being  sold  by  the  Government  Printing 
Office  for  $18  a  set  but  are  being  distributed  as 
each  volume  is  completed. 

Volume  VII  contains  documentary  evidence  in- 
troduced during  the  trial,  as  well  as  many  docu- 
ments used  for  background  material  in  the  case 
against  the  major  Nazi  war  criminals. 


Letters  of  Credence 

Syria 

The  newly  appointed  Minister  of  Syria,  Dr. 
Costi  K.  Zurayk,  presented  his  credentials  to  the 
President  on  December  3.  For  text  of  the  Minis- 
ter's remarks  and  the  President's  reply,  see  De- 
partment of  State  press  release  859  of  December 

3,  1946. 

Austria 

The  newly  appointed  Minister  of  Austria,  Dr. 
Ludwig  Kleinwiichter,  presented  his  credentials  to 
the  President  on  December  4.  For  texts  of  the 
Minister's  remarks  and  the  President's  reply,  see 
Department  of  State  press  release  864  of  December 

4,  1946. 


1114 


Deparfmenf  of  State  Bulletin      •      December  15,  1946 


Idresses  and  Statements  of  the  Week 


il  V.   McNutt,  American  Am- 
bassador to  the   Republic  of 
the  Phihppines 

On  the  subject  of  American-Philippine  relations. 
Text  issued  as  press  release  856  of  Dec.  2. 
Not  printed. 

Delivered  before  the  Democratic 
Women's  Club  in  Washing- 
ton on  Dec.  2. 

,ing  Secretary  Acheson .... 

Statement  on  India.     Text  issued  as  press  re- 
lease 862  of  Dec.  3.     Printed  in  this  issue. 

Made  on  Dec.  3. 

Hard  L.  Thorp,  Assistant  Secre- 
tary  of   State   for   Economic 
AfiFairs 

"Full   Productivity  and   World   Trade."     Text 
issued  as  press  release  869  of  Dec.  6.     Ex- 
cerpts printed  in  this  issue. 

Delivered  before  the  Society  for 
the  Advancement  of  Man- 
agement in  New  York  on 
Dec.  6. 

liam  Benton,  Assistant  Secre- 
tary for  Public  Affairs 

"A  Decent  Respect  for  the  Opinions  of  Man- 
kind."    Text  Lssued  as  press  release  873  of 
Dec.  6.     Not  printed. 

Delivered  before  the  American 
Club  in  Paris  on  Dec.  5. 

ing  Secretary  Acheson .... 

Statement  on  the  death  of  Dr.  Leo  S.   Rowe, 
Director    General    of    the    Pan    American 
Union.     Text  issued  as  press  release  874  of 
Dee.  6.     Not  printed. 

Made  on  Dec.  6. 

•uille  Braden,  Assistant  Secre- 
tary  for   American    Republic 
Affairs 

Statement  on  the  death  of  Dr.  Leo  S.  Rowe. 
Text  issued  as  press  release  877  of  Dec.  6. 
Not  printed. 

Made  on  Dec.  6. 

e  Secretary  of  State 

Statement  on  the  death  of  Dr.  Leo  S.   Rowe. 
Text  issued  as  press  release  878  of  Dec.  6. 
Not  printed. 

Made  on  Dec.  6. 

;ing  Secretary  Acheson .... 

"U.    S.    Position    Regarding   UNRRA."     Text 
issued  as  press  release  881  of  Dec.  7.     Ex- 
cerpts printed  in  this  issue. 

Broadcast  over  the  NBC  net- 
work on  Dec.  8. 

e  Secretary  of  State 

Statement    on    the    Palestine    situation.     Text 
issued  as  press  release  882  of  Dec.  7.     Print- 
ed in  this  issue. 

Made  on  Dec.  7. 

iing  Secretary  Acheson  .... 

Statement  on   death  of   Cimon   P.    Diamanto- 
poulos,  Ambassador  of  Greece.     Text  issued 
as     press     release    883    of    Dec.    7.     Not 
printed. 

Made  on  Dec.  7. 

THE  DEPARTMENT 


spointment  of  Officers 

iVillard  L.  Thorp  was  administered  the  oath  of  office 

■  Assistant  Secretary  of  State  for  Economic  Affairs  on 

vember  15,  1946. 

Charles  E.  Bohlen  as  Special  Assistant  to  the  Secre- 

y.  Office  of  the  Secretary,  effective  November  13, 1946. 

H.  Gerald  Smith  as  Special  Assistant  to  the  Assistant 

cretary,  Office  of  the  Assistant  Secretary  for  American 

public  Affairs,  effective  October  20,  1946. 

Garl  B.  Spaeth  as  Consultant,  Office  of  the  Assistant 

cretary  for  American  Republic  Affairs,  effective  Novem- 

r  1,  1946. 

Otto  E.  Guthe  as  Chief,  Division  of  Map  Intelligence 

d  Cartography,  Office  of  Intelligence  Coordination  and 

aison,  effective  September  22,  1946. 


Departmental  Regulations 

116.1  To  the  Office  of  the  Legal  Adviser  (LE),  pub- 
lished in  the  Bulletin  of  November  10,  1946,  page  874,  add 
the  following: 

I  Functions   (continued). 

D        Administration.     (Added  12-1-^6) 

1  Providing  legal  services  for  the  Assistant  Sec- 
retary for  Administration  and  for  the  Offices  and  Di- 
visions under  the  direction  of  the  Assistant  Secretary 
for  Administration. 

II  Organization    (continued). 

C        Assistant  Legal  Adviser  for  Administration  and 
Foreign   Service.     (Added  12-1^6) 


1115 


^ontent^ 


Economic  Affairs  Paee 

American    Cotton    Foreign    Policy.     Art'cle 

by  James  Gilbert  Evans 1075 

PICAO  Middle  East  Regional  Air  Navigation 

Meeting.  Article  by  Glen  A.  Gilbert  .  1079 
PICAO  European-Mediterranean  Air-Traffic 

Control  Conference 1101 

U.S.      Position      Regarding     UNRRA.      By 

Acting  Secretary  Acheson 1107 

Czechoslovakia    Extends   Deadline   For   Tax 

Returns 1108 

Full    Productivity    and    World    Trade.     By 

Willard  L.  Thorp 1110 

Fur  Limitation  Rumor  Denied 1114 

General  Policy 

Conference  on  the  Palestine  Situation: 

Statement  by  Secretary  of  Siate      ....      1105 
Exchange  of  Letters  Between  Secretary  of 

State  and  British  Foreign  Secretary  .  .  1105 
U.S.   Position   on   Repatriation  of   Prisoners 

of    War.     Statement    by    Secretary    of 

State 1106 

U.S.  Interest  in  India.     Statement  by  Acting 

Secretary  Acheson 1113 

Visit  of  Former  Siamese  Regent 1113 

Letters  of  Credence:   Syria,  Austria    ....      1114 

Council  of  Foreign  Ministers 

Meeting    of    Council    of    Foreign    Ministers: 
Discussion     on     German     and     Austrian 
Peace    Treaties    and    on    Limitation    of 
Occupation  Forces  in  Europe 1082 

The  United  Nations 

Meeting  of  the  General  Assembly: 

Proposal  of  U.S.  Delegation  on  Regulation 

and  Reduction  of  Armaments 1084 

U.S.  Position  on  General  Disarmament   .    .      1084 


The  United  Nations — Continued  page 

The  Spanish  Question: 

U.S.  Draft  Resolution  on  Spain 1085 

Statement  by  Senator  Tom  Connally      .    .      1086 

Toward  Effective  International  Atomic 
Energy  Control.  Statement  and  Pro- 
posals by  Bernard  M.  Baruch 1088 

Scientific  Information  on  Atomic  Energy   .    .      1091 

Recommendations  of  United  Maritime  Con- 
sultative Council  Submitted  to  United 
Nations 1092 

Resignation  of  Eugene  Meyer  as  President 

of  International  Bank 1092 

Recommendations  of  United  Maritime  Con- 
sultative Council  to  Member  Gov- 
ernments        1093 

Treaty  Information 

International  Whaling  Conference 1101 

Economic  Integration  of  U.S.  and  U.K. 
Zones  in  Germany:  Memorandum  of 
Agreement 1102 

U.S-Netherlands  Commercial  Policy  Agree- 
ment       1108 

Air-Transport   Agreements    With   Australia 

and  New  Zealand 1113 

U.S.  Reclaims  Burma  Lcnd-Lease  Lead   .    .      1114 

Calendar  of  International  Conferences  .      1099 

The  Department 

Appointment   of  Officers 1115 

Departmental   Regulations 1115 

Publications 

U.S.    and    Italy,    1936-1946:  Documentary 

Record      1109 

"Nazi  Conspiracy  and  Aggression",  Volume 

VII 1114 

Addresses  and  Statements  of  the  Week  .      1115 


%<mJ?ymwt€/)^i 


James  Gilbert  Evans,  author  of  the  article  on  American 
Cotton  Foreign  Policy,  is  Chief  of  the  Fibers  Section,  Division 
of  International  Resources,  Office  of  International  Trade  Policy, 
Department  of  State. 

Glen  A.  Gilhert,  author  of  the  article  on  the  PICAO  Middle 
East  Regional  Air  Navigation  Meeting,  was  Chairman  of  the 
United  States  Delegation  to  the  conference  and  is  Chief,  Tech- 
nical Mission,  CivU  Aeronautics  Administration. 


U.  S.  GOVERNMENT  PRINTING  OFFICE)  1946 


^Ae/  ^eha^tmeni/  ^{w  t/taie/ 


THE   GENERAL  ASSEMBLY      .      Address  hy  the  Secretary 

of  State  on  Reduction  of  Armaments .      1138 

BILATERAL  AIR  TRANSPORT  AGREEMENTS  CON- 
CLUDED BY  THE  U.S.  .     Article  by  Joe  D.  Walstrom     1126 

RADIO  AIDS  TO  AIR  NAVIGATION      .     Article  by  Horace 

F.  Amrine 1130 

SECOND  SESSION  OF  INTERIM  COMMISSION  OF 
WORLD  HEALTH  ORGANIZATION  .  Article  by 
H.  Van  Zile  Hyde 1134 

CARTOHYPNOSIS      .     Article  by  S.  W.  Boggs 1119 


Vol.  XV,  No.  390 
December  22, 1946 


For  complete  contents  see  back  cover 


-/^b'-d'itilii 


,jAe 


Qje/iwi^eme^ x^ 9L(e    j3llilGliIl 


Vol.  XV,  No.  390    •    Publication  2711 
December  22,  1946 


For  sale  by  tbe  Superintendent  of  Documents 

V.  8.  Oovernment  Printing  Office 

Washington  25,  D.  C. 

Subscription: 
B2  Issues,  $3.60;  single  copy,  10  cents 

Published  with  the  approval  of  the 
Director  ot  the  Bureau  of  the  Budget 


The  Department  of  State  BULLETIN, 
a  weekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
Office  of  Public  Affairs,  provides  the 
public  and  interested  agencies  of 
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CARTOHYPNOSIS 


hy  S.  W.  Boggs 


Hypnotism  hy  cartography  may  occur  when  people  accept 
maps  uncritically.  Self -hypnotism  and  illusion  are  some- 
times experienced  innocently.  Mass  hypnotism  is  practised 
hy  those  who  desire  to  delude  the  puhlic.  People  can  seldom 
he  hypnotized  against  their  will.  Maps  may  he  employed  to 
de-hypnotize  people  and  to  awaken  them  to  a  hetter  wnder- 
standing  of  the  world  today. 


Many  primitive  societies  are  quite  unaccustomed 
to  maps.  For  them,  territorial  and  boundary 
questions  are  relatively  simple  and  radically  dif- 
ferent from  those  of  map-conscious  nations.  For 
3xample,  when  two  tribes  in  a  certain  region  near 
the  Indian-Afghan  frontier  find  difficulty  in  agree- 
ing upon  a  common  tribal  boundary  they  some- 
times have  recourse,  as  recounted  by  Col.  A.  H. 
McMahon,  to  laying  down  a  boundary  by  oath.  A 
leading  man  of  one  side  is  prevailed  upon  to  un- 
dergo the  ordeal  and  is  accepted  by  both  sides. 
Holding  the  Koran  firmly  on  his  bare  head,  the 
Boles  of  his  feet  being  bare  and  cleansed  of  every 
particle  of  his  own  tribal  soil,  and  having  taken 
3very  precaution  to  save  his  soul  from  perjury,  he 
steps  out,  amid  a  scene  of  excited  tribesmen,  and 
the  course  he  follows  becomes  the  unquestioned 
boundary  line.  It  may  unexpectedly  diverge 
videly  from  both  claims,  but  salient  points  are 
jometimes  found  to  be  marked  by  crumbling  rock 
;airns  of  great  age  whose  existence  had  long  been 
"orgotten.  Boundary  makers  of  many  nations 
vish  their  tasks  were  as  simple  and  as  easy ! 

Map-conscious  people,  however,  usually  accept 
;ubconsciously  and  uncritically  the  ideas  that  are 
uggested  to  them  by  maps.    This  is  true  in  part 


because  maps  appear  to  represent  facts  pertaining 
to  mother  earth  herself;  veracity  and  authority 
beyond  their  deserts  are  frequently  attributed  to 
them.  In  what  may  be  called  "cartohypnosis"  or 
"hypnotism  by  cartography",  the  map  user  or  the 
audience  exhibits  a  high  degree  of  suggestibility  in 
respect  to  stimuli  aroused  by  the  map  and  its  ex- 
planatory text. 

Sometimes  self-hypnotism  and  illusion  occur 
quite  innocently.  Frequently,  however,  a  sort  of 
mass  hypnotism  is  practiced  by  men  who  attempt 
to  delude  the  public.  Maps  may  also  be  used  ef- 
fectively to  dehypnotize  people ;  we  should  there- 
fore consider  what  maps  may  be  made,  and  how 
they  may  be  used,  to  awaken  people  to  an  intelli- 
gent understanding  of  the  world  and  the  problems 
of  our  times. 

Illusion  and  Confusion 

Tlie  innocence  of  some  people's  illusions  when 
they  look  at  maps  uncritically  reminds  one  of  a 
four-year-old  child's  question,  "Why  do  I  see 
things  when  I  shut  my  eyes  that  aren't  there  when 
I  open  them  ?"  People  often  suppose  that  maps  re- 
veal facts  which,  if  they  were  wide  awake  to  maps, 
they  would  realize  are  not  shown  at  all.  An  ex- 
ample of  illusion  and  confusion,  arising  from  use 


724922 — 46- 


1119 


of  the  over-familiar  Mercator  projection,  is  shown 
on  the  accompanying  map  (fig.  la)  ^  on  which 
there  is  added  a  long  straight  line  indicating  the 
true  compass  course  known  to  mariners  as  "east  by 
north".  On  the  Mercator  map  every  continuous 
true  compass  direction  is  a  straight  line,^  whereas 
on  the  earth  all  such  lines  are  spirals — except  the 
meridians  (great  circles)  and  the  parallels  (small 
circles).  The  "E  x  N"  line  in  figure  lb  illustrates 
how  such  a  spiral  goes  aromid  the  earth  an  infinite 


number  of  times  without  actually  reaching  the 
North  Pole. 

Illusion  may  occur  when  men  use  world  maps 
instead  of  globes  in  seeking  to  understand  some  of 
the  world  relationships  of  our  times.  Observe,  for 
example,  a  world  map  (fig.  2a)  prepared  by  a  bril- 
liant geographer,  Professor  Halford  Mackinder 
(now  Sir  Halford),  to  illustrate  his  famous  paper 
on  "The  Geographical  Pivot  of  History",  which 
he  read  in  1904.  The  map  was  made  on  the 
Mercator  projection;    its  limiting  border  is   an 


'Glossy  reproduc- 
tion prints  of  all  of 
the  illustrations  are 
available  from  the 
Division  of  Publi- 
cations, Depart- 
ment  of  State,  upon 
request,  if  desired 
for  plate  making. 

'The  Mercator 
map  projection  is 
one  in  vrhich  the 
parallels  of  lati- 
tude, represented 
by  straight  lines, 
are  mathematically 
spaced  in  such  a 
way  that,  at  any 
point  on  the  map, 
the  north-south 
and  east-west  scales 
are  identical.  In 
consequence,  every 
true  compass  direc- 
tion or  course  is  a 
straight  line  of  in- 
definite extension ; 
this  property  makes 
the  map  especially 
useful  to  navigators 
in  plotting  counses 
at  sea.  The  projec- 
tion is  not  projected 
onto  a  cylinder 
from  the  center  of 
the  globe,  as  is 
often  depicted — a 
very  different  and 
quite   useless   map. 


10558       December,  1946 


Department  of  State,    Ml 


Figure  1.  '•'•East  hy  NortK" 

The  compass  course  known  to  mariners  as  "East  by  North"  (N.  78°45'  E.)  is  a  spiral 
that  never  quite  reaches  the  North  Pole.  On  (o),  the  Mercator  map,  it  is  a  straight  line 
which  would  be  continuous  if  the  map  were  repeated  indefinitely.  On  (6),  the  Northern 
Hemisphere  map,  it  appears  as  a  true  spiral — which  is  dotted  in  its  poleward  extension  be- 
yond the  Mercator  map  limit.  In  the  Southern  Hemisphere  on  both  maps  the  compass 
course  is  continued  as  a  broken  or  dashed  line. 


1120 


Department  of  State  Bulletin      •     December  22,  7  94 


I 


ellipse;  and  parts  of  North  and  South  America 
are  repeated  at  the  left  and  riglit  sides  of  the  map. 
The  "pivot  area"  or  "heartland"  in  north  central 
Asia  (which  was  for  many  centuries  a  region  of 
horse  and  camel  mobility  insulated  from  the  con- 


»■>■  M  f,  f=  _x  .PIVOT.    A  RE  A' 

4c    ■ 

U3^    E    ft  OR    ^,  N  5 


10559        December,  1946 


tinental  margins  in  large  degree  by  deserts)  is 
shown  on  the  map  as  being  bordered  by  an  inner 
or  marginal  crescent  of  land  accessible  to  ships, 
paralleled  by  an  outer  crescent  of  continents  and 
islands  festooned  across  the  map.     That  is  how 

it     appears     on 
a  particular  map. 
When   the   Mac- 
kinder    m  a  p    is 
traced  on  a  trans- 
parency  and 
wrapped  around 
a  cylinder    (and 
the  M  creator 
map  is,  of  course, 
developed  math- 
ematically as  on  a 
cylinder) ,  the  re- 
peated areas  will 
overlap  (fig.  26). 
But    what    is    it 
like  on  the  earth 
itself?     As  seen 
on  the  globe  (ap- 
proximated 
by  the  circular 
world   map,   fig. 
2c),  the  left  and 
right   portions 
of  the  elliptical 
Mackinder  world 
map    correspond 
to  a  single  lens- 
shaped  area  em- 
bracing that  por- 
tion of  the  Amer- 
icas   which    ap- 
pears twice.     To 
the    north    and 
south    there    are 
loops  enclosing 
the  polar  regions 


Department  of  State,  Ml 


Figure  2.  Ma<;kinder's  map,  ''The  Natural  Seats  of  Power:' 

(a)  Facsimile  of  a  map  by  Professor  Mackii:der  to  illustrate  a  lecture  on  "The  Geo- 
graphica  Pivot  of  History"  in  January  1904.  Although  on  the  Mercator  projection  (with- 
out parallels  and  .neridians)  it  is  in  the  form  of  an  ellipse,  a  portion  of  the  Americas  is 
repeated  at  left  and  right.  (6)  The  same  map  wrapped  around  a  cylinder,  (c)  The  limits 
of  the  same  map  shown  on  an  azimuthal  map.  The  lens-shaped  area  in  the  Americas  ap- 
pears twice  on  Mackinder's  map;  the  loops  around  the  North  and  South  Poles  are  wholly 
missing  on  the  Mackinder  map ;  the  remainder  appears  only  once  on  Mackinder's  map 


1121 


which  are  altogether  missing  from  the  map.  The 
remainder  of  the  earth's  surface  appears  on 
the  Mackinder  map  once  and  once  only.  The  so- 
called  "outer  crescent,"  whose  ends  overlap  in  the 
Americas,  and  which  traverses  Australia  and 
southern  Africa,  is  seen  on  the  globe  as  a  belt 
obliquely  encircling  the  earth;  also,  the  Arctic 
area  is  seen  in  its  spherical  compactness  in  normal 
relationships  to  Eurasia  and  North  America. 

Professor  Mackinder's  own  concept  of  "global 
realities"  was  clearly  revealed  in  these  words : 

".  .  .  we  shall  .  .  .  have  to  deal  with  a  closed 
political  system  .  .  .  of  world-wide  scope.  Every 
explosion  of  social  forces  .  .  .  will  be  sharply  re- 
echoed from  the  far  side  of  the  globe." 

However,  it  would  seem  that  the  Mercator  map 
suceested  to  its  author  the  concept  of  an  outer 
crescent,  instead  of  what  in  reality  is  approxi- 
mately an  oblique  circle;  it  seems  to  have  sug- 
gested also  an  over-simplified  generalization  in  a 
sort  of  geometrical  pattern  of  historical  relation- 
ships.    Much    of    Mackinder's    paper,    with    the 
salutary  critical  comment  which  followed  its  pres- 
entation, is  almost  forgotten.     In  any  event  the 
map  subsequently  exerted  a  hypnotic  influence  on 
many  thousands  of  people,  for  it  was  reproduced 
at  least  four  times  in  the  Nazi  literature  of  geo- 
politics with  perversions  of  the  author's  original 
intent  which  were  destined  to  serve  malevolent 
purposes  in  propaganda. 

Delusion  by  Design 

Maps  are  often  deliberately  employed  to  sell 
ideas  to  individuals  and  nations.  In  every  con- 
tinent maps  have  been  used,  and  are  now  being 
used,  to  disseminate  mischievous  half-truths  and 
to  obfuscate  the  thinking  of  men.  They  are  em- 
ployed as  graphic  devices— subtly  to  suggest  an 
idea,  to  inculcate  a  prejudice,  or  to  instill  patriotic 
fervor.  Such  maps  may  be  true  in  every  detail, 
but  in  their  omissions  and  their  perverse  emphases 
they  may  be  socially  poisonous — as  chlorine  by  it- 
self is  a  poisonous  gas,  but  an  essential  element  in 
common  salt. 

In  an  article  entitled  "Magic  Cartography",  re- 


'  Social  Research  (September  1941),  vol.  8,  pp.  310-330. 
*  See  article  by  Russell  H.  Fifield,  Buu^etin  of  June  24, 
1945,  p.  1152. 

1122 


lating  to  the  uses  of  maps  in  propaganda,  Hans 
Speier^  observes: 

"The  use  of  maps  in  propaganda  is  dependent 
upon  highly  developed  techniques  of  map  making 
and  reproduction,  a  certain  minimimi  of  mass  edu- 
cation in  reading  cartographic  symbols  and  a 
specific  organization  of  society.  This  organiza- 
tion may  be  characterized  briefly  as  one  in  which 
the  individual's  functional  dependence  and  loyal- 
ties extend  far  beyond  the  area  of  his  immediate 
experiences. 

".  .  .  [Maps]  may  make  certain  traits  and  prop- 
erties of  the  world  they  depict  more  intelligible— 
or  may  distort  or  deny  them.  .  .  .  They  may  give 
information,  but  they  may  also  plead.  Maps  can 
be  symbols  of  conquest  or  tokens  of  revenge,  in- 
struments for  airing  grievances  or  expressions  of 
pride.  Indeed,  maps  are  so  widely  used  in  prop- 
aganda and  for  such  different  purposes  that  it  is 
difficult  to  understand  why  propaganda  analysts 
have  paid  so  little  attention  to  them. 

"Propagandists  .  .  .  rediscover  .  .  .  symbolic 
values  in  maps,  and  by  exploiting  them,  turn  geog- 
raphy into  a  kind  of  magic.  .  .  .  The  propagan- 
dist's primary  concern  is  never  the  truth  of  an  idea 
but  its  successful  communication  to  a  public. 

"Entirely  new  possibilities  in  the  use  of  maps 
for  political  propaganda  are  revealed  by  the  fihn. 
The  German  propagandists  have  realized  that. 
.  .  .  [when  they  produced]  moving  maps. 

".  .  .  [Maps]  are  essentially  scientific.  The 
propagandist  who  uses  them  borrows  the  prestige 
of  science  and  at  the  same  time  violates  its  spirit." 
Chimerical  cartography  was  effectively  em- 
ployed in  the  propagation  of  ideas  by  the  Nazi 
geopoliticians.^  Dr.  K.  Frenzel,  addressing  the 
German  Cartographic  Society  in  Berlin,  October 
22,  1938,  declared : 

"Every  map  has  a  suggestive  force !    Man  is  an  i 
ocular  creature.    He  reacts  to  that  which  he  sees 
and  can  take  in  at  a  glance." 

The  private  cartographic  industry  was  declared^ 
to  bear  a  very  heavy  responsibility  as  a  mediator 
between  science  and  the  people,  and  between  the 
policies  of  the  government  and  the  people.  Every 
map  had  to  be  submitted  before  publication  to  all 
government  departments  that  might  have  an  iiiter- 

Deparfment  of  Sf afe  Bulletin      •      December  22,  7  946jj 


est  in  it.  An  obligatory  organization  of  several 
large  publishers  of  school  atlases  was  created  in 
order  that  unified  school  atlases  would  be  pub- 
lished for  the  whole  Reich. 

Sjiecial  symbols  and  devices,  adapted  to  a  mini- 
mum of  mass  education  in  reading  maps,  were  de- 
veloped and  standardized  by  frenetic  propagan- 
dists, in  order  to  convey  ideas  of  threatening 
forces,  attack  and  resistance  to  attack,  hostile  en- 
circlement, and  the  like.  Posters  in  railway  sta- 
tions and  other  public  places  utilized  maps  that 
had  a  powerful  effect  upon  the  uncritical  mass  of 
the  population. 

In  Italy  cartography  was  employed  by  Musso- 
lini to  stimulate  an  urge  for  territorial  expansion. 
Most  striking,  perhaps,  was  the  series  of  maps  on 
a  wall  in  Eome,  erected  on  the  Via  Imperiale,  a 
new  boulevard  cut  through  from  the  National 
Monument  to  the  restored  Forum.  On  these  maps, 
which  were  executed  in  choice  marbles  of  selected 
colors,  the  growth  of  Rome  from  a  city  state  to  the 
empires  of  Augustus  and  Trajan  was  artistically 
depicted.  The  purpose  was  obvious;  the  method 
irtful.  The  dominion  of  Eome  once  encircled  the 
Mediterranean.  Modern  Italy's  destiny  seemed 
manifest ;  mare  nosti^ium  was  again  used  with  the 
present  tense.  No  critical  appraisal  of  the  lack  of 
pertinence  of  the  extent  of  Trajan's  conquests  to 
the  role  that  can  or  should  be  played  by  Italians 
in  the  twentieth  century  world  was  ever  tolerated. 

The  map  of  Hungary,  in  a  park  in  Budapest, 
ielineated  in  a  pattern  of  flowers  and  foliage 
(vhich  portrayed  Hungary's  former  and  current 
;erritorial  extent,  was  for  years  a  striking  example 
3f  cartographic  propaganda.  Surrounded  by  stir- 
ring words  of  a  famous  Magyar  poetess,  spelled 
Jut  in  the  foliage,  and  with  the  national  flag  near- 
3y  always  at  half-staff  in  perpetual  mourning  for 
^rritories  lost  after  the  first  World  War,  people 
ivere  never  to  be  allowed  to  accept  the  imposed  ter- 
ritorial changes. 

Intelligent  Use  of  Maps 

In  a  distraught  world  whose  teeming  millions 
iometimes  hesitatingly  follow  their  leaders  and 
vould-be  leaders  as  they  pick  their  way  among  the 
•ubble  of  shattered  cities  and  ideas,  honest  and 
jritical  thinking  about  maps  is  important.  Men, 
vomen,  and  even  children  should  all  be  more  criti- 


cal of  the  maps  they  see  in  daily  papers  and  peri- 
odical publications,  in  books  and  atlases,  and  on 
the  screen.  They  need  to  be  taught  to  read  maps 
(an  art  in  itself),  and  not  merely  to  consult  maps 
(frequently  only  for  location  of  a  single  city  or 
point,  or  regarding  a  route  of  travel) .  Ecoziomists, 
historians,  political  scientists,  and  others  need  to 
cultivate  a  keener  sense  of  earth  distributions  of 
resources  and  of  peoples  and  their  activities — 
which  necessitates  development  of  ability  to  read 
distributional  maps. 

Cartohypnosis  is  no  more  common,  however, 
than  delusion  and  confusion  of  the  mind  by  subtle 
uses  of  words  and  phrases — but  it  is  perhaps  more 
difficult  for  the  average  man  to  protect  himself 
against  the  use  of  mischievous  maps.  Even  the 
phrases  of  the  most  honest  men  are  sometimes  in- 
adequate, for  as  Whitehead  remarked,  "the  success 
of  language  in  conveying  information  is  vastly 
overrated,  especially  in  learned  circles".' 

The  map  user  who  desires  to  guard  against  be- 
coming the  victim  of  cartohypnosis  should  keep 
in  mind  three  things : 

(a)  That  it  is  the  actual  situation  on  the  earth 
that  is  significant ; 

( h )  That  maps  have  definite  limitations  as  well 
as  certain  unique  capabilities ;  and 

ic)   That  map  makers  are  human. 

(a)  It  is  what  one  would  find  on  the  gromid, 
in  all  its  complexity,  and  not  simply  what  one 
finds  on  a  map,  that  is  significant.  In  looking 
at  a  map  one  may  well  ask,  "What  the  map  shows 
may  be  perfectly  true,  but  what  is  the  whole  truth? 
What  is  on  the  ground — including  peoples,  and 
their  customs,  their  ideas  and  prejudices?  What 
other  types  of  information  are  pertinent  to  the 
subject?" 

A  small-scale  map  in  a  newspaper,  desigiaed  to 
indicate  territorial  transfers  and  boundary 
changes,  cannot  reveal  the  bilingual  populations 
and  the  economic  and  cultural  ties  between  peo- 
ples throughout  the  region.  Men  could  not  be 
so  sanguine  of  solving  some  of  the  present  per- 
plexing political  131-oblems  by  means  of  shifting 
international  boundaries  in  areas  in  which  bound- 
ary changes  are  ardently  advocated  (always  in 
other  people's  territory),  if  some  of  the  mappable 
data  regarding  economic  interdependence  and  csl- 

"  A.  N.  Whitehead,  Adventure  of  Ideas,  p.  370. 


1123 


tural  transition  zones  were  adequately  visualized 
on  maps. 

(b)  Like  an  aerial  photograph  that  reveals  a 
pattern,  perhaps  of  archeological  origin,  almost 
erased  by  time  and  imperceptible  on  the  ground— 
or  like  an  X-ray  photograph — a  map  may  disclose 
patterns  of  gi-eat  significance  which  are  not  dis- 
cernible on  surface  inspection.  Many  maps  based 
on  statistical  data  thus  reveal  pertinent  invisible 
transitions  which,  if  even  suspected,  would  be  only 
vaguely  perceived  on  visiting  the  area. 

A  map  is  unique  in  its  capacity  to  represent  with 
fidelity  literally  millions  of  observed  facts,  accu- 
rately generalized  and  artistically  presented,  con- 
veying to  the  mind  a  vivid,  true  picture  of  the  dis- 
tribution of  certain  phenomena  on  the  earth's  sur- 
face that  could  not  be  obtained  in  any  other  man- 
ner. Large-scale  topographic  maps,  for  example, 
if  they  are  highly  accurate,  belong  to  this  category. 
But  the  limitations  of  a  map  should  be  borne  in 
mind.  One  of  the  most  important  is  that  a  map 
cannot  be  more  accurate  and  reliable  than  the  data 
upon  which  it  is  based.  A  map  printed  in  beauti- 
ful colors  may  be  of  little  value  and  may  mislead 
the  uncritical  if  it  is  a  work  of  art.  On  the  other 
hand,  a  crudely  executed  map  compilation  may  be 
highly  accurate  and  of  the  greatest  importance. 

People  seldom  consider  that  a  map  is  like  a  sin- 
gle chapter  in  an  encyclopedic  compendium ;  one 
map  cannot  present  the  results  of  an  inventory  of 
geology,  natural  vegetation,  and  water  resources. 
Any  map  that  attempts  to  show  too  much  is  of  lit- 
tle use. 

Use  of  the  Mercator  projection  for  world  maps 
should  be  abjured  by  authors  and  publishers  for 
all  purposes.  The  world  is  round.  No  man  ever 
saw  or  will  ever  see  a  world  that  has  much  resem- 
blance to  the  Mercator  world  map ;  and  the  mis- 
conceptions it  has  engendered  have  done  infinite 
harm.  A  map  that  makes  Greenland  look  larger 
than  all  South  America,  instead  of  smaller  than 
Argentina,  is  not  suited  to  portray  world  relation- 
ships. The  Mercator  is  ideal  only  for  navigation, 
each  chart  covering  a  relatively  small  area.  Dis- 
crimination should  always  be  exercised  in  selecting 
map  bases  for  world  maps,  the  choice  depending 
upon  the  data  or  the  relationships  to  be  repre- 
sented. 

1124 


In  this  so-called  "air  age"  in  which  men  glibly 
talk  of  global  relations — which  are  misleadingly 
visualized  on  all  world  maps,  polar  and  other- 
wise— one  ventures  to  suggest  that  the  phrase 
global  geography  should  be  restricted  to  those  as- 
pects of  world  relations  which  can  be  rationally 
comprehended,    without    geometrical    acrobatics, 
only  with  the  aid  of  globes.    The  writer  finds  that 
transparent  plastic  hemispheres,  some  with  geo- 
graphical patterns  and  others  with  geometrical 
patterns  imprinted,  which  can  be  moved  into  any 
position  upon  a  globe  resting  only  in  a  cup  or  ring, 
provide  the  best  means  of  comparisons  between 
one  part  of  the  globe  and  another.    Map  projection 
distortions  and  diflferences  of  scale  are  completely 
eliminated.     After  a  situation  is  clearly  seen  on 
the  globe  itself,  a  map  projection  may  be  selected 
which  is  adapted  to  the  special  requirements  of 
visualizing  that  particular  set  of  data.    There  are, 
to  be  sure,  many  types  of  data  which  may  be 
grasped  even  better  when  presented  on  maps  than 
on  globes.    But  there  are  other  categories  of  highly 
significant  relationships,  notably  the  longer  ocean 
trade  routes,  air  routes  and  distances,  radio  and 
other  wave  propagations  in  the  field  of  electronics, 
and  problems  relating  to  the  peaceful  development 
of  atomic  energy  for  the  benefit  of  all  mankind, 
which  require  the  use  of  globes  and  certain  types 
of  accessories,  and  actually  deserve  the  appellation 
global  geography. 

(c)  Maps  are  made  by  men,  and,  as  Wright  has 
observed,  "Map  makers  are  human".  Scientific 
integrity,  painstaking  accuracy,  and  cartographic 
skill  are  essential  qualifications  of  the  maker  ol 
the  maps  upon  which  the  map  user  can  rely. 

Maps  That  Ought  To  Be  Made  and  Used 

Maps  are  not  an  end  in  themselves.  If  maps 
can  be  used  as  weapons,  as  Napoleon  intimated 
they  can  also  serve  the  needs  of  peace.  Maps  car 
play  a  unique  part  as  aids  in  the  analysis  and  solu- 
tion of  complex  problems,  and  as  tools  in  planning 
on  community,  national,  and  world  scales.  One  ol 
the  most  important  uses  to  which  maps  can  be  pu* 
is  to  dehypnotize  people,  to  wake  them  up  to  th« 
facts  and  phenomena  of  the  mid-twentieth  centurj 
world,  and  to  educate  them  to  world  understand 
ing.    Where  words  utterly  fail,  maps  can  some* 

Department  of  State  Bulletin      •      December  22,  J  94i 


times  portray,  vividly  and  memorably,  some  of  the 
freshly  and  sharply  etched  but  as  yet  dimly  per- 
ceived lines  of  interplay  between  peoples  in  a 
world  which  in  many  areas  is  scarcely  reminiscent 
of  the  conditions  upon  which  our  thinking  is 
largely  premised.  We  should  bear  in  mind  that, 
until  the  nineteenth  century,  there  were  no  "world 
problems". 

As  a  specific  example  among  hundreds  that 
could  be  suggested:  In  animated  motion-picture 
maps  the  areas  to  which  goods  produced  in  Can- 
ton can  be  transported  at  equal  increments  of  cost 
can  be  delineated.  As  the  expanding  waves  of  mo- 
tion sweep  across  the  oceans  and  along  the  rail- 
roads of  Europe,  the  Americas,  and  Africa,  they 
creep  almost  imperceptibly  across  China,  beyond 
the  meager  pattern  of  railroads  and  motor  roads — 
revealing  that  villages  less  than  500  miles  from 
Canton  are  much  farther,  in  terms  of  transport 
cost,  than  Omaha  or  Jerusalem.  If  four  fifths  of 
the  people  of  China  cannot  trade  with  each  other 
they  cannot  trade  with  the  United  States  and  other 
countries.  To  see  a  number  of  such  examples  for 
different  continents  on  animated  maps  is  to  grasp 
the  relationship  between  the  lack  of  modern  trans- 
port and  the  "time-worn  misery"  of  low  levels  of 
living  in  large  areas  of  the  world. 

The  world  needs  maps  that  visualize  economic 
interdependence  of  countries  and  regions ;  that  lo- 
cate the  principal  natural  resources  and  their  vol- 
ume of  production ;  that  correlate  the  volume  of 
commerce  with  decreasing  costs  of  production  and 
transport  and  that  reveal  the  increases  of  trade 
over  both  short  and  great  distances;  that  reflect 
trade  balances  and  international  balance  of  pay- 
ments; that  depict  the  rapidly  expanding  patterns 
of  communication  in  terms  of  both  total  and  per 
capita  volume;  that  record  the  rapidly  changing 
levels  of  living ;  that  trace  migrations  of  peoples  in 
all  parts  of  the  world  in  recent  decades;  that  dis- 
close the  areas  in  which  disease  constitutes  a  thi-eat 
to  health  in  distant  lands— and  many  otlier  types 
af  maps,  including  some  "maps"  on  transparent 
curved  surfaces  (part  globes)  for  special  purposes. 

Resources  of  govenmients  and  of  well-supported 
institutions  are  needed  to  underwrite  the  vast 
amount  of  research  required  in  compiling  many 
3f  the  maps  that  ought  to  be  made.     Coordinated 


programs  of  map  production  are  essential  if  dif- 
ferent series  of  maps  are  to  be  readily  comparable, 
and  if  wall  maps,  atlas  maps,  lantern-slide  maps, 
and  animated  motion-picture  maps  are  to  supple- 
ment each  other.  Important  technical  advances 
in  the  science  and  the  art  of  cartography  are  de- 
sirable and  possible.  Very  significant  work  wiU, 
of  course,  be  done  by  individual  geographers  and 
cartographers  not  employed  by  governments  or 
large  institutions.  Their  contributions  will  be 
greater  if  they  associate  themselves  with  econo- 
mists, historians,  demogi'aphers,  sociologists,  polit- 
ical scientists,  engineers,  and  other  specialists  of 
many  nationalities. 

Conclusion 

People  can  seldom  be  hypnotized  against  their 
will.  Cartohypnosis  can  be  eliminated  as  a  threat 
to  sane  and  wholesome  development  of  the  world 
in  the  interests  of  its  human  inhabitants,  if  peo- 
ple look  at  maps  critically  and  honestly,  and  de- 
mand an  abundant  supply  of  accurate  maps  to 
show  them  what  are  the  geographical  relation- 
ships between  peoples  and  their  activities. 

Some  Geography  from  a  Globe 

The  most  direct  air  route  (great  circle)  from  tlie 
Panama  Canal  to  Tokyo  passes  over  the  Caribbean 
Sea,  Yucatan,  the  Gulf  of  Mexico,  near  Austin, 
Salt  Lake  City,  and  Seattle,  over  the  Pacific  Ocean 
near  Canada  and  Alaska,  slightly  north  of  the 
Aleutian  Islands  in  the  Bering  Sea,  then  again  into 
the  Pacific  east  of  Kamchatka,  the  Kuriles,  and 
Hokkaido.  The  distance  is  about  8,400  statute 
miles.  By  way  of  Honolulu  the  distance  is  about 
9,100  statute  miles. 

If  the  Americas,  the  Atlantic,  and  Africa  are 
traced  on  a  transparent  sjaherical  surface  and  then 
suj^erimposed  on  the  Pacific,  the  proportions  of 
that  ocean  are  best  perceived.  Placing  the  Suez 
Canal  over  the  Panama  Canal,  and  Mozambique, 
East  Africa,  against  the  coast  of  Chile,  the  Pacific 
is  seen  broad  enough  to  hold  Africa,  the  wide 
south  Atlantic,  and  South  America  without  reach- 
ing Australia;  or,  passing  from  Mombasa  north 
and  west  across  the  width  of  Africa,  the  Atlantic, 
and  the  Caribbean,  one  would  cross  Mexico  to  the 
Pacific  coast  before  reaching  Japan. 


724922- 


1125 


BILATERAL  AIR-TRANSPORT  AGREEMENTS  CONCLUDED 
BY  THE  UNITED  STATES 


hy  Joe  D.  Walstrom 


During  the  past  two  years  the  United  States  has  con- 
cluded arrangements  vyith  27  countries  for  the  operation  of 
American- flag  international  air  services.  Most  of  these  are 
bilateral  agreements,  some  of  which  are  hased  on  the 
^'■Chicago  standard  form''''  and  others  on  the  so-called 
'■'■Bermuda  principles^'} 

The  accompan'ying  article  mmhmarizes  the  similarities  and 
variations  between  such  agreements. 


On  October  15,  1943  the  Department  of  State 
and  the  Civil  Aeronautics  Board  issued  a  joint 
statement  relative  to  the  development  of  Amer- 
ican-flag air  services  in  the  international  field, 
which  contemplated  that  the  CAB  would  certifi- 
cate new  American  air  services  to  foreign  coun- 


tries and  that  corresponding  air  rights  would  be 
negotiated  by  the  Department  of  State  in  close  col- 
laboration with  the  CAB.  These  new  services 
were  certificated  by  the  CAB  during  1945  and 
1946,  in  four  decisions  covering  routes  in  specific 
areas  of  the  world. 


'  The  countries  and  dates  of  signature  are  as  follows : 

Australia December  3,  1&46 

Belgium April  5,  1946 

Brazil September  6,  1946 

Canada February  17,  1945 

China November  29,  1946 ' 

Ozechoslovakia January  3,  1946 

Denmark       December  16.  1944 

Egypt June  15,  194G 

France March  27, 1946 

Greece       March  27,  1946 

Iceland January  27,  1945 

India November  14,  1946 

Iran December  17,  1945 

Ireland February  3,  1945 


Italy July  16,  1945 

Lebanon August  11,  1946 

New  Zealand December  3,  1946 

Norway October  6,  1945 

Philippines November  16, 1946 

Portugal December  6,  1945 

Saudi  Arabia January  2,  1946 

Spain December  2,  1944 

Sweden December  16, 1944 

Switzerland       August  3,  1945 

Turkey February  12,  1946 

United  Kingdom February  11,  194H 

Uruguay        December  14.  1946 

■  Agreement  initialed  on  tliis  date  and  will  be  formally  j 
signed  when  translation  formalities  are  completed.  ] 


1126 


Deparfmenf  of  Sfofe  Bu//ef/n      •      December  22,  J 946, 


I 


In  the  meantime,  the  Chicago  aviation  confer- 
ince  of  1944  had  anticipated  the  post-war  develop- 
nent  of  civil  aviation  by  producing  various  agree- 
nents  and  recommendations  designed  to  facilitate 
he  extension  of  world  air  routes  through  inter- 
governmental arrangements.  Among  these  docu- 
nents  was  the  "Form  of  Standard  Agreement  for 
^Provisional  Air  Koutes."  This  is  generally  re- 
'erred  to  as  the  "Chicago  standard  form",  and,  al- 
hough  originally  drafted  in  multilateral  lan- 
^age,  it  has  been  adopted  by  the  United  States 
md  many  other  countries  as  a  basis  for  negotiating 
)ilateral  air-transport  agreements. 

Since  the  Chicago  conference,  or  within  the  pe- 
•iod  of  slightly  over  two  years,  the  United  States 
las  concluded  arrangements  for  civil  aviation 
anding  rights  with  27  countries.  For  the  purpose 
»f  convenient  reference  these  countries  are  listed 
tbove  in  alphabetical  order,  together  with  the  dates 
)n  which  such  agreements  were  concluded. 

The  aforementioned  arrangements,  which  in  ap- 
)ropriate  cases  include  the  grant  of  air  rights  in 
I  given  country's  territorial  possessions  as  well 
is  its  homeland,  are  reciprocal  in  nature  except  in 
he  cases  of  Iran,  Italy,  and  Saudi  Arabia ;  these 
jovernments  granted  unilateral  rights  to  be  exer- 
iised  by  United  States  airlines  pending  the  nego- 
iation  of  more  formal  agi'eements  at  a  later  date, 
rhe  agreements  with  Canada,  France,  Ireland, 
md  the  United  Kingdom  replace  previous  inter- 
governmental arrangements.  Also  in  effect,  and 
lot  listed  above,  is  a  bilateral  agreement  with 
I!olombia  dating  from  1929. 

In  addition  to  the  foregoing  bilateral  arrange- 
nents,  and  by  virtue  of  the  international  air- 
ervices  transit  agreement  (the  so-called  "two 
reedoms"'  agreement  drawn  up  at  the  Cliicago 
onference).  United  States  airlines  may  exercise 
he  rights  of  transit  and  non-traffic  stop  in  cer- 
ain  other  countries  with  which  bilateral  agree- 
rients  have  not  yet  been  concluded.  The  inter- 
lational  air-transport  agreement  (the  Chicago 
five  freedoms"  agreement)  also  permits  Ameri- 
an-flag  services  to  enjoy  full  commercial  traffic 
ights  in  a  few  countries  not  now  included  in  this 
Jovernment's  framewoi'k  of  bilateral  air  arrange- 
lejits.  However,  on  July  25,  1946  the  United 
States  gave  its  year's  notice  of  withdrawal  from 


the  Chicago  "five  freedoms"  agreement,^  because  of 
the  limited  acceptance  of  this  document,  the  fact 
that  air  rights  exchanged  thereunder  still  had  to  be 
implemented  with  bilateral  understandings,  and 
the  apparent  preference  of  most  countries  to  rely 
exclusively  on  bilateral  arrangements  at  least  un- 
til a  more  acceptable  multilateral  pact  could  be 
achieved.* 

Appropriate  air  rights  have  also  been  obtained 
for  United  States  air  services  certificated  for  oper- 
ations in  Germany  and  Austria.  It  is  anticipated 
that  similar  rights  will  be  forthcoming  in  the  near 
future  with  respect  to  Japan. 

The  formal  bilateral  agreements  negotiated  by 
the  United  States  achieve  the  primary  purpose  of 
obtaining  satisfactory  operating  and  traffic  rights 
to  be  exercised  by  certificated  United  States  air- 
lines on  their  foreign  routes.  No  two  of  these 
agreements  are  identical  but,  without  going  into  a 
detailed  analysis  of  each  one,  their  basic  similari- 
ties and  variations  are  summarized  briefly  below. 

Chicago  Type  of  Agreement 

Agreements  concluded  during  the  latter  part  of 
1944,  the  year  1945,  and  the  first  part  of  1946  are 
based  generally  on  the  clauses  contained  in  the 
Chicago  standard  form  mentioned  previously. 
These  clauses  provide  for  the  intergovernmental 
exchange  of  air  rights  to  be  exercised  by  desig- 
nated airlines  of  the  respective  countries;  equality 
of  treatment  and  non-discriminatory  practices 
with  respect  to  airport  charges,  the  imposition  of 
customs  duties  and  inspection  fees,  and  the  exemp- 
tion from  such  duties  and  charges  in  certain  cases ; 
mutual  recognition  of  airworthiness  certificates 
and  personnel  licenses ;  compliance  with  laws  and 
regulations  pertaining  to  entry,  clearance,  immi- 
gration, passports,  customs,  and  quarantine;  cri- 
teria as  to  ownership  and  control  of  each  country's 
air  services;  registration  of  pertinent  agreements 
with  PICAO;  termination  of  agreement  on  one 
year's  notice ;  and  procedure  for  amending  the  an- 
nex to  the  agreement. 

The  annex  to  the  Chicago  type  of  agreement  is 


'  Bulletin  of  Aug.  4,  1946,  p.  236. 

*A  revised  multilateral  air-transport  agreement  is 
scheduled  for  consideration  at  the  next  assembly  of 
PICAO,  which  meets  at  Montreal  in  May  1947. 


1127 


usually  confined  to  describing  the  routes  and 
traffic  points  granted  to  the  air  services  of  each 
contracting  party.  It  imposes  no  restrictions  on 
capacity  of  aircraft  or  number  of  schedules  which 
may  be  operated,  nor  does  it  provide  for  determi- 
nation of  rates.  It  likewise  places  no  limitation 
on  the  carriage  of  fifth-freedom  traffic  (the  inter- 
national traffic  to,  from,  or  between  one  or  more 
intermediate  points  on  the  designated  route). 

This  Chicago  form  was  used  by  the  United 
States  in  its  agreements  with  Sweden,  Denmark, 
Iceland,  Ireland,  Switzerland,  Norway,  Portugal, 
Czechoslovakia,  and  Turkey  (named  in  the  order 
in  which  they  were  concluded).  The  agreement 
with  Spain,  signed  during  the  last  days  of  the  Chi- 
cago conference  and  concluded  prior  to  any  of  the 
foregoing,  conforms  closely  to  the  Chicago  stand- 
ard form,  even  though  the  latter  had  not  been 
finally  drafted  at  the  time.  The  1945  agreement 
with  Canada  cannot  be  said  to  be  of  the  fifth-free- 
dom type,  since  none  of  the  routes  provided  therein 
involved  this  traffic.  However,  it  is  contemplated 
that  the  arrangement  with  Canada  will  be  revised 
to  include  fifth-freedom  traffic  routes  subsequently 
authorized  by  the  United  States  and  Canadian 
Governments  for  their  respective  air  services. 

The  Bermuda  Agreement 

Although,  as  indicated  above,  a  number  of  coun- 
tries have  been  willing  to  conclude  bilateral  ar- 
rangements with  the  United  States  based  on  the 
Chicago  form,  there  were  fundamental  differences 
of  opinion  between  some  of  the  countries  repre- 
sented at  the  Chicago  conference  as  to  how  inter- 
national air  transport  should  be  developed.  The 
United  States  and  certain  other  countries  favored 
a  relatively  liberal  approach  to  the  problem,  with- 
out any  arbitrary  restrictions  or  predetermined 
formulae  on  capacity  of  aircraft,  nmnber  of  fre- 
quencies, carriage  of  fifth-freedom  traffic,  and  fix- 
ing of  rates.  However,  another  group  of  countries 
led  by  the  United  Kingdom  was  not  prepared  to 
go  this  far  and  wanted  these  matters  regulated  to 
such  an  extent  that,  in  the  opinion  of  the  United 


"  For  text  of  agreement,  see  Bulletin  of  Apr.  7,  1946, 
p.  5S6. 

•  Ihid.,  p.  r,84. 


States  and  other  countries,  the  full  development  of 
air  transport  would  be  hampered.  As  the  airlines 
of  the  United  States,  Britain,  and  other  countries 
became  better  prepared  to  offer  services  to  each 
other's  territories  it  became  obvious  that  these  fun- 
damental divergences  in  air  policy  should  be  rec- 
onciled. Accordingly,  representatives  of  the 
United  States  and  the  United  Kingdom  met  at 
Bermuda  during  the  first  part  of  this  year  and  on 
February  11, 1946  signed  a  bilateral  understanding 
which  is  generally  known  as  the  "Bermuda 
agreement".^ 

In  addition  to  incorporating  the  Chicago  stand- 
ard clauses,  the  Bermuda  agreement  provides  that 
disputes  which  cannot  be  settled  through  bilateral 
consultation  are  to  be  referred  to  PICAO  (the  Pro- 
visional International  Civil  Aviation  Organiza- 
tion) for  an  advisory  opinion;  and  also  that  the 
agreement  shall  be  revised  to  conform  with  any 
subsequent  multilateral  air  pact  which  may  be 
subscribed  to  by  both  countries.  In  contrast  to  the 
pre-Bermuda  agreements  concluded  by  the  United 
States,  the  annex  not  only  describes  the  extensive 
routes  and  traffic  points  involved  but  also  sets  up 
a  comprehensive  procedure  for  determination  of 
rates  to  be  charged  by  airlines  operating  between 
points  in  the  two  countries  and  their  territories, 
with  such  rates  subject  to  governmental  review. 
Provision  is  made  in  the  annex  for  the  manner  in 
which  route  changes  are  to  be  made,  and  there  is  a 
section  dealing  with  "change  of  gauge"  (the  on- 
ward carriage  of  traffic  by  aircraft  of  a  different 
size  than  that  employed  on  the  earlier  stage  of  the 
same  route,  and  connecting  services). 

The  Bermuda  meeting  also  produced  a  final  act,' 
which  contained  a  number  of  collateral  under- 
standings on  the  operation  and  development  of 
air-transport  services  between  the  two  countries. 
No  arbitrary  restrictions  were  imposed  on  capac- 
ity, number  of  frequencies,  or  fifth-freedom  traf- 
fic, but  it  was  stipulated  that  the  airlines  of  one 
country  would  not  unduly  prejudice  the  airlines 
of  tlie  other,  and  three  general  principles  were 
agreed  upon  to  govern  the  carriage  of  "fill-up" 
fifth-freedom  traffic. 

The  Bermuda  agreement  was  regarded  as  a  sat- 
isfactory reconciliation  of  the  differences  whic^ 


1128 


Deparlmenf  of  Sf ate  Bulletin      •      December  22,  1946 


had  existed  on  international  air  policy  between  the 
United  States  and  the  United  Kingdom  since  the 
Chicago  conference.  At  the  time  of  its  conclusion 
there  was  no  specific  midertaking  that  either  Gov- 
ernment would  insist  on  this  type  of  arrangement 
in  their  subsequent  negotiations  with  other  coun- 
Iries.  However,  in  a  joint  statement  released  on 
September  19,  1946  both  Governments  agreed  that 
experience  had  demonstrated  that  the  Bermuda 
principles  were  sound,  and  in  their  view  provided 
1  reliable  basis  for  the  orderly  development  and 
3xpansion  of  international  air  transport/  It  was 
further  agreed  that  the  Bermuda-type  agreement 
presented  the  best  form  of  approach  to  the  problem 
jf  bilateral  arrangements  until  a  multilateral 
igreement  could  be  adopted.  As  a  means  of  f  ur- 
hering  acceptance  of  the  Bermuda  principles,  the 
joint  statement  also  mentioned  that  "each  govem- 
nent  is  prepared  upon  the  request  of  any  other  gov- 
?rnment  with  which  it  has  already  concluded  a 
jilateral  air  transport  agreement  that  is  not 
leemed  to  be  in  accordance  with  those  principles  to 
nake  such  adjustments  as  may  be  found  to  be  nec- 
issary". 

)ther  Agreements  With  Bermuda  Principles 

The  agreements  concluded  by  the  United  States 
.vith  Belgium,  Brazil,  China,  and  France  include 
ill  of  the  important  Chicago  and  Bermuda  provi- 
sions. The  form  of  these  agreements  varies  in  that 
;he  provisions  of  the  Bermuda  final  act  have  been 
ransferred  to  the  annex  and,  in  some  cases,  to  an 
iccompanying  protocol  of  signature.  The  agree- 
nents  with  Belgium,  Brazil,  and  France  also  in- 
clude paragi-aphs  dealing  with  the  question  of 
■ates  for  fifth-freedom  traflSc. 

The  bilateral  agreements  between  the  United 
5tates  and  Greece,  Egypt,  Lebanon,  the  Philip- 
)ines,  and  Uruguay  are  based  substantially  on  the 
Chicago  standard  form,  but  also  include  the  perti- 
lent  Bermuda  principles  governing  the  carriage  of 
ifth-freedom  traffic,  and  refer  to  settlement  of 
lisputes.  No  specific  rate-fixing  procedure  is  set 
orth. 

The  United  States-Indian  agreement  is  in  a 
aore  compact  form.  A  few  subjects  covered  by 
he  Chicago  clauses  in  other  bilateral  agreements 
re  omitted,  since  they  are  covered  by  the  Chicago 


convention  and  the  Chicago  interim  agreement. 
The  essential  Bermuda  clauses  are  incorporated, 
in  some  cases  with  slight  language  revision.  These 
have  been  transferred  from  the  annex,  where  they 
appeared  in  certain  previous  bilateral  agreements, 
to  the  main  body  of  the  document,  so  that  the  annex 
deals  exclusively  with  routes  and  traffic  points  as 
contemplated  by  the  original  Chicago  form.  All 
bilateral  air  agreements  concluded  by  the  United 
States  reserve  the  right  of  one  party  to  revoke 
operating  permission  to  an  airline  of  the  other 
party  when  conditions  of  the  agreement  and  its 
annexes  are  not  fulfilled.  The  comparable  version 
of  this  article  in  previous  Bermuda-type  agree- 
ments may  be  interpreted,  in  certain  circumstances, 
as  calling  for  recourse  to  PICAO  before  one  party 
revokes  the  operating  permit  of  another  party's 
airline.  Article  9  of  the  Indian  agreement  gives 
each  government  a  greater  latitude  in  this  con- 
nection by  permitting  it  to  determine  in  its  own 
judgment  whether  such  principles  are  being  vio- 
lated and  to  take  appropriate  actiort  immediately, 
although  it  is  definitely  contemplated  that  such 
action  might  be  reversed  by  a  PICAO  opinion. 

The  agreements  with  Australia  and  New 
Zealand  likewise  are  based  on  the  Chicago  and 
Bermuda  principles,  and  also  permit  a  joint  oper- 
ating company,  in  which  nationals  of  Australia 
and  New  Zealand  are  to  have  majority  ownership 
and  control,  to  exercise  the  reciprocal  rights  ob- 
tained from  the  United  States.  These  agreements 
also  contain  language  based  on  the  aforementioned 
article  9  of  the  agreement  with  India,  but  calling 
for  a  more  extensive  consultation  procedure  before 
operating  permits  are  modified. 

Pending  Bilateral  Negotiations 

There  remain  other  countries  where  it  will  be 
desirable  to  obtain  appropriate  landing  rights  for 
American-flag  services.  Negotiations  are  now  in 
progress  with  Bolivia,  Chile,  Cuba,  the  Domini- 
can Republic,  Ecuador,  Haiti,  Iraq,  Paraguay, 
Peru,  Siam,  Union  of  South  Africa,  and  Vene- 
zuela, and  it  is  also  probable  that  discussions  con- 
templating agreements  with  still  other  countries 
will  be  initiated  in  the  near  future. 


Bulletin  of  Sept.  29, 1946,  p.  577. 


1129 


RADIO  AIDS  TO  AIR  NAVIGATION 


hy  Horace  F.  Amrine 


On  October  31,  the  Special  Radio  Technical  Division  of 
the  Air  Navigation  Committee  (PICAO)  met  at  Montreal 
to  formulate  plans  for  international  agreement  on  standard- 
ized radio  equipTnent.  Prior  to  this  meeting,  at  the  invitation 
of  the  Intenm  Council  of  PICAO,  the  United  Kingdom  and 
the  United  States  Governraents  held  demonstrations  of  the 
various  types  of  radio  and  related  equipment  to  familiarize 
the  inemhers  of  the  committee  with  the  devices  and  systems 
to  be  considered  at  their  Montreal  meeting. 


The  first  year  of  post-war  international  civil 
aviation  has  been  one  in  which  practically  all  of 
the  major  problems  of  organization  and  opera- 
tion of  international  air  carriers  have  arisen.  The 
problem  of  communications,  which  embraces  radio 
aids  to  navigation,  airport  control,  and  blind- 
landing  facilities,  has  undoubtedly  been  among  the 
foremost  of  the  many  problems,  since  the  com- 
munications system  and  its  component  facilities  is 
the  actual  pulse  of  an  airways  system. 

The  existing  international  airways  systems  are 
chiefly  supported  by  the  communications-  and  air- 
navigational  facilities  that  were  installed  by  vari- 
ous military  forces  to  meet  the  needs  of  wartime 
air  transportation.  During  the  war  the  United 
States  and  the  United  Kingdom  produced  prac- 
tically all  of  the  equipment  which,  in  any  given 
theater.  Allied  forces  installed  for  this  pur- 
pose. Although  it  is  true  that  the  net  result  com- 
bined to  form  a  basis  for  the  post-war  inter- 
national airways  systems,  it  is  nevertheless  one 


that  is  totally  inadequate  and  without  standard- 
ization. To  achieve  best  a  high  degree  of  flight 
safety  a  standardization  must  be  reached,  but  it 
must  also  be  one  which  can  be  met  from  a  stand- 
point of  business  economy.  Obviously,  it  is  in- 
feasible  from  an  economic  standpoint  for  air- 
carrier  operators  to  install  in  the  aircraft  they 
operate  numerous  and  expensive  pieces  of  equip- 
ment of  the  various  types  which  would  be  required 
for  navigational  use  over  sections  of  a  long  inter- 
national air  route  where  each  country,  for  example, 
might  employ  such  radio  aids  as  it  decided  upon, 
without  regard  for  a  regional  standardization. 
Moreover,  it  is  equally  infeasible  from  a  stand- 
point of  maximum  pay-load  gain  to  sacrifice  so 
much  of  the  aircraft's  pay-load  weight  as  would 
be  required  to  transport  various  types  of  heavy 
navigational  equipment. 

Therefore,  in  view  of  these  last  two  considera- 
tions, plus  the  third  consideration  of  the  urgent 
need  for  modernization  of  a  major  portion  of 


1130 


Department  of  State  Bullelin      •      December  22,  1946 


existing  communications  equipment,  it  was  ap- 
parent tliat  an  early  agreement  for  standardiza- 
tion throughout  the  world  must  be  undertaken. 
To  achieve  this  end  the  Provisional  International 
Civil  Aviation  Organization  (PICAO)  assumed 
the  sponsorship  of  demonstrations  of  radio  aids 
to  navigation  in  the  United  Kingdom,  followed  by 
demonstrations  in  the  United  States,  in  order  that 
a  basis  could  be  formulated  for  all  member  states 
of  PICAO  to  come  to  an  early  agreement  on  a 
system  of  navigational  aids  which  all  international 
carriers  could  use  with  the  greatest  facility  and 
economy. 

The  demonstrations  which  PICAO  sponsored 
began  in  London  on  September  9,  1946  and  con- 
tinued through  September  30.  From  London  the 
entire  delegation  was  flown  to  New  York,  and 
thence  to  Indianapolis,  where  the  United  States 
demonstrations  were  held  from  October  7  to  23. 
At  Indianapolis  the  laboratory  and  facilities  of 
the  Civil  Aeronautics  Administration  were  used  as 
the  site  for  the  demonstrations.  The  following 
countries  were  represented  at  both  demonstra- 
tions: Argentina,  Australia,  Belgium,  Bolivia, 
Brazil,  Canada,  Chile,  China,  Czechoslovakia, 
Denmark,  Ecuador,  France,  Greece,  Guatemala, 
India,  Iran,  Ireland,  Italy,  Mexico,  Netherlands, 
Newfoundland,  New  Zealand,  Norway,  Philippine 
Republic,  Portugal,  Siam,  Spain,  Sweden,  Union 
of  South  Africa,  United  Kingdom,  United  States 
of  America,  Union  of  Soviet  Socialist  Kepublics, 
and  Venezuela.  In  addition,  there  was  a  large  rep- 
resentation of  private  industrial  concerns  and 
technical  advisers. 

The  demonstrations  at  Indianapolis  were,  when 
physically  possible,  presented  in  booth  displays  in 
the  large  hangar  of  the  Civil  Aeronautics  Admin- 
istration. Approximately  20  booths  were  set  up 
in  which  the  various  industries,  as  well  as  the  Civil 
Aeronautics  Administration,  the  United  States 
Army,  Navy,  and  Coast  Guard,  either  displayed 
mechanical  models  or  used  them  as  centers  for  lec- 
tures, display  of  equipment,  and  the  dissemination 
oi  literature.  In  numerous  cases,  of  course,  it  was 
not  practicable  to  employ  working  models,  and  in 
a  number  of  these  cases  installations  of  equipment 
had  been  made  in  aircraft  for  demonstration  in 
actual  flight  conditions. 

In  such  a  large  and  varied  display  it  was  neces- 


sary that  an  organization  be  achieved  which  would 
permit  the  entire  representation  to  view  systemati- 
cally the  demonstrations  and  to  hear  the  lectures. 
The  very  simple  but  effective  method  employed  to 
make  this  system  possible  was  that  of  dividing  the 
delegation  into  approximately  20  groups  of  8  to  10 
persons  each,  and  then  placing  each  group  under 
the  leadership  of  a  competent  Civil  Aeronautics 
Administration  guide.     The  problem  being  thus 
far  taken  care  of,  there  remained  only  the  working 
out  of  a  staggered  daily  schedule  whereby  one 
group  followed  another  in  an  orderly  fashion  to 
observe  displays,  to  hear  lectures,  or  to  participate 
in  actual  flights.     A  description  of  the  displays 
would  be  inadequate  if  mention  were  not  made  of 
the  eye-pleasing  aspects  which  they  presented.    In 
this  connection,  much  preparation  had  gone  into 
displays  in  general,  and  into  working  models  and 
pictured  representations  in  particular,  which  gave 
considerable  attractiveness  to  the  over-all  display. 
At  a  glance  at  the  over-all  display  of  equipment, 
the  average  onlooker  would  be  confused  as  to  the 
relative  position  which  each  of  the  various  types 
of  equipment  would  bear  to  the  complete  picture. 
It  becomes  necessary,  therefore,  to  make  a  division 
into  two  general  categories.     The  first  category 
takes  into  account  that  equipment  which  is  ready 
and  presently  available  /or  use.    The  second  cate- 
gory includes  that  equipment  which  will  be  ready 
for  general  usage  in  five  to  ten  years.    Obviously, 
the  concept  of  a  system  which  will  be  launched  to 
cover  a  world-wide  network  of  air  routes  must  take 
into  consideration  not  only  the  installations  which 
will  be  made  to  take  care  of  immediate  needs,  but 
also  how  this  system  will  integrate  with  the  system 
which  will  eventually  replace  anything  presently 
established.     The  major  consideration,  neverthe- 
less, was  that  of  pi'oviding  at  the  earliest  practic- 
able date  a  system  of  radio  navigational  aids  that 
could  be  agreed  upcm  for  standardization.     The 
policy  of  the  United  States  in  meeting  these  con- 
siderations was  based  on  the  recommendations  of 
the  Radio  Technical  Commission  for  Aeronautics. 
In  formulating  these  recommendations  the  Com- 
mission made  a  careful  analysis  of  the  wide  scope 
of  electronic  navigational  aids,  based  on  initially 
established  operational  requirements,  and  finally 
selected  the  various  types  of  equipment  which 
would  most  adequately  meet  the  established  opera- 


1131 


tional  requirements.  This  study  suggested  a 
break-down  of  the  entire  airways  system  into  four 
categories :  the  Airport  Zone,  the  Approach  Zone, 
the  En-Route  Short-Distance  Zone,  and  the  En- 
Eoute  Long-Distance  Zone.  Of  the  numerous  con- 
siderations upon  which  this  analysis  was  formu- 
lated, the  economical  use  of  the  radio-frequency 
spectrum  was  among  the  foremost. 

The  foregoing  is  brought  out  to  show  the  basis 
on  which  the  United  States  demonstrations  were 
launched,  and  naturally  comes  as  hindsight  rather 
than  as  the  viewpoint  from  which  the  average  for- 
eign representative  surveyed  the  demonstrations. 
Discussions  of  policy  from  the  standpoint  of  "sell- 
ing" United  States  policy  or  United  States  equip- 
ment was  not  a  part  of  this  demonstration;  and 
careful  avoidance  was  made  of  either  subject,  since 
the  purpose  of  tlie  demonstration  was  to  promote 
study  and  the  comparison  of  United  States  prod- 
ucts and  methods  with  those  of  other  countries. 

On  this  basis,  the  visiting  delegates  were  shown 
complete  blind-landing  systems  and  complete 
short-  and  long-distance  navigational  systems,  as 
well  as  various  components  of  each  system,  in  such 
a  manner  as  would  afford  each  representative  an 
opportunity  to  make  comparisons.  Component 
parts  of  these  various  systems  included  instruments 
which  have  not  previously  been  in  general  use, 
such  as  distance-measuring  equipment,  collision- 
warning  devices  designed  for  both  ground  and  air- 
borne usage,  and  aircraft  equipment  for  completely 
automatic  flight.  It  is  assumed,  of  course,  that  all 
radio  aids  considered  are  specifically  applicable  to 
use  under  adverse  weather  conditions  en  route,  ap- 
proaching the  airport,  and  landing  at  the  airport. 

One  manufacturer  demonstrated  a  distance- 
measuring  device,  in  connection  with  a  complete 
navigational  and  anti-collision  system,  which  fur- 
nishes the  pilot  with  the  measurement  of  slant 
range  from  the  airplane  to  a  ground  beacon  of 
known  location.  This  information  is  presented  on 
a  meter  that  can  be  mounted  in  a  standard  instru- 
ment-panel opening.  The  equipment  operates  in 
the  1000-megacycle  band,  using  an  automatic  radio 
transmitter-receiver  in  the  airplane  and  an  auto- 
matic radio  receiver-transmitter  as  a  ground  bea- 
con. Facilities  are  also  provided  to  indicate  the 
touchdown  point  on  the  runway  to  within  an  ac- 
curacy of  plus  or  minus  250  feet.     In  this  particu- 


lar case,  although  the  distance-measuring  device  is 
regarded  as  ready  for  early  usage,  the  navigational 
and  anti-collision  system  is  considered  to  be  some- 
what futuristic.  Of  this  system  it  might  be  said 
that  the  anti-collision  features  furnish  the  pilot 
with  information,  through  a  transponder  system, 
which  warns  him  of  ground  obstructions  as  well  as 
other  aircraft  which  might  become  a  hazard  to  his 
flight.  At  Indianaix)lis  a  demonstration  of  this 
system  was  made  under  actual  flight  conditions, 
with  two  planes  similarly  equipped  and  flying 
"blind"  in  the  near  vicinity  of  each  other;  all  of 
these  aircraft  being  navigated  and  avoiding  each 
other  solely  by  use  of  this  installation. 

The  Civil  Aeronautics  Administration  demon- 
strated a  complete  en-route  na^^gational  system 
which  is  combined  with  a  complete  landing  system, 
and  wliich  appears  to  have  the  greatest  promise 
for  immediate  usage.  This  system  incorj^orates 
omnidirectional  ranges  operating  in  the  very  high- 
frequency  band,  and  the  Civil  Aeronautics  Admin- 
istration's cross-pointer  instrmnent  landing  sys- 
tem. At  pi-esent  marker  beacons  are  used  for  po- 
sition fixing  in  the  instrument  landing  system,  but 
will  be  replaced  at  an  early  date  with  distance- 
measuring  equipment.  This  system  is  actually  in 
operation  on  the  New  York-Chicago  airway,  where 
it  is  undergoing  service  testing. 

A  third  device  which  shows  promise  for  early 
usage  is  the  A-12  Automatic  Pilot,  and  of  all  the 
demonstrations  viewed  by  the  various  delegations 
this  particular  one  appeared  to  be  the  most  spec- 
tacular. Under  actual  flight  conditions  in  the 
manufacturer's  DC-3,  the  delegates  witnessed 
automatic  flight  with  the  exception  of  the  actual 
landing  and  take-off.  Immediately  after  taking 
off,  when  only  a  few  feet  off  the  runway,  the  auto- 
matic pilot  was  cut  in  and  the  aircraft  gained  alti- 
tude to  1,500  feet,  where  it  was  manually  leveled 
off.  At  a  distance  of  8  to  12  miles  from  the  ap- 
proach end  of  the  runway,  the  automatic  pilot  was 
switched  to  "localizer"  and  the  plane  turned  auto- 
matically, seeking  and  holding  the  "on  course" 
signal  track  defined  by  the  ground  localizer  at  the 
end  of  the  runway.  During  this  procedure  con- 
stant altitude  was  held,  and  at  the  proper  point 
air-speed  was  reduced,  wheels  and  flaps  were 
lowered,  and  the  aircraft  proceeded  until  the  glide- 
path  "on  course"  signal  was  intercepted.    When 


1132 


Department  of  State  Bulletin      •      December  22,  1946  ^ 


certain  indications  were  received  on  the  pilot's  in- 
dicator the  control  was  switched  to  "approach" 
position,  at  which  time  the  aircraft  automatically 
began  its  descent  on  a  21/2°  glide-path.  The  only 
function  in  this  process  that  required  manual  con- 
trol was  that  which  the  pilot  performed  in  adjust- 
ing the  throttles  to  hold  a  constant  approach  speed. 
When  the  aircraft  reached  the  desired  distance 
from  the  runway  the  pilot  pressed  the  "release" 
button  on  the  control  wheel  and  effected  a  normal 
landing. 

These  three  systems  have  been  described  in  de- 
:ail  in  order  to  show  how  a  combination  of  instru- 
ments and  en-route  navigational  systems  can  be 
;orrelated. 

One  phase  of  the  United  States  portion  of  the 
lemonstrations  began  upon  leaving  London  in 
light  to  New  York,  when  the  delegates  were  af- 
forded the  opportunity  of  observing  practical 
isage  of  Loran  (long-range  navigation)  in  a 
"J^avy  transport.  Since  no  demonstration  is  as  ef- 
'ective  as  one  which  successfully  utilizes  actual 
:onditions,  the  portion  of  the  delegation  which 
lad  the  opportunity  to  witness  the  usage  of  Loran 
ras  quite  favorably  impressed.  This  is  significant 
lecause  Loran  is  the  foremost  of  the  United  States 
ystems  of  the  long-distance  navigation  category. 
Lt  Indianapolis  both  types  of  Loran  were  on  dis- 
>lay— the  air-borne  and  the  ship-borne.  The  lat- 
er type  of  equipment  was  shown  in  order  to  em- 
ihasize  the  fact  that  Loran  is  equally  suitable  for 
oth  air  and  sea  service. 

Another  of  the  more  interesting  systems  which 
?as  on  display  in  a  working-model  form  was  one 
a  which  television  was  utilized.  This  particular 
ystem  employs  a  ground-search  radar  which  sur- 
eys  the  airspace  of  interest  and  displays  on  a 
athode-ray  tube  the  information  thus  received, 
'his  radar  presentation  is  viewed  by  a  television 
amera  with  a  map  of  the  area  superimposed,  and 
tie  combination  picture  is  broadcast  by  a  tele- 
ision  transmitter.  The  picture  is  reproduced  by 
television  receiver  in  the  airplane,  and  the  pilot 
3es  his  plane  as  a  spot  of  ligiit  moving  across  a 
lap;  other  planes  operating  in  the  radius  that 
lis  scope  covers  also  appear  as  different  spots  of 
ght,  each  moving  across  the  map  according  to  its 
3tual  course.  This  system  also  includes  the 
lethod  of  separating  the  radar  echoes  according 


to  altitude  and  transmitting  a  separate  picture 
for  each  altitude  level.  This  is  accomplished  by 
having  the  aircraft  carry  a  transponder,  which 
consists  of  a  receiver  and  transmitter  connected 
together  so  that  the  transmitter  emits  one  or  more 
pulses  when  the  receiver  picks  up  a  pulse  from  the 
ground  radar.  This  is  the  briefest  sort  of  descrip- 
tion that  could  be  undertaken  for  a  system  wliich 
has  such  extensive  possibilities,  but  it  is  not  possi- 
ble for  this  report  to  be  more  detailed.  It  should 
be  mentioned,  however,  that  this  system  is  con- 
sidered quite  futuristic,  but  in  its  application  of 
television  processes  it  appears  to  have  vast 
IJossibilities. 

The  equipment  and  systems  which  have  been 
mentioned  here  represent  a  very  small  portion  of 
those  which  were  displayed  or  demonstrated  at 
Indianapolis,  and  it  is  with  possible,  although  un- 
intended, injustice  to  many  other  interesting  and 
worthwhile  products  that  omissions  have  been 
made.  A  not  inconsiderable  portion  of  the  dis- 
plays was  devoted  to  developments  other  than  com- 
plete or  partial  navigational  systems.  In  this  field 
are  included  new  ground  and  air-borne  radio  com- 
munications equipment,  aircraft  instruments,  and 
products  which  would  generally  relate  to  improved 
aerial  navigation. 

The  demonstrations  at  Indianapolis  closed  on 
October  23.  The  following  day  the  delegation  was 
flown  back  to  New  York,  where  on  the  25th  and 
26th  of  October  further  demonstrations  of  the 
Loran  equipment  under  actual  flight  conditions 
were  presented.  On  October  27  the  delegation 
moved  to  Montreal  to  witness  the  Australian  dem- 
onstration of  their  Multiple-Track  Radar  Navi- 
gation System.  This  system  was  demonstrated  in 
flights  between  Montreal  and  Ottawa  and  fur- 
nished one  more  workable  device  for  eventual  con- 
sideration, but  one  to  be  regarded  as  somewhat 
futuristic. 

At  Montreal  on  the  31st  of  October  the  delegates 
came  together  once  more  at  the  session  of  the 
Special  Eadio  Technical  Division  of  PICAO. 
With  the  information  they  had  received  over  a 
period  of  almost  two  months,  the  delegates  studied, 
deliberated,  and  brought  forth  from  this  session  an 
agreement  which  will  begin  the  standardization  of 
communications  and  radio  aids  for  an  interna- 
tional civil  airways  system. 


724922—46- 


1133 


SECOND  SESSION  OF  INTERIM  COMMISSION  OF 
WORLD  HEALTH  ORGANIZATION 


hy  H.  Van  Zile  Hyde 


While  mvaitmg  the  entry  into  force  of  the  constitution  of 
the  World  Health  Organization,  an  Interim  Commission, 
composed  of  health  experts  representing  18  states,  is  pro- 
ceeding with  the  unification  of  administration  of  interna- 
tional health  operations  and  is  addressing  itself  vigorously 
to  urgent  international  health  prollems.  At  the  same  time 
it  is  laying  the  groundwork  for  the  first  world  health 
assembly  which  it  hopes  can  meet  during  191^11. 


The  Interim  Commission  of  the  World  Health 
Organization  held  its  second  session  in  Geneva, 
November  4  - 13,  1946,  at  which  time  it  took  ac- 
tion to  consolidate  the  administration  of  the  ex- 
change of  epidemiological  information,  accepted 
the  transfer  of  certain  UNRRA  health  functions, 
and  advanced  the  planning  for  the  first  world 
health  assembly. 

Under  the  terms  of  the  aiTangement  establish- 
ing the  Interim  Commission,  it  will  meet  not  less 
frequently  than  every  fom-  months,  the  next  ses- 
sion being  scheduled  for  Geneva  on  March  31, 
1947.  The  Conmiission  will  continue  in  existence 
until  dissolved  by  the  first  world  health  assembly 
which  will  be  convened  after  the  constitution  of 
the  World  Health  Organization  has  been  accepted 
by  26  of  the  United  Nations.  Thus  far  the  con- 
stitution has  been  accepted  by  China  and  the 
United  Kingdom,  both  signing  without  reserva- 
tion in  July,  and  by  Canada  and  New  Zealand, 
whose  ]5arliaments  have  since  approved. 

Representatives  of  all  18  member  states,  except 
Peru  and  the  Ukraine,  attended  the  second  session. 


^  BuiXETiN  of  Nov.  10,  1946,  p.  842. 


1134 


The  major  actions  taken  by  the  Commission  at 
this  session  are  discussed  below. 

Exchange  of  Epidemiological  Information 

In  consolidating  the  formerly  hydra-headed 
administration  of  the  international  exchange  of 
epidemiological  information,  the  Commission,  on 
October  16,  took  over  from  the  United  Nations 
this  function  as  performed  by  the  former  League 
of  Nations  Health  Organization.  The  Commis- 
sion has  agreed  with  UNRRA  to  transfer,  as  of 
December  1,  1946,  the  similar  functions  assigned 
to  that  agency  by  the  1944  Sanitary  Convention 
and  agreed  at  this  session  to  act  as  agent  for  the  \ 
Office  International  d'Hygicne  Publique  in  per- 
forming its  functions  in  this  connection  as  well  as  I 
all  its  other  duties.^ 

Transfer  of  Certain  UNRRA  Health  Functions 

The  Commission  approved  a  draft  agi-eement 
with  UNRRA  providing  for  the  transfer  of  certain 
other  UNRRA  health  functions  and  authorized 
the  executive  secretary  to  accept  $1,500,000  which 
UNRRA  had  offered  to  transfer  for  the  continu- 

Deparf menf  of  Sf a/e  Bu//ef/n      •      December  22,  1 9461 


ance  of  health  activities.  The  functions  involved 
in  the  transfei"  are  the  furnishing  of  technical  ad- 
vice, jjarticularly  in  regard  to  the  control  of  tuber- 
culosis and  malaria,  to  countries  receiving  aid 
from  UNRRA,  with  special  attention  to  the  needs 
of  China ;  granting  scholarships  to  technical  per- 
sonnel of  these  countries;  and  conducting  a  health 
training  program  in  Ethiopia.  The  UNRRA 
supply  program  and  the  program  for  the  care  of 
displaced  persons  are  not  involved  in  the  transfer. 

In  view  of  the  necessarily  drastic  reduction  in 
the  scope  of  activities  imposed  by  the  relatively 
small  sum  made  available  to  the  Commission,  it 
recognized  the  necessity  of  a  complete  reevalua- 
tion  of  UNRRA  health  programs  in  consultation 
with  the  several  governments  concerned.  Pend- 
ing the  results  of  a  survey,  the  Commission 
authorized  the  executive  secretary  to  utilize,  as 
necessary,  $500,000  in  retaining  UNRRA  person- 
nel. A  committee  composed  of  the  representa- 
tives of  Canada,  China,  the  Ukraine,  the  United 
Kingdom,  the  United  States,  and  Yugoslavia  was 
appointed  to  consider  and  approve,  in  January 
1947,  a  budget  for  the  total  program  under  the 
$1,500,000  fund,  on  the  basis  of  the  reevaluation 
and  recommendations  of  the  executive  secretary. 

The  transfer  of  these  UNRRA  functions  to  the 
Interim  Commission  is  highly  appropriate,  be- 
cause the  health  objective  of  UNRRA,  within  its 
limited  area  of  activity,  has  been  identical  with  the 
world-wide  objective  of  the  WHO  in  improving 
health  through  the  strengthening  of  national 
health  services.  In  making  the  agreement  both 
UNRRA  and  the  Interim  Commission  have  been 
conscious  of  the  danger  of  allowing  a  gap  in  this 
work  between  the  time  of  the  termination  of 
UNRRA  and  the  meeting  of  the  first  world  health 
assembly  of  the  WHO. 

Expert  Committees 

The  Commission  recognized  that  it  should  not 
anticipate  the  work  of  the  WHO  by  establishing 
a  complex  of  definitive  expert  committees,  but 
rather  it  established  five  committees  in  specialized 
fields  concerned  with  urgent  problems.  It  was 
considered  that  these  committees  might  serve  in 
some  cases  as  nuclei  for  groups  to  be  established  on 
a  more  permanent  basis  by  the  WHO.    Appoint- 


ments of  individual  experts  to  these  committees 
will  be  made  by  the  chairman  of  the  commission 
and  its  executive  secretary,  in  numbers  specified 
by  the  Commission.  The  expert  committees 
established  by  the  second  session  are: 

(1)  Expert  Commiittee  on  Revision  of  Inter- 
national List  of  Causes  of  Death  and  on  the 
Establishment  of  International  Lists  of  Causes  of 
Morhidity.  This  committee,  which  is  not  to  ex- 
ceed nine  persons,  is  to  make  recommendations  to 
the  Commission  concerning  actions  which  it  might 
appropriately  take  to  effect  the  sixth  decennial 
revision  of  the  internationaUist  of  causes  of  death 
and  is  to  review  existing  machinery  and  continue 
such  preparatory  work  as  is  necessary  to  effect 
the  establishment  of  international  lists  of  causes 
of  morbidity.  It  is  considered  important  that  the 
revision  of  the  list  of  causes  of  death  be  completed 
in  sufficient  time  for  the  revision  to  be  used  inter- 
nationally in  the  census  of  1950. 

(2)  Expert  Committee  on  Biological  Standa/rd- 
ization.  This  committee,  which  is  not  to  exceed 
eight  members,  will  define  the  subjects  which  ap- 
pear to  be  the  most  urgent  for  study  in  the  field 
of  biological  standardization,  and  will  draw  up  a 
plan  of  work  covering  the  setting  up  of  interna- 
tional standards  and  units  in  the  fields  found  to  be 
urgent. 

(3)  Expert  Committee  on  Pilgrimages.  This 
committee,  to  be  composed  of  six  experts  drawn 
from  Egypt,  France,  India,  Saudi  Arabia,  the 
United  Kingdom,  and  the  Netherlands,  will  con- 
sider the  revision  of  the  pilgi-image  clauses  of  the 
international  sanitary  conventions,  making  its 
recommendations  to  an  expert  committee  on  the 
revision  of  sanitary  conventions,  which  it  is  ex- 
pected will  be  established  at  the  next  session  of 
the  Interim  Commission. 

(4)  Expert  Com/mittee  on  Quarantine.  This 
committee,  composed  of  experts  drawn  from 
Brazil,  China,  France,  the  Netherlands,  India, 
Egypt,  the  United  Kingdom,  the  Union  of  Soviet 
Socialist  Republics,  and  the  United  States,  will 
deal  with  problems  arising  out  of  the  application 
of  the  existing  sanitary  conventions.  A  subcom- 
mittee, composed  of  not  more  than  seven  experts, 
was  established  to  perform  work  regarding  the 


1135 


definition  of  yellow-fever  endemic  areas  and  the 
international  approval  of  vaccine,  assigned  to 
IJNRRA  by  the  1944  sanitary  conventions  and  to 
be  assumed  by  the  Interim  Coromission  on  Decem- 
ber 1,  1946. 

(5)  Expert  Com/mittee  on  Narcotic  Drugs. 
This  committee,  which  is  to  be  composed  of  five 
persons  teclmically  qualified  in  the  pharmacologi- 
cal and  clinical  aspects  of  drug  addiction,  will 
advise  the  Commission  on  any  technical  questions 
concerning  tliis  subject  which  may  be  referred  to 
it.  It  will  be  available  to  give  advice  in  its  tech- 
nical field  to  the  Narcotics  Commission  of  the 
Economic  and  Social  Council. 

(6)  Expert  Committee  on  Malaria.  This  com- 
mittee, composed  of  five  experts,  will  advise  the 
Commission  concerning  its  malaria  program  in 
countries  receiving  UNRRA  aid  and  will  develop 
a  plan  for  the  malaria  activities  of  the  WHO. 

Relation  With  Other  Specialized  Agencies 

The  executive  secretary  presented  to  the  Com- 
mission a  note  concerning  the  relation  between  the 
WHO  and  other  specialized  agencies.  This  note 
included  a  statement  of  basic  principles  and  a 
review  of  relations  to  date  with  other  agencies. 
The  Commission  approved  the  basic  principles 
incorporated  in  the  note  and  authorized  the  ex- 
ecutive secretaiy  to  continue  negotiations,  at  the 
secretariat  level,  with  other  specialized  agencies 
with  the  objective  of  developing  draft  agreements 
for  consideration  by  the  Commission  and  eventual 
presentation  to  the  world  health  assembly. 

The  basic  principles  approved  by  the  Commis- 
sion are  briefly:  (1)  No  agency  should  enter  into 
the  field  of  another  agency  without  previous  con- 
sultation and  agreement  with  that  agency;  (2) 
Collaboration  between  two  agencies  should  aim  at 
bringing  together  to  deal  with  common  problems 
experts  of  related  but  different  and  comple- 
mentary fields,  rather  than  experts  in  the  same 
field  and  with  the  same  point  of  view  nomi- 
nated by  the  two  different  agencies;  (3)  Joint 
committees  are  the  most  effective  means  of  getting 
such  experts  to  work  together;  (4)  Representa- 
tion on  such  committees  should  be  apportioned  on 
the  basis  of  the  relative  importance  of  the  par- 
ticular field  to  the  various  agencies  participating 


in  such  joint  committees;  (5)  Secretariat  duties 
in  connection  with  joint  committees  should  be 
apportioned  between  the  participating  agencies 
upon  the  basis  of  the  relative  importance  of  the 
subject  to  each  agency;  (6)  In  the  case  of  a  sub- 
ject which  is  the  exclusive  responsibility  of  one 
agency,  but  in  which  another  agency  has  an  in- 
terest, the  former  agency  sliould  supply  the  lat- 
ter, upon  request,  with  information  concerning  the 
subject;  (7)  A  joint  conmiittee  should  be  per- 
mitted to  establish  subcommittees  composed  of 
experts  from  the  participating  agencies  on  the 
basis  of  the  relative  interest  of  each  agency  in 
the  specific  problem  being  handled  by  the  sub- 
committee, even  to  the  extent  of  a  subcommittee 
being  composed  entirely  of  experts  of  a  single 
agency;  (8)  There  should  be  systematic  exchange 
of  all  publications  between  specialized  agencies; 
(9)  Each  specialized  agency  should  invite  ob- 
servers of  all  other  specialized  agencies  to  annual 
general  conferences  or  assemblies;  (10)  Special- 
ized agencies  should  invite  to  their  executive 
boards  or  technical  committees  observers  from  the 
other  agencies  when  the  agenda  justifies  such  ac- 
tion; (11)  In  certain  instances  permanent  liaison 
officers  should  be  appointed  between  specialized 
agencies  with  extensive  interests  in  common. 

Headquarters 

It  was  determined  that  the  Interim  Commission 
should  continue  to  maintain  its  headquarters  in 
New  York,  establishing  at  the  same  time  an  office 
in  Geneva  concerned  primarily  with  the  consoli- 
dation of  epidemiological  information  services 
and  with  the  operation  in  Europe  of  the  health 
functions  transferred  from  UNRRA.  A  commit- 
tee composed  of  the  rex^resentatives  of  Canada, 
Egypt,  India,  Mexico,  and  Norway  was  appointed 
to  study  the  question  of  site  of  the  headquarters  of 
the  World  Health  Organization,  so  that  a  consid- 
ered recommendation  might  be  made  to  the  first 
world  health  assembly.  Major  C.  Mani  (India) 
was  elected  chairman  of  this  committee.  The  com- 
mittee requested  the  executive  secretary  to  circu- 
larize governments,  informing  them  of  the  re- 
quirements of  the  WHO,  with  a  view  to  determin- 
ing what  facilities  might  be  available  in  the  j 
various  countries. 


1136 


Department  of  State  Bulletin      •      December  22,  1946 


THE  UNITED  NATIONS 


Meeting  of  the  General  Assembly 


PRINCIPLES  GOVERNING  GENERAL  REGULATION 
AND  REDUCTION  OF  ARMAMENTS^ 


1.  In  pursuance  of  Article  11  of  the  Charter  and 
with  a  view  to  strengthening  international  peace 
and  security  in  conformity  with  the  Purposes  and 
Principles  of  the  United  Nations, 

The  General  Assembly, 

Recognizes  the  necessity  of  an  early  general 
regulation  and  reduction  of  armaments  and  armed 
forces. 

2.  Accordingly, 

The  General  Assembly, 

Recommends  that  the  Security  Council  give 
prompt  consideration  to  formulating  the  practical 
measures,  according  to  their  priority,  which  are 
essential  to  provide  for  the  general  regulation  and 
reduction  of  armaments  and  armed  forces  and  to 
assure  that  such  regulation  and  reduction  of  arma- 
ments and  armed  forces  will  be  generally  observed 
by  all  participants  and  not  unilaterally  by  only 
some  of  the  participants.  The  plans  formulated 
by  the  Security  Council  shall  be  submitted  by  the 
Secretary  General  to  the  Members  of  the  United 
Nations  for  consideration  at  a  special  session  of 
the  General  Assembly.  The  treaties  or  conven- 
tions approved  by  the  General  Assembly  shall  bg 
submitted  to  the  signatory  States  for  ratification 
in  accordance  with  Article  26  of  the  Charter. 


3.  As  an  essential  step  towards  the  urgent  objec- 
tive of  prohibiting  and  eliminating  from  national 
armaments  atomic  and  all  other  major  weapons 
adaptable  now  and  in  the  future  to  mass  destruc- 
tion, and  the  early  establishment  of  international 
control  of  atomic  energy  and  othpr  modern  sci- 
entific discoveries  and  technical  developments  to 
ensure  their  use  only  for  peaceful  purposes, 

The  General  Assembly, 

Urges  the  expeditious  fulfilment  by  the  Atomic 
Energy  Commission  of  its  terms  of  reference  as 
set  forth  in  Section  5  of  the  General  Assembly 
Resolution  of  24  January  1946. 

4.  In  order  to  ensure  that  the  general  2:)rohibition, 
regulation  and  reduction  of  armaments  are  di- 
rected towards  the  major  weapons  of  modern  war- 
fare and  not  merely  towards  the  minor  weapons. 

The  General  Assembly, 

Recommends  that  the  Security  Council  expedite 
consideration  of  the  reports  which  the  Atomic 
Energy  Coromission  will  make  to  the  Security 
Council  and  that  it  facilitate  the  work  of  that 
Commission,  and  also  that  the  Security  Council 
expedite  consideration  of  a  draft  convention  or 
conventions  for  the  creation  of  an  international 


'A/267.    Dec.  13,  1SM6. 

Excerpts  from  General  Assembly  Doc. 


1137 


THE  UNITED  NATIONS 


system  of  control  and  inspection,  these  conventions 
to  include  the  prohibition  of  atomic  and  all  other 
major  weapons  adaptable  now  and  in  the  future 
to  mass  destruction  and  the  control  of  atomic 
energy  to  the  extent  necessary  to  ensure  its  use 
only  for  peaceful  purposes. 

5.  The  General  Assembly, 

Further  Recognizes  that  essential  to  the  gen- 
eral regulation  and  reduction  of  armaments  and 
armed  forces  is  the  provision  of  practical  and 
effective  safeguards  by  way  of  inspection  and 
other  means  to  jjrotect  complying  states  against 
the  hazards  of  violations  and  evasions. 

Accordingly, 

The  General  Assembly, 

Recommends  to  the  Security  Council  that  it 
give  prompt  consideration  to  the  working  out  of 
proposals  to  provide  such  practical  and  effective 
safeguards  in  connection  with  the  control  of 
atomic  energy  and  the  regulation  and  reduction 
of  armaments. 

6.  To  ensure  the  adoption  of  measures  for  the 
early  general  regulation  and  reduction  of  arma- 
ments and  armed  forces,  for  the  prohibition  of 
the  use  of  atomic  energy  for  military  purposes 
and  the  elimination  from  national  armaments  of 
atomic  and  all  other  major  weapons  adaptable 
now  or  in  the  future  to  mass  destruction,  and  for 
the  control  of  atomic  energy  to  the  extent  neces- 
sary to  ensure  its  use  only  for  peaceful  purposes, 

There  Shall  Be  Established, 

within  the  framework  of  the  Security  Coun- 
cil, which  bears  the  primary  responsibility  for 
the  maintenance  of  international  peace  and  se- 
curity, an  international  system,  as  mentioned  in 
paragraph  4,  operating  through  special  organs. 


which  organs  shall  derive  their  powers  and  status 
from  the  convention  or  conventions  under  which 
they  are  established. 

7.  The  General  Assembly,  regarding  the  prob- 
lem of  security  as  closely  connected  with  that  of 
disarmament, 

Recommends  tlie  Security  Council  to  accelerate 
as  much  as  possible  the  placing  at  its  disposal  of 
the  armed  forces  mentioned  in  Article  43  of  the 
Charter ; 

It  Recommends  the  members  to  undertake  the 
progressive  and  balanced  withdrawal,  taking  ac- 
count of  the  needs  of  occupation,  of  their  armed 
forces  stationed  in  ex-enemy  territories,  and  the 
withdrawal  without  delay  of  armed  forces  sta- 
tioned in  the  territories  of  Members  without  their 
consent  freely  and  publicly  expressed  in  treaties 
or  agreements  consistent  with  the  Charter  and 
not  contradicting  international  agreements; 

It  Further  Recommends  a  corresponding  re- 
duction of  national  armed  forces,  and  a  general 
progressive  and  balanced  reduction  of  national 
armed  forces. 

8.  Nothing  herein  contained  shall  alter  or  limit  the 
resolution  of  the  General  Assembly  passed  on  24 
January  1946,  creating  the  Atomic  Energy  Com- 
mission. 

9.  The  General  Assembly, 

Calls  upon  all  Members  of  the  United  Nations 
to  render  every  possible  assistance  to  the  Security 
Council  and  the  Atomic  Energy  Commission  in 
order  to  promote  the  establisliment  and  main- 
tenance of  international  peace  and  collective  secu- 
rity with  the  least  diversion  for  armaments  of  the, 
world's  human  and  economic  resources. 


ADDRESS  BY  THE  SECRETARY  OF  STATE  i 

Mr.  President: 

The  United  States  supports  whole-heartedly  the 
resoliition  pending. 

Ever  since  the  close  of  hostilities  it  has  been  the 
policy  of  the  United  States  to  hasten  the  return  of 
conditions  of  peace.    We  wish  to  enable  the  fight- 


"  Delivered  at  the  final  plenary  session  of  the  General 
Assembly  on  Dec.  13  and  released  to  the  press  by  the 
Office  of  the  Secretary  of  State,  New  York,  N.  Y.,  on  the 
same  date. 


ing  men  of  the  United  Nations  to  return  to  their 
homes  and  to  their  families.  We  wish  to  give  the 
peoples  of  all  lands  the  chance  to  rebuild  what  the 
war  has  destroyed. 

There  need  be  no  concern  about  the  willing- 
ness of  the  American  people  to  do  everything  with- 
in their  power  to  rid  themselves  and  the  world  of 
the  burden  of  excessive  armaments. 

In  the  recent  past  the  concern  of  peace-loving 
nations  has  not  been  that  America  maintained  ex- 


I 


1138 


Department  of  State  BvUefin      •      December  22,  1946 


THE  UNITED  NATIONS 


cessive  armaments.  The  concern  has  been  that 
America  failed  to  maintain  adequate  armaments  to 
guard  the  peace. 

"When  Hitler  started  the  World  War  in  Septem- 
ber 1939,  Germany  had  been  preparing  for  war  for 
moi-e  than  five  years.  But  at  that  time  there  were 
in  active  service  of  the  United  States  in  the  Army, 
Navy,  and  Air  Force  only  330,000  men.  It  was 
our  military  weakness,  not  our  military  strength, 
that  encouraged  Axis  aggression. 

After  World  War  I,  Japan  was  given  a  man- 
date over  strategically  important  islands  in  the 
Southwest  Pacific  which  bound  her  to  keep  those 
islands  demilitarized.  Although  the  evidence 
showed  that  Jai>an  was  violating  the  terms  of  the 
mandate,  the  United  States  delayed  in  building 
bases  on  islands  under  her  sovereignty  in  the 
Pacific. 

The  result  was  that  when  the  United  States  was 
treacherously  attacked  at  Pearl  Harbor  she  had  no 
idequately  fortified  base  in  the  Pacific  between 
Pearl  Harbor  and  the  Philippines. 

Japan's  covenant  not  to  use  the  mandated  terri- 
ories  as  military  bases  contained  no  safeguards  to 
nsure  compliance.  Japan's  covenant  misled  the 
Qnited  States,  but  it  did  not  restrain  Japan.  That 
R-as  our  mistake,  and  we  do  not  intend  again  to 
nake  that  mistake. 

While  before  World  War  II  the  peace-loving  na- 
tions were  seeking  peace  through  disarmament, 
iggressor  nations  were  building  up  their  arma- 
nents.  And  all  the  while  the  aggressor  nations 
ivere  building  up  armaments  they  were  claiming 
hat  they  were  being  smothered  and  encircled  by 
)ther  nations. 

While  we  scrapped  battleships,  Japan  scrapped 
>lueprints.  While  we  reduced  our  Army  to  the 
ize  of  a  large  police  force,  Germany  trained  its 
'outh  for  war. 

Too  late,  those  who  had  taken  a  leading  part  in 
he  struggle  for  general  disarmament  before 
Vorld  War  II  discovered  that  Axis  agents  were 
leliberately  organizing  and  supporting  disarma- 
aent  movements  in  non-Axis  countries  in  order  to 
ender  those  countries  powerless  to  resist  their 
ggression. 

Too  late,  those  who  had  taken  a  leading  part  in 
he  struggle  for  general  disarmament  discovered 
hat  it  was  not  safe  to  rely  upon  any  disarmament 


which  is  not  collectively  enforced  and  made  a  part 
of  a  system  of  collective  security. 

It  will  take  time,  patience,  and  good-will  to 
achieve  really  effective  disarmanent.  The  difficul- 
ties are  great  and  the  complexities  many.  The 
defense  needs  of  states  vary  greatly.  The  elements 
which  make  up  the  military  strength  of  states 
likewise  vary  greatly  and  cannot  readily  be  com- 
pared or  appraised. 

Effective  disarmament  cannot  be  secured  by  any 
.simple  mathematical  rule.  Demobilized  divisions 
can  be  speedily  recalled  to  the  colors.  But  a 
scrapped  plane  or  a  scrapped  battleship  can  never 
be  recommissioned. 

Disarmament  to  be  effective  must  look  to  the 
future.  It  is  easy  for  us  to  see  what  folly  it 
would  have  been,  when  gunpowder  was  discovered, 
to  start  disarming  by  limiting  the  use  of  the  bow 
and  arrow. 

We  must  see  to  it  that  disarmament  starts  with 
the  major  weapons  of  mass  destruction. 

We  must  see  to  it  that  disarmament  is  general 
and  not  unilateral. 

We  must  see  to  it  that  disarmament  rests  not 
upon  general  promises  which  are  kept  by  some 
states  and  ignored  by  other  states. 

We  must  see  to  it  that  disarmament  is  accom- 
panied by  effective  safeguards  by  way  of  inspec- 
tion and  other  means  under  international  control 
which  will  protect  complying  states  against  the 
hazards  of  violations  and  evasions. 

We  must  see  to  it  that  these  safeguards  are  so 
clear  and  explicit  that  there  will  be  no  question  of 
the  right  of  complying  states,  veto  or  no  veto,  to 
take  immediate  action  in  defense  of  the  rule  of 
law. 

No  disarmament  system  which  leaves  law-abid- 
ing states  weak  and  helpless  in  face  of  aggression 
can  contribute  to  world  peace  and  security. 

In  meeting  the  problems  of  disarmament  first 
things  should  come  first.  The  first  task  which  must 
be  undertaken  is  the  control  of  atomic  energy  to 
insure  that  it  will  be  used  only  for  human  welfare 
and  not  for  deadly  warfare. 

There  are  other  weapons  of  mass  destruction 
but  unless  we  can  meet  the  challenge  of  atomic 
warfare — the  most  dreadful  weapon  ever  devised — 
we  can  never  meet  the  challenge  of  these  other 
weapons. 


1139 


THE  UNITED  NATIONS 

The  United  States,  with  Britain  and  Canada, 
have  demonstrated  their  awareness  of  the  grave 
responsibility  inherent  in  their  discovery  of  the 
means  of  applying  atomic  energy. 

In  a  world  of  uncontrolled  armaments,  atomic 
energy  would  be  an  advantage  to  the  United  States 
for  many  years  to  come. 

But  it  is  not  the  desire  of  the  United  States  to 
be  the  leader  in  an  armament  race.  We  prefer  to 
prevent,  rather  than  to  win,  the  next  war. 

That  is  why  President  Truman  announced  as 
soon  as  he  knew  that  the  atomic  bomb  would  work, 
that  it  was  our  purpose  to  collaborate  with  other 
nations  to  insure  that  atomic  energy  should  not 
become  a  threat  to  world  peace. 

Shortly  thereafter  the  heads  of  the  three  gov- 
ernments responsible  for  the  discovery  of  atomic 
energy  met  at  Washington  and  urged  that  the 
United  Nations  set  up  a  commission  to  recommend 
proposals  for  the  effective  international  control  of 
atomic  energy  and  all  other  weapons  adaptable  for 
mass  destruction. 

One  of  the  primary  reasons  for  my  trip  to  Mos- 
cow in  December  1945  was  to  ask  the  Soviet  Union 
to  join  with  Britain  and  Canada  in  sponsoring  a 
resolution  to  tliis  effect  before  the  General 
Assembly. 

As  soon  as  the  agreement  of  the  Soviet  Govern- 
ment was  obtained,  France  and  China  were  also 
asked,  and  they  agreed  to  join  in  sijonsoring  the 
resolution.  These  efforts  resulted  in  the  unani- 
mous passage  of  the  resolution  by  the  General 
Assembly  in  January  1946,  only  six  months  after 
the  discovery  of  the  atomic  bomb. 

Long  discussion  in  the  United  Nations  and  pub- 
lic debate  on  the  details  of  the  United  States  pro- 
posals have  perhaps  blurred  the  real  significance 
and  magnitude  of  the  United  States  initiative. 

The  resolution  was  no  idle  gesture  on  our  part. 
Having  the  knowledge  of  atomic  energy  and  pos- 
session of  the  atomic  bomb,  we  did  not  seek  to  hold 
it  and  to  threaten  the  world,  we  did  not  sit  back 
and  play  for  time.  We  came  forward  with  con- 
crete proposals  designed  fairly,  effectively,  and 
practically  to  carry  out  the  tasks  assigned  to  that 
commission. 

Our  proposals  when  fully  operative  would  leave 
with  the  states  responsible  for  the  discovery  of 

1140 


atomic  energy  no  rights  which  would  not  be  shared 
with  other  members  of  the  United  Nations. 

Our  proposals  outlaw  the  use  of  atomic  weapons 
and  contemplate  the  disposal  of  existing  atomic 
weapons. 

Tlaey  set  up  an  international  authority  with 
power  to  prevent  the  national  manufacture  and 
use  of  atonuc  weapons  for  war  purposes  and  to 
develop  the  atomic  energy  for  human  welfare. 

Our  proposals  also  provide  effective  and  practi- 
cal safeguards  against  violations  and  evasions. 
They  enable  states  that  keep  their  pledges  to  take 
prompt  and  collective  action  against  those  who 
violate  their  pledges. 

We  do  not  suggest  any  diminution  of  the  right 
of  veto  in  the  consideration  of  the  treaty  governing 
this  subject.  We  do  say  that  once  the  treaty  has 
become  effective  then  there  can  be  no  recourse  to  a 
veto  to  save  an  offender  from  punishment. 

We  are  willing  to  share  our  knowledge  of  atomic 
weapons  with  the  rest  of  the  world  on  the  condi- 
tion, and  only  on  the  condition,  that  other  nations 
submit,  as  we  are  willing  likewise  to  submit,  to 
internationally  controlled  inspection  and  safe- 
guards. 

From  the  statements  made  in  the  committees  and 
in  the  Assembly  we  have  been  encouraged  to  believe 
that  others  are  willmg  to  submit  to  international 
inspection. 

If  other  nations  have  neither  bombs  nor  the 
ability  to  manufacture  them  it  should  be  easy  for 
them  to  agree  to  inspection. 

But  the  world  should  understand  that  without 
collective  safeguards  there  can  be  no  collective 
disarmament. 

The  resolution  we  proposed  here  urges  the  ex- 
peditious fulfilment  by  the  Atomic  Energy  Com-  j 
mission  of  its  terms  of  reference.  Those  terms: 
include  the  control  not  only  of  atomic  energjj 
but  the  control  of  other  instruments  of  massj 
destruction.  ^ 

With  its  specific  studies  and  its  accumulateq 
experience  the  Commission  is  best  equipped  tc 
formulate  plans  for  dealing  with  major  problenui 
of  disarmament. 

Let  us  concentrate  upon  these  major  weapon: 
and  not  dissipate  our  energies  on  the  less  impor 
tant  problems  of  controlling  pistols  and  hano 
grenades. 

Department  of  State  Bulletin      •      December  22,  1 94( 


If  we  are  really  interested  in  effective  disarma- 
ment, and  not  merely  in  talking  about  it,  we  should 
instruct  our  representatives  on  the  Atomic  Energy 
Commission  to  press  forward  now  with  its  con- 
structive proposals.  They  have  been  at  work  six 
months.  They  can  file  an  interim  report  next 
week.  I  do  not  want  the  work  of  that  Commission 
to  be  side-tracked  or  sabotaged. 

I  am  glad  that  the  proposed  resolution  raises  in 
connection  with  the  problem  of  disarmament  the 
question  of  disposal  of  the  troops  and  the  justi- 
fication of  their  presence  on  foreign  soil.  For 
disarmament  necessarily  raises  the  question  of  the 
use  which  may  be  made  of  arms  and  armed  forces 
which  are  not  prohibited.  Reducing  armaments 
will  not  bring  peace  if  the  arms  and  the  armed 
forces  that  remain  are  used  to  undermine  collective 
security. 

The  United  States  has  persistently  pressed  for 
the  early  conclusion  of  peace  treaties  with  Italy 
and  the  ex-satellite  states.  We  want  to  make  pos- 
sible the  complete  withdrawal  of  troops  from  those 
states. 

The  United  States  has  persistently  urged  the 
conclusion  of  a  treaty  recognizing  the  independ- 
;nce  of  Austria  and  providing  for  the  withdrawal 
)f  foreign  troops. 

Austria,  in  our  view,  is  a  liberated  and  not  an 
!x-enemy  country.  The  United  States,  United 
Kingdom,  and  Soviet  Union,  as  signei-s  of  the 
Moscow  Declaration  of  1943,  are  obligated  to  re- 
ieve  her  of  the  burden  of  occupation  at  the  earliest 
Jossible  moment. 

The  United  States  believes  that  armed  occupa- 
ion  should  be  strictly  limited  by  the  requirements 
if  collective  security. 

For  that  reason  we  proposed  to  the  Council  of 
i'oreign  Ministers  that  we  should  fix  agreed  ceil- 
ngs  on  the  occupation  forces  in  Europe.  We  could 
ot  secure  agreement  this  week,  but  we  shall  con- 
inue  our  efPorts  to  reduce  the  occupation  forces 
a  Europe.  We  are  also  prepared  to  fix  agreed 
eilings  for  the  occupation  forces  in  Japan  and 
Lorea. 

On  V-J  Day  we  had  over  5,000,000  troops  over- 
eas.  We  had  to  send  with  them  extensive  sup- 
ilies  and  equipment  which  could  not  be  disposed 
f  overniffht. 


THE  UNITED  NATIONS 

But  despite  the  tremendous  problem  of  liquidat- 
ing our  extensive  overseas  war  activities,  today  we 
have  less  than  550,000  troops  outside  of  American 
territory.  Most  of  these  troops  are  in  Germany, 
Japan  and  the  Japanese  Islands,  Korea,  Austria, 
and  Venezia  Giulia. 

The  great  majority  of  the  troops  we  have  on 
the  territory  of  the  other  states  outside  these  occu- 
pation areas  are  supply  or  administrative  person- 
nel. Let  me  state  specifically  just  what  combat 
troops  we  have  in  these  other  states. 

We  have  a  total  of  9G,000  military  personnel  in 
the  Philippines  but  only  about  30,000  are  combat 
forces,  air  and  ground.  Of  these  17,000  are 
Philippine  Scouts.  These  troops  are  in  the  Philip- 
pines primarily  to  back  up  our  forces  in  Japan. 
Substantial  reductions  are  contemplated  in  the 
near  future. 

Of  the  19,000  troops  we  have  in  China,  about 
15,000  are  combat  troops  and  roughly  one  half 
of  these  are  today  under  orders  to  return  home. 

We  have  about  1,500  troops  in  Panama,  exclud- 
ing the  Canal  Zone.  One  thousand  of  these,  com- 
posed of  a  small  air  unit  and  some  radar  air- 
warning  detachments,  can  be  classified  as  combat 
forces.  We  have,  of  course,  our  normal  protective 
forces  in  the  Panama  Canal  Zone  proper. 

We  have  no  combat  units  in  countries  other 
than  those  I  have  just  mentioned. 

Our  military  personnel  in  Iceland  number  less 
than  GOO  men.  They  include  no  combat  troops. 
They  are  being  withdrawn  rapidly  and  all  will 
be  withdrawn  by  early  April  1947,  in  accordance 
with  our  agreement  with  the  Government  of  Ice- 
land. The  military  personnel  have  been  there  only 
to  maintain  one  of  our  air-transport  lines  of  com- 
munication with  our  occupation  forces  in  Germany. 
In  the  Azores,  on  the  southern  air-transport  com- 
munication line  to  Germany,  we  have  about  300 
men.  Again  thei'e  is  not  a  single  combat  soldier 
among  them.  They  are  technicians  and  adminis- 
trative officials.  They  are  there  under  agreement 
with  the  Government  of  Portugal. 

Our  combat  troops  are  in  North  China  at  the 
request  of  the  Chinese  National  Government. 
Their  task  is  to  assist  in  carrying  out  the  terms 
of  surrender  with  respect  to  the  disarming  and 
deportation  of  the  Japanese.     Their  mission  is 


1141 


THE  UN/TED   NATIONS 

nearly  completed.  Instructions  have  been  issued 
for  the  return  of  half  of  our  forces  now  in  Cliina 
although  the  Chinese  Government  has  urged  that 
they  be  retained  there  until  conditions  become 
more  stabilized. 

We  have  made  it  clear  tliat  our  troops  will  not 
become  participants  in  civil  strife  in  China.  But 
we  are  eager  to  do  our  part,  and  we  hope  other 
states  are  eager  to  do  their  part,  to  prevent  civil 
war  in  China  and  to  promote  a  unified  and  demo- 
cratic China. 

A  free  and  independent  China  is  essential  to 
world  peace  and  we  cannot  ignore  or  tolerate  ef- 
forts on  the  part  of  any  state  to  retard  the  de- 
velopment of  the  freedom  and  independence  of 
China. 

The  United  States  Government  repudiates  the 
suggestion  that  our  troops  in  China  or  elsewhere, 
with  the  consent  of  the  states  concerned,  are  a 
threat  to  the  internal  or  external  peace  of  any 
country. 

Because  the  representative  of  the  Soviet  Union 
has  referred  to  our  troops  in  China,  it  is  for  me  to 
say  that  I  am  confident  that  the  number  of  Ameri- 
can troops  in  North  China  is  far  less  than  the  num- 
ber of  Soviet  troops  in  South  Manchuria  in  the 
Port  Arthur  Area. 

Under  the  Finnish  peace  treaty  the  Soviet  Union 
acquires  the  right  to  lease  the  Porkkala  naval  base 
in  Finland  and  maintain  troops  there.  The  tempo- 
rary presence  of  a  few  thousand  United  States 
troops  in  China  at  the  request  of  that  country 
certainly  raises  no  essentially  different  question 
than  the  permanent  presence  of  Soviet  troops  in 
another  country  under  treaty  arrangements. 

It  is  our  desire  to  live  up  to  the  letter  and  spirit 
of  the  Moscow  Declaration.  We  do  not  intend  to 
use  our  troops  on  the  territories  of  other  states 
contrary  to  the  purposes  and  principles  of  the 
United  Nations. 

The  implementation  of  the  Moscow  Declaration 
is  not  made  easier  by  loose  charges  or  counter- 
charges. The  Declaration  requires  consultation. 
That  is  the  method  we  should  pursue  if  we  wish 
to  advance  the  cause  of  disarmament  and  collective 
security. 

Last  December  at  Moscow  we  consulted  the 


Soviet  Union  and  the  United  Kingdom  regarding 
our  troops  in  China.  We  have  now  asked  for  con- 
sultation in  the  Council  of  Foreigia  Ministers  re- 
garding the  number  of  troops  to  be  retained  in  Ger- 
many, Poland,  Austria,  Hungary,  and  Rmnania 
upon  the  conclusion  of  the  peace  treaties  with  the 
ex-satellite  states. 

The  task  before  us  is  to  maintain  collective  se- 
curity with  scrupulous  regard  for  the  sovereign 
equality  of  all  states.  This  involves  more  than 
the  question  of  armaments  and  armed  forces. 

Aggressor  nations  do  not  go  to  war  because  they 
are  armed  but  because  they  want  to  get  with  their 
arms  things  which  other  nations  will  not  freely 
accord  them. 

Aggressor  nations  attack  not  only  because  they 
are  armed  but  because  they  believe  others  have  not 
the  armed  strength  to  resist  them.  ■ 

Sovereignty  can  be  destroyed  not  only  by  armies 
but  by  a  war  of  nerves  and  by  organized  political 
penetration. 

World  peace  depends  upon  what  is  in  our  hearts 
more  than  upon  what  is  written  in  our  treaties. 

Great  states  must  strive  for  understandings 
which  will  not  only  protect  their  own  legitimate 
security  requirements  but  also  the  political  inde- 
pendence and  integi'ity  of  the  smaller  states. 

It  is  not  in  the  interest  of  peace  and  security  that 
the  basic  power  relationships  among  great  states 
should  depend  upon  which  political  party  comes 
to  power  in  Iran,  Greece,  or  China. 

Great  states  must  not  permit  differences  among 
themselves  to  tear  asunder  the  political  unity  of 
smaller  states.  Smaller  states  must  recognize  that 
true  collective  security  requires  their  cooperation 
just  as  much  as  that  of  the  larger  states.  WithoutI 
the  cooperation  of  large  states  and  small  states,  ourt 
disarmament  plans  are  doomed  to  failure. 

A  race  for  armaments,  a  race  for  power,  is  not 
in  the  interest  of  any  country  or  of  any  people, 
We  want  to  stop  the  race  for  armaments  and  wf, 
want  to  stop  the  race  for  power. 

We  want  to  be  partners  with  all  nations,  not  tc 
make  war  but  to  keep  the  peace.  We  want  to  up 
hold  the  rule  of  law  among  nations.  We  want  tc 
promote  the  freedom  and  the  well-being  of  al 
peoples  in  a  friendly  civilized  world. 


1142 


Department  of  State  Bulletin      •      December  22,  194» 


THE  UNITED   NATIONS 


RESOLUTION  ON  RELATIONS  BETWEEN  SPAIN  AND  UNITED  NATIONS' 


The  peoples  of  the  United  Nations,  at  San  Fran- 
cisco, Potsdam  and  London  condemned  the  Franco 
regime  in  Spain  and  decided  that  as  long  as  that 
regime  remains,  Spain  may  not  be  admitted  to  the 
United  Nations. 

The  General  Assembly,  in  its  resolution  of  9 
February  194:6,  recommended  that  the  Members 
of  the  United  Nations  should  act  in  accordance 
with  the  letter  and  the  spirit  of  the  declarations  of 
San  Francisco  and  Potsdam. 

The  peoples  of  the  United  Nations  assure  the 
Spanish  people  of  their  enduring  sympathy  and  of 
the  cordial  welcome  awaiting  them  when  circum- 
stances enable  them  to  be  admitted  to  the  United 
Nations. 

The  General  Assembly  recalls  that  in  May  and 
June  1946,  the  Security  Council  conducted  an  in- 
vestigation of  the  possible  further  action  to  be 
taken  by  the  United  Nations.  The  Sub-Committee 
of  the  Security  Council  charged  with  the  investi- 
gation found  unanimously: 

"(a)  In  origin,  nature,  structure  and  general 
conduct,  the  Franco  regime  is  a  Fascist  regime 
patterned  on,  and  established  largely  as  a  result 
of  aid  received  from  Hitler's  Nazi  Germany  and 
Mussolini's  Fascist  Italy. 

"(6)  During  the  long  struggle  of  the  United 
Nations  against  Hitler  and  Mussolini,  Franco,  de- 
spite continued  Allied  protests,  gave  very  substan- 
tial aid  to  the  enemy  Powers.  First,  for  example, 
from  1941  to  1945,  the  Blue  Infantry  Division,  the 
Spanish  Legion  of  Volunteers  and  the  Salvador 
Air  Squadron  fought  against  Soviet  Russia  on  the 
Eastern  front.  Second,  in  the  summer  of  1940, 
Spain  seized  Tangier  in  breach  of  international 
statute,  and  as  a  result  of  Spain  maintaining  a 
large  army  in  Spanish  Morocco,  large  numbers  of 
Allied  troops  were  immobilized  in  North  Africa. 

"(c)  Incontrovertible  documentary  evidence  es- 
tablishes that  Franco  was  a  guilty  party  with  Hit- 
ler and  Mussolini  in  the  conspiracy  to  wa"-e  war 
against  those  countries  which  eventually  in  the 
course  of  the  world  war  became  banded  together  as 
the  United  Nations.  It  was  part  of  the  conspiracy 
that  Franco's  full  belligerency  should  be  postponed 
until  a  time  to  be  mutually  agreed  upon." 


The  General  Assembly, 

Convinced  that  the  Franco  Fascist  Government 
of  Spain,  which  was  imposed  by  force  upon  the 
Spanish  people  with  the  aid  of  the  Axis  Powers 
and  which  gave  material  assistance  to  the  Axis 
Powers  in  the  war,  does  not  represent  the  Spanish 
people,  and  by  its  continued  control  of  Spain  is 
making  impossible  the  participation  of  the  Span- 
ish people  with  the  peoples  of  the  United  Nations 
in  international  affairs ; 

Recommends  that  the  Franco  Government  of 
Spain  be  debarred  from  membership  in  interna- 
tional agencies  established  by  or  brought  into  re- 
lationship with  the  United  Nations,  and  from 
participation  in  conference  or  other  activities 
which  may  be  arranged  by  the  United  Nations  or 
by  these  agencies,  until  a  new  and  acceptable 
government  is  formed  in  Spain. 

Further  Desiring  to  secure  the  participation  of 
all  peace-loving  peoples,  including  the  people  of 
Spain,  in  the  community  of  nations. 

Recommends  that,  if  within  a  reasonable  time, 
there  is  not  established  a  government  which  derives 
its  authority  from  the  consent  of  the  governed, 
committed  to  respect  freedom  of  speech,  religion 
and  assembly  and  to  the  prompt  holding  of  an 
election  in  which  the  Spanish  people,  free  from 
force  and  intimidation  and  regardless  of  party, 
may  express  their  will,  the  Security  Council  con- 
sider the  adequate  measures  to  be  taken  in  order 
to  remedy  the  situation ; 

Recommends  that  all  Membere  of  the  United 
Nations  immediately  recall  from  Madrid  their  am- 
bassadors and  ministers  plenipotentiary  accredited 
there. 

The  General  Assembly  Further  Recommends 
that  the  States  Members  of  the  Organization  report 
to  the  Secretary-General  and  to  the  next  session 
of  the  Assembly  what  action  they  have  taken  in 
accordance  with  this  recommendation. 


^Resolution  adopted  by  Committee  1  (Political  and  Se- 
curity) of  the  General  Assembly  (General  Assembly  Uoc. 
A/241,  Dec.  10,  1946)  on  Dec.  10  and  adopted  by  the 
General  Assembly  on  Dec.  12. 


1143 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings^ 


In  Session  as  of  December  15,  1946 

Far  Eastern  Commission 


United  Nations: 

Security   Council 

Military  Staff  Committee 

Commission  on  Atomic  Energy 

UNRRA  -  Intergovernmental  Committee  on  Refugees   (IGCR): 

Joint  Planning  Committee 
General  Assembly 


Telecommunications  Advisory  Committee  . 
ECOSOC:   Commission  on  Narcotic  Drugs. 


Meeting  of  Postal  Experts 


German  External  Property  Negotiations: 

With  Portugal  (Safehaven) 

With  Spain 


Inter-Allied  Trade  Board  for  Japan 

FAO:   Preparatory  Commission  To  Study  World  Food  Board  Pro- 
posals 

Council  of  Foreign  Ministers: 


Deputies 

Inter-AlUed  Reparations  Agency  (lARA) :    Meetings  on  Conflicting 
Custodial  Claims 

UNESCO:  "Month"  Exhibition 


PICAO: 
Divisional 
Search  and  Rescue  Division 

Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division 


Washington 


Lake  Success 

Lake  Success 

Lake  Success 

Washington  and  Lake 

Success 
Flushing   Meadows  .    . 


Lake  Success  . 
Lake  Success  . 


New  York 


Lisbon. 
Madrid 


Washington 
Washington 


New  York 

New  York 
Brussels  . 


Paris 


Montreal 

Montreal 


February  26 

March  25 
March  25 
June  14 
July  25 

October   23-Deeember 

16 
November  10 
November   27-Decem- 

ber  13 
December  10-18 

September  3 
November  12 

October  24 

October  28 

November   4-Decem- 

ber  12 
Continuing 

November  6 

November    21- Decem- 
ber 20 


November  26-Decem- 

ber  13 
December  3 


1  Prepared  in  the  Division  of  International_Conferences,  Department  of  State. 


1144 


Department  of  Sf afe  Bulletin      •      December  22, 1 946 


lalendar  oj  Meetings — Continued 


JNRRA  Council:  Sixth  Session. 


Caribbean  Commission 

cheduled    December  1946  -  February  1947 

ntergovernmental  Committee  on  Refugees  (IGCR) :  Sixth  Plenary 
Session 

luropean  Central  Inland  Transport  Organization  (ECITO):  Sixth 
Session  of  the  Council 

leeting  of  Medical  and  Statistical  Commissions  of  Inter- American 
Committee  on  Social  Security 

ICAO: 

Divisional 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division       

Accident  Investigation  Division 

Airworthiness  Division 

Airline  Operating  Practices  Division 

Regional 

South  Pacific  Regional  Air  Navigation  Meeting 

welfth  Pan  American  Sanitary  Conference 

jcond  Pan  American  Conference  on  Sanitary  Education 

nited  Nations: 

Meeting   of    Governmental    Experts    on    Passport    and    Frontier 
Formalities 

I^conomic  and  Social  Council:  ' 

Drafting    Committee    of    International    Trade    Organization, 
Preparatory  Committee 

Economic  and  Employment  Commission 

Social  Commission 

Subcommission  on  Economic  Reconstruction  of  Devastated  Areas, 

Working  Group  for  Europe 
Human  Rights  Commission 

Population  Commission 

Statistical  Commission 

Commission  on  the  Status  of  Women 

Subcommission  on  Economic  Reconstruction  of  Devastated  Areas, 
Working  Group  for  Asia  and  the  Far  East 

Transport  and  Communications  Commission 

Non-governmental  Organizations  Committee 

ECOSOC:  Fourth  Session  of '.    .    .    . 

.0  Industrial  Committee  on  Petroleum  Production  and  Refining 
'  ECOSOC  Committee  and  Commission  dates  are  tentative. 


Washington 
Curasao  .    . 


London 
Paris    . 


Washington 


Montreal 
Montreal 
Montreal 
Montreal 
Montreal 


Melbourne  . 
Caracas  . 
Caracas  .    . 


Geneva 


Lake  Success . 

Lake  Success . 
Lake  Success . 
Geneva   .    .    . 


Lake  Success  . 

Lake  Success  . 

Lake  Success  . 

Lake  Success  . 
Lake  Success  . 

Lake  Success  . 
Lake  Success . 
Lake  Success  . 


December     10- Decem- 
ber 13 

December    10- Decem- 
ber 16 

December  16 
December  18 


•January  6-11 


January  7 
January  14 
February  4 
February  18 
February  25 

February  4 
January  12-24 
January  12-24 


Jauuaiy    14-29    (tenta- 
tive) 

January  20-February28 


January  20-February  5 

January  20-February  5 

January 

27-February 

13 

January 

27-February 

11 

Januarv 

27-February 

11 

January 

27-February 

11 

February 

12-27 

February 

14-21 

February  17-28 
February  25-27 
February  28 


Lima February  3-12 


1145 


Activities  and  Developmentsy> 


Meeting  of  the  Sixth  Session  of  the  Council  of  UNRRA 

MEMBERS  OF  U.S.  DELEGATION 


[Released  to  the  press  December  9] 

Acting  Secretary  Acheson  announced  that  the 
President  had  approved  the  United  States  Dele- 
gation to  the  sixth  session  of  the  Council  of  the 
United  Nations  Relief  and  Rehabilitation  Admin- 
istration, which  convened  at  the  Shorehani  Hotel 
in  Washington  on  December  10, 1946. 

The  Council  will  consider  the  report  of  the 
Director  General  on  activities  of  the  administra- 
tion since  July  1,  1946;  the  administrative  budget 
for  1947 ;  delegation  of  authority  to  a  central  com- 
mittee in  connection  with  the  wind-up  of  admin- 
istration activities;  and  the  resignation  of  the 
Director  General  and  the  appointment  of  his  suc- 
cessor.    The  delegation  list  is  as  follows : 

Council  Member 

William  L.  Clayton,  Under  Secretary  of  State  for  Economic 
Affairs. 

First  AUernate 

C.  Tyler  Wood,  Special  Assistant  to  the  Assistant  Secretary 
of  State  for  Economic  Affairs. 

Second  Alternate 

Dallas  W.  Dort,  Adviser  on  Relief  and  Rehabilitation, 
Department  of  State. 

Advisers  to  Council  Member 

Nathan  M.  Becker,  Alternate  Member,  Program  Subcom- 
mittee of  UNRRA,  Department  of  State. 

Charles  R.  Bennett,  Special  Assi.stant  to  Director  of  OflBce 
of  Far  Eastern  Affairs,  Department  of  State. 

Philip  M.  Burnett,  A.ssistant  Chief,  Division  of  Interna- 
tional Organization  Affairs,  Department  of  State. 

Herbert  H.  Fierst,  Adviser  to  the  Assistant  Secretary  of 
State  for  Occupied  Areas,  Department  of  State. 

Harold  Glasser,  Director,  Division  of  Monetary  Research, 
Treasury  Department. 


Hubert  F.  Havlik,  Chief,  Division  of  Investment  and  Eco- 
nomic Development,  Department  of  State. 
Robert  G.  Hooker,  Jr.,  Assistant  Chief,  Division  of  Eastern 

European  Affairs,  Department  of  State. 
Edward  E.  Kunze,  Chief,  UNRRA  Division,  Department  of 

State. 
William    H.    McCahou,   Acting   Assistant   Chief,    Special 

Projects  Divi.sion,  Department  of  State. 
Otis  E.  MuUiken,  Chief,  Division  of  International  Lalior, 

Social  and  Health  Affairs,  Department  of  State. 
James  K.  Penfield,  Deputy  Director,  Office  of  Far  Eastern 

Affairs,  Department  of  State. 
Fred  L.  Preu,  Chairman,  Audit  Sulicommittee,  Commitree 

on  Financial  Control,  Department  of  State. 
Edward  L.  Reed,  Counselor  of  Embassy,  Department  of 

State. 
Sherman    S.    Sheppard,    Chief,    International    Activities 

Branch,    Division    of    Administrative    Management, 

Bureau  of  the  Budget. 
George  L.  Warren,  Adviser  on  Refugees  and  Displaced 

Persons,  Department  of  State. 
Mrs.  Ellen  S.  Woodward,  Director,  Office  of  Inter-agency 

and  International  Relations,  Federal  Security  Agenc.v. 

Two  or  three  representatives  of  the  Department  of  Agri- 
culture. (Names  to  be  designated  by  Secretary  of 
Agriculture.) 

Adviser  and  Secretary  of  the  Delegation 
David  Perslnger,  Secretary  of  United  States  Delegation, 
Department  of  State. 

Press  Relations  Officer 
Joseph  W.  Reap,  Office^of  Special  Assistant  for  Press  Rela- 
tions, Department  of  State. 

Secretary 

Henry  F.  Nichol,  Division  of  International  Conferences, 
Department  of  State. 


ADDRESS  BY  ACTING  SECRETARY  ACHESON' 


[Released  to  the  press  December  10] 

About  three  years  ago  I  had  the  pleasure  and 
privilege  of  welcoming  the  members  of  the 
UNRRA  Council  at  its  first  session  in  Atlantic 


'Delivered  at  the  opening  session  of  the  Sixth  Council 
Session  of  UNRRA  in  Washington  on  Dec.  10,  1946. 


City.    Much  of  war  and  tragedy  and  victory  has( 
been  crowded  into  the  intervening  three  years.    So! 
much  has  happened  that  it  is  difficult  to  recall! 
our  thoughts  at  that  time  as  we  set  about  our  task,,  u 
May  I  quote  briefly  from  my  remarks  at  tha*  '1 
first  session  of  the  UNRRA  Council : 


1146 


Department  of  State  Bulletin      •      December  22,  T94I 


ACTIVITIES  AND  DEVELOPMENTS 


"We  are  assembled  here  to  take  action  which 
lay  shorten  the  war;  but  which  must  bring  new 
ope  to  those  men  and  women  heroically  resisting 
a  all  of  the  occupied  countries,  and  swift  and 
ffective  aid  to  them  upon  their  liberation.  .  .  . 

"The  primary  task  which  faces  this  Adminis- 
ration  is  to  assist  the  liberated  areas  to  meet  their 
mergency  needs.  It  is  to  tide  them  over  the 
leriod  between  the  end  of  exploitation  by  the 
nemy  and  the  reestablishment  of  their  own  pro- 
luction  for  their  own  needs.  .  .  . 

"The  time  and  attention  of  this  meeting  will  be 
?ell  spent  if  it  is  directed  to  these  immediate 
eeds,  rather  than  to  the  more  distant  future.  For 
he  existence  of  a  future  for  the  whole  population 
epends  upon  their  being  able  to  bridge  this  gap." 

UNRRA  was  the  fii-st  operating  organization  of 
Ke  United  Nations.  It  was  formed  while  the  war 
^'as  still  raging  in  order  that  it  might  be  ready 
0  move  into  the  occupied  countries  immediately 
fter  their  liberation. 

UNRRA  had  to  blaze  a  completely  new  trail. 
?here  was  no  pattern,  no  precedent,  no  rules  of 
irocedure  for  this  great  adventure.  The  task  was 
.ndertaken  with  enthusiasm,  imagination,  and 
nergy. 

All  the  problems  of  staffing,  programming,  and 
rocurement  were  extremely  difficult.  No  one 
new  when  the  war  would  end.  No  one  could  fore- 
3II  where  or  to  what  extent  the  enemy  would 
estroy  the  means  of  supporting  life.  Further- 
lore,  relief  operations  could  not  be  allowed  to 
iterfere  with  military  programs. 

It  would  be  easy  to  quote  statistics  of  the  mil- 
ons  of  tons  of  foodstuffs,  medicines,  tractors, 
lows,  trucks,  and  thousands  of  other  supply  items 
^hich  have  been  delivered  to  the  liberated 
ountries. 

But  the  present  condition  of  these  countries 
peaks  much  more  eloquently  of  UNRRA's  success. 

Farms  and  factories  are  again  producing  the 
ecessities  of  life.  Railways  and  essential  utilities 
re  operating.  The  people  have  been  fed  and 
lothed.  Hope  and  ambition  are  again  to  be  found 
1  the  hearts  and  minds  of  the  people. 


There  are  still  serious  problems  ahead.  But  as 
UNRRA  approaches  the  end  of  the  emergency 
task  for  which  it  was  organized,  new  means,  both 
national  and  international,  are  available  for  deal- 
ing with  the  situation  of  today. 

There  are  now  a  number  of  international  organ- 
izations designed  to  carry  further  the  task  of  re- 
pairing the  ravages  of  the  war  and  to  help  build 
a  more  prosperous  world. 

The  machinery  of  the  individual  governments 
and  of  private  commerce  also  stands  ready  to  carry 
us  further  along  the  road  to  recovery. 

I  urge  the  members  of  the  Council  to  keep  alive 
the  initial  spirit  with  which  they  undertook  the 
vast  task  of  relief  and  rehabilitation,  as  you  now 
plan  for  the  completion  of  UNRRA  programs  and 
the  integration  of  those  of  its  activities  which 
should  continue,  into  the  programs  of  new  agencies. 

I  am  sure  the  conclusion  of  the  work  of  the 
Council  will  be  marked  by  the  same  cooperative 
atmosphere  which  has  been  characteristic  of  its 
past  deliberations. 

Before  closing  I  want  to  pay  a  sincere  tribute  to 
the  thousands  of  men  and  women  composing 
UNRRA's  staff  throughout  the  world  who  have 
carried  on  the  day-to-day  work  of  that  organiza- 
tion. They  put  no  limit  on  their  hours  of  work. 
In  many  cases  they  suffered  physical  inconven- 
iences and  privations  in  order  to  carry  on  their 
tasks.  They  worked  in  an  organization  which  they 
knew  could  give  them  no  position  of  permanence 
or  security.  I  know  they  would  not  have  remained 
with  UNRRA  if  they  had  not  realized  that  these 
disadvantages  were  more  than  offset  by  the  satis- 
faction which  they  had  in  participating  in  such  a 
jjrogram. 

May  I  again  express  my  pleasure  that  another 
session  of  the  Council  has  been  convened  in  this 
country.  The  American  people  and  the  American 
Government  extend  to  you  members  of  the  Council, 
the  Director  General  and  the  entire  staff  of 
UNRRA,  their  sincere  gratitude  and  admiration 
for  the  great  work  which  you  have  accomplished. 
You  are  indeed  welcome  to  the  United  States,  and 
I  am  happy  again  to  be  the  one  who  welcomes  you. 


1147 


Sixth  Plenary  Session  of  Intergovernmental  Committee  on  Refugees 

Article  by  Martha  H.  Biehle 


On  December  16,  1946  the  sixth  plenary  session 
of  the  Intergovernmental  Committee  on  Refugees 
will  open  in  Hoar  Memorial  Hall,  London,  for 
consideration  of  the  annual  report  of  the  Director, 
Sir  Herbert  W.  Emerson,  and  of  the  budget  pro- 
posed for  administrative  and  operational  expendi- 
tures for  the  calendar  year  1947.  It  is  expected 
that  most  of  the  35  member  governments  will  be 
represented  at  the  session  which  will  be  three  or 
four  days  in  duration.  Invitations  to  send  ob- 
servers to  the  meetings  have  been  extended  to 
those  international  organizations  with  which  the 
Intergovernmental  Committee  cooperates  most 
closely— UNRRA,  the  ILO,  the  United  Nations, 
and  the  International  Committee  of  the  Red 
Cross — and  to  many  private  voluntary  agencies 
working  in  the  field  of  refugee  relief. 

The  agenda  for  the  session  calls  for  considera- 
tion of  the  administrative  and  operational  budgets 
for  the  year  1947,  and  for  revision  of  the  financial 
regulations  so  as  to  provide  that  the  operational 
expenditure  shall  be  shared  by  all  member  gov- 
ernments. A  suitable  scale  defining  the  share 
allotted  to  each  member  government  will  be  de- 
termined. The  plenary  session  will  be  asked  also 
to  elect  nine  member  governments  to  the  executive 
committee,  whose  present  members,  elected  in  1944, 
are  Brazil,  Canada,  Czechoslovakia,  France,  Mex- 
ico, the  Netherlands,  the  United  Kingdom,  and 
the  United  States.  The  term  of  office  for  mem- 
bership on  the  executive  committee  is  two  years, 
and  members  are  eligible  for  reelection. 

The  budget  proposals  for  1947  are  of  particular 
interest  because  of  the  recent  expansion  of  the 
Intergovernmental  Committee's  activities  in  the 
field  of  resettlement.  By  vote  of  the  executive 
committee  at  its  meeting  on  July  16,  1946,  the 
Intergovernmental  Committee  has  undertaken  a 
program  of  resettlement  for  those  displaced  per- 
sons and  refugees  now  in  Germany,  Austria,  and 

1148 


Italy  who  are  unable  or  unwilling  to  return  to 
their  countries  of  nationality  or  former  habitual 
residence  and  who  come  within  both  the  mandate 
of  the  Intergovernmental  Committee  and  the  prin- 
ciples of  aid  defined  in  the  annex  to  the  draft 
constitution  for  the  proposed  new  International 
Refugee  Organization  presently  under  considera- 
tion by  the  United  Nations. 

The  authorized  ojDerations  include  negotiations 
with  countries  wishing  to  receive  refugees  as  per- 
manent immigrants,  assistance  to  these  countries 
in  the  preparation  for  migration  of  those  refugees 
who  apply  for  admission,  financing  the  individual 
transportation,  and  initiating  certain  group  re- 
settlement projects.  It  is  expected  that  when  it 
begins  operations  the  new  International  Refugee 
Organization,  in  addition  to  its  primary  respon- 
sibility to  assist  with  repatriation,  will  take  over 
these  resettlement  functions  from  the  Intergov 
ernmental  Committee. 

The  Intergovernmental  Conmiittee  on  Refugees 
was  founded  in  1938  at  an  international  conference 
at  fivian,  France,  on  the  initiation  of  President 
Roosevelt,  for  the  consideration  of  aid  to  refugees 
from  Nazi  persecution.     Subsequently,  after  the( 
British-American  conference  on  refugees  at  Ber 
muda  in  April  1943,  the  Intergovernmental  Cora 
mittee  was  given  a  broad  mandate  applying  to  all 
European  refugees  who  had  to  leave  their  countries 
of  residence  because  of  danger  to  their  lives  oi 
liberties  on   account  of  their  race,  religion,  oil 
political  beliefs.     Tlie  Committee's  administrativt 
expenses  were  subscribed  by  all  member  govemi 
mcnts;  its  operational  expenditures  were  imder' 
written  equally  by  the  Governments  of  the  Unitec 
States  and  the  United  Kingdom,  all  other  mem 
ber  governments  being  asked  to  contribute  volim 
tarily.     Thirty-five    governments    are    present!; 
members  of  the  Committee.     Contributions  to  tb 

Deparfmenf  of  Sfafe  6u//efi'n      •     December  22, 7 94( 


ACTIVITIES  AND   DEVELOPMENTS 


)perational  expense,  in  addition  to  those  made  by 
he  Governments  of  the  United  States  and  the 
Jnited  Kingdom,  have  been  received  from  the 
governments  of  France,  Belgium,  Norway, 
Canada,  and  Switzerland. 

Until  the  extension  of  the  Committee's  activities 
n  the  summer  of  1946  to  non-repatriable  displaced 
lersons  in  Germany,  Austria,  and  Italy,  the  Inter- 
;overnmental  Committee's  program  was  limited 
0  aid  for  three  categories  of  refugees:  (1)  Ger- 
lan  and  Austrian  victims  of  persecution;  (2) 
Spanish  Republican  refugees;  and  (3)  small 
roups  of  legally  denationalized  refugees.  For 
hese  the  Committee's  program  has  provided  legal 
•rotection,  maintenance  grants  when  not  other- 
rise  provided,  special  small  short-term  loans  for 
eestablishment  of  private  business  leading  to  per- 
manent settlement  in  a  country  of  refuge,  special 
ervices  to  children  and  elderly  refugees,  and  as- 
istance  in  emigration  for  the  reuniting  of  families 
nd  for  permanent  resettlement  in  new  countries. 
Ls  part  of  its  program  of  legal  protection  the  In- 
srgovernmental  Committee  sponsored,  in  October 
946,  an  international  conference  which  adopted  a 
ew  form  of  international  travel  document  for  is- 
uance  to  refugees  who  do  not  have  the  protection 
f  any  government.  To  carry  out  its  program  the 
"ommittee  maintains  offices  in  Austria,  Belgium, 
Izechoslovakia,  France,  Germany,  Holland,  Italy, 
le  Middle  East,  Switzerland,  and  the  United 
tates.  It  has  also  acted  on  behalf  of  refugees  iii 
pain,  Portugal,  and  Shanghai,  China,  through 
le  agency  of  American  private  voluntary  relief 
rganizations. 

LS.- Canadian  Discussions  on 
;ivii-Aviation  Matters 

[Releasea  to  the  press  December  13] 

Discussions  relating  to  civil-aviation  matters 
ave  taken  place  in  Washington  during  the  past 
2W  days  between  representatives  of  the  United 
tates  and  Canadian  Governments.     Tlie  chief 


topic  of  discussion  dealt  with  a  proposed  revision 
of  the  1945  bilateral  air-transport  agreement  be- 
tween the  two  countries,  which  would  probably 
include  additional  routes.  Tentative  agreement 
was  reached  in  the  form  of  a  revised  arrangement, 
with  the  matter  of  specific  routes  to  be  discussed 
in  a  subsequent  conference  in  the  near  future. 
Recommendations  were  also  agreed  to  by  the  two 
delegations  concerning  the  problem  of  non-sched- 
uled air  services  and  the  facilitation  of  customs 
and  immigration  procedures  relating  to  air  travel. 
Under  Secretary  of  State  W.  L.  Clayton  and  the 
Honorable  C.  D.  Howe,  Minister  of  Reconstruc- 
tion, were  the  heads  of  the  respective  United  States 
and  Canadian  Delegations,  which  also  included 
officials  from  the  interested  agencies  of  the  two 
Governments. 

Department  of  State  Bulletin  Subscrip- 
tion Price  Increased 

The  annual  subscription  price  of  the  Depart- 
ment OF  State  Buii.etin  will  rise  from  $3.50  to 
$5.00  on  January  1,  1947,  owing  to  a  combination 
of  factors  which  has  left  the  Superintendent  of 
Documents,  Government  Printing  Office,  no  choice 
but  to  take  this  action.  These  factors  are  the 
constantly  expanding  size  and  scope  of  the  Bulle- 
tin, as  it  attempts  to  cover  the  vast  range  of 
American  international  relations,  and  the  rising 
cost  of  production.  The  printing  and  publishing 
of  government  publications  are  affected  as  much 
by  the  rising  prices  of  materials  and  other  pro- 
duction factors  as  any  other  integral  part  of  the 
national  economy. 

The  need  to  take  this  action  is  regretted  both 
by  the  Department  of  State  and  by  the  Superin- 
tendent of  Documents.  After  thorough  study  of 
the  problem  during  recent  months  the  Department 
of  State  considers  that  the  increase  in  price  is 
preferable  to  the  only  alternative,  which  would 
have  been  to  make  drastic  reductions  in  the  quan- 
tity of  original  documentation  and  other  material 
provided  readers. 


1149 


THE  RECORD  OF  THE  WEEK 


Private  Enterprises  Nationalized  In  Yugoslavia 


[Released  to  the  press  December  12] 

The  Department  of  State  stated  on  December  12 
that  it  had  received  reports  from  the  American 
Embassy  in  Belgrade  that  the  Yugoslav  People's 
Assembly  passed  a  law  on  December  4  nationaliz- 
ing private  economic  enterprises  deemed  to  be  of 
national  or  state  importance  in  42  industries. 
Only  a  few  details  have  yet  been  received  in  Wash- 
ington. The  official  text  had  not  been  published 
in  Belgrade,  according  to  latest  information. 

The  American  Embassy  in  Belgrade  will  report 
detailed  information  as  it  becomes  available.  The 
Department  has  requested  the  Embassy  to  take  ap- 
propriate action  to  safeguard  the  rights  of  Amer- 
ican nationals,  especially  with  reference  to  exten- 
sion of  time  limits  for  protests  and  adequate  and 
effective  comi^ensation. 

Among  the  different  types  of  industries  affected 
by  the  Yugoslav  nationalization  law  are :  mining, 
petroleum,  transportation,  communications,  elec- 
tric power,  food,  banks,  insurance,  textiles,  and 
wholesale  trade.  The  Yugoslav  Government  ap- 
parently is  appointing  managers  to  take  control 
inamediately  of  the  assets  and  accounting  pro- 
cedures of  nationalized  firms.  Obligations  of 
firms  are  said  to  be  assumed  by  the  Yugoslav  Gov- 
ernment, excepting  those  arising  from  collabora- 
tion, speculation,  and  over-capitalization. 

Compensation  is  to  be  paid  for  these  properties 
equivalent  to  the  value  of  the  net  assets  on  the  day 
control  passes  to  the  Government.  Such  compen- 
sation will  be  paid  in  government  bonds  issued  in 
the  name  of  specially  created  federal  or  state  funds 
for  nationalized  property  and  guaranteed  by  the 
Yugoslav  Government.  From  information  so  far 
available,  it  appears  that  a  special  formula  may 

1150 


be  used  for  compensation  for  previously  expropri- 
ated property  now  nationalized.  In  exceptional 
cases  (not  specified),  the  Government  may  pay 
compensation  partly  or  wholly  in  cash  rather  than 
in  bonds.  Future  decrees  will  provide  for  the 
terms  of  bonds  issued  for  compensation,  includ- 
ing amortization,  interest  rates,  and  negotiability. 
The  procedures  to  be  used  in  determining  the  value 
of  properties  nationalized  will  also  be  stated  in  a 
future  decree.  No  compensation  is  to  be  paid  for 
nationalized  properties  that  served  social,  char- 
itable, or  cultural  purposes. 

Owners  of  nationalized  property  were  given 
only  15  days  to  file  appeals.  The  time  from  which 
the  1.^  days  runs  is  not  specified  but  it  is  assumed 
to  be  from  December  4,  which  would  make  the  last 
date  for  receipt  of  appeal  on  December  19.  The 
grounds  for  appeal  apparently  are  confined  to 
pointing  out  the  inapplicability  of  the  law  to  the 
particular  property.  Actions  to  prevent  or  make 
difficult  nationalization  as  such  are  decreed  null 
and  void. 

Deposit  of  Shares  in  Yugoslav  Stock 
Companies  for  Conversion  and/or  j^ 

Registration  ^ 

[Released  to  the  press  December  13]  n 

The  Department  of  State  wishes  to  remind  j 
American  liolders  of  shares  in  Yugoslav  stock* 
companies  of  the  December  21,  1946  deadline  fopl 
deposit  of  such  shares  for  conversion  and/or  regis- 1 
tration  pursuant  to  a  decree  published  June  21, 't 
1946  in  "The  Official  Gazette  of  the  Federal  Peo- 1 
pie's  Republic  of  Yugoslavia".  Shares  held  out- is 
side  Yugoslavia  are  to  be  deposited  with  Yugo- 


Department  of  State  Bulletin      •      December  22,  794 


i 


av  diplomatic  representatives  while  shares  held 
I  Yugoslavia  are  to  be  deposited  with  a  Yugoslav 
ink.  The  decree  provides  penalties  for  non- 
)mpliance  including  forfeiture  of  the  securities 
>  the  Yugoslav  Government. 
The  Department  of  State  suggests  that  United 
tates  citizens  holding  Yugoslav  stock-company 
lares  in  the  United  States  communicate  with  the 
ugoslav  Embassy,  1520  Sixteenth  Street,  Wash- 
igton,  D.  C,  regarding  deposit  of  their  shares. 
:  shares  are  held  in  Yugoslavia  for  the  account 
■  a  United  States  citizen,  the  latter  should  send 
jpropriate  instructions  regarding  them  to  his 
jent  in  Yugoslavia. 

Detailed  information  regarding  the  text  of  the 
icree  may  be  obtained,  if  required,  by  conmiuni- 
ting  with  the  Department  of  State. 

olish-American  Newspapers  Banned 
1  Poland 

[Keleased  to  the  press  December  9] 

The  Department  has  been  informed  by  the 
merican  Embassy  in  Poland  that  the  Polish  Gov- 
nment  has  bamied  the  admission  into  Poland  of 

Polish-American  newspapers  which  are  pub- 
shed  in  the  United  States.  These  newspapers 
e  among  the  largest  and  most  influential  Polish- 
nguage  dailies  and  weeklies  in  the  United  States. 
Tile  order,  issued  by  the  Director  of  the  Central 
areau  of  Press,  Publications  and  Theaters,  ap- 
ared  in  the  Monitor  Polski,  the  official  organ  of 
e  Government,  in  its  issue  of  November  15,  a  copy 

which  has  just  been  received  by  the  American 
mbassy  in  Warsaw.  The  order  banned  the  ad- 
ission  into  Poland  of  a  total  of  50  Polish  publica- 
ms  issued  in  the  United  States,  Austria,  France, 
reat  Britain,  Italy,  Palestine  and  elsewhere  in 
e  Near  East. 

The  17  Polish-American  newspapers  are :  Csas, 
rooklyn;  Nowy  Sioiat,  New  York;  Tygodnik 
dski,  New  York;  Glos  Narodu,  Jersey  City; 
Visaic-Nowiny,  Newark;  Kurier  Codzierm.y, 
jston;  Gaseta  ty  Godniowa,  Schenectady; 
meryka-Echo,  Toledo;  Now'my  Pohkie,  Mil- 
lukee;  Kurier  Polski,  Milwaukee;  Dzlennik 
niazkoxoy,  Chicago;  Narad  Polski,  Chicago; 
\os  Polak,  Chicago;  Dziennik  Polski,  Detroit; 
viazda,  Philadelphia;  Jednosc,  Philadelphia; 
d  Pittshurgczanin,  Pittsburgh. 


THE  RECORD   Of  THE   WEEK 

Repatriation  of  American  Citizens 
From  Poland 

[Released  to  the  press  December  11] 

The  S.S.  Ernie  Pyle  is  scheduled  to  arrive  at 
New  York  on  December  12,  194G,  carrying  552 
American  citizens  who  are  being  repatriated  from 
Poland.  Although  the  repatriation  of  small 
groups  of  American  citizens  from  Poland  has  been 
proceeding  from  time  to  time  since  the  opening  of 
the  American  Mission  at  Warsaw  in  July  1945,  this 
is  the  first  large  group  to  be  repatriated.  The 
Ernie  Pyle  was  sent  to  Gdynia  by  the  Maritime 
Commission  especially  for  this  purpose.  The 
repatriation  of  this  group  was  made  possible 
through  the  special  efforts  of  the  American 
Embassy  at  Warsaw  with  the  cooperation  of  the 
Polish  Government. 

There  still  remain  in  Poland  many  American 
citizens  whose  repatriation  the  Department  will 
continue  its  efforts  to  effect  as  promptly  as  cir- 
cumstances permit. 

American  Economic  Mission  to  Greece 

[Released  to  the  press  December  11] 

The  appointment  of  Paul  Porter  as  chief  of  an 
American  economic  mission  to  Greece  was  an- 
nounced by  Acting  Secretary  Acheson  on  Decem- 
ber 11.  Mr.  Porter  until  recently  headed  the  Office 
of  Price  Administration. 

The  mission  will  leave  for  Greece  during  Jan- 
uary and,  because  of  the  urgency  of  the  situation, 
has  been  asked  to  complete  its  work  by  the  end 
of  April  1947.  It  is  being  sent  in  response  to  a 
request  made  by  Greek  Prime  Minister  Tsaldaris 
to  Secretary  Byrnes.  In  addition  to  Mr.  Porter 
the  mission  will  consist  of  a  small  group  of  eco- 
nomic, financial,  and  engineering  experts. 

The  mission  will  examine  economic  conditions 
in  Greece  as  they  bear  upon  the  reconstruction  and 
development  of  the  economy  of  that  country.  It 
will  consider  the  extent  to  which  the  Greek  Gov- 
ernment can  carry  out  reconstruction  and  develop- 
ment through  effective  use  of  Greek  resources  and 
the  extent  to  which  foreign  assistance  may  be 
required. 

In  making  the  announcement.  Acting  Secretary 
Acheson  recalled  the  valiant  stand  of  the  Greeks 
against  the  Nazi  invasion,  their  continued  resist- 
ance and  sacrifices  throughout  the  long  occupation. 


1151 


THE  RECORD   Of   THE   WEEK 

and  the  hardships  consequent  upon  the  war  which 
they  have  endured  since  liberation.  He  stated  that 
the  United  States  has  long  felt  a  close  relationship 
with  Greece  particularly  because  of  cultural  ties 
between  the  two  countries  and  because  of  the  large 
number  of  American  citizens  of  Greek  descent. 
He  said  that  Greece  is  striving  to  revive  its  eco- 
nomic system  and  that  the  purpose  of  the  mission 
will  be  to  assist  in  this  effort. 


As  chief  of  the  mission,  Mr.  Porter  will  have  the 
personal  rank  of  Ambassador.  He  comes  to  his 
new  position  after  wide  experience  in  government 
administration,  having  served  since  1942  succes- 
sively as  Deputy  Administrator  for  Kent  in  OPA, 
Associate  Administrator  of  the  War  Food  Admin- 
istration, Associate  Director  of  the  Office  of  Eco- 
nomic Stabilization,  Chairman  of  the  Federal 
Communications  Commission,  and  Head  of  OPA. 


Further  Interpretation  of  Rush-Bagot  Agreement 


[Released  to  the  press  December  13] 

The  Governments  of  the  United  States  and  Can- 
ada announced  on  December  13  a  further  inter- 
pretation of  the  Rush-Bagot  agreement  of  1817 
regulating  the  presence  of  naval  vessels  upon  the 
Great  Lakes.^  Originally  drafted  as  a  means  of 
settling  specific  problems  arising  from  the  "War  of 
1812,  the  Rush-Bagot  agreement  has  become  a 
symbol  of  the  friendly  relationship  between  the 
United  States  and  Canada.  Although  its  technical 
provisions  have  been  outdated  for  many  years,  the 
spirit  of  the  agreement  has  been  maintained  by 
frank  and  friendly  consultation  between  the 
United  States  and  Canada  upon  all  questions  re- 
lating to  naval  vessels  upon  the  Great  Lakes.  In 
continuation  of  this  practice,  Canada  and  the 
United  States  have  agreed  upon  the  following  in- 
terpretation of  the  Rush-Bagot  agreement  of  1817 
which  is  expressed  in  the  appended  exchange  of 
notes  between  the  Acting  Secretary  of  State  and 
the  Canadian  Ambassador  in  Washington : 
No.  421  November  18, 19^6. 

Sir: 

You  will  recall  that  the  Rush-Bagot  Agreement 
of  1817  has  been  the  subject  of  discussion  between 
our  Governments  on  several  occasions  in  recent 
years  and  that  notes  were  exchanged  in  1939, 1940  ^ 
and  1942  relating  to  the  application  and  interpre- 
tation of  this  Agreement.  It  has  been  recognized 
by  both  our  Governments  that  the  detailed  pro- 
visions of  the  Rush-Bagot  Agreement  are  not  ap- 


'  Treaty  Series  110%. 

'  Bulletin  of  Mar.  29,  1941,  p.  366. 


plicable  to  present-day  conditions,  but  that  as  a 
symbol  of  friendly  relations  extending  over  a  pe- 
riod of  nearly  one  hundred  and  thirty  years  the 
Agreement  possesses  great  historic  importance.  It 
is  thus  the  spirit  of  the  Agreement  rather  than  its 
detailed  provisions  which  serves  to  guide  our  Gov- 
ernments in  matters  relating  to  naval  forces  on  the 
Great  Lakes. 

Discussions  have  taken  place  in  the  Permanent 
Joint  Board  on  Defence  with  regard  to  the  station- 
ing on  the  Great  Lakes  of  naval  vessels  for  the  pur- 
pose of  training  naval  reserve  personnel.  The 
naval  authorities  of  both  our  Governments  regard 
such  a  course  as  valuable  from  the  point  of  view  of 
naval  training  and  the  Board  has  recorded  its 
opinion  that  such  action  would  be  consistent  with 
the  spirit  of  existing  agreements.  The  Canadian 
Government  concurs  in  this  opinion. 

In  order  that  the  views  of  our  two  Governments 
may  be  placed  on  record,  I  have  the  honour  to 
propose  that  the  stationing  of  naval  vessels  on  the 
Great  Lakes  for  training  purposes  by  either  the 
Canadian  Government  or  the  United  States  Gov- 
ernment shall  be  regarded  as  consistent  with  the 
spirit  of  the  Rush-Bagot  Agreement  provided  that 
full  information  about  the  number,  disposition, 
functions  and  armament  of  such  vessels  shall  be 
communicated  by  each  Government  to  the  othei 
in  advance  of  the  assignment  of  vessels  to  service 
on  the  Great  Lakes.  If  your  Government  concurs 
in  this  view,  this  note  and  your  reply  thereto  shaD 
be  regarded  as  constituting  a  further  interpreta- 
tion of  the  Rush-Bagot  Agreement  accepted  bj 
our  two  Governments. 

Accept  [etc.]  H.  H.  Wrong 


1152 


Department  of  Stafe  Bulletin      •      December  22,  J 940 


Decembers,  191^6. 
Excellency  : 

I  have  the  honor  to  acknowledge  the  receipt  of 
your  note  No.  421  of  November  18,  1940,  in  which 
you  advised  me  that  your  Government  has  pro- 
posed a  further  interpretation  of  the  detailed  pro- 
visions of  the  Kush-Bagot  Agreement.  My  Gov- 
ernment is  in  complete  accord  with  yours  as  to  the 
historic  importance  of  this  Agreement  as  a  symbol 
of  the  friendship  between  our  two  countries  and 
agrees  that  it  is  the  spirit  of  this  agreement  which 
guides  our  Governments  in  matters  relating  to 
naval  forces  on  the  Great  Lakes. 

I  am  now  pleased  to  inform  you  that  my  Govern- 
ment concurs  with  your  proposal,  namely,  that  the 
stationing  of  naval  vessels  on  the  Great  Lakes  for 
training  purposes  by  either  the  Canadian  Gov- 
ernment or  the  United  States  Government  shall  be 
regarded  as  consistent  with  the  spirit  of  the  Rush- 
Bagot  Agreement  provided  that  full  information 
about  the  number,  disposition,  functions  and  arma- 
ment of  such  vessels  shall  be  communicated  by 
each  Government  to  the  other  in  advance  of  the 
assignment  of  vessels  to  service  on  the  Great  Lakes. 

Accept  [etc.] 

Dean  Acheson 

Acting  Secretary  of  State 


Food-Supply  Agreement  With  Peru 


[Released  to  the  press  December  11] 

Col.  Arthur  E.  Harris,  president  of  the  Institute 
of  Inter-American  Affairs  and  the  Inter- American 
Educational  Foundation,  Inc.,  has  returned  from 
Peru  with  the  report  that  the  food-supply  agree- 
ment between  the  United  States  and  that  coimtry 
will  continue  in  operation  until  June  30,  1948.^ 

The  agreement  covers  the  general  problem  of 
increasing  food  production  in  the  Andean  republic 
and  assisting  in  setting  up  proper  processing,  stor- 
age, and  distribution  systems.  The  contribution 
of  the  United  States  is  principally  to  furnish  tech- 
nical assistance.  The  agreement  provides  for  this 
technical  assistance  under  a  cooperative  service 
pattern  for  the  purposes  mentioned  above ;  study 
Df  economic  problems  affecting  these  operations; 


THE  RECORD   Of  THE  WEEK 

development  of  new  acreage  through  agricultural 
colonization,  soil  conservation,  and  irrigation ;  pro- 
vision of  tools,  equipment,  insecticides,  seeds, 
breeding  livestock,  other  materials  and  the  tech- 
nical service  to  go  with  them ;  development  of  an 
agricultural  extension  service;  technical  studies  in 
nutrition,  diet,  and  home  economy;  and  special 
assistance  to  inadequately  financed  small  farmers. 
The  cooperative  agricultural  operations  in  Peru 
are  conducted  by  Servicio  Cooperativo  Inter- 
Americano  de  Produccion  de  Alimentos  (SCIPA). 
SCIPA  is  headed  by  John  Neal,  chief  of  party  for 
the  Institute  of  Inter-American  Affairs.  He  is 
assisted  by  10  United  States  technicians  and  a  large 
staff  of  Peruvian  agriculturists.  SCIPA  operates 
under  authority  of  the  Peruvian  Ministry  of 
Agriculture. 

The  phase  of  cooperative  food-supply  activities 
covei'ed  in  the  agreement  signed  by  Colonel  Harris 
and  Peruvian  Minister  of  Agriculture  Luis  Ugarte 
Rose  December  4,  1946  provides  for  a  financial 
commitment  to  SCIPA  by  the  Institute  of  $75,000 
as  against  a  similar  commitment  of  $450,000  by 
Peru,  or  in  the  ratio  of  1  to  6.  Pursuant  to  the 
policy  set  forth  at  the  Rio  de  Janeiro  conference 
of  1942,  the  agreement  was  signed  originally  on 
May  19,  1943  for  the  purpose  of  bolstering  food 
supply  as  part  of  continental  defense  and  with  the 
long-range  purpose  of  assisting  Peru  to  strengthen 
its  basic  economic  structure.  On  the  principle  of 
diminishing  United  States  financial  commitments 
as  the  other  American  republics  take  over  opera- 
tions. United  States  financial  commitments  in  the 
food  progi-am  have  decreased  steadily  with  each 
phase  of  the  program. 

While  in  Peru,  Colonel  Harris  also  inspected 
operations  of  cooperative  services  in  health  and 
sanitation  and  elementary  and  vocational  educa-  ' 
tion  conducted  there  with  the  assistance  of  the 
Institute  of  Inter- American  Affairs  and  the  Inter- 
American  Educational  Foundation,  Inc.  Prior  to 
the  Peruvian  assignment  he  studied  cooperative- 
action  programs  in  the  foregoing  fields  in  Mexico, 
the  Central  American  republics,  and  Panama. 
He  left  \A^ashington  on  October  24  and  returned  on 
December  10. 


'Previous  agreements  are  printed  in  Executive  Agree- 
ment Series  3S5  and  433. 


1153 


Report  of  Edwin  W.  Pauley  on  Industrial  Conditions  in  Manchuria 


[Released  to  the  press  December  13] 

The  Acting  Secretary  of  State  announced  on 
December  13  that  Ambassador  Edwin  W.  Pauley, 
United  States  Reparations  Representative,  had 
submitted  to  tlie  President  his  final  report  on  "in- 
dustrial conditions  in  Manchuria,  thus  completing 
his  Far  Eastern  mission.  He  had  previously  sub- 
mitted his  recommendations  as  to  Japanese  repara- 
tions and  his  survey  of  conditions  in  Korea.^ 

The  Manchurian  report  estimated  that  industry 
in  that  country  was  directly  damaged  to  the  extent 
of  $858,000,000  during  Soviet  occupancy  and  that, 
considering  replacement  cost  and  deterioration, 
"two  billion  U.S.  dollars  is  considered  to  be  a  con- 
servative estimate  of  the  damage."    It  continued ; 

"The  difference  in  condition  of  the  Manchurian 
industrial  plant  between  Japanese  surrender  and 
the  dates  the  Pauley  mission  made  its  survey  is 
appalling.  How  much  of  the  wrecked  condition  is 
a  direct  result  of  Soviet  removals,  and  how  much 
may  be  ascribed  to  pillage,  civil  war,  and  indirect 
consequences  of  the  Soviet  occupation  cannot  be 
accurately  determined." 

Ambassador  Pauley  noted  that  "United  States 
policy  in  the  post-war  Far  East  was  predicated 
upon  the  establishment  of  China  as  a  strong,  stable, 
united  nation,  with  a  basic  economic  self-suffi- 
ciency, so  that  nation  could  take  its  proper  part 
in  the  development  of  a  peaceful  Asiatic  economy." 

He  continued : 

"During  the  years  before  and  after  Pearl  Har- 
bor, the  Japanese  had  created  in  Manchuria  a  tre- 
mendous industrial  structure  which  was  definitely 
tributary  to  the  economy  of  Japan. 

"Had  this  structure  remained  as  intact  as  it  was 
on  the  date  of  Soviet  occupancy  and  had  China 
remained  peaceful,  the  Manchurian  industrial  com- 
plex could  have  readily  been  integrated  with 
China's  growing  economy,  and  so  greatly  acceler- 
ated the  over-all  Chinese  industrial  development. 

"The  large  capacities  in  basic  industries  in  Man- 


'  See  BuLumN  of  Aug.  4,  1946,  p.  233. 


1154 


churia  would  have  made  possible  a  rapid  absorp- 
tion by  China  of  further  processing  equipment 
removed  from  Japan  as  reparations.  At  the  same 
time,  this  action  would  have  lopped  off  from  Japan 
one  of  the  most  important  sources  of  strength  in 
the  Japanese  war  potential.  It  was  presumed  that 
China  could  fill  at  least  partially  the  economic 
vacuum  resulting  from  the  Japanese  defeat  and  the 
consequent  imposed  reduction  of  Japan's  produc- 
tive capacity  to  a  peacetime  level." 

The  direct  damage  to  the  major  basic  industries 
is  summarized  in  the  following  table : 

Summary  of  Damage  to  Basic  Manchurian  Industrji 


Industry 


Electric  power 

Coal 

Iron  and  steel 

Railroads 

Metal  working 

Non-ferrous   mining    (coal 

excepted) 

Liquid    fuels    and    lubri- 
cants  

Cement 

Chemicals 

Textiles 

Paper  and  pulp 

Radio,  telegraph,  and  tele- 
phone   

Total 


Estimated  loss  (in 
U.  S.  dollars)  due 
to  removals  and 
damage  during 
Soviet  occupa- 
tion 


$201,  000,  000 
100,  000,  000 
141,  260,  000 
137,  160,  000 
150,  000,  000 

10,  000,  000 

11,680,000 
23,  000,  000 
14,  000,  000 
38,  000,  000 
7,  000,  000 

25,  000,  000 


858,  100,  000 


Estimated  per- 
cent reduction 
in  productive 
capacity 
suiting  from 
Soviet  occupa- 
tion 


71 
*(61-100) 


80 

75 

65 
50 
50 
75 
30 

*  (20- 100) 


♦Percentage  varies  in  sub-categories. 

Noting  that  "United  States  policy  is  directec 
toward  the  establishment  of  an  economy  that  wil 
promote  a  lasting  peace  in  the  Far  East  and  t< 
prevent  the  resurgence  of  Japanese  economic  dom 
ination",  Ambassador  Pauley  stated : 

"United  States  policy  has  long  held  that  al 
Japanese  assets,  whether  situated  in  Japan  propei 


Departmenf  of  State  Bulletin 


December  22.  19C 


or  in  other  areas,  were  subject  to  removal  as  Allied 
reparations.  Japanese  assets  in  conquered  areas 
such  as  the  Philippines,  China,  including  Man- 
churia and  Korea,  were  to  be  taken  from  Japanese 
ownership  and  control  and  were  to  be  operated  for 
the  benefit  of  the  countries  where  the  physical  as- 
sets exist.  It  was  considered  that  this  primary 
step  was  necessary  in  order  to  strengthen  the  econo- 
mies of  the  countries  which  had  been  victims  of 
Japanese  aggression  and  further  to  keep  the  facili- 
ties operating  in  order  to  prevent  loss  of  needed 
production  and  safeguard  the  livelihood  of  the 
local  population." 

Turning  to  Soviet  occupancy.  Ambassador 
Pauley  reported : 

"Soviet  forces  entered  Manchuria  on  August  8, 
1945.  Japanese  resistance  was  confined  to  north- 
ern Manchuria  and  within  a  week  this  ended. 
Southern  Manchuria,  which  contained  over  80  per- 
cent of  Manchurian  industry,  was  taken  practically 
unopposed  and  with  little  if  any  damage.  There 
was  ample  opportunity  for  the  orderly  occupation 
jf  the  entire  area. 

"Upon  their  arrival,  the  Soviets  began  a  sys- 
tematic confiscation  of  food  and  other  stock  piles 
ind  in  early  September,  started  the  selective  re- 
noval  of  industrial  machinery.  It  is  apparent  that 
;hey  planned  to  complete  these  removals  by  De- 
cember 3,  1945,  the  date  originally  set  for  the 
ivithdrawal  of  all  Soviet  military  forces  from 
Manchuria. 

"The  term  stripping  as  it  has  been  used  in  the 
oress  in  connection  with  removals  from  Manchuria 
■s  a  misnomer.  The  Soviets  did  not  take  every- 
thing. They  concentrated  on  certain  categories 
)f  supplies,  macliinery,  and  equipment.  In  addi- 
ion  to  taking  stock  piles  and  certain  complete 
ndustrial  installations,  the  Soviets  took  by  far 
he  larger  part  of  all  functioning  power  generating 
-nd  transforming  equipment,  electric  motors,  ex- 
)erimental  plants,  laboratories,  and  hospitals.  In 
Qachine  tools,  they  took  only  the  newest  and  best, 
saving  antiquated  tools  behind.  In  the  old  Muk- 
(en  Arsenal,  for  exami>Ie,  about  one  third  of  the 
ools  were  taken,  while  in  the  new  Arsenal,  vir- 
ually  everything  was  taken  or  demolished. 

"Not  only  were  buildings  and  structures  dam- 
ged  by  the  removal  of  the  equipment  but  the  tak- 


IHE  RECORD   OF  THE  WEEK 

ing  of  some  key  equipment,  such  as  generators  and 
pumps  from  mines  resulted  in  the  loss  of  current 
production,  and  in  irreparable  damage  to  the  mines 
by  flooding.  The  removal  of  power  facilities  not 
only  halted  all  current  industrial  production  but 
also  made  it  impossible  to  maintain  and  protect 
the  plants  themselves. 

"By  far  the  greatest  part  of  the  damage  to  the 
Manchurian  industrial  complex  occurred  during 
the  Soviet  occupation  and  was  primarily  due  to 
Soviet  removals  of  equipment.  After  the  Soviet 
withdrawal,  Chinese  Communist  action  resulted  in 
further  damage  to  some  of  the  installations." 

Pauley  reported  that  the  Soviet  forces  also  con- 
fiscated approximately  three  million  United  States 
dollars  worth  of  gold  bullion  stocks  and  over  a 
half  billion  Manchurian  yuan  from  Manchukuo 
banks;  also  circulated  nearly  ten  billion  yuan  in 
occupational  currency,  almost  doubling  the  total 
Manchurian  note  issue. 

In  conclusion,  Ambassador  Pauley  commented : 
"It  is  generally  agreed  that  China's  first  eco- 
nomic need  is  communications,  principally  rail- 
ways, transport,  and  domestic  shipping.  Less  than 
10,000  miles  of  railway  is  in  existence  in  all  of 
China  exclusive  of  Manchuria  and  less  than  half  of 
that  is  now  operable.  Manchuria  with  its  abun- 
dant natural  resources  and  industrial  plant  would 
have  been  the  logical  point  to  begin  the  rehabilita- 
tion of  China's  transport.  If  Manchurian  industry 
had  been  left  intact  it  could  also  have  produced  the 
steel,  machinery,  and  consumer  goods  so  badly 
needed  for  restoration  and  for  new  construction  in 
China. 

"China's  continuing  internal  strife  is  a  major 
factor  in  retarding  her  economic  recovery.  But 
even  this  cannot  minimize  the  powerful  set-back 
which  the  destruction  of  the  Manchurian  indus- 
trial plant  has  been  to  Manchuria,  to  China,  and 
to  the  Far  Eastern  world. 

"Little  can  be  done  in  the  way  of  rehabilitation 
in  China  in  the  areas  where  fighting  is  going  on 
or  where  the  threat  of  armed  action  is  present. 
This,  however,  should  not  delay  the  i>reparation  of 
plans  so  that  when  peaceful  conditions  are  resumed 
and  communications  restored,  a  rapid  and  orderly 
process  of  rehabilitation  of  the  plants  essential  to 
primary  needs  of  the  inhabitants  can  begin.  The 
natural  resources  are  there." 


1155 


UNRRA  Functions  Under  Sanitary  Conventions 
Are  Transferred  to  WHO 


The  Director  General  of  the  United  Nations  Re- 
lief and  Rehabilitation  Administration  has  notified 
the  Secretary  of  State  of  the  transfer  to  the  In- 
terim Commission  of  the  World  Health  Organiza- 
tion, as  of  December  1,  1946,  of  the  duties  and 
functions  entrusted  to  UNRRA  under  the  1944 
sanitary  conventions^  and  the  1946  protocols^ 
prolonging  those  conventions. 

Copies  of  the  Director  General's  note  of  Octo- 
ber 31,  1946,  together  with  the  enclosures  thereto 
regarding  that  transfer,  were  transmitted  by  the 
Secretary  of  State  to  the  governments  concerned. 

Text   of   letter   from    the   Director   General    of 
UNRRA  to  Secretary  Byrnes 

31  Octoler  19^6. 

Sir  :  I  have  the  honor  to  refer  you  to  paragraph 
2  (f)  of  an  Arrangement  concluded  on  22  July 
1946  by  sixty-one  governments  represented  at  the 
International  Health  Conference  in  New  York, 
which  creates  the  Interim  Commission  of  the 
World  Health  Organization,  and  which  reads  as 
follows : 

"(f)  to  take  all  necessary  steps  for  assumption 
by  the  Interim  Commission  of  the  duties  and 
functions  entrusted  to  the  United  Nations  Relief 
and  Rehabilitation  Administration  by  the  Inter- 
national Sanitary  Convention,  1944,  modifying  the 
International  Sanitary  Convention  of  21  June 
1926,  the  Protocol  to  Prolong  the  International 
Sanitary  Convention,  1944,  the  International  Sani- 
tary Convention  for  Aerial  Navigation,  1944,  mod- 
ifying the  International  Sanitary  Convention  for 
Aerial  Navigation  of  12  April  1933,  and  the  Pro- 
tocol to  Prolong  the  Intei-national  Sanitary  Con- 
vention for  Aerial  Navigation,  1944." 

'-  Treaty  Series  991  and  992. 

^  Treaties  and  Other  International  Acts  Series  1551  and 
1552. 


1156 


I  now  have  the  honor  to  inform  you  that  Reso 
lution  No.  94  adopted  at  the  Fifth  Session  of  th( 
Council  in  Geneva  on  14  August  1946  authorize; 
the  Director  General  of  the  United  Nations  Relie: 
and  Rehabilitation  Administration  to  take  suet 
steps  as  are  necessary  to  transfer  as  soon  as  prac 
ticable  to  the  Interim  Commission  of  the  Work 
Health  Organization  the  functions  which  had  beei 
entrusted  to  the  Administration  of  UNRRA,  un 
der  Resolutions  No.  52  and  No.  85,  by  the  Inter 
national  Sanitary  Conventions  mentioned  above 
as  well  as  such  other  functions  of  UNRRA  in  th 
field  of  health  as  the  World  Health  Organizatioi 
might  be  willing  to  undertake. 

The  Director  General  is  further  authorized  t( 
transfer  to  the  Interim  Commission  any  o 
UNRRA's  relevant  records,  equipment,  and  per 
sonnel  which  the  Commission  may  desire,  and,  sub 
ject  to  the  approval  of  the  Central  Committee 
such  funds  from  available  resources  as  may  be  nee 
essary  for  the  performance  of  the  transferrec 
functions,  provided  the  Commission  has  not  avail 
able  other  resources  for  these  functions. 

A  copy  of  Resolution  No.  94  is  enclosed  for  con 
venience  of  reference. 

In  pursuance  of  this  Resolution  the  Directo: 
General  of  this  Administration  under  date  of  2! 
October  1946  addressed  a  letter  to  Dr.  G.  B.  Chis 
holm,  Executive  Secretary,  Interim  Commissioi 
of  the  World  Health  Organization,  2  East  103r( 
Street,  New  York  29,  New  York,  proposing  tha 
the  duties  and  functions  of  UNRRA  referred  tt 
in  the  Resolution  be  assumed  by  the  Interim  Com 
mission  of  the  World  Health  Organization  as  oi 
1  December  1946.  A  list  of  records,  equipment 
etc.,  proposed  to  be  transferred  was  attached  t< 
the  letter. 


Department  of  State  Bulletin      •      December  22, 194' 


To  this  communication  a  reply  was  received 
from  Dr.  Chisholm,  likewise  dated  22  October 
1946,  in  which  he  states  that  pursuant  to  para- 
graph 2  (f)  of  the  Arrangement  concluded  on  22 
July  1946  and  quoted  above,  the  Interim  Commis- 
sion of  the  World  Health  Organization  would  un- 
dertake to  carry  out,  as  of  1  December  1946,  the 
duties  and  functions  which  had  been  performed 
by  UNERA  under  the  International  Sanitary 
Conventions  cited.' 

As  the  Department  of  State  is  the  depository  of 
;he  International  Sanitary  Conventions  and 
Protocols  to  which  reference  has  been  made,  I  have 
ohe  honor  to  transmit  herewith  copies  of  the  ex- 
change of  letters  of  22  October  1946,  between  the 
Director  General  and  Dr.  Chisholm,  with  the  re- 
[uest  that  you  be  good  enough  to  cause  appropriate 
lotifications  to  be  sent  as  soon  as  possible  to  all 
nterested  signatory  governments  advising  them 
■f  the  transfer,  as  of  1  December  1946,  of  the 
luties  and  functions  of  UNRRA  in  the  field  of 
lealth  to  the  Interim  Commission  of  the  World 
lealth  Organization. 
Very  truly  yours, 

For  the  Director  General 

Cornelius  Van  H.  Engert 

Acting  Diplomatic  Adviser 
I'nclosures : 

1.  Resolution  No.  »4,  14  August  1946 

2.  Letter  from  Director  General  to   Dr.  Chisholm,  22 
ictober  1946 

3.  Letter  from  Dr.  Chisholm  to  Director  General,  22 
ictober  1946 


[Enclosure  No.  1] 


esolution  No.  94 


Resolution  relating  to  the  Health  Activities  of 
'NRRA  in  connection  with  Item  V  of  the  Agenda 

Whereas 

The  functions  of  UNRRA  in  the  field  of  health 
'e  necessarily  of  a  temporary  character;  and 

Whereas 

The  Council  has  taken  note  of  the  fact  that  the 
itablishment  of  a  World  Health  Organization  is 

process  and  that  an  Interim  Commission  thereof 


THE  RECORD   OF  THE  WEEK 

has  been  established   and   is   functioning:   it  is 
therefore 

Resolved 

1.  That  the  Director  General  consult  with  the 
Interim  Commission  of  the  World  Health  Organi- 
zation M'ith  a  view  to  the  transfer  as  soon  as  practi- 
cable to  the  Commission  of  the  duties  and  functions 
entrusted  to  tlie  Administration,  under  Resolu- 
tions 52  and  85,  by  the  International  Sanitary  Con- 
vention, 1944,  modifying  the  International  Sani- 
tary Convention  of  21  June,  1926,  the  Procotol  to 
Prolong  the  International  Sanitary  Convention, 
1944,  the  International  Sanitary  Convention  for 
Aerial  Navigation,  1944,  modifying  the  Interna- 
tional Sanitary  Convention  for  Aerial  Navigation 
of  12  April,  1933,  and  the  Protocol  to  Prolong  the 
International  Sanitary  Convention  for  Aerial 
Navigation  1944,  as  well  as  such  other  functions  of 
UNRRA  in  the  field  of  health  as  the  World  Health 
Organization  or  its  Interim  Commission  may  be 
willing  to  undertake. 

2.  That  the  Director  General  is  authorized  to 
take  such  steps  as  are  necessary  to  effect  the  trans- 
fer to  such  Organization  or  Commission  of 
UNRRA 's  functions  under  such  Conventions  as 
well  as  any  of  UNRRA 's  other  functions  in  the 
field  of  health  which  such  Organization  or  Com- 
mission is  willing  to  undertake. 

3.  That  the  Director  General  is  further  author- 
ized 

(a)  to  transfer  to  the  World  Health  Organi- 
zation or  its  Interim  Commission,  from  time  to 
time,  any  available  records,  equipment,  materials 
and  personnel  which  such  Commission  or  Organi- 
zation may  desire  to  accept  and  which  are  relevant 
to  its  functions;  and 

(b)  subject  to  the  approval  of  the  Central 
Committee,  to  transfer  to  such  Organization  or 
Commission,  from  the  available  resources  of 
UNRRA,  such  funds  as  may  be  necessary  for  the 
performance  of  the  transferred  functions,  pro- 
vided that  the  Organization  or  Commission  has 
not  available  other  resources  for  fiiumcing  the 
performance  of  these  functions. 

'  For  enclosures  2  and  3,  see  Bulletin  of  Nov.  10,  1946, 
p.  842. 


1157 


THE   RECORD   OF  THE  WEEK 

Status  of: 

International  Sanitary  Convention,  1944 

Protocol  to  Prolong  the  International  Sanitary  Convention,  1944 

International  Sanitary  Convention  for  Aerial  Navigation,  1944 

Protocol  to  Prolong  the  International  Sanitary  Convention  for  Aerial  Navigation,  1944 

Compiled  as  of  December  10,  1946  by  the  Treaty  Branch,  Office  of  the  Legal  Adviser,  Department  of  State 


Country 


Date  of  entry  into  force 


International 
Sanitary  Con- 
vention, 1944* 


Protocol  to 
Prolong  the 
International 
Sanitary  Con- 
vention, 1944 


International 
Sanitary  Con- 
vention for 
Aerial  Naviga- 
tion, 1944* 


Protocol  to  Pro- 
long the  Interna- 
tional Sanitary 
Convention  for 
Aerial  Naviga- 
tion, 1944 


Australia 

Belgium 

Canada 

China 

Czechoslovakia 

Den  mark 

Dominican  Republic 

Ecuador 

France 

Greece 

Haiti 

Honduras 

Italy 

Luxembourg 

Netherlands 

New  Zealand 

Nicaragua 

Poland 

Syria 

Union  of  South  Africa 

United  Kingdom  of  Great  Britain  and  Northern  Ireland 
United  States  of  America 


I  4/3/45 

2  1/25/46 
11/20/45 

1/15/45 
4/30/46 

3  8/23/46 
5/20/46 
1/15/45 
1/15/45 
1/15/45 
1/15/45 
1/15/45 
4/30/46 
1/15/45 

<  5/22/45 
«  5/22/45 

1/15/45 

1/15/45 
10/31/46 

1/15/45 
'  1/15/45 

5/29/45 


4/30/46 


4/30/46 
, 4/30/46 


1  4/3/45 
2  1/25/46 
11/20/45 

1/15/45 


4/30/4t 


4/30/4t 
4/30/46 


3  8/23/46 
5/29/46 


4/30/46 
4/30/46 
4/30/46 
7/8/46 
7/23/46 
4/30/46 


4/30/46 
4/30/46 
5/28/46 
10/31/46 
7/12/46 
4/30/46 
8/6/46 


5/20/46 

1/15/45 
1/15/45 
1/15/45 
1/15/45 
1/15/45 
4/30/46 
1/15/45 

<  5/22/45 

«  5/22/45 
1/15/45 
1/15/45 

10/31/46 
1/15/45 

' 1/15/45 
5/29/45 


5/29/4e 


4/30/4t 
4/30/4f 
4/30/4f 
7/8/4f 
7/23/4( 
4/30/4t 


4/30/46 

4/30/46 

5/28/46 

10/31/46 

«  7/12/46 

4/30/46 

8/6/46 


•The  1944  conventions  are  no  longer  in  force  with  respect  to  those  countries  which  have  not  become  parties  to  the  1946  protocols  prolonging  those  conventiona 
I  With  reservations,  and  does  not  apply  to  the  Territories  of  Papua  and  Norfolk  Islands  or  the  Mandated  Territories  of  New  Guinea  and  Nauru. 
'  Applies  to  Belgium,  the  Belgian  Congo,  and  the  Territory  of  Ruanda-Urundi  under  Belgian  mandate. 
•  Does  not  apply  to  Greenland  and  the  Faroe  Islands. 

<  Applies  to  those  parts  of  the  Kmgdom  of  the  Netherlands  situated  In  Europe. 

'  Applies  to  New  Zealand  and  its  island  territories,  and  to  the  Mandated  Territory  of  Western  Samoa,  with  a  reservation  regarding  application  of  the  aeril 
convention. 

« With  reservation. 

'  Applies  to  specified  British  territories  with  certain  reservations. 


Letters  of  Credence 

Ecuador 

The  newly  appointed  Ambassador  of  Ecuador, 
Senor  Dr.  Don  Francisco  Yllescas  Barreiro,  pre- 
sented his  credentials  to  the  President  on  Decem- 
ber 13.  For  texts  of  the  Ambassador's  remarks  and 
the  President's  reply,  see  Department  of  State 
press  release  901. 


THE  FOREIGN  SERVICE 
Consular  Offices 

The  American  Vice  Consulate  at  Punta  Arenas 
Chile,  was  closed  to  the  Public  on  November  30 
1946. 

The  American  Consulate  at  Puerto  Cortes,  Hon- 
duras, was  closed  to  the  public  on  November  30 
1946. 


1158 


Deparfmenf  of  Sfafe  Bu//ef/n      •     December  22, 7 94i 


Filipino  Seamen  Awarded  Merchant 
Marine  Honors 

Awards  of  the  Mariner's  Medal  and  citations 
were  made  posthumously  on  December  11  to  51 
Filipino  seamen  who  gave  their  lives  in  the  service 
of  the  American  Merchant  Marine  during  World 
War  II. 

In  ceremonies  at  the  Department  of  State,  the 
awards  were  presented  by  Vice  Admiral  William 
W.  Smith  (U.S.N.,  retired),  chairman  of  the 
Maritime  Commission,  to  Ambassador  Paul  V. 
McNutt.  Ambassador  McNutt,  in  turn,  will  carry 
them  to  Manila  on  his  return  to  the  American  Em- 
bassy there  and  will  present  them  individually  to 
the  next  of  kin  of  the  seamen  at  special  Embassy 
ceremonies.  These  awards  are  the  first  in  a  series 
io  be  held  for  Filipino  merchant  seamen. 

Also  present  at  the  ceremony  were  Ambassador 
Joaquin  M.  Elizalde  of  the  Republic  of  the  Philip- 
oines ;  John  Carter  Vincent,  Director,  Office  of  Far 
Eastern  Affairs,  Department  of  State;  and  Jesse 
E.  Saugstad,  Chief,  Shipping  Division,  Depart- 
nent  of  State. 

Addresses  and  Statements  of  tiie  Weei( 


THE  RECORD  OF  THE  WEEK 

Panama  Ratifies  Inter-American 
Automotive  Convention 

The  Director  General  of  the  Pan  American 
Union  informed  the  Department  by  a  letter  of 
November  18,  1946  that  on  November  6,  1946  the 
Government  of  Panama  deposited  its  instrument 
of  ratification  of  the  convention  on  the  regulation 
of  inter-American  automotive  traffic,^  which  was 
opened  for  signature  at  Washington  on  Decem- 
ber 15, 1943.- 


THE  DEPARTMENT 
Appointment  of  Officers 

Louis  F.  Thompson  as  Chief,  Division  of  Finance,  Of- 
fice of  Budget  and  Finance,  effective  November  3,  1946. 

G.  Stewart  Brown  as  Deputy  Director,  Office  of  Inter- 
national Information  and  Cultural  Affairs,  effective  De- 
cember 3,  1946. 


'  Treaties  and  Other  International  Acts  Series  1567. 
'  BuLLBrm  of  Dee.  1,  1&46,  p.  1021. 


A.cting  Secretary  Acheson. 


Villard  L.  Thorp,  Assistant  Secre- 
tary for  Economic  Affairs. 


lay  Atherton,  American  Ambassa- 
dor to  Canada. 


On  the  achievements  of  UNRRA.  Text 
issued  as  press  release  888  of  Dec.  10. 
Printed  in  this  issue. 

Statement  on  appointment  of  Alger  Hiss  as 
president  of  Carnegie  Endowment  for 
International  Peace.  Text  issued  as  press 
release  892  of  Dec.  10.     Not  printed. 

Remarks  upon  occasion  of  presentation  of 
Medal  for  Merit  to  Fiorello  La  Guardia. 
Text  issued  as  press  release  906  of  Dec. 
13.     Not  printed. 

"The  Farmer's  Stake  in  American  Eco- 
nomic Foreign  Policy".  Text  issued  as 
press  release  887  of  Dec.  10.    Not  printed. 

"U.  S.  Relations  with  Canada".  Text 
issued  as  press  release  898  of  Dec.  14. 
Not  printed. 


Delivered  at  the  opening  session 
of  the  Sixth  Council  of  UNRRA 
in  Washington  on  Dec.  10. 

Made  on  Dec.  10. 


Made  at  7th  plenary  meeting  of 
Sixth  Council  of  UNRRA  in 
Washington  on  Dec.  13. 

Delivered  before  the  American 
Farm  Bureau  Federation  in  San 
Francisco  on  Dec.  10. 

Broadcast  over  the  NBC  network 
on  Dec.  14. 


1159 


^orUe/ii. 


Economic  Affairs  Page 

Cartohypnosis.     Article  by  S.  W.  Boggs    .    .      1119 

Some  Geography  from  a  Globe 1125 

Radio  Aids  to  Air  Navigation.     Article  by 

Horace  F.  Amrine 1130 

Meeting  of  Sixth  Session  of  UNRRA  Coun- 
cil: 

Members  of  U.S.  Delegation 1146 

Address  by  Acting  Secretary  Acheson  .    .    .      1146 

U.S.-Canadian  Discussions  on  Civil-Aviation 

Matters 1149 

Private  Enterprises  Nationalized  in  Yugo- 
slavia     1150 

Deposit  of  Shares  in  Yugoslav  Stock  Com- 
panies for  Conversion  and/or  Registra- 
tion     1150 

American  Economic  Mission  to  Greece    .    .    .      1151 

General  Policy 

Intergovernmental  Refugee  Committee.  Ar- 
ticle by  Martha  H.  Biehle     1148 

Repatriation    of    American    Citizens    From 

Poland 1151 

Letters  of  Credence:  Ecuador 1158 

Filipino  Seamen  Given  Awards 1159 

Occupation  Matters 

Report  on  Industrial  Conditions  in  Man- 
churia     1154 


The  United  Nations  paga 
Second    Session    of   Interim    Commission   of 

WHO.     Article  by  H.  Van  Zile  Hyde  .    .  1134 

Armaments: 

Resolution  on  Reduction 1137 

Address  by  Secretary  of  State 1138 

Resolution  on  Relations  With  Spain     ....  1143 

Treaty  Information 

Bilateral     Air-Transport     Agreements     Con- 
cluded by  U.S.     Article  by  Joe  D.  Wal- 

strom 1126 

Interpretation  of  Rush-Bagot  Agreement   .    .      1152 

Food-Supply  Agreement  with  Peru 1153 

UNRRA  Functions  Transferred  to  WHO    .    .      1156 
Panama  Ratifies  Automotive  Convention    .    .      1159 

International  Information 

Polish-American  Newspapers  Banned  in  Po- 
land        1151 

Calendar  of  international  Meetings  .    .    .      1144 
Tlie  Foreign  Service 

Consular  Offices 1158 

Addresses  and  Statements  of  the  Week  .      1159 
The    Department 

Appointment  of  Officers 1159 


%{)/nJ/imvd{y)^ 


S.  W.  Bnggs,  author  of  the  article  on  cartohypnosis,  Is 
Special  Adviser  on  Geography  in  the  Office  of  the  Special 
Assistant  for  Research  and  Intelligence,  Department  of 
State. 

Joe  D.  Walstrom,  author  of  the  article  on  bilateral  air- 
transport agreements  concluded  by  the  United  States, 
is  Associate  Chief  of  the  Aviation  Division,  Office  of 
Transport  and  Communications,  Department  of  State. 

Horace  F.  Amrine,  author  of  the  article  on  demonstra- 
tions of  radio  aids  to  air  navigation,  is  a  Divisional  As- 
sistant in  the  Aviation  Division,  Office  of  Transport  and 
Communications,  Department  of  State. 

H.  Van  Zile  Hyde,  author  of  the  article  on  the  second 
session  of  the  Interim  Commission  of  the  World  Health 
Organization,  is  Assistant  Chief  of  the  Health  Branch, 
Division  of  International  Labor,  Social  and  Health  Af- 
fairs, Office  of  International  Trade  Policy,  Department  of 
State.  Dr.  Hyde  served  as  U.  S.  alternate  representative 
to  the  Interim  Commission. 

Martha  H.  Biehle,  author  of  the  article  on  the  sixth 
plenary  session  of  the  Intergovernmental  Committee  on 
Refugees,  is  U.  S.  resident  representative  on  that  Com- 
mittee. 


n     <     COVTRNUFNT  PRINTING    OFFICE:   l<llft 


tJAe/  ^e^a/^fTneni/  xji^  ^ai& 


UNITED  STATES  POLICY  TOWARD  CHINA 

hy  the  President jj^^ 

REPORT  ON  THE  INTERNATIONAL  WOOL  TALKS- 

Article  by  Clarence  W.  Nichols /jjj3 

SUPPRESSION  OF  USE  OF  SMOKING  OPIUM- 

Exchange  of  Notes  Between  U.S.  and  U.K.  Governments     .     .     1165 


For  complete  contents  see  back  cover 


•-»-•*» 


M 


e 


^^^^**  bulletin 


U.  S.  SUPERINTEUOENT  Of  DOCr^-^'iT" 

JAN  21 1947 


For  sale  by  the  Superintendent  of  Documents 

D.  S.  Government  Printing  Office 

Washington  25,  D.  C. 

SnsscRrpTiON: 
62  issues,  $5.00;  single  copy,  15  cents 

Published  with  the  approval  of  the 
Director  of  the  Bureau  of  the  Budget 


Vol.  XV,  No.  391    •    Publication  2714 


December  29,  1946 


The  Department  of  State  BULLETIN, 
a  uieekly  publication  compiled  and 
edited  in  the  Division  of  Publications, 
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  uior/c  of  the  De- 
partment of  State  and  the  Foreign 
Service.  The  BULLETIN  includes 
press  releases  on  foreign  policy  issued 
by  the  White  House  and  the  Depart- 
ment, 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  inter- 
national 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. 


f 


REPORT  ON  THE  INTERNATIONAL  WOOL  TALKS 


hy  Clarence  Tf .  Nichols 


At  London,  November  11-15,  19^6,  representatives  from 
13  comitries  participated  in  a  review  of  the  world  situation 
of  apparel  wool.  The  delegates  unanimously  agreed  upon 
the  following  resolutions:  that  it  is  desirable  to  keep  the 
world  position  of  wool  wider  intergovernmental  review; 
that  representatives  recommend  to  their  governments  the 
establishment  of  an  International  Wool  Study  Group;  that 
the  United  Kingdom  be  invited  to  obtain,  by  February  1, 
19i7,  fro?n  the  invited  governments  their  decisions  regarding 
the  establishment  of  a  wool  study  group. 


An  intergovernmental  review  and  discussion  of 
the  world  apparel-wool  situation  took  place  in 
London  November  11-15,  1946,  upon  tlie  invita- 
tion of  the  United  Kingdom  Government.  Repre- 
sentatives of  countries  which  are  substantially 
interested  in  production,  consumption,  and  trade 
)f  apparel  wool  participated.' 

Delegates  of  the  following  13  countries  attended 
^le  talks :  Argentina,  Australia,  Belgium,  Canada, 
^hina,  France,  India,  Italy,  New  Zealand,  South 
^.frica,  United  Kingdom,  United  States,  and 
Jruguay.  The  Union  of  Soviet  Socialist  Eepub- 
lics  had  been  invited  to  participate  but  was  unable 
lo  be  represented.  Representatives  of  the  United 
Ongdom  -  Dominions  Wool  Disposals,  Ltd.  (joint 
rganization)  attended  the  discussions  regarding 
he  organization  and  program  of  that  intergov- 
rnmental  agency.  The  department  of  economic 
ffairs  of  the  United  Nations  was  represented  by 
n  observer  at  the  conference. 
At  the  conclusion  of  the  talks, 


the  delegates 

'For  article  by  James  G.  Evans  on   "American  Wool 
Mport  Policy",  see  Bitlleiin  of  Nov.  3,  1946,  p.  783. 


unanimously  agreed  upon  the  following  resolu- 
tions : 

1.  "Having  made  a  survey  of  the  prospective 
world  position  of  wool,  the  Conference  is  agreed 
on  the  desirability,  in  the  interests  of  producers 
and  consumers,  of  the  situation  being  kept  under 
intergovernmental  review". 

2.  "The  representatives  of  all  governments  par- 
ticipating in  this  Conference,  accordingly  agree  to 
recommend  to  their  governments  that  an  Interna- 
tional Wool  Study  Group  should  be  establislied". 

3.  "The  Conference  agrees  that  the  United 
Kingdom  government  should  be  invited  to  obtain 
by  February  1,  1947,  from  the  governments  which 
received  invitations  to  the  Conference,  their  de- 
cisions regarding  the  establishment  of  a  Wool 
Study  Group  and  to  arrange  for  a  first  meeting  of 
the  Study  Group." 

It  was  contemplated  in  the  discussions  that  an 
international  wool  study  group  would  include  par- 
ticipation by  governments  of  the  countries  which 
are  substantially  interested  in  production  or  con- 


1163 


sumption  of  apparel  wool  and  that  the  group 
would  meet  periodically  for  the  purpose  of  dis- 
cussing common  problems.  It  was  anticipated 
that  such  a  group  would :  ( 1 )  make  studies  of  the 
world  wool  position;  (2)  provide  continuous  in- 
formation regarding  actual  and  prospective  sup- 
ply and  demand;  (3)  consider  possible  solutions 
to  problems  which  are  unlikely  to  be  solved  by 
the  ordinary  development  of  world  trade  in  wool ; 
and  (4)  formulate  and  transmit  recommendations 
to  the  participating  governments. 

The  study  group,  if  established,  would  con- 
sider by  what  means  and  to  what  extent  necessary 
statistics  should  be  collected,  and  would  establish 
a  secretariat  if  such  a  step  were  deemed  necessary. 
Member  countries  would  share  any  costs  of  sta- 
tistical and  secretarial  work  upon  a  basis  to  be 
mutually  agreed.  Such  a  group  would  continue  to 
function  during  such  periods  as  desired  by  the  par- 
ticipating governments.  Arrangements  would  be 
made  for  interested  non-member  governments  to 
be  informed  of  the  studies  and  discussions.  The 
conference  agreed  that  a  Wool  Study  Group 
should  maintain  close  liaison  with  existing  organi- 
zations in  the  wool  field  with  a  view  to  taking  full 
advantage  of  the  information  collected  by  those 
organizations. 

The  conference  considered  the  present  statisti- 
cal position  as  regards  world  stocks,  production, 
and  consumption  of  apparel  wool,  and  reviewed 
the  prospects  for  1946-1947.  A  heavy  transfer 
of  stocks  of  wool  from  public  ownership  to  private 
ownership  has  occurred  since  the  termination  of 
hostilities,  and  the  rate  of  apparel  wool  consump- 
tion in  many  countries  has  recovered  with  encour- 
aging rapidity  from  wartime  limitations.  How- 
ever, stocks  of  wool  which  accumulated  during 
the  war  remain  large. 

Total  world  stocks  of  apparel  wool  on  June  30, 
1946  were  estimated  at  approximately  5  billion 
pounds,  grease  basis,  of  which  more  than  half 
remained  in  the  hands  of  governmental  organ- 
izations. These  publicly  owned  stocks  amounted 
to  almost  one  year's  production.  The  view  was 
expressed  that  the  absorption  of  excess  govern- 
mental and  commercial  stocks  into  final  consump- 
tion alongside  the  new  clips  of  1946-1947  and 
later  seasons  remains  a  formidable  problem. 

World  production  of  apparel  wool  somewhat 
in  excess  of  2.7  billion  pounds  both  in  the  1945- 
1946  season  and  in  the  1946-1947  season  was  esti- 
mated to  compare  with  world  consumption  of 


approximately  2.5  billion  pounds  during  1945- 
1946  and  approximately  3.1  billion  pounds  during 
1946-1947.  The  conference  recognized  that  these 
estimates  are  subject  to  an  appreciable  margin  of 
error  in  view  of  the  inadequacies  of  available  sta- 
tistical data. 

The  conference  felt  that  any  action  which  may 
be  taken  internationally  for  the  improvement  of 
world  wool  statistics  should  aim  for  the  develop- 
ment of  information  in  greater  detail  and  in  ac- 
cordance with  more  uniform  classifications  and 
definitions. 

The  conference  agreed  upon  the  desirability  of 
avoiding  as  far  as  possible  excessive  price  fluctu- 
ations and  of  securing  the  expansion  of  world  con- 
sumption of  wool  to  supply  accumulated  needs  for 
apparel  and  to  liquidate  at  reasonable  and  stable 
price  levels  the  large  stocks  which  developed  in 
several  producing  countries  during  the  war. 

It  was  recognized  in  the  discussion  that  some 
major  importing  countries  are  confronted  with  a 
problem  of  maintaining  a  domestic  wool  industry 
in  the  face  of  cheap  imports,  which  possibly  may 
involve  the  use  of  subsidies  or  other  measures. 

The  conference  stressed  the  importance  of 
steady  and  orderly  liquidation  of  abnormal  stocks 
and  devoted  special  consideration  to  the  organiza- 
tion and  policies  of  the  United  Kingdom-Do- 
minions Wool  Disposals,  Ltd.,  an  agency  of  the 
governments  of  the  United  Kingdom,  Australia, 
New  Zealand,  and  South  Africa.  Emphasis  was 
laid  upon  the  importance  of  avoiding  prices  so 
low  as  to  cause  widespread  hardship  to  producers 
and  serious  damage  to  economic  structures. 
Emphasis  was  also  placed  upon  the  importance  of 
avoiding  prices  so  high  as  to  retard  consumption 
of  apparel  fibers  or  increase  the  competitive  power 
of  other  textile  materials  in  relation  to  wool. 

Eepresentatives  of  the  joint  organization  stated 
that  the  organization  was  prepared  to  supplement 
supplies  by  offering  to  meet  the  demand,  within 
the  limitations  imposed  by  shortages  of  certain 
particular  types  of  wool  and  difficulties  encoun- 
tered in  handling  and  transport.  The  policy  of 
the  organization  was  stated  to  be  one  of  offering 
the  maximum  amounts  of  available  wool  which 
could  be  handled  effectively  at  any  given  time. 
The  joint  organization  emphasized  the  desirability 
of  extending  the  range  of  types  of  wool  used, 
pointing  out  that  concentration  by  processors 
upon  a  narrow  range  of  types  leads  to  scai"city 
and  high  prices  for  those  types. 


1164 


Department  of  Stale  Bulletin     •     December  29,  1946 


SUPPRESSION  OF  THE  USE  OF  SMOKING  OPIUM 


Exchange  of  Notes  Between  U.S.  and  U.K.  Governments 


Aide-memoire  dated  September  21, 19J,3  from  the 
Department  of  State  to  the  British  Embassy  at 
^V  ashington 

The  Government  of  the  United  States  offers  for 
the  consideration  at  this  time  of  the  British  and 
other  interested  Governments  the  adoption  of  a 
conmion  policy  having  as  an  objective  the  suppres- 
sion of  the  non-medical  use  of  narcotic  drugs  in 
areas  in  the  Far  East  now  occupied  by  Japanese 
forces  when  such  areas  are  reoccupied  by  the 
armed  forces  of  the  United  Nations. 

The  doctrine  that  the  abuse  of  opium  should  be 
gradually  suppressed  was  written  into  the  Inter- 
national Opium  Convention  signed  at  The  Hague 
on  January  23,  1912,  article  6  of  which  provides 
that  "The  Contracting  Powers  shall  take  measures 
for  the  gradual  and  efficacious  suppression  of  the 
manufacture,  the  internal  traffic  in  and  the  use  of 
prepared  opium  in  so  far  as  the  different  condi- 
tions peculiar  to  each  nation  shall  allow  of  this, 
unless  existing  measures  have  already  regulated 
the  matter."  Subsequently,  each  of  the  Govern- 
ments parties  to  the  Hague  Opium  Convention 
having  possessions  in  the  Far  East  enacted  legis- 
lation which  it  deemed  to  be  appropriate  for  the 
fulfilment  of  article  6  of  that  Convention.  In 
view  of  the  measures  which  have  been  taken  dur- 
ing the  last  tM-enty  years  to  combat  the  abuse  of 
narcotic  drugs,  especially  the  coming  into  force 

For  an  article  on  "International  Control  of  Dangerous 
Di-ugs",  by  George  A.  Morlock,  see  Bulletin  of  Nov.  17, 
1946,  p.  885.  For  article  on  "Limitation  of  the  Production 
of  Opium",  by  the  same  author,  see  Bulletin  of  Dee.  10, 
1944,  p.  723.  For  article  on  "International  Bodies  for 
Narcotics  Control",  by  Philip  M.  Burnett,  see  Bulletin 
of  Oct.  14,  1945,  p.  570.  For  exchange  of  notes  between 
U.S.  and  Afghanistan  concerning  proposed  convention  to 
3iscuss  world  limitation  of  opium  production,  see  Bullb- 
HN  of  Dec.  10,  1944,  p.  725;  for  similar  exchange  with 
VIexico,  see  Bulletin  of  May  13,  1945,  p.  911 ;  with  Turkey, 
see  Bulletin  of  July  8,  194.5,  p.  63;  with  U.S.S.R.,  see 
Bulletin  of  July  22,  1945,  p.  129 ;  with  U.K.  concerning 
:ndia,  see  BuLLBrm  of  Feb.  17,  1946,  p.  237. 


of  the  Narcotics  Limitation  Convention  of  1931, 
the  prohibition  at  the  end  of  1935  of  the  exporta- 
tion of  opium  from  India  to  the  Far  East,  and  the 
enactment  by  the  Chinese  Government  in  1941  of 
laws  prohibiting  all  traffic  in  opium  and  narcotics 
except  for  medical  purposes,  tliis  Government  feels 
that  the  interested  Governments,  acting  in  con- 
cert, can  now  solve  the  problem  of  smoking  opium. 
The  rising  tide  of  world  opinion  against  the  use 
of  prepared  opium  was  vigorously  reflected  in  a 
resolution   adopted  by  the  International  Labor 
Conference  at  its  twentieth  session  in  June  1936. 
In  its  report  entitled  "Opium  and  Labor",  the 
International   Labor   Office    stated   that   "opium 
smoking  is  injurious  to  the  workers,  impedes  their 
social  and  economic  development,  impairs  their 
health  and  decreases  their  efficiency  and,  when 
it  is  practiced  continuously,  shatters  the  health 
and  increases  the  death  rate  of  tlie  smokers,  and 
tends  to  reduce  the  rate  of  economic  and  social 
progress  in  the  districts  affected."     The  Inter- 
national Labor  Conference,  taking  note  of  this 
report,  suggested  the  "drawing  up  and  applica- 
tion of  such  additional  laws  and  regulations  as 
governments   may    consider   necessary   to    bring 
about  the  cessation  of  licensed  use  of  opium  for 
smoking  within  five  years"  in  countries  in  which 
tlie  sale  of  opium  for  smoking  is  authorized. 

Since  1936  the  leaders  of  only  one  country  in 
the  world  have  deliberately  chosen  to  encourage 
the  use  of  prepared  opium  and  other  dangerous 
drugs.  That  country  is  Japan.  Wherever  the 
Japanese  armies  have  gone  the  traffic  in  opium 
has  followed.  The  Japanese  military  forces  now 
occupy  the  Philippine  Islands,  parts  of  China, 
French  Indochina,  Thailand,  Burma,  Hong  Kong, 
the  Straits  Settlements,  the  Federated  Malay 
States,  the  Unfederated  Malay  States,  Sarawak, 
British  North  Borneo,  the  Netherlands  Indies, 
Timor,  and  other  territories  in  the  Southwest 
Pacific. 


1165 


It  is  believed  that  in  all  of  those  territories 
there  will  be  found  organizations  sponsored  by 
the  Japanese  military  forces  for  the  sale  of  nar- 
cotic drugs  for  other  than  medical  purposes.  The 
United  Nations  are  now  using  and  intend  to  use 
their  military  forces  to  the  fullest  possible  ex- 
tent to  remove  the  Japanese  forces  from  all  of 
the  above-mentioned  areas.  Owing  to  the  pres- 
ence of  opium,  opium  shops,  and  opium  smokers 
in  those  areas,  it  is  the  opinion  of  narcotics  ex- 
perts that  there  would  be  danger  of  infection  of 
susceptible  individuals  among  United  Nations 
forces  because  it  has  been  well  established  that 
most  persons  who  begin  to  take  drugs  do  so  be- 
cause of  the  accessibility  of  drugs  and  close  asso- 
ciation with  persons  who  indulge  in  them.  It  is 
believed  that  it  would  not  be  sufficient  for  the 
military  authorities  merely  to  declare  opium 
shops  out  of  bounds  for,  in  the  presence  of  opium, 
addiction  might  spread  rapidly. 

From  the  standpoint  of  the  health  and  safety 
of  the  men  of  the  armed  forces  of  the  United 
States,  this  Government  is  convinced  that  it  will 
be  imperative,  immediately  upon  the  occupation 
of  a  part  or  the  whole  of  any  one  of  the  above- 
mentioned  territories  by  the  United  States  forces, 
to  seize  all  drugs  intended  for  other  than  medical 
and  scientific  purposes  which  may  be  discovered 
and  to  close  existing  opium  monopolies,  opium 
shops  and  dens.  This  will  be  the  policy  pursued 
by  all  American  expeditionary  forces  under 
American  command. 

The  Government  of  the  United  States  therefore 
proposes  to  the  British  Government  that  it  give 
consideration  to  the  question  of  adopting  a  com- 
mon policy  in  collaboration  with  the  other  inter- 
ested Governments  to  govern  the  action  of  expedi- 
tionary forces  under  Allied  command.  This 
policy  would  envisage  each  Government's  instruct- 
ing its  military  authorities  to  issue  appropriate 
orders,  as  follows: 

Immediately  upon  the  occupation  of  a  part  or 
the  whole  of  any  one  of  the  above-mentioned 
territories 

(a)  To  seek  out  and  to  seize  all  drugs  in- 
tended for  other  than  medical  and  scientific  pur- 
poses, 

(6)  To  close  existing  opium  monopolies, 
opium  shops,  and  dens, 

(c)  To  prohibit  the  importation,  manufacture, 
sale,  possession  or  use  of  prepared  opium, 

1166 


(d)  To  prohibit  the  importation,  manufacture, 
sale,  possession  or  use  of  opium  and  other  danger- 
ous drugs  for  other  than  medical  and  scientific 
purposes, 

(e)  To  provide  medical  treatment  for  drug 
addicts  in  need  of  such  treatment, 

(/)  To  suppress  the  illicit  traffic  in  narcotic 
drugs, 

(g)  To  place  under  strict  control  all  supplies 
of  narcotic  drugs  for  medical  and  scientific  use, 
and 

(h)  To  take  the  necessary  steps,  including  the 
imposition  of  ajDpropriately  severe  penalties,  to 
enforce  all  orders  relating  to  narcotic  drugs. 

Pending  agi'eement  with  the  interested  govern- 
ments for  suppressive  measures  along  the  lines 
just  mentioned,  the  Government  of  the  United 
States  reserves  the  right  to  take  independently,  in 
all  localities  where  its  military  forces  may  be 
operating,  suitable  measures  which  may  be  deemed 
to  be  necessary  for  the  protection  of  the  health 
of  those  forces. 

Envisaging  that  United  Nations  military  con- 
trol of  territories  will  bring  about  a  temporary 
cessation  of  legal  opium  smoking,  the  Government 
of  the  United  States  believes  that  such  a  break  in 
opium  usage  will  afford  interested  governments  a 
unique  opportunity  to  end  once  and  for  all  legit- 
imized use  of  prepared  opium  in  those  territories. 
It  is  the  opinion  of  this  Government  that  this  op- 
portunity may  be  lost  if  governments  do  not  agree 
upon  and  proclaim  beforehand  a  policy  of  com- 
plete prohibition  of  prepared  opium  in  all  areas 
from  which  they  may  drive  out  the  enemy. 

It  is  the  belief  of  this  Government  that  any 
loss  of  opium  revenue  as  a  result  of  the  adoption 
of  a  prohibition  policy  would  be  more  than  offset 
by  the  resulting  social  and  economic  gains,  as  the 
l^roductive  capacity  of  the  natives  would  be  con- 
siderably increased  and  as  there  would  follow  a 
corresponding  improvement  in  their  standard  of 
living.  i 

This  Government  is  firmly  of  the  opinion  that 
the  adoption  of  a  prohibition  jDolicy  would  facili- 
tate the  international  efforts  already  undertaken 
to  draft  a  convention  for  the  limitation  and  con- 
trol of  the  cultivation  of  the  opium  poppy  strictly 
to  the  medical  and  scientific  requirements  of  the 
world,  and  it  regards  the  suppression  of  prepared 
opium  in  the  areas  now  occupied  by  the  Japanese 
as  a  necessary  first  step  to  that  end. 


The  present  time  would  appear  to  this  Govern- 
ment to  be  especially  propitious  from  a  psycho- 
logical viewpoint  for  the  interested  governments 
to  proclaim  their  intention  to  enforce  a  policy  of 
complete  suppression  of  prepared  opium  and  to 
institute  other  positive  measures  for  the  improve- 
ment of  the  health  and  welfare  of  the  people  of 
those  territories.  Such  a  proclamation  would 
emphasize  the  contrast  with  the  Japanese  policy 
of  using  narcotics  to  poison  and  weaken  those 
people  and  neglecting  their  health  and  welfare. 

The  Government  of  the  United  States  accord- 
ingly further  proposes  to  the  British  Government 
that  it  give  consideration  to  the  question  of  making 
a  public  announcement  at  an  early  date,  simul- 
taneously with  similar  action  by  the  other  inter- 
ested governments,  that  immediately  upon  the 
resumption  of  control  over  a  part  or  the  whole  of 
any  one  of  the  British  territories  now  occupied  by 
the  Japanese,  the  British  Government  will  take 
all  measures  and  enact  all  legislation  necessary  for 
the  prohibition  of  the  importation,  manufacture, 
sale,  possession  or  use  of  prepared  opium  and 
other  dangerous  drugs,  except  for  medical  and 
scientific  purposes. 

In  conclusion,  the  Government  of  the  United 
States,  believing  that  the  British  Government  is 
anxious  to  put  into  force  in  its  possessions  in  the 
Far  East  laws  and  policies  with  respect  to  opium 
similar  to  those  in  effect  in  the  United  Kingdom 
in  order  to  promote  the  establishment  of  uniform 
standards  in  relation  to  the  use  of  opium  among 
all  peoples  of  the  world,  expresses  the  confident 
hope  that  the  British  Government  will  concur  in 
and  will  cooperate  in  carrying  out  the  policies  and 
programs  set  forth  above  relating  to  the  period  of 
military  government  and  to  the  subsequent  re- 
establishment  of  civil  government  in  territories  in 
the  Far  East  retaken  from  the  enemy. 

Copies  of  this  aide-memoire  are  being  furnished 
Ito  the  Minister  of  Australia  and  to  the  Charge 
id'Affaires  ad  interim  of  Canada  and  of  New 
Zealand.  Identical  aide-memoire,  Tmutatis  mu- 
tandis, are  being  delivered  to  the  Chinese  and 
Netherlands  Ambassadors,  and  a  similar  one  is 
being  delivered  to  the  Minister  of  Portugal. 

Note  dated  October  6,  19^3  from  the  British 
Embassy  at  Washington  to  the  Department  of 
"State 

His  Majesty's  Charge  d'Affaires  presents  his 
compliments  to  the  Secretary  of  State  and  has  the 


honour  to  acknowledge  the  receipt  of  the  Depart- 
ment's aide-memoire  No.  890.114  Narcotics/12  of 
September  21st,  regarding  the  suppression  of  the 
non-medical  use  of  narcotic  drugs  in  areas  in  the 
Far  East  now  occupied  by  Japanese  Forces  when 
such  areas  are  reoccupied  by  the  armed  forces  of 
the  United  Nations. 

The  contents  of  the  aide-memoire  have  been 
transmitted  to  the  appropriate  British  authorities 
in  London,  and  a  further  communication  will  be 
made  as  soon  as  possible. 

Aide-memoire  dated  November  6,  191(3  from  the 
British  Embassy  at  Washington  to  the  Depart- 
ment of  State 

His  Majesty's  Government  in  the  United  King- 
dom have  received  the  views  of  the  Government  of 
the  United  States,  embodied  in  the  Department's 
aide  memoire  No.  890.114  Narcotics/12  of  Septem- 
ber 21st,  1943,  on  the  policy  to  be  adopted  by  the 
United  Nations  in  the  matter  of  the  control  of 
opium  in  territories  in  the  Far  East  freed  from 
Japanese  occupation. 

2.  Before  the  receipt  of  the  Department's  com- 
munication. His  Majesty's  Government  had  al- 
ready been  considering  this  question  and  had 
reached  the  same  conclusions  as  the  United  States 
Government,  namely  that  opium  smoking  should 
be  prohibited  and  prepared  opium  monopolies 
should  not  be  established  in  British  territories  to 
be  freed  from  Japanese  occupation.  In  accord- 
ance with  their  decision.  His  Majesty's  Govern- 
ment propose  to  issue  on  November  10th,  1943  a 
statement  in  the  following  terms  :- 

"By  the  Hague  Convention  of  1912  His  Majes- 
ty's Government  undertook  to  take  measures  for 
the  gradual  and  effective  suppression  of  opium 
smoking.  The  Geneva  Agreement  of  1925  con- 
tained provisions  supplementary  to  and  designed 
to  facilitate  the  execution  of  the  obligations  as- 
sumed under  the  Hague  Convention,  and  in  par- 
ticular provided  that  the  importation,  sale  and 
distribution  of  opium  and  the  making  of  prepared 
opium  for  sale  shall  be  a  monopoly  of  the  Govern- 
ment. Under  the  system  of  Government  monop- 
oly, supplies  of  prepared  opium  were  restricted 
to  habitual  smokers  and  as  a  result  of  the  ad- 
ministrative measures  and  general  improvement 
brought  about  in  social  conditions  during  the 
twenty  years  preceding  the  Japanese  aggression, 


1167 


much  progress  had  been  made  towards  the  sup- 
pression of  opium  smoking. 

"His  Majesty's  Government  in  the  United  King- 
dom have  now  decided  to  adopt  the  policy  of  total 
prohibition  of  opium  smoking  in  British  and  Brit- 
ish protected  territories  in  the  Far  East  which  are 
now  in  enemy  occupation,  and  in  accordance  with 
this  policy  prepared  opium  monopolies  formerly 
in  operation  in  these  territories  will  not  be  rees- 
tablished on  their  reoccupation.  The  success  of 
the  enforcement  of  the  prohibition  will  depend  on 
the  steps  taken  to  limit  and  control  production  in 
other  countries.  His  Majesty's  Government  will 
consult  with  the  governments  of  the  other  coun- 
tries concerned  with  a  view  to  securing  their  effec- 
tive cooperation  in  the  solution  of  this  problem." 

A  similar  statement  will,  it  is  understood,  be  is- 
sued at  the  same  time  by  the  Netherlands  Govern- 
ment. 

3.  His  Majesty's  Government  believe  that  the 
policy  to  be  amiounced  in  the  above  statement 
involving  as  it  does  the  imposition  of  a  total 
prohibition  of  opium  smoking  and  the  closing  of 
government  monopolies,  together  with  other  rele- 
vant legislation  enacted  and  brought  into  opera- 
tion many  years  ago,  will  bring  about  a  situation 
in  the  British  colonial  territories  concerned  in 
which  the  importation,  manufacture,  sale,  posses- 
sion or  use  of  all  forms  of  opium  or  its  derivatives 
or  of  all  other  habit-forming  drugs  covered  by 
various  international  conventions  will  be  re- 
stricted under  the  most  stringent  regulations  to 
medicinal  and  scientific  purposes.  As  regards 
Burma,  the  effect  will  not  immediately  be  so 
sweeping,  owing  to  the  habit  (which  does  not 
exist  in  British  colonial  territories  now  in  Japa- 
nese occupation)  of  eating  unprepared  opium  for 
semi-medical  purposes  in  many  unhealthy  parts 
of  the  country.  This  constitutes  a  different  (and 
much  more  difficult)  aspect  of  the  j^roblem  of  the 
suppression  of  the  use  of  opium  from  that  of  the 
suppression  of  opium  smoking  and  of  the  traffic 
in  prepared  opium  to  which  the  Department's 
aide  memoire  principally  refers  and  which  is  also 
the  subject  of  the  intended  declaration  by  His 
Majesty's  Government.  The  Government  of 
Burma  have,  however,  already  adopted  the  policy 
of  the  ultimate  suppression  of  all  opium  con- 
sumption, and  as  part  of  their  j^lans  for  a  recon- 
struction policy  in  Burma  are  examining  the  best 
means  of  effecting  the  suppression  in  the  shortest 

1168 


possible  time.  An  essential  prerequisite  for  suc- 
cessful abolition  is  of  course  the  effective  control 
over  opium  in  neighbouring  countries,  to  which  a 
reference  is  made  in  the  intended  statement. 

4.  In  these  circumstances.  His  Majesty's  Gov- 
ernment believe  that  the  intended  statement  will 
fully  meet  the  wishes  of  the  United  States  Gov- 
ernment as  stated  in  the  fourteenth  paragraph  of 
the  Department's  aide  memoire  under  reference. 
In  bringing  the  terms  of  the  statement  to  the 
attention  of  the  United  States  Government,  His 
Majesty's  Government  have  in  mind  the  possi- 
bility that  the  United  States  Government  may 
wish  to  issue  some  simultaneous  statement  of  their 
own  which  they  presume  would  merely  take  note 
with  satisfaction  of  the  decision  announced  by 
His  Majesty's  Government  and  the  Netherlands 
Government.  His  Majesty's  Government  are, 
however,  most  anxious  that  no  such  statement  by 
the  United  States  Government  should  be  made  be- 
fore the  issue  of  their  own  statement,  as  any 
premature  disclosure  of  their  intended  policy 
might  have  unfortunate  results. 

5.  With  regard  to  the  more  detailed  points  in 
the  Department's  aide  memoire,  His  Majesty's 
Government  are  very  willing  to  consider,  in  con- 
sultation with  the  United  States  Government, 
the  application  of  the  policy  outlined  in  their 
intended  statement  in  the  areas  occupied  by  the 
Japanese  where  United  States  troops  are  operat- 
ing, and  will  communicate  with  them  again  on 
these  points  as  soon  as  possible. 

Note  dated  November  2£,  1943  from  the  Depart- 
ment  of  State  to  the  British  Embassy  at 
Washington 

The  Secretary  of  State  presents  his  compli- 
ments to  His  Excellency  the  British  Ambassador 
and  has  the  honor  to  refer  to  the  Embassy's  aide- 
memoire  of  November  6,  1943  in  regard  to  the 
intention  of  the  Government  of  the  United  King- 
dom to  issue  on  November  10,  1943  a  statement  of 
its  decision  to  adopt  the  policy  of  total  prohibi- 
tion of  opium  smoking  in  British  and  British- 
protected  territories  in  the  Far  East  when  those 
territories  are  freed  from  Japanese  occupation. 
This  statement,  announcing  the  adoption  by  the 
Government  of  the  United  Kingdom  of  a  policy 
closely  in  accord  with  that  of  the  United  States 
Government,  has  been  read  with  satisfaction. 

This  Government  is,  of  course,  prepared  to  con- 
sult with  the  Government  of  the  United  Kingdom 

DeporfmenJ  of  Sfafe  Bu//e/in     •     December  29,  7946 


It 


and  other  Governments  concerning  measures 
which  may  be  taken  for  the  limitation  and  control 
of  the  production  of  the  opium  poppy  and  the 
suppression  of  the  illicit  traffic  in  opium. 

There  are  enclosed  herewith  for  the  information 
of  the  Govermnent  of  the  United  Kingdom  five 
copies  of  a  statement  issued  by  the  Acting  Secre- 
tary of  State  commenting  on  the  decisions  an- 
nounced on  November  10,  1943  by  the  Govern- 
ments of  the  United  Kingdom  and  the  Nether- 
lands to  prohibit  the  use  of  opium  for  smoking 
and  not  to  reestablish  opium  monopolies  in  their 
territories  in  the  Far  East  now  occupied  by  the 
enemy  upon  their  reoccupation. 

The  Secretary  of  State  notes  that  the  Embassy 
will  conmiunicate  with  him  as  soon  as  possible 
concerning  the  detailed  suggestions  contained  in 
the  Department's  aide-memoire  of  September  21 
1943.  ' 

Enclosure: 
Five  copies  of 
press  release  no.  473 

The  following  statement  was  issued  by  the  Act- 
ing Secretary  of  State  on  November  10,  1943 : 

I  have  noted  with  satisfaction  the  decision  an- 
nounced today  by  the  British  and  the  Netherlands 
Governments  to  prohibit  the  use  of  opium  for 
smoking  and  to  abolish  opium  monopolies  in  their 
territories  when  those  territories  are  freed  fi-om 
Japanese  occupation. 

For  many  years  it  has  been  the  policy  of  the 
United    States    Government,    domestically    and 
internationally  in  cooperation  with  other  govern- 
ments, to  seek  the  eradication  of  the  abuse  of  opium 
and  its  derivatives.     To  this  end  it  initiated  the 
movement  resulting  in  the  calling  of  the  Inter- 
national Opium  Commission  at  Shanghai  in  1909. 
It  participated  in  the  conference  called  at  The 
Hague  which  resulted  in  tlie  Hague  Opium  Con- 
vention of  1912.    Article  6  of  that  Convention 
provided  for  the  gradual  suppression  of  the  manu- 
facture, tlie  internal  traffic  in,  and  the  use  of  pre- 
pared opium.     Subsequently  each  of  the  govern- 
ments parties  to  the  Hague  Opium  Convention 
laving  possessions  in  the  Far  East  enacted  legis- 
ation  which  it  deemed  to  be  appropriate  for  the 
rulfilment  of  this  article.     The  United  States  Gov- 
irnment  met  its  obligations  under  the  Hague  Con- 
'ention  through  legislation  which  effectively  pro- 
libited  the  manufacture,  importation,  or  sale  of 
moking  opium  both  at  home  and  in  its  possessions. 

725918—46 2 


In  view  of  the  measures  which  have  been  taken 
during  the  last  20  years  to  combat  the  abuse  of 
narcotic  drugs,  among  which  was  the  coming  into 
force  of  the  Narcotics  Limitation  Convention  of 
1931,  this  Government  feels  that  the  problem  of 
smoking  opium  should  now  be  susceptible  of 
solution. 

With  reference  to  the  question  of  limitation  and 
control  of  production,  mentioned  in  the  state- 
ments made  by  the  British  and  Netherlands  Gov- 
ernments, the  United  States  Government  has  for 
many  years  taken  every  opportunity  to  urge  that 
only  by  limiting  the  cultivation  of  the  poppy  for 
the  production  of  opium  and  other  narcotic  drugs 
can  clandestine  manufacture  be  stopped  and  the 
illicit  traffic  be  effectively  combated.  This  Gov- 
ernment will  therefore  be  glad  to  continue  its 
cooperation  in  international  efforts  to  bring  about 
a  solution  of  this  problem. 

On  September  21,  1943  the  United  States  Gov- 
ernment addressed  aide-memoire  to  the  British, 
Netherlands,  and  other  interested  governments  in 
regard  to  the  suppression  of  the  non-medical  use 
of  narcotic  drugs  in  areas  in  the  Far  East  now 
occupied  by  Japanese  forces  when  such  areas  are 
reoccupied  by  the  armed  forces  of  the  United 
Nations.  It  is  a  source  of  deep  gratification  that 
the  action  taken  by  the  British  and  Netherlands 
Governments  is  so  closely  in  accord  with  the  policy 
of  the  United  States  Government  in  this  regard. 

Note  dated  Felruary  19,  1945  from  the  British 
Embassy  to  the  Department  of  State 

His  Britamiic  Majesty's  Ambassador  presents 
his  compliments  to  the  Acting  Secretary  of  State 
and  has  the  honour  to  transmit  to  him  herewith 
a  draft  received  from  the  Foreign  Office  of  a 
Civil  Affairs  Directive  on  Dangerous  Drugs  for 
Far  Eastern  Areas. 

Lord  Halifax  is  instructed  to  explain  that,  al- 
thougli  the  present  draft  does  not  follow  verbatim 
the  suggestions  embodied  in  the  Department  of 
State's  note  (No.  890-114  Narcotics/12)  of  Sep- 
tember 21,  1943,  it  does  in  fact  cover  the  same 
ground  and  His  Majesty's  Government  confidently 
expects  that  it  will  prove  acceptable  to  the  United 
States  Government.  The  draft  is  based  on  the 
authority  contained  in  article  6  of  the  Charter 
of  the  Combined  Civil  Affairs  Committee,  under 
which  His  Majesty's  Government  has  the  right  to 
prescribe  Civil  Affairs  policies  for  British  terri- 
tories located  in  a  United  States  military  Com- 

1169 


mand.  This  authority  has  been  interpreted  in  the 
light  of  the  assurance  given  to  the  United  States 
Government  in  this  Embassy's  Aide  Memoire  No. 
930/19/43  of  November  6th,  1943,  to  the  effect 
that  His  Majesty's  Government  is  willing  to  con- 
sult with  the  United  States  Government  regard- 
ing the  application  of  this  policy  to  areas  under 
Japanese  occupation  where  United  States  troops 
are  operating. 

Lord  Halifax  would  be  glad  to  learn  Mr.  Grew's 
reactions  to  the  present  draft  at  Ms  early  con- 
venience.   The  text  follows : 

"Draft  of  Civil  Affairs  Policy  Directive  on  Dangerous 
Drugs  (including  opium)  for  (a)  Supreme  Allied  Com- 
mander South  East  Asia  Command  (for  Malaya)  (6) 
Commander-in-Cliief  South  West  Pacific  Command  (for 
British  territories  in  Borneo)  (c)  later  on  for  Commander 
of  Theatre  in  which  Hongkong  is  then  included. 

The  pre-war  measures,  based  on  International  Conven- 
tions of  1912,  1925  and  1031,  for  control  of  stocks,  importa- 
tion, production,  distribution,  sale,  possession  and  use  of 
dangerous  drugs  should  be  restored  as  soon  as  possible. 

2.  As  soon  as  practicable,  the  Chief  Civil  Affairs  OflBcer 
Should  arrange  to  furnish,  through  the  appropriate  chan- 
nels, quarterly  returns  to  the  Permanent  Central  Opium 
Board  of: 

(1)  quantities  of  each  of  the  drugs  or  raw  materials 
Imported  or  exported  during  the  preceding  quarter,  indi- 
cating source  of  imports  and  destination  of  exports. 

(2)  the  amounts  of  each  drug  manufactured  during 
the  quarter ;  and 

(3)  the  amounts  released  for  civilian  requirements 
and  stocks  in  hand  at  the  end  of  the  quarter  (existing 
form  in  use  under  conventions  to  be  used  as  far  as 
possible). 

3.  The  legislation  in  operation  prior  to  the  Japanese 
war  should  be  amended  as  may  be  necessary  to  give  effect 
to  the  statement  of  policy  made  by  His  Majesty's  Govern- 
ment on  November  10th,  1943,  announcing  the  total  pro- 
hibition of  opium  smoking  in  British  protected  territories 
In  the  Par  East  which  are  now  in  enemy  occupation. 

4.  Steps  should  be  taken  to  enforce  this  policy  rigorously. 
In  particular  all  opium  shops  and  opium  smoking  dens 
should  be  closed,  and  all  stocks  of  narcotic  drugs,  other 
than  those  intended  for  medical  and  scientific  purposes 
should  be  seized. 

5.  Since  prohibition  of  opium  smoking  may  result  in 
addiction  to  more  deleterious  form  of  drugs  (such  as 
heroin),  the  enforcement  of  the  measures  of  control  re- 
ferred to  in  paragraph  1  will  call  for  even  greater  vigilance 
than  formerly. 

6.  Steps  should  be  taken  as  soon  as  practicable  to  review 
and  extend  measures  which  were  intended  to  create  a 
strong  public  opinion  against  opium  smoking. 

7.  Steps  should  be  taken  to  re-establish  and  extend 
facilities  for  the  treatment  of  drug  addicts." 


Note  dated  June  9,  19Jf5  from  the  Department  of 
State  to  the  British  Embassy  at  Washington 

The  Acting  Secretary  of  State  presents  his  com- 
pliments to  His  Excellency  the  British  Ambassa- 
dor and  has  the  honor  to  refer  to  the  Embassy's 
note  no.  77  of  February  19,  1945  (reference 
1063/2/45),  transmitting  a  draft  Civil  Affairs  Di- 
rective on  Dangerous  Drugs  for  Far  Eastern 
Areas,  reading  as  follows: 
[Here  follows  text  of  policy  directive  printed  above.] 

The  United  States  Government  finds  the  draft 
directive  acceptable. 

It  is  understood  that,  for  the  purposes  of  this 
directive,  the  term  "Malaya"  includes  the  Straits 
Settlements  (except  the  Settlement  of  Labuan 
which  is  covered  by  the  term  "Borneo"),  and  that 
the  term  "Borneo"  likewise  includes  Sarawak  and 
Brunei. 

The  United  States  Chiefs  of  Staff  have  ap- 
proved a  Civil  Affairs  directive  to  the  theater 
commander  charged  with  the  operations  in  Borneo, 
embodying  the  text  of  the  directive  quoted  above. 
No  action  was  taken  with  reference  to  the  ajaplica- 
bility  of  the  directive  to  the  Southeast  Asia  Com- 
mand and  Hong  Kong. 

Draft  Resolution  on  Abolition  of  Opium 
Smoking  in  the  Far  East  ^ 

The  Conunission  on  Narcotic  Drugs 

To  fulfill  the  stipulation  embodied  in  article  6 
of  the  international  drug  convention  signed  at 
The  Hague  on  23  January  1912  concerning  the 
suppression  of  the  manufacture,  internal  traffic 
in  and  use  of  prepared  opium ; 

Considering  that  the  Governments  of  the  United 
Kingdom,  France,  the  Netherlands  and  Portugal 
had  decided  to  adopt  the  policy  of  complete  pro- 
hibition of  opium-smoking  m  all  their  territories 
in  the  Far  East  and  had  taken  measures  to  give 
effect  to  this  policy ; 

Kecommends  that  the  Economic  and  Social 
Council  urge  all  countries  which  still  legalize  th«jj 
use  of  opium  for  smoking  to  take  immediate  steps 
to  prohibit  tlie  manufacture,  internal  traffic  in  and 
use  of  such  opium. 


I 


'  Adopted   by   the   Commission   on   Narcotic   Drugs   oft'!  ( 
ECOSOC  at  its  fifth  meeting  at  Lake  Success  on  Nov. 
29,  1940. 


1170 


Department  of  State  Bulletin     •     December  29,  1946 


THE  UNITED  NATIONS 


Meeting  of  the  Security  Council 


DISCUSSION  OF  BORDER  VIOLATIONS  ALONG  GREEK  FRONTIER 


Statement  by  U.S.  Representative  i 

My  Government  has  been  for  some  time  deeply 
concerned  by  the  evident  friction  between  Greece 
on  the  one  hand  and  Albania,  Yugoslavia,  and 
Bulgaria  on  the  other.  This  is  not  the  first  time 
that  the  Council  has  had  its  attention  drawn  to 
the  disturbed  and  unsettled  conditions  existing  in 
this  area  of  the  world.  The  four  countries  who 
are  directly  concerned  are  now  before  the  Council 
and  have  accepted  its  jurisdiction  for  the  purpose 
of  pacific  settlement  of  this  case.  All  of  them 
have  indicated  their  willingness  that  the  Council 
exercise  its  authority  under  the  Cliarter  to  pro- 
mote an  amicable  and  peaceful  solution  of  the 
difficulties.  In  our  opinion  this  case  is  exactly  the 
type  of  case  which  the  Security  Council  was  cre- 
ated to  handle  and  I  cannot  overemphasize  the  im- 
portance, for  the  future  of  the  United  Nations,  of 
our  ability  to  arrive  at  a  satisfactory  solution. 

From  all  the  conflicting  allegations  which  have 
been  presented  to  the  Security  Council,  there 
emerges  clearly  the  central  fact  that  there  have 
been  a  great  many  border  violations  along  the 
frontier  between  Greece  on  the  one  hand  and  Al- 
bania, Yugoslavia,  and  Bulgaria  on  the  other.  All 
the  four  Governments  concerned  have  made  offi- 
cial allegations,  either  before  this  Council  or  other- 
wise, that  such  border  violations  have  taken  place. 
Border  violations  of  the  nature  of  those  alleged 
cannot  be  ignored  by  the  Security  Council.  Its 
responsibility  for  the  maintenance  of  peace  re- 
■quires  (hat  the  Council  deal  squarely  with  the 

'  The  statement  and  following  resolution  were  submitted 
to  the  Security  Council  at  its  meeting  in  New  York,  N.  Y., 
on  Dec.  18,  1946.  The  U.S.  Representative  to  the  Security 
Council  is  Herschel  V.  Johnson. 


situation.  It  seems  to  me  to  be  the  inescapable 
and  self-evident  duty  of  the  Security  Council  to 
investigate  the  facts  pertaining  to  these  border 
violations  without  attempting  at  this  time,  on  the 
basis  of  present  information,  to  prejudge  the 
issues. 

For  this  reason  my  Government  has  instructed 
me  to  propose  a  commission  of  investigation  to  as- 
certain the  facts  relating  to  the  border  violations 
along  the  frontier  between  Greece  on  the  one  hand 
and  Albania,  Yugoslavia,  and  Bulgaria  on  the 
other.  We  think  such  an  investigation  is  an  es- 
sential first  step  in  the  Council's  proceedings  in 
this  case.  We  have  attempted,  in  drawing  up  our 
resolution,  to  make  it  as  simple  as  possible  in  the 
hope  that  the  Council  would  be  able  to  accept  it. 
We  cannot,  of  course,  know  now  what  will  be  the 
results  of  such  an  investigation ;  nor  can  we  know 
what  other  measures,  if  any,  the  Council  may  wish 
to  recommend,  after  receiving  the  investigating 
committee's  report.  We  do  not  see,  however,  how 
the  Council  can  take  effective  action  looking  to- 
wards a  peaceful  settlement  of  this  case  without 
taking  this  first  step. 

With  all  the  earnestness  at  my  command,  I  urge 
the  members  of  the  Security  Council  to  suspend 
judgment  at  this  time  on  the  merits  of  the  various 
allegations  which  have  been  made  and  to  agree 
that  the  Security  Council,  which  has  been  en- 
trusted by  the  United  Nations  with  the  main- 
tenance of  peace  and  security,  should  make  its  own 
investigation  to  ascertain  thei  pertinent  facts.  It 
is  with  a  sincere  desire  to  see  constructive  action 
and  even-handed  justice  result  in  a  pacific  solution 
of  this  case  that  I  put  forward  for  your  consid- 
eration the  following  resolution. 


1171 


THE  UN/TED   NATIONS 

United  States  Resolution  for  Establishing 
Commission  of  Investigation  ' 

Whereas,  there  have  been'  presented  to  the  Se- 
curity Council  oral  and  written  statements  by  the 
Greek,  Yugoslav,  Albanian  and  Bulgarian  Gov- 
ernments relating  to  disturbed  conditions  along 
the  frontier  between  Greece  on  the  one  hand  and 
Albania,  Bulgaria  and  Yugoslavia  on  the  other, 
which  conditions,  in  the  opinion  of  the  Council, 
should  be  investigated: 

Resolved:  That  the  Security  Council  under 
Article  34  of  the  Charter  establish  a  Commission 
of  Investigation  to  ascertain  the  facts  relating 
to  the  alleged  border  violations  along  the  frontier 
between  Greece  on  the  one  hand  and  Albania, 
Bulgaria  and  Yugoslavia  on  the  other. 

That  the  Commission  be  composed  of  a  Kep- 
resentative  of  each  of  the  Permanent  Members  of 
the  Council  and  of  Brazil  and  Poland. 

That  the  Commission  shall  proceed  to  the  area 
at  once,  and  not  later  than  January  15,  1947,  and 
shall  submit  to  the  Security  Council  at  the  earliest 
possible  date  a  report  of  the  facts  disclosed  by  its 
investigation.    The  Commission  shall,  if  it  deems 


it  advisable  or  if  requested  by  the  Security  Coun- 
cil, make   preliminary   reports   to   the   Security 

Council. 

That  the  Commission  shall  have  authority  to 
conduct  its  investigation  in  the  area  including  such 
territory  in  Albania,  Bulgaria,  Greece  and  Yugo- 
slavia as  the  Commission  considers  should  be  in- 
cluded in  its  investigation  in  order  to  facilitate 
the  discharge  of  its  functions,  and  to  call  upon 
the  Governments,  officials  and  nationals  of  those 
countries,  as  well  as  such  other  sources  as  the 
Commission  deems  necessary,  for  information 
relevant  to  its  investigation. 

That  the  Security  Council  request  the  Secre- 
tary-General to  communicate  with  the  appropriate 
authorities  of  the  countries  named  above  in  order 
to  facilitate  the  Commission's  investigation  in 
those  countries. 

That  each  Representative  on  the  Commission  be 
entitled  to  select  the  personnel  necessary  to  assist 
him  and  that,  in  addition,  the  Security  Council 
request  the  Secretary-General  to  provide  such  staff 
and  assistance  to  the  Commission  as  it  deems 
necessary  for  the  prompt  and  effective  fulfillment 
of  its  task. 


Summary  Statement  by  the  Secretary-General' 


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  Summaiy  Statement  of  matters  of 
which  the  Security  Council  is  seized  and  of  the 
stage  reached  in  their  consideration  on  13  De- 
cember 1946. 

1.  The  Iranian  Question 

By  letter  date  5  December  1946,  addressed  to 
the  Secretary-General  (document  S/204)  the 
Iranian  Ambassador  in  Washington,  D.  C,  for- 
warded a  report  concerning  the  present  state  of 
affairs  in  the  Province  of  Azerbaijan. 

5.  Eules  Concerning  the  Admission  of  New 
Members 

By  letter  dated  25  November  (document  S/196) 
the  Secretary-General  requested  the  President  of 

1172 


the  Security  Council  to  bring  to  the  attention  of 
the  Council  a  resolution  of  the  General  Assembly 
requesting  the  Security  Council  to  appoint  a  com- 
mittee to  confer  with  a  committee  on  procedures 
of  the  General  Assembly  with  a  view  to  preparing 

'  The  Security  Council  on  Dec.  19  adopted  unanimously 
a  revised  resolution  based  on  the  U.  S.  proposal  to  set 
up  an  investigation  commission  for  on-the-spot  investi- 
gation. The  resolution,  altered  by  several  amendments 
and  minor  alterations,  creates  an  investigation  commis- 
sion composed  of  one  representative  of  each  of  the  11 
members  of  the  Security  Council  as  constituted  in  1947. 
It  shall  proceed  to  the  area  not  later  than  Jan.  15,  1947 
and  report  its  findings  to  the  CouncU  at  the  earliest  pos- 
sible date. 

Mark  Foster  Etheridge  has  been  appointed  American 
representative  on  the  commission  of  investigation. 

=  Security  Council  Document  S/214,  Dec.  13,  1946.  This 
summary  supplements  the  ones  printed  in  the  BuiiETiN 
of  Sept.  22,  1946,  p.  528,  and  Oct.  13,  1946,  p.  660;  the 
omitted  parts  correspond  substantially  to  the  material 
formerly  printed. 

Department  of  State  Bullefin     •     December  29,  1946 


rules  governing  the  admission  of  new  Members 
which  would  be  acceptable  both  to  the  General 
Assembly  and  to  the  Security  Council. 

At  its  eiglit3'-first  meeting  on  29  November 
1946,  the  Council  instructed  the  Committee  of  Ex- 
perts to  name  a  small  committee  from  its  own 
number  to  meet  with  the  conuuittee  wliich  would 
be  appointed  by  the  Assembly,  and  to  report  any 
liroposals  back  to  the  Council  for  further  in- 
structions. 

At  the  eighty-third  meeting  on  12  December 
1946,  the  President  announced  that  the  Chairman 
of  the  Committee  of  Experts  had  informed  him 
that  a  Sub-Committee  had  been  appointed  con- 
sisting of  the  Kepresentatives  of  China,  (Chair- 
man) Brazil  and  Poland.  The  President  of  the 
General  Assembly  would  be  informed  that  this 
Sub-Committee  was  ready  to  meet  with  a  commit- 
tee of  the  Assembly. 

6.  Re-Examination  of  Application.s  for  Meniber- 
ship 

By  letter  dated  25  November  1946,  (document 
S/197)  the  Secretary-General  requested  the  Presi- 
dent of  the  Security  Council  to  bring  to  the  atten- 
tion of  the  Council  a  resolution  of  the  General 
Assembly  recommending  that  the  Security  Council 
re-examine  applications  for  membership  in  the 
United  Nations  of  the  Peoples  Republic  of  Al- 
bania, the  Hashemite  Kingdom  of  Transjordan, 
the  Mongolian  People's  Republic,  Ireland  and 
Portugal,  on  their  respective  merits  as  measured 
by  the  yardstick  of  the  Charter,  in  accordance 
with  Article  4. 

At  its  eighty-first  meeting  on  29  November  1946, 
the  Representative  of  Australia  proposed  that  the 
Council  adopt  the  Assembly  recommendation  and 
refer  the  question  to  the  Committee  on  the  Ad- 
mission of  New  Members.  After  discussion  the 
Council  decided  to  adopt  the  first  part  of  this 
proposal,  accepting  the  resolution  of  the  General 
Assembly.  At  the  request  of  the  President  the 
Representative  of  Australia  withdrew  the  second 
part  of  his  proposal  on  the  understanding  that 
before  the  next  meeting  of  the  Council  the  Presi- 
dent would  consult  with  the  members  to  consider 
a  line  of  procedure  which  would  give  effect  to  the 
iesire  of  the  Council  to  co-operate  with  the  Gen- 
jral  Assembly,  at  the  same  time  preserving  its  own 
■entire  right  of  freedom  of  action. 


IHE  UNITED  NATIONS 

At  the  Council's  eighty-second  meeting  on  10 
December  1946,  the  President  announced  that  Ms 
informal  consultations  among  the  members  of  the 
Comicil  indicated  general  agreement  that  the  re- 
consideration of  these  applications  should  be  de- 
ferred for  the  moment. 

7.  The  Greek  Question 

By  letter  dated  3  December  1946,  addressed  to 
the  Secretary-General  (document  S/203)  the 
Acting  Chairman  of  the  Delegation  of  Greece  re- 
quested under  Article  34  and  35  (1)  of  the  Charter, 
that  the  Security  Council  give  early  consideration 
to  a  situation  which  was  leading  to  friction  be- 
tween Greece  and  her  neighbours.  A  detailed 
memorandum  in  support  of  this  request  was 
included. 

At  its  eighty-second  meeting  on  10  December 
1946,  the  Council  placed  this  question  on  its 
Agenda  and  adopted  the  following  resolution 
submitted  by  the  Representative  of  the  Nether- 
lands : 

^^Resolved 

"1.  The  representatives  of  Greece  and  of  Yugo- 
slavia are  invited  to  participate  in  the  discussion 
without  vote. 

"2.  The  representatives  of  Albania  and  Bulgaria 
will  be  invited  to  enable  the  Security  Council  to 
hear  such  declaration  as  they  may  wish  to  make. 

"3.  Should  the  Security  Council  find  at  a  later 
stage  that  the  matter  under  consideration  is  a 
dispute,  the  representatives  of  Albania  and  Bid- 
garia  will  be  invited  to  participate  in  the  discus- 
sion without  vote." 

At  the  Council's  eighty-third  meeting  on  12  De- 
cember 1946,  the  representatives  of  Greece,  Yugo- 
slavia, Albania  and  Bulgaria  took  their  seats  at 
the  Council  table.  The  representatives  of  Greece 
and  Yugoslavia  made  statements. 

Statement  by  International  Monetary 
Fund  on  Initial  Par  Values 

[Released  to  the  press  by  the  International  Monetary  Fund  on 
December  18] 

The  International  Monetary  Fund  will  beo-in 
exchange  transactions  on  March  1,  1947.  The 
transactions  of  the  Fund  will  be  at  the  initial  par 
values  which  have  been  determined  in  the  manner 
laid  down  in  the  Fund  agreement.     The  par  value 


1173 


THE  UNITED   NATIONS 

of  each  currency  is  stated  in  the  schedule  below .^ 
Eight  of  the  thirty-nine  members  of  the  Fund — 
Brazil,  China,  the  Dominican  Republic,  Greece, 
Poland,  Yugoslavia,  France  in  respect  of  French 
Indochina,  and  the  Netherlands  in  respect  of  the 
Netherlands  Indies— have  requested,  in  accordance 
with  article  XX,  section  4,  of  the  agi-eement,  more 
time  for  the  determination  of  their  initial  par 
values  and  the  Fund  has  agreed.  Pending  the 
completion  of  certain  legislative  proceedings  in 
Uruguay,  the  initial  par  value  of  its  currency  has 
not  yet  been  definitely  established. 

This  is  the  first  time  that  a  large  number  of 
nations  have  submitted  their  exchange  rates  to 
consideration  by  an  international  organization, 
and  thus  a  new  phase  of  international  monetary 
cooperation  has  begun.  Tlie  major  significance  of 
the  present  step  is  not  in  the  particular  rates  of 
exchange  which  are  announced,  but  in  the  fact 
that  the  participating  nations  have  now  fully  es- 
tablished a  regime  wherein  they  are  pledged  to 
promote  exchange  stability,  to  make  no  changes 
in  the  par  values  of  their  currencies  except  in  ac- 
cordance with  the  Fund  agreement,  and  to  assist 
each  other  in  attaining  the  general  objectives  of 
the  Fund. 

The  initial  par  values  are,  in  all  cases,  those 
which  have  been  proposed  by  members,  and  they 
are  based  on  existing  rates  of  exchange.  The  ac- 
ceptance of  these  rates  is  not,  however,  to  be  inter- 
preted as  a  guarantee  by  the  Fund  that  all  the 
rates  will  remain  unchanged.  As  the  Executive 
Directors  of  the  Fund  stated  in  their  first  annual 
report,  issued  in  September:  "We  recognize  that 
in  some  cases  the  initial  par  values  that  are  estab- 
lished may  later  be  found  incompatible  with  the 
maintenance  of  a  balanced  international  payments 
position  at  a  high  level  of  domestic  economic  ac- 
tivity. .  .  .  "V^lien  this  occurs,  the  Fund  will  be 
faced  with  new  problems  of  adjustment  and  will 
have  to  recognize  the  unusual  circumstances  under 
which  the  initial  par  values  were  determined.  It 
is  just  at  such  times  that  the  Fund  can  be  most 
useful  in  seeing  that  necessary  exchange  adjust- 
ments are  made  in  an  orderly  manner  and  com- 
Ijetitive  exchange  depreciation  is  avoided." 

'  Not  printed.  For  the  scheduled  par  values,  see  Inter- 
national Monetary  Fund  press  release  4  of  Dec.  18,  1946. 
The  section  from  the  schedule  on  U.  S.  par  values  is 
printed  below. 

1174 


The  Fund  realizes  that  at  the  present  exchange 
rates  there  are  substantial  disparities  in  price  and 
wage  levels  among  a  number  of  countries.  In 
present  circumstances,  however,  such  disparities 
do  not  have  the  same  significance  as  in  normal 
times.  For  practically  all  countries,  exports  are 
being  limited  mainly  by  difiiculties  of  production 
or  transport,  and  the  wide  gaps  which  exist  in 
some  countries  between  the  cost  of  needed  imports 
and  tlie  proceeds  of  exports  would  not  be  ap- 
preciably narrowed  by  changes  in  their  currency 
parities.  In  addition,  many  countries  have  just 
begun  to  recover  from  the  disruption  of  war,  and 
efforts  to  restore  the  productivity  of  their  econo- 
mies may  be  expected  gradually  to  bring  their  cost 
structures  into  line  with  those  of  other  countries. 
Furthermore,  for  many  countries  now  concerned 
with  combating  inflation  there  is  a  danger  that  a 
change  in  the  exchange  rate  would  aggravate  the 
internal  tendencies  toward  inflation. 

In  view  of  all  these  considerations,  the  Fund 
has  reached  the  conclusion  that  the  proper  course 
of  action  is  to  accept  as  initial  par  values  the 
existing  rates  of  exchange. 

PAR  VALUES  FOR  U.  S.  CURRENCY 

The  Monetary  Fund  agreement  requires  that 
"the  par  value  of  the  currency  of  each  member 
shall  be  expressed  in  terms  of  gold  as  a  common 
denominator  or  in  terms  of  the  XJ.  S.  dollar  of  the 
weight  and  fineness  in  effect  on  July  1,  1944." 
(Art.  IV,  sec.  1.) 

Members  have  communicated  their  par  values 
either  in  terms  of  gold  or  of  U.  S.  dollars  or  both. 
For  convenience,  all  par  values  are  expressed  both 
in  terms  of  gold  and  of  U.  S.  dollars  in  a  uniform 
manner  and  with  six  significant  figures,  i.  e.,  six 
figures  other  than  initial  zeros. 

Par  values  for  the  United  States  appear  in  the 
schedule  as  follows : 


Currency 

Par  values 
in  terms  of  gold 

Par  values 

in  terms  of  U.S. 

dollars 

Country 

Grams  of 
fine  gold 

per 
currency 

unit 

Currency 
units  per 

troy 
ounce  of 
fine  gold 

Currency 
units  per 

U.S. 

doUar 

U.S. 
cents  per 
currency 

unit 

US.             

Dollar 

0. 888  671 

35. 000  0 

1. 000  00 

100.000 

Department  of  Sfofe  Bulletin     •     December  29,  1946 


INTERNATIONAL  ORGANIZATIONS  AND  CONFERENCES 


Calendar  of  Meetings ' 


In  Session  as  of  December  22,  1946 

Far  Eastern  Commission 

United  Nations: 

Security  Council 

Military  Staflf  Committee \ 

Commission  on  Atomic  Energy 

UNERA- Intergovernmental  Committee  on  Refugees  (IGCR),  Joint" 

Planning  Committee 
Telecommunications  Advisory  Committee 

German  External  Property  Negotiations: 

With  Portugal  (Safehaven) 

With  Spain  (Safehaven) 

Inter-Allied  Trade  Board  for  Japan 

FAO:  Preparatory  Commission  To  Study  World  Food  Board  Proposals. 
Council  of  Foreign  Ministers 


Inter-Allied  Reparations  Agency  (lARA) :  Meetings  on  Conflicting  Cus- 
todial Claims 

PICAO:  Rules  of  the  Air  and  Air  Traffic  Control  Practices  Division. 

Intergovernmental    Committee    on    Refugees    (IGCR):  Sixth    Plenary 
Session 

European  Central  Inland  Transport  Organization  (ECITO) :  Sixth  Session 
of  the  Council 

Scheduled  for  December  194G  -  February  1947 

Meeting   of   Medical  and   Statistical   Commissions   of   Inter-American 
Committee  on  Social  Security 

PICAO: 
Divisional 

Personnel  Licensing  Division 

Aeronautical  Maps  and  Charts  Division \    \ 

Accident  Investigation  Division 

Airworthiness  Division 

Airline  Operating  Practices  Division 

Regional 

South  Pacific  Regional  Air  Navigation  Meeting 

Twelfth  Pan  American  Sanitary  Conference 

Second  Pan  American  Conference  on  Sanitary  Education 


Washington 


Lake  Success  .  .  . 
Lake  Success  .  .  . 
Lake  Success .  .  . 
Washington     and 

Success 
Lake  Success  .    .    . 


Lake 


Lisbon     .    . 
Madrid   .    . 

Washington 

Washington 

New  York  . 

Brussels  .    . 


Montreal 
London    . 


Paris 


Washington 


Montreal 
INIontreal 
Montreal 
Montreal    . 
Montreal    . 

Melbourne . 
Caracas  .  . 
Caracas  .    . 


Feb.  26 


March  25 
March  25 
June  14 
July  25 

Nov.  10 

Sept.  3 
Nov.  12 

Oct.  24 

Oct.  28 

Continuing 

Nov.  6 

Dec.  3 
Dec.  16 

Dec.  18 


Jan.  6-11 


Jan. 

7 

Jan. 

14 

Feb 

4 

Feb. 

18 

Feb. 

25 

Feb. 

1 

Jan. 

12- 

24 

Jan. 

12- 

24 

•  Prepared  in  the  Division  of  International  Conferences,  Department  of  State. 


1175 


Calendar  of  Meetings — Continued 


International  Wheat  Council 

United  Nations: 

Economic  and  Social  Council  (ECOSOC) 

Drafting  Committee  of  International  Trade  Organization,  Prepara- 
tory Committee 

Economic  and  Employment  Commission 

Social  Commission 

Subcommission  on  Economic  Reconstruction  of  Devastated  Areas, 
Working  Group  for  Europe 

Human  Rights  Commission 

Statistical  Commission 

Population  Commission 

Commission  on  the  Status  of  Women 

Subcommission  on  Economic  Reconstruction  of  Devastated  Areas, 
Working  Group  for  Asia  and  the  Far  East 

Transport  and  Communications  Commission 

Non-governmental  Organizations  Committee 

ECOSOC,  Fourth  Session  of 

Regional  Advisory  Commission  for  Non-Self-Governing  Territories  in  the 
South  and  Southwest  Pacific,  Conference  for  the  Establishment  of 

ILO  Industrial  Committee  on  Petroleum  Production  and  Refining  .    .    . 


Washington    . 

Lake  Success . 

Lake  Success  . 
Lake  Success . 
Geneva    .    .    . 

Lake  Success  . 
Lake  Success  . 
Lake  Success . 
Lake  Success  . 
Lake  Success  . 

Lake  Success  . 
Lake  Success  . 
Lake  Success . 

Canberra  .  . 
United  States 


Jan.  15 


Jan.  20-Feb.  28 

Jan.  20-Feb.  5 
Jan.  20-Feb.  5 
Jan.  27-Feb.  13 

(tentative) 
Jan.  27-Feb.  11 
Jan.  27-Feb 
Feb.  6-20 
Feb.  12-27 
Feb.  13-21 

Feb.  17-28 
Feb.  25-27 
Feb.  28 

Jan.  28 


Feb.  3-12 


11 


Activities  and  Developments 


MEETING  OF  COMMISSIONS  OF  INTER- 
AMERICAN  COMMITTEE  ON  SOCIAL  SECURITY' 


The  Medical  and  Statistical  Commissions  of  the 
Inter-American  Committee  on  Social  Security  will 
meet  jointly  at  Washington,  beginning  January  6, 
1947.  The  purpose  of  this  meeting  is  to  prepare 
reports  on  items  of  the  agenda  for  the  forthcom- 
ing second  meeting  of  the  Inter-American  Con- 
ference on  Social  Security,  which  is  scheduled  to 
be  held  at  Rio  de  Janeiro,  Brazil,  in  April  1947. 

These  Commissions  were  created  by  the  Inter- 
American  Committee  on  Social  Security  at  Mexico 
City  in  July  1945  and  are  technical  commissions 
of  that  body.  The  Statistical  Commission  is  com- 
posed of  representatives  from  Brazil,  Chile,  and 
Canada ;  and  the  Medical   Commission  is  com- 


"  Prepared  by  the  Division  of  International  Conferences, 
Department  of  State. 


1176 


Deparfmenf  of  Sfafe  Bo/Zefin     •     December  29,  J  946 


posed  of  representatives  from  Costa  Eica,  Ecua- 
dor, Mexico,  Peru,  and  tlic  United  States.  Mar- 
garet Klem,  Chief  of  the  Medical  Economics  Sec- 
tion, Division  of  Heahh  and  Disability  Studies, 
Bureau  of  Research  and  Statistics,  Federal  Se- 
curity Agency,  is  the  United  States  member  of  the 
Medical  Commission;  and  William  M.  Gafafer, 
Chief  of  the  Statistical  Section,  Industrial  Hy- 
giene Division,  United  States  Public  Health  Serv- 
ice, is  the  American  substitute  member. 

The  Inter-American  Conference  on  Social  Se- 
curity held  its  first  meeting  at  Santiago,  Chile,  in 
September  1942,  at  which  time  the  conference  was 
formally  set  up  with  active  participation  of 
United  States  representatives.  This  body  is  a 
permanent  inter-American  organization  in  which 
22  goverimients  participate.  The  purpose  of  the 
conference  is  to  fill  the  need  for  continuous  and 
systematic  exchange  of  technical  information  on 
social  security. 

PRINCIPLES  FOR  JAPANESE  TRADE  UNIONS  i 

1.  Japanese  workers  should  be  encouraged  to 
form  themselves  into  trade  unions  for  the  purpose 
of  preserving  and  improving  conditions  of  work, 
participating  in  industrial  negotiations  to  this 
end,  and  otherwise  assisting  tlife  legitimate  trade 
union  interests  of  workers,  including  organized 
participation  in  building  up  a  peaceful  and  demo- 
cratic Japan. 

2.  The  right  of  trade  unions  and  their  members 
to  organize  for  these  purposes  should  be  assured 
and  protected  by  law.  The  freedom  of  workers 
to  join  trade  unions  should  be  provided  for  by  law. 
All  laws  and  regulations  preventing  trade  unions 
achieving  these  objectives  should  be  immediately 
abrogated.  Employers  should  be  forbidden  to 
refuse  employment  to,  or  discriminate  against,  a 
worker  because  he  is  a  member  of  a  trade  union. 

3.  Trade  unions  should  have  the  right  of  free 
assembly,  speech,  and  the  press,  and  access  to 
broadcasting  facilities  on  a  non-discriminatory 
basis,  provided  only  that  such  assembly,  speech, 
or  writing  does  not  directly  interfere  with  the 
interests  of  the  occupation. 

4.  Trade  unions  should  be  encouraged  to  nego- 

'  Adopted  at  the  36th  meeting  of  the  Far  Eastern  Cora- 
mission  on  Dec.  6,  1946  and  released  to  the  press  on  Dec.  18. 

725918—46 3 


ACTIVITIES  AND   DEVELOPMENTS 

tiate  with  the  employers  on  behalf  of  their  mem- 
bers regarding  terms  and  conditions  of  employ- 
ment. The  Japanese  Government  should  estab- 
lish mediation  and  arbitration  machinery  for 
dealing  with  industrial  disputes  that  caimot  be 
settled  by  direct  and  voluntary  negotiation  be- 
tween the  worker  or  his  representative  and  the 
employer.  The  mediation  and  arbitration  ma- 
chinery should  operate  under  conditions  assuring 
the  protection  of  the  interests  of  the  workers,  and 
if  employers  are  represented  on  the  machinery, 
trade  unions  should  be  given  equal  representation. 

5.  Strikes  and  other  work  stoppages  should  be 
prohibited  only  when  the  occupation  authorities 
consider  that  such  stoppages  would  directly  preju- 
dice the  objectives  or  needs  of  the  occupation. 

G.  Trade  unions  should  be  allowed  to  take  part 
in  political  activities  and  to  support  political 
parties. 

7.  Encouragement  should  be  given  to  organized 
participation  by  trade  unions  and  their  officials  in 
the  democratization  process  in  Japan  and  in 
measures  taken  to  achieve  the  objectives  of  the 
occupation,  such  as  the  elimination  of  militaristic 
and  monopolistic  practices.  But  such  participa- 
tion should  not  be  encouraged  in  such  a  way  as  to 
hinder  the  achievement  of  the  principal  obligation 
and  responsibility  of  the  imions  and  their  officials 
to  organize  for  the  protection  of  union  members 
and  union  interests. 

8.  Trade  unions  should  be  encouraged  to  pro- 
mote adult  education  and  an  understanding  of 
democratic  processes  and  of  trade  union  practices 
and  aims  among  their  members.  The  Japanese 
Government  should  as  far  as  possible  assist  trade 
union  officials  in  obtaining  information  on  trade 
union  activities  in  other  countries.  These  objec- 
tives should  be  given  due  weight  when  allocations 
of  paper  supplies  and  imports  of  foreign  publica- 
tions are  made. 

9.  The  Japanese  should  be  free  to  choose  the 
form  of  organization  of  their  unions,  whether  on 
a  craft,  industry,  company,  factory,  or  territorial 
basis.  Emphasis  should  be  placed  on  the  impor- 
tance of  a  solid  local  basis  for  future  trade  union 
activity  in  Japan.  However,  unions  should  be 
allowed  to  form  federations  or  other  groupings, 
for  example,  in  the  same  area  or  in  related  indus- 
tries or  on  a  nation-wide  basis. 

10.  The  formation  of  trade  unions  should  be  a 

1177 


ACTIVITIES  AND   DEVELOPMENTS 

process  of  democratic  self-expression  and  initia- 
tive, proceeding  from  the  workers  themselves. 
Employers  should  not  be  allowed  to  take  part  in 
the  organization  or  conduct  of  unions  or  to  finance 
them. 

11.  Trade  union  officials  and  standing  commit- 
tees should  be  elected  by  the  workers  concerned  by 
secret  ballot  and  democratic  methods.  It  should 
be  the  responsibility  of  the  unions  to  insure  that 
all  officials  have  been  democratically  elected  at 
regular  stated  intervals  and  that  all  their  activities 
are  democratically  conducted. 

12.  No  person  who  is  subject  to  the  purge  direc- 
tive of  January  4,  1946  or  to  subsequent  purge  di- 
rectives, should  be  allowed  to  hold  office  in  a  trade 
union.  All  persons  who  were  directly  connected  in 
the  past  in  a  responsible  capacity  with  the  obstruc- 
tion or  repression  of  trade  union  organization  or 
activity  should  be  prohibited  from  employment 
as  union  officials,  in  labor  agencies,  or  as  mediators, 
conciliators,  or  arbitrators.  All  persons  who  held 
office  in  government  sponsored  or  controlled  trade 
unions  should  be  subject  to  screening  before  being 
allowed  to  take  office  again. 

13.  Japanese  Government  and  other  agencies 
which  were  set  up  or  functioned  for  the  purpose 
of  obstructing  or  in  such  a  way  as  to  obstruct  free 
labor  organization  and  legitimate  trade  union  ac- 
tivities should  be  abolished  or  their  powers  in 
respect  to  labor  revoked.  No  police  or  other  gov- 
ernment agencies  should  be  employed  in  spying  on 
workers,  breaking  strikes,  or  suppressing  legiti- 
mate union  activities. 

14.  Any  undemocratic  workers'  organizations  or 
their  affiliates,  such  as  the  Patriotic  Industrial  As- 
sociations, should  be  dissolved  and  not  allowed  to 
revive.  No  new  workers'  organizations  with  mili- 
taristic, ultra-nationalistic,  fascist,  or  other  totali- 
tarian aims  should  be  permitted. 

15.  Persons  who  have  been  imprisoned  because 
of  activity  or  "dangerous  thoughts"  in  connection 
with  trade  unions  and  other  labor  organizations 
should  be  released. 

16.  The  balance  sheet  and  table  of  income  and 


1178 


expenditure  of  each  trade  union,  showing  also  the 
source  of  large  contributions,  should  be  available 
for  public  inspection.  Safeguards  such  as  annual 
audit  by  a  professionally  competent  auditor  ap- 
pointed by  the  members  should  be  taken  to  insure 
the  accuracy  of  these  statements. 

INTERIM  REPARATIONS  REMOVALS:  TEMPO- 
RARY RETENTION  OF  ELECTRIC  STEEL 
FURNACES  > 

In  view  of  the  current  coal  shortage  in  Japan, 
electric  steel  furnaces  in  excess  of  the  100,000 
metric  tons  annual  capacity  referred  to  in  FEC- 
059/13,^  together  with  the  rolling-mill  capacity 
integrated  with  such  electric  furnaces,  may  be 
retained  in  Japan  up  to  June  30,  1947  to  a  maxi- 
mum of  an  additional  300,000  metric  tons  annual 
capacity. 

If  before  June  30,  1947  it  should  be  the  opinion 
of  the  Supreme  Commander  for  the  Allied  Powers 
that,  in  order  to  meet  the  needs  of  the  occupation, 
an  extension  of  the  period  is  necessary,  he  should 
furnish  the  Far  Eastern  Commission  with  a  state- 
ment of  his  reasons  so  that  a  review  of  the  position 
may  be  made. 

Tlie  above  policy  should  not  postpone  the  desig- 
nation of  these  facilities  under  the  interim  repara- 
tions removal  program. 

INTERIM     REPARATIONS     REMOVALS:      STEEL- 
ROLLING  INDUSTRY  1 

(Definition:  Plants  and  establishments  engaged 
in  producing  basic  steel  shapes,  such  as  rails,  rods, 
bars,  tubes,  plates,  strips,  sheets,  and  structural 
shapes,  by  rolling,  drawing,  and  extruding  steel 
ingots.) 

That  portion  of  Japan's  steel-rolling  capacity 
in  excess  of  that  required  to  produce  a  balanced 
annual  output  of  2,775,000  metric  tons  of  rolled 
steel  products  should  be  made  immediately  avail- 
able as  reparations. 


■  Adopted  at  the  36th  meeting  of  the  Far  Eastern  Com- 
mission on  Dec.  6,  1946  and  released  to  the  press  on 
Dec.  18.  J 

=  BrnxETiN  of  June  23,  1946,  p.  1074.  1 

Department  of  Slate  Bulletin     •     December  29,  1946 


THE  RECORD  OF  THE  WEEK 


United  States  Policy  Toward  China 


STATEMENT  BY  THE  PRESIDENT 


[Released  to  the  press  by  the  White  House  December  18] 

Last  December  I  made  a  statement  of  this  Gov- 
ernment's views  regarding  China.^  We  believed 
then,  and  do  now,  that  a  united  and  democratic 
China  is  of  the  utmost  importance  to  world  peace, 
that  a  broadening  of  the  base  of  the  National  Gov- 
ernment to  make  it  representative  of  the  Chinese 
people  will  further  China's  progress  toward  this 
goal,  and  that  China  has  a  clear  resiDonsibility  to 
the  other  United  Nations  to  eliminate  armed  con- 
flict within  its  territory  as  constituting  a  threat 
to  world  stability  and  peace.  It  was  made  clear 
at  Moscow  last  year  that  these  views  are  shared 
by  our  Allies,  Great  Britain  and  the  Soviet  Union. 
On  December  27,  Mr.  Byrnes,  Mr.  Molotov,  and 
Mr.  Bevin  issued  a  statement  which  said,  in  part : 

"The  three  Foreign  Secretaries  exchanged  views 
with  regard  to  the  situation  in  China.  They  were 
in  agreement  as  to  the  need  for  a  imified  and  demo- 
cratic China  under  the  National  Government,  for 
broad  participation  by  democratic  elements  in  all 
branches  of  the  National  Government,  and  for  a 
cessation  of  civil  strife.  They  affirmed  their  ad- 
herence to  the  policy  of  non-interference  in  the 
internal  affairs  of  China."  = 


'  Bulletin  of  Dec.  16,  1945,  p.  945. 
'  Bulletin  of  Dec.  30,  1945,  p.  1030. 


The  policies  of  this  Government  were  also  made 
clear  in  my  statement  of  last  Decembei-.  We  rec- 
ognized the  National  Government  of  the  Kepublic 
of  China  as  the  legal  government.  We  undertook 
to  assist  the  Chinese  Government  in  reoccupation 
of  liberated  areas  and  in  disarming  and  repatri- 
ating the  Japanese  invaders.  And  finally,  as 
China  moved  toward  peace  and  unity  along  the 
lines  mentioned,  we  were  prepared  to  assist  the 
Chinese  economically  and  in  other  ways. 

I  asked  General  Marshall  to  go  to  China  as  my 
representative.  We  had  agreed  upon  my  state- 
ment of  the  United  States  Government's  views  and 
policies  regarding  China  as  his  directive.  He 
knew  full  well  in  undertaking  the  mission  that 
halting  civil  strife,  broadening  the  base  of  the  Chi- 
nese Government,  and  bringing  about  a  united, 
democratic  China  were  tasks  for  the  Chinese  them- 
selves. He  went  as  a  great  American  to  make  his 
outstanding  abilities  available  to  the  Chinese. 

During  the  war  the  United  States  entered  into 
an  agreement  with  the  Chinese  Government  re- 
garding the  training  and  equipment  of  a  special 
force  of  39  divisions.  That  training  ended  V-J 
Day  and  the  transfer  of  the  equipment  had  been 
largely  completed  when  General  Marshall  arrived. 

The  United  States,  the  United  Kingdom,  and  the 
Union  of  Soviet  Socialist  Republics  all  committed 


1179 


THE  RECORD   OF  THE  WEEK 


themselves  to  the  liberation  of  China,  including 
the  return  of  Manchuria  to  Chinese  control.  Our 
Government  had  agreed  to  assist  the  Chinese  Gov- 
ernment in  the  reoccupation  of  areas  liberated 
from  the  Japanese,  including  Manchuria,  because 
of  China's  lack  of  shipping  and  transport  planes. 
Three  armies  were  moved  by  air  and  eleven  by  sea 
to  central  China,  Formosa,  north  China,  and  Man- 
churia. Most  of  these  moves  had  been  made  or 
started  when  General  Marshall  arrived. 

The  disarming  and  evacuation  of  Japanese  pro- 
gressed slowly — too  slowly.  We  regarded  our 
commitment  to  assist  the  Chinese  in  this  program 
as  of  overwhelming  importance  to  the  future  peace 
of  China  and  the  whole  Far  East.  Surrendered 
but  undefeated  Japanese  armies  and  hordes  of 
administrators,  technicians,  and  Japanese  mer- 
chants, totalling  about  3,000,000  persons,  had  to 
be  removed  under  the  most  difficult  conditions. 
At  the  request  of  the  Chinese  Government  we  had 
retained  a  considerable  number  of  American  troops 
in  China,  and  immediately  after  V-J  Day  we 
landed  a  corps  of  Marines  in  north  China.  The 
principal  task  of  these  forces  was  to  assist  in  the 
evacuation  of  Japanese.  Only  some  200,000  had 
been  returned  to  Japan  by  the  time  General  Mar- 
shall arrived. 

General  Marshall  also  faced  a  most  unpropi- 
tious  internal  situation  on  his  arrival  in  China. 
Communications  tliroughout  the  country  were 
badly  disrupted  due  to  destruction  during  the  war 
and  the  civil  conflicts  which  had  broken  out  since. 
This  disruption  was  preventing  the  restoration  of 
Chinese  economy,  the  distribution  of  relief  sup- 
plies, and  was  rendering  the  evacuation  of  Japa- 
nese a  slow  and  difficult  process.  The  wartime 
destruction  of  factories  and  plants,  the  war- 
induced  inflation  in  China,  the  Jajaanese  action  in 
shutting  down  the  economy  of  occupied  China  im- 
mediately after  V-J  Day,  and  finally  the  destruc- 
tion of  communications  combined  to  paralyze  the 
economic  life  of  the  country,  spreading  untold 
hardship  to  millions,  robbing  the  victory  over  the 
Japanese  of  significance  to  most  Chinese,  and  seri- 
ously aggravating  all  the  tensions  and  discontents 
that  existed  in  China. 

Progress  toward  solution  of  China's  internal 
difficulties  by  the  Chinese  themselves  was  essential 
to  the  rapid  and  effective  completion  of  most  of  the 


programs  in  which  we  had  already  pledged  our 
assistance  to  the  Chinese  Government.  General 
Marshall's  experience  and  wisdom  were  available 
to  the  Chinese  in  their  efforts  to  reach  such  solu- 
tions. 

Events  moved  rapidly  iipon  General  Marshall's 
arrival.  With  all  parties  availing  themselves  of 
his  impartial  advice,  agreement  for  a  country-wide 
truce  was  reached  and  announced  on  January  10th. 
A  feature  of  this  agreement  was  the  establishment 
of  a  unique  organization — the  Executive  Head- 
quarters in  Peiping.  It  was  realized  that  due  to 
poor  communications  and  the  bitter  feelings  on 
local  fronts,  generalized  orders  to  cease  fire  and 
withdraw  might  have  little  chance  of  being  car- 
ried out  unless  some  authoritative  executive 
agency,  trusted  by  both  sides,  could  function  in 
any  local  situation. 

The  headquarters  operated  under  the  leaders  of 
three  commissioners — one  American  who  served 
as  chairman,  one  Chinese  Goverimient  representa- 
tive, and  one  representative  of  the  Chinese  Com- 
munist Party.  Walter  S.  Kobertson,  Charge 
d'Affaires  of  the  American  Embassy  in  China, 
served  as  chairman  until  his  return  to  this  country 
in  the  fall.  In  order  to  carry  out  its  function  in 
the  field,  Executive  Headquarters  formed  a  large 
number  of  truce  teams,  each  headed  by  one  Amer- 
ican officer,  one  Chinese  Government  officer,  and 
one  Chinese  Communist  officer.^  They  proceeded 
to  all  danger  spots  where  fighting  was  going  on  or 
seemed  imjoending  and  saw  to  the  implementation 
of  the  truce  terms,  often  under  conditions  im- 
posing exceptional  hardships  and  requiring  coura- 
geous action.  The  degree  of  cooperation  attained 
between  Government  and  Communist  officers  in 
the  headquarters  and  on  the  truce  teams  was  a 
welcome  proof  that,  despite  two  decades  of  fight- 
ing, these  two  Cliinese  groups  could  work  together. 

Events  moved  forward  with  equal  promise  on 
the  political  front.  On  January  10,  the  Political 
Consultative  Conference  began  its  sessions  with 
representatives  of  the  Kuomintang  or  Govern- 
ment Party,  the  Communist  Party  and  several 
minor  political  parties  participating.  Within 
three  weeks  of  direct  discussion  these  groups  had 
come  to  a  series  of  statesmanlike  agreements  on 


'  BinximN  of  Mar.  24,  1946,  p.  484. 


1180 


Department  of  State  Bulletin     •     December  29,  1946 


outstanding  political  and  military  problems.  The 
agreements  provided  for  an  interim  government 
of  a  coalition  type  with  representation  of  all 
parties,  for  revision  of  the  draft  constitution  along 
democratic  lines  prior  to  its  discussion  and  adop- 
tion by  a  national  assembly,  and  for  reduction  of 
the  Govermnent  and  Communist-armies  and  their 
eventual  amalgamation  into  a  small,  modernized, 
truly  national  army,  responsible  to  a  civilian 
government. 

In  Marcli  General  Marshall  returned  to  this 
country.    He  reported  on  the  important  step  the 
Chinese  had  made  toward  peace  and  unity  in  ar- 
riving at  these  agreements.^    He  also  pointed  out 
that  these  agreements  could  not  be  satisfactorily 
implemented  and  given  substance  unless  China  s 
economic  disintegration  were  checked  and  par- 
ticularly unless  the  transportation  system  could  be 
put  in  working  order.    Political  unity  could  not 
be  built  on  economic  chaos.    This  Government  had 
already  authorized  certain  minor  credits  to  the 
Chinese  Government  in  an  effort  to  meet  emer- 
gency rehabilitation  needs  as  it  was  doing  for  other 
war  devastated  countries  throughout  the  world. 
A  total  of  approximately  $66,000,000  was  involved 
in  six  specific  projects,  chiefly  for  the  purchase  of 
raw  cotton,  and  for  ships  and  railroad  repair  ma- 
terial.   But  these  emergency  measures  were  inade- 
quate.    Following  the   important   forward   step 
made  by  the  Chinese  in  the  agreements  as  reported 
by  General  Marshall,  the  Export-Import  Bank 
earmarked  a  total  of  $500,000,000  for  possible  ad- 
ditional credits  on  a  project  by  project  basis  to 
Chinese  Government  agencies  and  private  enter- 
prises.    Agreement  to  extend  actual  credits  for 
such  projects  would  obviously  have  to  be  based 
upon  this  Government's  policy  as  announced  De- 
cember 15, 1945.     So  far,  this  $500,000,000  remains 
earmarked,  but  unexpended. 

While  comprehensive  large-scale  aid  has  been 
delayed,  this  Government  has  completed  its  war- 
time lend-lease  commitments  to  China.  Lend- 
lease  assistance  was  extended  to  China  to  assist 
her  in  fighting  the  Japanese,  and  later  to  fulfil  our 
promise  to  assist  in  reoccupying  the  country  from 
the  Japanese.  Assistance  took  the  form  of  goods 
and  equiiiment  and  of  services.    Almost  half  the 


•  Bulletin  of  Mar.  24. 1946.  p.  4«4. 
'  BxT-LETiN  of  Sept.  22, 1946,  p.  548. 


THE  RECORD   Of  THE  WEEK 

total  made  available  to  China  consisted  of  services, 
such  as  those  involved  in  air-  and  water-transpor- 
tation of  troops.  According  to  the  latest  figures 
reported,  lend-lease  assistance  to  China  up  to  V-J 
Day  totaled  approximately  $870,000,000.  From 
"V-J  Day  to  the  end  of  February,  shortly  after 
General  Marshall's  arrival,  the  total  was  approxi- 
mately $600,000,000— mostly  in  transportation 
costs.  Thereafter,  the  program  was  reduced  to 
the  fulfilment  of  outstanding  commitments,  much 
of  which  was  later  suspended. 

A  considerable  quantity  of  civilian  goods  has 
also  been  made  available  by  our  agreement  with 
China  for  the  disposal  of  surplus  property  which 
enabled  us  to  liquidate  a  sizable  indebtedness  and 
to  dispose  of  large  quantities  of  surplus  material. 
During  the  war  the  Chinese  Government  furnished 
Chinese  currency  to  the  United  States  Army  for 
use  in  building  its  installations,  feeding  the  troops, 
and  other  expenses.  By  the  end  of  the  war  this 
indebtedness  amounted  to  something  like  150,- 
000,000,000  Chinese  dollars.  Progressive  currency 
inflation  in  China  rendered  it  impossible  to  de- 
termine the  exact  value  of  the  sum  in  United 
States  currency. 

China  agreed  to  buy  all  surplus  property  owned 
by  the  United  States  in  China  and  on  seventeen 
Pacific  Islands  and  bases  with  certain  exceptions. 
Six  months  of  negotiations  preceded  the  agree- 
ment finally  signed  in  August.^  It  was  imperative 
that  this  matter  be  concluded  in  the  Pacific  as 
had  already  been  done  in  Europe,  especially  in 
view  of  the  rapid  deterioration  of  the  material  in 
open  storage  under  tropical  conditions,  and  the 
urgent  need  for  the  partial  alleviation  of  the  acute 
economic  distress  of  the  Chinese  people,  which  it 
was  hoped  this  transaction  would  permit.  Air- 
craft, all  non-demilitarized  combat  material,  and 
fixed  installations  outside  of  China  were  ex- 
cluded. Thus,  no  weapons  which  could  be  used 
in  fighting  a  civil  war  were  made  available  through 
this  agreement. 

The  Chinese  Government  canceled  all  but  30,- 
000,000  United  States  dollars  of  our  indebtedness 
for  the  Chinese  currency,  and  promised  to  make 
available  the  equivalent  of  35,000,000  United 
States  dollars  for  use  in  paying  United  States 
governmental  expenses  in  China  and  acquiring  and 
improving  buildings  and  properties  for  our  diplo- 


1181 


THE  RECORD   OF  THE  WEEK 


matic  and  consular  establishments.  An  additional 
sum  of  20,000,000  United  States  dollars  is  also 
designated  for  the  fulfilment  of  a  cultural  and  edu- 
cational program. 

Before  General  Marshall  arrived  in  China  for 
the  second  time,  in  April,  there  was  evidence  that 
the  truce  agreement  was  being  disregarded.  The 
sincere  and  unflagging  efforts  of  Executive  Head- 
quarters and  its  truce  teams  have  succeeded  in 
many  instances  in  preventing  or  ending  local  en^ 
gagements,  and  thus  saved  thousands  of  lives. 
But  fresh  outbreaks  of  civil  strife  continued  to 
occur,  reaching  a  crisis  of  violence  in  Manchuria, 
with  the  capture  of  Changchun  by  the  Commun- 
ists, and  where  the  presence  of  truce  teams  had 
not  been  fully  agreed  to  by  the  National  Govern- 
ment. 

A  change  in  the  course  of  events  in  the  political 
field  was  equally  disappointing.  Negotiations  be- 
tween the  Government  and  the  Communists  have 
been  resumed  again  and  again,  but  they  have  as 
often  In'oken  down.  Although  hope  for  final  suc- 
cess has  never  disappeared  completely,  the  agree- 
ments made  in  January  and  February  have  not 
been  implemented,  and  the  various  Chinese  groups 
have  not  since  that  time  been  able  to  achieve  the 
degree  of  agreement  reached  at  the  Political  Con- 
sultative Conference. 

There  has  been  encouraging  progi'ess  in  other 
fields,  particularly  the  elimination  of  Japanese 
from  China.  The  Chinese  Government  was  re- 
sponsible under  an  Allied  agreement  for  the  dis- 
armament of  all  Japanese  military  personnel  and 
for  the  repatriation  of  all  Japanese  civilians  and 
military  personnel  from  China,  Foi-mosa,  and 
French  Indo-China  north  of  the  sixteenth  degree 
of  latitude.  Our  Government  agreed  to  assist  the 
Chinese  in  this  task.  The  scope  of  the  job  was 
tremendous.  There  were  about  3,000,000  Japa- 
nese, nearly  one  half  of  them  Army  or  Navy  per- 
sonnel, to  be  evacuated.  Water  and  rail  trans- 
portation had  been  destroyed  or  was  immobilized. 
Port  facilities  were  badly  damaged  and  over- 
crowded with  relief  and  other  supplies.  The 
Japanese  had  to  be  disarmed,  concentrated,  and 
then  transported  to  the  nearest  available  port.  In 
some  instances  this  involved  long  distances.  At 
the  ports  they  had  to  be  individually  searched  and 
put  through  a  health  inspection.  All  had  to  be 
inoculated.     Segregation  camps  had  to  be  estab- 

1182 


lished  at  the  ports  to  cope  with  the  incidence  of 
epidemic  diseases  such  as  Asiatic  cholera.  Finally, 
3,000,000  persons  had  to  be  moved  by  ship  to 
Japan. 

American  forces  helped  in  the  disarmament  of 
Japanese  units.  Executive  Headquarters  and  its 
truce  teams  were  able  to  make  the  complicated 
arrangements  necessary  to  transfer  Japanese 
across  lines  and  through  areas  involved  in  civil 
conflict  on  their  way  to  ports  of  embarkation. 
American  units  also  participated  in  the  inspec- 
tions at  the  port,  while  American  medical  units 
supervised  all  inoculation  and  other  medical  work. 
Finally,  American  and  Japanese  ships  under  the 
control  of  General  MacArthur  in  Japan,  and  a 
number  of  United  States  Navy  ships  imder  the 
Seventh  Fleet  transported  this  enormous  number 
of  persons  to  reception  ports  in  Japan. 

At  the  end  of  last  year,  approximately  200,000 
Japanese  had  been  repatriated.  They  were  leav- 
ing Chinese  ports  at  a  rate  of  about  2,500  a  day. 
By  March  of  this  year,  rapidly  increased  efforts  on 
the  part  of  the  American  forces  and  the  Chinese 
authorities  involved  had  increased  this  rate  to 
more  than  20,000  a  day.  By  November,  2,986,438 
Japanese  had  been  evacuated  and  the  program  was 
considered  completed.  Except  for  indeterminate 
numbers  in  certain  parts  of  Manchuria,  only  war 
criminals  and  technicians  retained  on  an  emer- 
gency basis  by  the  Chinese  Government  remain. 
That  this  tremendous  undertaking  has  been  ac- 
complished despite  conflict,  disrupted  communi- 
cations, and  other  difficulties  will  remain  an  out- 
standing example  of  successful  American-Chinese 
cooperation  toward  a  common  goal. 

Much  has  been  said  of  the  presence  of  United 
States  armed  forces  in  China  during  the  past  year. 
Last  fall  these  forces  were  relatively  large.  They 
had  to  be.  No  one  could  prophesy  in  advance  how 
well  the  Japanese  forces  in  China  would  observe 
the  sui  render  terms.  We  had  to  provide  forces 
adequate  to  assist  the  Chinese  in  the  event  of 
trouble.  When  it  became  obvious  that  the  armed 
Japanese  would  not  be  a  problem  beyond  the 
capabilities  of  the  Chinese  Armies  to  handle,  re- 
deployment was  begun  at  once. 

The  chief  responsibility  of  our  forces  was  that 
of  assisting  in  evacuation  of  Japanese.  This  task 
was  prolonged  by  local  circumstances.  Provision 
of  American  personnel  for  the  Executive  Head- 

Department  of  Stale  Bulletin     •     December  29,  7946 


quarters  and  its  truce  teams  has  required  a  fairly 
large  number  of  men,  particularly  since  the  all 
important  network  of  radio  and  other  communi- 
cations was  provided  entirely  by  the  United  States. 
The  Executive  Headquarters  is  located  at  Pei- 
ping,  a  hundred  miles  from  tlie  sea,  and  in  an 
area  where  there  was  the  possibility  of  local  fight- 
ing. Hence,  another  responsibility  was  to  pro- 
tect the  line  of  supply  to  and  from  headquarters. 
Another  duty  our  forces  undertook  immediately 
upon  the  Japanese  surrender  was  to  provide  the 
necessary  protection  so  tliat  coal  from  the  great 
mines  northeast  of  Tientsin  could  reach  the  sea 
for  shipment  to  supply  the  cities  and  railroads  of 
central  China.  Tliis  coal  was  essential  to  prevent 
the  collapse  of  this  industrial  area.  Our  Marines 
were  withdrawn  from  this  duty  last  September. 
Other  units  of  our  forces  were  engaged  in  search- 
ing for  the  bodies  or  graves  of  American  soldiers 
who  had  died  fighting  the  Japanese  in  Cliina. 
Still  others  were  required  to  guard  United  States 
installations  and  stores  of  equipment,  and  to 
process  these  for  return  to  this  country  or  sale  as 
surplus  property. 

At  peak  strength  a  year  ago  we  had  some  113,- 
000  soldiers,  sailors,  and  marines  in  China.  To- 
day this  number  is  being  reduced  to  less  than 
12,000,  including  some  2,000  directly  concerned 
with  the  operations  of  Executive  Headquarters, 
and  will  be  further  reduced  to  the  number  re- 
quired to  supply  and  secure  the  American  per- 
sonnel of  Executive  Headquarters  and  the  air  field 
and  stores  at  Tsingtao. 

Thus  during  the  past  year  we  have  successfully 
assisted  in  the  repatriation  of  the  Japanese  and 
have  subsequently  been  able  to  bring  most  of  our 
own  troops  home.  We  have  afforded  appropriate 
assistance  in  the  reoccupation  of  the  country  from 
the  Japanese.  We  have  undertaken  some  emer- 
gency measures  of  economic  assistance  to  prevent 
the  collapse  of  China's  economy  and  have  liqui- 
dated our  own  wartime  financial  account  with 
China. 

It  is  a  matter  of  deep  regret  that  China  has 
not  yet  been  able  to  achieve  unity  by  peaceful 
methods.  Because  he  knows  how  serious  the  prob- 
lem is,  and  how  important  it  is  to  reach  a  solu- 
tion, General  Marshall  has  remained  at  his  post 
even  though  active  negotiations  have  been  broken 


'  BuiiETiN  of  June  16,  1946,  p.  1054. 


THE  RECORD  OF  THE   WEEK 

off  by  the  Communist  Party.  We  are  ready  to  help 
China  as  she  moves  toward  peace  and  genuine 
democratic  government. 

The  views  expressed  a  year  ago  by  this  Gov- 
ernment are  valid  today.  The  plan  for  political 
unification  agreed  to  last  February  is  sound.  The 
plan  for  military  unification  of  last  February  has 
been  made  difficult  of  implementation  by  the 
progress  of  the  fighting  since  last  April,  but  the 
general  principles  involved  are  fundamentally 
sound. 

China  is  a  sovereign  nation.  We  recognize  that 
fact  and  we  recognize  the  National  Government 
of  China.  We  continue  to  hope  that  the  Govern- 
ment will  find  a  peaceful  solution.  We  are 
pledged  not  to  interfere  in  the  internal  affairs  of 
China.  Our  position  is  clear.  Wliile  avoiding 
involvement  in  their  civil  strife,  we  will  persevere 
with  our  policy  of  helping  the  Chinese  people  to 
bring  about  peace  and  economic  recovery  in  their 
country. 

As  ways  and  means  are  presented  for  construc- 
tive aid  to  China,  we  will  give  them  careful  and 
sympathetic  consideration.  An  example  of  such 
aid  is  the  recent  agricultural  mission  to  China 
under  Dean  Hutchison  of  the  University  of  Cali- 
fornia, sent  at  the  request  of  the  Chinese  Govern- 
ment. A  joint  Chinese-American  agi'icultural  col- 
laboration commission  was  formed  which  included 
the  Hutchison  mission.'  It  spent  over  four 
months  studying  rural  problems.  Its  recommen- 
dations are  now  available  to  the  Chinese  Govern- 
ment, and  so  also  is  any  feasible  aid  we  can  give 
in  implementing  those  recommendations.  Wlien 
conditions  in  China  improve,  we  are  prepared  to 
consider  aid  in  carrying  out  other  projects,  unre- 
lated to  civil  strife,  which  would  encourage  eco- 
nomic reconstruction  and  reform  in  China  and 
which,  in  so  doing,  would  promote  a  general  re- 
vival of  commercial  relations  between  American 
and  Chinese  businessmen. 

We  believe  that  our  hopes  for  China  are  iden- 
tical with  what  the  Chinese  people  themselves 
most  earnestly  desire.  We  shall  therefore  con- 
tinue our  positive  and  realistic  policy  toward 
China,  which  is  based  on  full  respect  for  her  na- 
tional sovereignty  and  on  our  traditional  friend- 
ship for  the  Chinese  people,  and  is  designed  to 
promote  international  peace. 


1183 


Provisions  for  Immigration  of  Refugees  and  Displaced  Persons 


STATEMENT  BY  THE  PRESIDENT 


[Released  to  the  press  by  the  White  House  December  19] 

During  the  Christmas  season  a  year  ago,  on 
Decembei'  22, 1945, 1  issued  a  directive  to  a  number 
of  Executive  agencies  designed  to  facilitate  the 
immigration  of  refugees  and  displaced  persons  up 
to  the  full  limit  jDrovided  by  the  immigration  law.^ 

Up  to  October  21,  1946,  only  4,767  persons  were 
provided  for  under  these  arrangements.  At  the 
present  time,  foreseeable  sailings  in  1946  will  pro- 
vide for  only  683  more  persons. 

These  delays  have  caused  a  serious  situation 
among  displaced  persons  who  hold  immigration 
visas  for  the  United  States  and  are  waiting  for 
shipping.  At  Bremei'liaven,  for  example,  2,100 
persons,  including  177  orphaned  children,  are 
crowded  into  an  embarkation  center  designed  to 
accommodate  only  transients. 


Mindful  of  the  bleak  Christmas  ahead  for  these 
people  who  have  already  suffered  so  much,  I  have 
taken  up  this  matter  with  the  Maritime  Commis- 
sion and  can  hold  out  hope  of  early  improvement. 

The  S.S.  Ernie  Pyle  will  sail  from  New  York 
on  December  20  and  will  arrive  in  Bremerhaven 
on  New  Year's  Day.  The  S.S.  Marine  Marlin 
will  sail  from  New  York  on  December  27  and  will 
arrive  in  Bremerhaven  on  January  6,  1947.  The 
S.S.  Marine  Flasher  will  arrive  in  Bremerhaven 
on  January  8. 

In  addition,  the  S.S.  Marine  Falcon,  now  in  the 
Pacific,  will  arrive  in  Bremerhaven  during  the 
latter  i^art  of  January. 

Each  of  these  vessels  has  facilities  to  transport 
approximately  900  passengers.  They  will  be  kept 
in  this  service  until  the  situation  has  been  fully 
relieved. 


U.  S.  Position  on  Economic  Rehabilitation  of  Germany 


COMMENTS  ON  ADDRESS  BY  NETHERLANDS  OFFICIAL' 


[Released  to  the  press  December  13] 

The  problems  of  economic  recovery  in  the  liber- 
ated countries  of  Europe,  including  the  Nether- 
lands, are  extremely  difficult,  and  the  United 
States  is  deeply  aware  of  these  problems  and  anx- 
ious to  make  what  contribution  it  can  to  their 
solution.  In  particular,  it  is  recognized  that  the 
economic  relations  between  these  countries  and 
Germany  present  many  and  complex  problems 
owing  to  the  present  status  of  Germany  as  an  occu- 
pied country,  to  the  depressed  state  of  the  Ger- 
man economy,  and  to  the  conflicting  requirements 
of  Germany  and  the  liberated  countries. 

With  Dr.  van  Kleffens'  remarks  to  the  effect  that 
it  would  be  iniquitous  to  help  Germany  to  her  feet 
while  the  Netherlands,  Belgimii,  and  Luxembourg 
are  "left  to  languish  in  economic  prostrations  and 
semi-poverty",  there  can  be  no  disagreement.     It 


has  always  been  the  policy  of  the  United  States 
that  economic  recovery  in  liberated  countries 
should  proceed  at  a  more  rapid  rate  than  German 
recovery.  But  we  find  it  difficult  to  reconcile 
these  remarks  with  some  of  Dr.  van  Kleffens'  spe- 
cific complaints.  The  inability  of  Germany  to 
supjaly  materials  required  by  the  Dutch  economy, 
or  to  import  Dutch  agricultural  products  and 
waterway  services,  is  the  consequence  of  the  de- 
pressed state  of  the  German  economy.  The 
United  States  will  never  countenance  a  policy  of 


'  Bui-TJSTiN  of  Dec.  23,  1M5,  p.  983. 

"  Dr.  E.  N.  van  Kleffen.s,  Netherlands  Representative  on 
the  Security  Council  of  the  United  Nations.  Dr.  van 
Kleffens'  address  was  delivered  before  the  Netherlands 
Chamber  of  Commerce  in  New  York,  N.  Y.,  on  Dec.  12, 
1946. 


1184 


Deparfmenf  of  Sfofe  Bu/Ze/m     •     December  29,  J946 


reviving  Germany  at  the  expense  of  liberated 
countries.  But  a  certain  measure  of  German  re- 
covery is  essential  to  tlie  continued  recovery  of  her 
neighbors,  and  certain  of  the  difficulties  to  which 
Dr.  van  Kleffens  refers  can  be  removed  only  as 
German  recovery  progi-esses. 

As  regards  Dr.  van  Kleffens'  specific  complaints, 
the  following  comments  are  made : 

1.  Dr.  van  Kleifens  complains  that  Netherlands 
nationals  owning  factories  in  Germany  cannot 
visit  their  factories.  This  subject  was  discussed 
by  the  Department  of  State  with  Netherlands  offi- 
cials several  months  ago.  Agreement  was  reached 
at  that  time  that  tlie  opportunity  for  such  visits 
should  be  afforded  to  Nethei-lands  citizens,  and 
that  the  Netherlands  Government  would  make  de- 

f tailed  arrangements  with  the  United  States  occu- 
pation authorities.  Dr.  van  Kleffens'  remarks 
provide  the  first  indication  we  have  received  that 
the  outcome  was  unsatisfactory  to  the  Netherlands 
Government. 

2.  Dr.  van  Kleffens  complains  that  Dutch  manu- 
facturers desiring  to  purchase  raw  and  semi- 
finished products  and  equipment  in  Germany  can- 
not get  in  touch  with  their  German  suppliers. 

The  real  difficulty  in  this  case  is  the  small  quan- 
tity of  such  material  available  for  export  from 
Germany.  Until  recently,  it  would  have  been  use- 
less to  permit  importers  to  visit  Germany  when 
there  was  little  to  purchase.  As  part  of  their  cur- 
rent program  for  reviving  exi^orts,  the  American 
occupation  authorities  now  permit  businessmen 
wishing  to  purchase  products  known  to  be  avail- 
able for  export  to  visit  the  United  States  zone  of 
occupation.  This  privilege  is  extended  to  Dutch 
businessmen. 

3.  The  United  States  is  fully  aware  of  the  need 
to  produce  in  Germany  replacement  parts  and  ma- 
chines for  the  equipment  in  many  countries  of  Eu- 
rope originally  manufactured  in  Germany.  In 
order  to  reduce  the  burden  of  supporting  Germany 
we  obviously  must  increase  German  exports  of 
these  products  greatly.  We  have  been  limited  in 
the  past  year  by  the  lack  of  fuel  and  raw  mate- 
rials in  Germany  and  by  the  urgent  necessity  of 
retaining  the  small  German  production  in  Ger- 
many to  avoid  collapse.  The  necessity,  which  we 
recognize  as  just,  to  export  German  coal  to  Western 
Europe,  including  the  Netherlands,  has  also  de- 


THE   RECORD   OF  THE   WEEK 

prived  German  industry  of  coal  which  it  could 
have  used  urgently. 

The  Netherlands  has  a  military  mission  in  Ber- 
lin which  has  had  frequent  contact  with  the  United 
States  authorities  in  Germany.  OMGUS  sent  a 
trade  mission  to  The  Hague  which  had  detailed 
and,  we  are  told,  satisfactory  discussions  with 
Netherlands  officials.  Our  efforts  to  satisfy  Neth- 
erlands needs  have  been  limited  not  by  our  unwill- 
ingness but  by  the  lack  of  goods  for  export.  We 
expect  that  the  economic  fusion  authorities  of  the 
United  States  and  British  zones  in  German^'  will 
have  detailed  discussions  with  the  Netherlands 
and  other  nations  interested  in  supplying  German 
import  needs  and  purchasing  German  goods.  It  is 
probable  that  the  military  missions  in  Berlin  will 
be  supplemented  by  trade  missions  in  Minden,  the 
seat  of  the  Bizonal  Economic  Office,  as  well  as  by 
discussions  within  the  Emergency  Economic  Com- 
mittee for  Europe  and  its  successor  organizations 
under  the  United  Nations,  when  that  agency,  the 
Economic  Commission  for  Europe,  is  created. 

4.  As  regards  the  Dutch  surplus  of  agi'icultural 
products,  American  authorities  are  cognizant  of 
the  desire  of  the  Dutch  Government  to  dispose  of 
fruits  and  vegetables  to  Germany.  The  Dutch 
Government  has  been  informed  that,  so  long  as  the 
occupying  powers  must  bear  the  cost  of  the  Ger- 
man trade  deficit,  German  imports  of  food  will  be 
confined  to  such  relatively  low-cost  products  as 
wheat.  Under  present  conditions,  the  German 
population  cannot  afford  to  import  the  more  expen- 
sive foods,  such  as  the  Netherlands  can  supply.  To 
provide  them  would  only  mean  to  increase  the  cost 
of  occupation  to  the  United  States  taxpayer. 

5.  The  United  States  understands  the  concern  of 
the  Netherlands  in  the  revival  of  Khine  traffic  and 
in  the  employment  of  Rotterdam  as  a  port  of 
transit  for  German  imports  and  exports.  The 
United  States  must,  however,  keep  in  mind  its 
obligations  to  Congress  and  the  people  of  the 
United  States  to  keep  the  financial  burden  of  the 
occupation  of  Germany  to  a  minimum  by  limiting 
the  cost  of  imports  for  Germany.  This  requires 
that  no  goods  or  services  be  imported  into  Ger- 
many which  can  be  provided  by  the  German 
economy.  Inevitably  this  limitation  is  felt  in  the 
case  of  transport  services  by  shipping  on  the  Rhine. 
In  order  to  meet  the  interests  of  the  Netherlands, 
which  formerly  handled  much  German  cargo  on 


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THE   RECORD   OF  THE  WEEK 


the  Rhine  between  Rotterdam  and  German  Rhine 
ports  and  on  the  German  Rhine,  the  United  States 
has  offered  to  meet  with  the  Netherlands  to  dis- 
cuss means  by  which  import  cargo  destined  for 
Germany  can  be  transported  via  Netherlands  ports 
and  the  Rhine,  so  long  as  no  additional  dollar  cost 
to  the  United  States  is  involved.  The  Netherlands 
Government  has  stated  informally  that  they  be- 
lieve it  will  be  possible  to  do  this  and  a  meeting 
will  soon  take  place  between  officers  of  OMGUS 
and  representatives  of  the  Netherlands. 

The  Netherlands  also  seeks  a  greater  share  of 
German  internal  shipping  traffic  on  the  Rhine.  At 
present  the  United  States  has  not  yet  seen  how  the 
Netherlands  requests  can  be  met  without  financial 
expense  to  tlie  United  States  in  importing  services 
which  the  German  Rhine  fleet  can  perform.  It 
has  requested  an  outline  of  suggestions  from  the 
Netherlands  and  hopes  to  discuss  the  matter  with 
that  country,  bearing  in  mind  the  necessity  for 
avoiding  an  unjustified  expenditure  of  United 
States  funds. 

Finally  the  Netherlands  desires  a  larger  voice  in 
the  control  and  management  of  the  German  Rhine 
and  its  shipping  facilities.  This  question  is  one 
for  the  Council  of  Foreign  Ministers,  which  has 
already  agreed  to  set  up  machinery  to  hear  in  Lon- 
don in  J  anuary  of  next  year  the  views  of  Germany's 
neighbors  on  the  peace  settlement  regarding  the 
future  of  Germany. 

6.  As  to  the  willingness  of  the  Netherlands  to 
assist  in  financing  trade  with  Germany,  the  United 
States  is  gratified  at  Dr.  van  Kleffens'  statement. 
A  Dutch  proposal  on  this  subject  is  now  receiving 
careful  study  by  the  Department.  This  proposal, 
which  is  the  first  indication  we  have  received  of 
Dutch  readiness  to  aid  in  the  difficult  financing 
problem,  was  received  only  last  week. 

Ambassador  Murphy  Named  U.S. 
Deputy  for  Germany 

[Released  to  the  press  December  20] 

Ambassador  Robert  D.  Murphy,  United  States 
Political  Adviser  to  the  Commanding  General  in 
Germany,  has  been  named  United  States  Deputy 
for  Germany  for  the  session  of  the  deputies  which 
will  convene  in  London  on  January  14,  1947. 

1186 


General  Clark  Named  U.S.  Deputy 
for  Austria 

[Released  to  the  press  December  21] 

Lt.  Gen.  Mark  W.  Clark,  United  States  High 
Commissioner  and  United  States  Commanding 
General  in  Austria,  has  been  named  United  States 
Deputy  for  Austria  for  the  session  of  the  deputies 
which  will  convene  in  London  on  January  14, 
1947. 


Quadripartite  Tin  Negotiations 
Concluded 

[Released  to  the  press  December  10] 

The  Government  of  the  United  States  has  con- 
cluded quadripartite  negotiations  with  the  United 
Kingdom,  Australia,  and  Siam  for  the  procure- 
ment of  Siamese  tin,  the  Department  of  State  an- 
nounced on  December  10. 

The  conclusions  specify  four  major  provisions 
for  stimulating  the  flow  of  Siamese  tin  into  world 
consumption  and  for  alleviating  the  world  tin 
shortage. 

The  provisions  are  as  follows : 

A  four-member  commission  will  be  named  to  aid 
the  movement  of  stocks  of  Siamese  tin  metal  and 
tin  concentrates  into  world  trade  channels. 

Siamese  tin  metal  will  be  shipped  in  compliance 
with  the  Combined  Tin  Committee  allocations. 
The  United  States  has  been  allocated  2,000  tons 
of  tin  metal  for  1946  and  will  probably  secure  ad- 
ditional substantial  quantities  in  1947. 

Siamese  stocks  of  tin  concentrates  and  new  pro- 
duction of  concentrates  to  March  31,  1947,  will  be 
purchased  in  equal  amounts  by  the  United  States 
and  the  United  Kingdom. 

Prices  paid  for  Siamese  tin  will  be  on  a  basis 
equivalent  to  prices  in  Malaya  (370  pounds  sterling 
per  long  ton  of  tin). 

Siamese  tin  stocks  accumulated  during  the  late 
war  are  estimated  at  approximately  15,000  tons  of 
tin  content.  Pre-war  Siamese  tin  production  was 
roughly  10  percent  of  the  world  supply,  but  cur- 
rent production  is  small  pending  resumption  of 
war-interrupted  operations  by  foreign-owned  min- 
ing companies.  I 


Department  of  State  Bulletin 


December  29,  1946 


Appointment  of  Members  and  Alternate  Member  of  a  MUitary  Tribunal 
Established  for  the  Trial  and  Punishment  of  Major  War  Criminals  in  Germany^ 

Navy  are  authorized  to  provide  appropriate  as- 
sistance to  the  Members  and  the  Alternate  Mem- 
ber herein  designated  in  the  performance  of  their 
duties  and  may  assign  or  detail  such  personnel 
under  their  respective  jurisdiction,  including 
members  of  the  armed  forces,  as  may  be  requested 
for  the  purpose.  Personnel  so  assigned  or  de- 
tailed shall  receive  such  compensation  and  allow- 
ances for  expenses  as  may  be  determined  by  the 
Secretary  of  War  and  as  may  be  payable  from 
appropriations  or  funds  available  to  the  "War 
Department  for  such  purposes. 

Harry  S.  Truman 


[Released  to  the  press  by  the  White  House  November  21] 

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  of  the  United  States,  and  in  the 
interest  of  the  military  and  foreign  affairs  fimc- 
tions  of  the  United  States,  it  is  ordered  as  follows : 

1.  I  hereby  designate  Walter  B.  Beals,  Chief 
Justice  of  the  Supreme  Court  of  the  State  of 
Washington,  Harold  L.  Sebring,  Associate  Justice 
of  the  Supreme  Court  of  the  State  of  Florida, 
Johnson  Tal  Crawford,  Judge  of  a  District  Court 
of  the  State  of  Oklahoma,  as  the  Members,  and 
Victor  C.  Swearingen,  former  Special  Assistant  to 
the  Attorney  General,  as  the  Alternate  Member, 
of  one  of  the  several  military  tribunals  established 
by  the  Military  Governor  for  the  United  States 
Zone  of  Occupation  within  Germany  pursuant  to 
the  quadripartite  agreement  of  the  Control  Coun- 
cil for  Germany,  enacted  December  20,  1945,  as 
Control  Council  Law  No.  10,-  and  pursuant  to 
Articles  10  and  11'  of  the  Charter  of  the  Interna- 
tional Military  Tribunal,  which  Tribunal  was 
established  by  the  Government  of  the  United 
States  of  America,  the  Provisional  Government  of 
the  French  Republic,  the  Government  of  the 
United  Kingdom  of  Great  Britain  and  Northern 
Ireland,  and  the  Government  of  the  Union  of 
Soviet  Socialist  Republics,  for  the  trial  and  pun- 
ishment of  major  war  criminals  of  the  European 
Axis.  Such  members  and  alternate  member  may, 
at  the  direction  of  the  Military  Governor  of  the 
United  States  Zone  of  Occupation,  serve  on  any  of 
the  several  military  tribunals  above  mentioned. 

2.  The  Members  and  the  Alternate  Member 
herein  designated  shall  receive  such  compensation 
and  allowances  for  expenses  as  may  be  determined 
by  the  Secretary  of  War  and  as  may  be  payable 
from  appropriations  or  funds  available  to  the  War 
Department  for  such  purposes. 

3.  The  Secretary  of  State,  the  Secretary  of  War, 
the  Attorney  General,  and  the  Secretary  of  the 

'Executive  Order  9813  (11  Federal  Register  14607). 
'  Bulletin  of  Nov.  10,  1946,  p.  862. 

'For  text  of  the  convention,  see  Department  of  State 
press  release  922  of  Dec.  21,  1M6. 


Tax  Convention  With  France 

The  Department  released  on  December  21  the 
English  language  text  of  the  convention  between 
the  United  States  and  France  for  the  avoidance  of 
double  taxation  and  the  prevention  of  fiscal  eva- 
sion in  the  case  of  taxes  on  estates  and  inheritances, 
and  for  the  purpose  of  modifying  and  supple- 
menting certain  provisions  of  the  convention  of 
July  25,  1939  relating  to  income  taxation  which 
was  signed  at  Paris  on  October  18,  1946,  and  of 
which  the  original  document  was  recently  received 
from  the  American  Embassy  in  Paris.^ 


New  Shortwave  Relay  Point  for 
American  Radio  in  Germany 

[Released  to  the  press  December  16) 

On  December  16  the  Department  of  State  an- 
nounced the  opening  on  Sunday,  December  15, 
at  Munich,  Germany,  of  a  new  shortwave-radio 
relay  point  in  its  "Voice  of  the  United  States  of 
America"  network. 

Programs  which  originate  at  the  OIC  office  in 
New  York  City  will  be  relayed  daily  over  the 
three  Munich  transmitters  by  shortwave  from  11 
a.m.  to  4 :  30  p.m.,  E.S.T.,  which  is  top  evening- 
listening  time  in  the  various  European  areas. 
They  will  be  beamed  simultaneously  to  Austria, 
Bulgaria,  Czechoslovakia,  France,  Hungary,  Po- 
land, Rumania,  and  Yugoslavia.  Some  programs 
in  English  also  will  be  carried  on  this  relay. 


1187 


THE  RECORD   OF  THE  WEEK 


Consideration  is  now  being  given  to  the  possi- 
bility of  broadcasts  to  other  countries  in  Europe, 
inckiding  Soviet  Russia,  from  these  transmitters. 

The  three  shortwave  transmitters,  eacli  of  ap- 
proximately 85,000-watts  power,  which  make  up 
the  new  Munich  relay,  are  part  of  the  former 
Reichspost  radio  plant  at  Munich.  Part  of  these 
facilities  are  being  used  by  the  Armed  Forces  Net- 
work for  troop-entertainment  programs  in  that 
area.  Use  of  the  facilities  for  the  "Voice  of  the 
United  States  of  America"  was  obtained  by  the 
International  Broadcasting  Division  of  the  State 
Department  through  cooperation  with  the  United 
States  Military  Government  in  Germany. 

Late  in  September,  Kenneth  D.  Fry,  Chief  of  the 
International  Broadcasting  Division,  sent  to  Eu- 
rope a  three-man  team  composed  of  Edward  Ker- 
rigan, formerly  with  Press-Wireless;  John  Her- 
rick,  chief  engineer  of  IBD  in  New  York;  and 
John  Walsh,  administrative  officer,  who  has  been 
in  the  field  for  the  State  Department.  This  team 
effected  the  plans  with  the  occupation  authorities 
for  opening  the  new  relay  station.  They  expedited 
acquisition  of  the  facilities  and  pushed  through  the 
repair  work  necessary  to  get  the  transmitters  in 
operation  at  the  earliest  possible  moment. 

Convention  for  Industrial  Property  Pro- 
tection Applied  to  Western  Samoa 

New  Zealand 

The  Swiss  Legation  informed  the  Department 
of  State  by  a  note  dated  October  31,  1946  that, 
according  to  a  communication  dated  September 
16, 1946  from  the  British  Legation  in  Switzerland, 
the  adherence  of  New  Zealand  ^  to  the  interna- 
tional convention  for  the  protection  of  industrial 
property,  signed  at  London  on  June  2,  1934,^  also 
applies  to  Western  Samoa. 

U.S.  Interest  in  Netherlands 
Agreement  With  Indonesia 

[Released  to  the  press  December  17] 

The  United  States  Government  has  received 
with  gratification  the  news  that  the  Netherlands 
Government  has  authorized  its  Commission 
General  to  sign  the  agreement  negotiated  by  Dutch 
and  Indonesian  representatives  and  initialed  on 
November  15  at  Cheribon,  Java.  It  is  the  hope  of 
this  Government  that  the  basic  principles  of  this 


agreement  will  enable  the  Dutch  and  Indonesian 
people  to  work  together  with  dignity  and  in  mu- 
tual respect  for  their  common  welfare  and  for  the 
IDrosperity  and  stability  of  Southeast  Asia. 

The  evidence  of  high  statesmanship  displayed 
by  both  Dutch  and  Indonesian  delegations  in 
negotiating  the  settlement  gives  promise  that  the 
agi'eement  will  be  implemented  with  continuing 
regard  for  the  welfare  of  the  peoples  concerned. 

The  United  States  Government  will  watch  with 
close  interest  the  measures  undertaken  to  make 
this  agi-eement  effective  and  the  progress  toward 
the  political  stabilization  and  economic  rehabili- 
tation of  the  Indies  which  we  hope  will  result 
therefrom. 


Negotiations  on  Elimination  of 
Tariff  Preferences 

[Released  to  the  press  December  19] 

This  Government's  negotiations  next  spring 
with  18  other  countries  for  reciprocal  reduction  of 
tariff  and  other  trade  barriers  will  include  nego- 
tiations directed  toward  elimination  of  tariff  pref- 
erences now  in  effect  between  the  United  States 
and  Cuba  as  well  as  preferences  in  effect  among 
British  Empire  countries  and  between  other 
countries. 

The  existing  trade  agreement  between  the 
United  States  and  Cuba  not  only  provides  for 
specified  preferential  treatment  of  products  enu- 
merated in  the  schedules  of  the  agreement  but 
also  provides  generally  that  each  country  will  ac- 
cord i^referential  treatment  to  any  other  products 
imported  from  the  other  country.  Tariff  prefer- 
ences accorded  under  both  provisions  will  come 
within  the  scope  of  the  forthcoming  negotiations, 
regardless  of  whether  or  not  the  products  con- 
cerned are  included  in  the  list  of  products,  made 
public  on  November  9,  1946,^  on  which  the  United 
States  will  consider  granting  tariff  concessions  in 
the  forthcoming  negotiations.  No  United  States 
tai-iff  reductions  will  be  made,  however,  on  any 
commodity  not  appearing  on  a  public  list. 

'  Bulletin  of  Sept.  22,  1946,  p.  552. 

^  Treaty  Series  ft41. 

'  Printed  in  Department  of  State  publication  2672,  Com- 
mercial Policy  Series  96.  Refer  also  to  Schedule  A — 
Statistical  Classification  of  Imports  Into  the  United 
States.  U.  S.  Department  of  Commerce,  Sept.  1,  1946. 


1188 


Department  of  State  Bulletin     •     December  29,  1946 


Visit  of  Greek  Prime  Minister 

His  Excellency  Constantine  Tsaldaris,  Prime 
Minister  of  Greece,  and  Madame  Tsaldaris  arrived 
in  Washington  on  Thursday,  December  19,  and 
stayed  at  the  Blair  House  as  guests  of  the  Gov- 
ernment mitil  Sunday,  December  22. 

Air-Transport  Agreement 
With  Uruguay 

A  bilateral  air-transport  a^eement  between  the 
United  States  and  Uruguay  was  signed  on  Decem- 
ber 14,  1946  in  Montevideo,  the  Department  of 
State  announced  on  December  16.^  The  agreement 
is  based  on  the  standard  form  drawn  up  at  the 
Chicago  aviation  conference  in  1944  and  also 
includes  pertinent  provisions  from  the  so-called 
"Bermuda  agreement"  signed  in  February  1946 
between  the  United  States  and  the  United 
Kingdom.^ 

Pan  American  Airways  System  and  Pan  Ameri- 
can-Grace Airways  are  the  two  certificated 
United  States  airlines  which  will  serve  Montevideo 
under  the  new  arrangement. 

Assisting  the  American  Embassy  in  the  negotia- 
tions were  William  Mitchell,  personal  representa- 
tive of  the  President  with  the  rank  of  Minister, 
and  John  O.  Bell,  Assistant  Chief  of  the  Depart- 
ment of  State's  Aviation  Division.  The  agree- 
ment was  signed  for  the  United  States  by  Ameri- 
can Ambassador  Joseph  F.  McGurk  and  Mr. 
Mitchell.  The  Uruguayan  Foreign  Minister, 
Eduardo  Rodriguez  Larreta,  si,gned  for  Uruguay. 

The  following  routes  are  designated  in  section 
II  of  the  annex  to  the  agreement : 

A.  Airlines  of  the  United  States  of  America, 
designated  under  the  present  agreement,  are 
accorded  rights  of  transit  and  nontraffic  stop  in 
the  territory  of  the  Oriental  Republic  of  Uruguay, 
as  well  as  the  right  to  pick  up  and  discharge  inter- 
national traffic  in  passengers,  cargo,  and  mail  at 
Montevideo  on  the  following  routes  via  interme- 
diate points  in  both  directions : 

1.  The  United  States  via  the  east  coast  of  South 
America  to  Montevideo  and  beyond. 

2.  The  United  States  and/or  the  Panama  Canal 

'  For  text  of  agreement,  see  Department  of  State  press 
release  910  of  Dec.  16,  1946. 
"  Btjixetin  of  Apr.  7, 1946,  p.  584. 


THE  RECORD   Of  THE  WEEK 

Zone  and  the  west  coast  of  South  America  to 
Montevideo. 

On  each  of  the  above  routes  the  airline  or  air- 
lines designated  to  operate  such  route  may  operate 
nonstop  flights  between  any  of  the  points  on  such 
route  omitting  stops  at  one  or  more  of  the  other 
points  on  such  route. 

Specialist  in  Veterinary  Medicine  To 
Lecture  in  Uruguay 

Dr.  Frederick  McKenzie,  professor  of  animal 
husbandry  at  Oregon  State  College  and  former 
specialist  in  animal  husbandry  in  the  Department 
of  Agriculture,  will  give  a  sliort  course  of  lectures 
in  Uruguay  on  fertility  and  breeding  efficiency  in 
livestock,  and  on  artificial  insemination.  During 
December  1946  he  will  lecture  at  the  Rural  Society, 
the  College  of  Veterinary  Medicine,  and  the  Na- 
tional University,  Montevideo,  Uruguay.  He  has 
received  a  travel  grant  under  the  program  ad- 
ministered by  the  Department  of  State  for  the  ex- 
change of  professors  and  technical  experts  be- 
tween this  country  and  the  other  American  repub- 
lics during  the  current  fiscal  year. 

Grants  to  U.S.  Citizens  for  Study  in 
Otiier  American  Republics 

[Released  to  the  press  December  10] 

The  Department  of  State  announces  a  limited 
number  of  travel  and  maintenance  grants  to  assist 
United  States  gi-aduate  students  to  undertake 
academic  studies  or  research  in  the  other  Ameri- 
can republics.  The  Department  has  the  coopera- 
tion of  the  United  States  Office  of  Education  and 
the  Institute  of  International  Education  in  the 
administration  of  this  program. 

The  grants  will  be  awarded  to  qualified  candi- 
dates to  supplement  personal  funds  or  funds  they 
may  expect  to  receive  through  fellowships  or  other 
assistance  from  universities,  research  councils,  or 
other  qualified  organizations.  The  grants  will  pro- 
vide travel  or  maintenance,  or  both,  in  accordance 
with  the  individual  needs  of  the  students  and  esti- 
mates of  the  cost  of  living  in  the  countries  in  which 
study  is  to  be  undertaken. 

Candidates  must  hold  a  bachelor's  degree  or  its 
equivalent  and  must  be  engaged  in  or  recently  have 
completed  graduate  study.  They  must  also  have 
a  good  working  knowledge  of  the  language  of  the 
country  in  which  study  is  to  be  undertaken.    Proj- 


1189 


THE   RECORD  Of  THE  WEEK 


ects  will  be  considered  with  reference  to  their 
usefulness  in  the  development  of  broader  under- 
standing between  the  United  States  and  the  other 
American  republics  as  well  as  on  the  basis  of  their 
technical  merit,  and  should  be  sponsored  by  appro- 
priate university  or  college  authorities.  Other 
things  being  equal,  preference  will  be  given  to 
honorably  discharged  veterans  of  World  War  II 
who  meet  the  above  qualifications.  Although  no 
age  limit  has  been  set,  the  probability  is  that  per- 
sons over  35  will  have  less  chance  of  being  selected. 

Successful  candidates  will  be  expected  to  remain 
in  residence  for  the  purpose  of  study  or  research 
for  at  least  six  months.  Grants  will  be  valid  for 
a  minimum  of  six  months  and  a  maximum  of  one 
year.  Under  exceptional  cii'cumstances  grants  may 
be  renewed,  provided  funds  are  available. 

Application  blanks  may  be  obtained  from  the 
American  Republics  Section,  Division  of  Interna- 
tional Educational  Relations,  United  States  Office 
of  Education,  Federal  Security  Agency,  Washing- 
ton 25,  D.C.,  and  should  be  returned  to  that  Office 
not  later  than  March  1,  1947.  It  is  hoped  that 
announcement  of  recipients  of  grants  can  be  made 
by  May  1,  1947. 

U.S. -Philippine  Trade 
Agreement  Amended 

It  was  announced  on  December  18  that  an  agree- 
ment between  the  United  States  and  the  Republic 
of  the  Philippines  concerning  trade  and  related 
matters  and  an  amendatory  exchange  of  notes  were 
proclaimed  by  President  Truman  on  December  17, 
1946.^  In  accordance  with  its  terms,  the  agree- 
ment will  become  effective  the  day  after  its  procla- 
mation by  the  President  of  the  Republic  of  the 
Philippines. 

The  agreement  is  based  on  the  Philippine  Trade 
Act  of  1946  ( Public  Law  371,  79th  Congress) .  It 
was  signed  at  Manila  on  July  4, 1946  by  President 
Eoxas  and  Ambassador  McNutt. 

The  agreement  provides,  among  other  things, 
for  free  trade  between  the  United  States  and  the 
Philippines  during  a  period  of  8  years  from  July 
4,  1946,  and  for  a  subsequent  20-year  period  of 
declining  customs  preferences,  during  which  rates 
of  United  States  and  Philippine  duties  will  be 
gradually  increased  until  the  preferences  are 
eliminated  and  full  duties  applied  by  each  country 


at  the  end  of  this  period.  It  establishes,  for  the 
duration  of  the  agreement,  import  quotas  on  cer- 
tain Philippine  products  entering  the  United 
States. 

The  principal  purpose  of  these  provisions  is  to 
facilitate  rehabilitation  of  the  war-ravished  Phil- 
ippine economy  and  to  make  possible  an  orderly 
readjustment  of  trade  relations  between  the 
United  States  and  the  new  Republic  of  the 
Philippines. 

Allocation  of  Funds  Under  Philippine 
Rehabilitation  Act 

[Released  to  the  press  December  12] 

The  Department  of  State  announced  on  Decem- 
ber 12  that  after  consultation  with  interested 
agencies  of  the  United  States  Government  and 
with  the  approval  of  the  Philippine  Government, 
a  total  of  $37,872,520  has  been  apportioned  among 
nine  United  States  Government  agencies  to  be  used 
during  the  fiscal  year  1947  in  carrj'ing  out  a  broad 
program  of  restoration  and  improvement  of  public 
property  and  essential  public  services  of  the  Re- 
public of  the  Philippines. 

These  funds  were  appropriated  by  the  79th  Con- 
gress to  provide  the  necessary  amounts  to  carry 
out  the  first  year's  operations  under  Title  III  of 
the  Philippine  Rehabilitation  Act  of  1946  which, 
"as  a  manifestation  of  good  will  to  the  Filipino 
people",  authorized  the  appropriation  of  at  least 
$120,000,000  to  carry  out  such  a  program  over  a 
four-year  period  extendmg  to  July  1950. 

Apportionments  made  by  the  Department  of 
State  for  the  current  fiscal  year's  operations  are  as 
follows : 

Public  Roads  Administration,  Federal  Works 
Agency :  to  plan,  restore,  and  build  roads,  streets, 
and  bridges  necessary  from  the  standpoint  of  the 
national  defense  and  economic  rehabilitation  and 
development  —  $9,960,000. 

Corps  of  Engineers,  U.S.  Army:  for  the  re- 
habilitation, improvement,  and  construction  of 
ports  and  harbor  facilities  in  the  Philippines — 
$9,000,000. 

Philippine  War  Damage  Commission :  to  com- 
pensate the  Republic  of  the  Philippines  for  re- 


'  For  text  of  agreement,  see  Department  of  State  press 
release  914  of  Dec.  18,  1946. 


1190 


Department  of  State  Bulletin     •     December  29,  ? 946 


building,  repairing,  or  replacing  public  property 
lost  or  damaged  in  the  Philippines  after  December 
7,  1941  and  before  October  1,  1945  — $11,214,000. 
Public  Health  Service,  Federal  Security 
Agency :  for  the  rehabilitation  and  development  of 
public-health  services  and  facilities  —  $2,826,000. 

U.S.  Maritime  Commission:  to  charter  vessels 
for  operations  in  Philippine  inter-island  ship- 
ping—$39,085. 

Civil  Aeronautics  Administration,  Department 
of  Commerce :  to  establish  and  operate  a  system  of 
air-navigation  facilities  and  associated  airways- 
communication  services  in  the  Philippines  for 
inter-island  airways  operation  and  to  connect  the 
Philippine  airways  with  international  and  inter- 
ocean  routes  —  $1,954,520. 

Weather  Bureau,  Department  of  Commerce :  to 
establish  and  maintain  meteorological  facili- 
ties —  $900,000. 

Fish  and  Wildlife  Service,  Department  of  Inte- 
rior: to  assist  in  the  rehabilitation  and  develop- 
ment of  the  fishing  industry  as  well  as  in  the  in- 
vestigation and  conservation  of  the  fishery  re- 
sources —  $900,000. 

Coast   and   Geodetic    Survey,    Department   of 

Commerce :  to  continue  the  pre-war  survey  work 

$176,000. 

The  sum  of  $902,915  was  made  available  to  the 
various  agencies  mentioned  above,  with  the  excep- 
tion of  the  War  Damage  Commission,  to  provide 
technical  training  for  approximately  200  Philip- 
pine citizens  during  the  fiscal  year  1947. 

Radio  Broadcast  on  Our  Relations 
With  Latin  America 

On  December  21  the  Assistant  Secretary  for 
American  Republic  Affairs,  Spruille  Braden,  and 
the  Director  of  the  Office  of  American  Republic 
Affairs,  Ellis  O.  Briggs,  discussed  with  Sterling 
Fisher,  Director  of  the  NBC  University  of  the  Air, 
the  subject  of  private  enterprise  in  our  relations 
with  Latin  America.  This  program  was  one  in  a 
series  entitled  "Our  Foreign  Policy"  presented  by 
the  NBC  University  of  the  Air.  For  a  complete 
text  of  the  radio  program,  see  Department  of  State 
press  release  917  of  December  20,  1946. 

'  Statement  read  to  the  press  and  radio  correspondents 
at  a  Department  of  State  press  conference  on  Dec.  9,  1946. 
'  BrLi.ETi.\-  of  Mar.  24, 1946,  p.  483. 


THE  RECORD   OF  THE  WEEK 

Advantages  in  Standardization  of 
Military  Equipment' 

During  the  recent  war  the  United  States  pro- 
vided vast  quantities  of  supplies,  including  mili- 
tary supplies  of  all  types,  to  our  Allies.  This  action 
began  first  with  the  United  Kingdom,  with  which 
country  the  exchange  of  weapons  was  reciprocal 
and  covered  a  very  wide  field  of  equipment  of  all 
kinds.  In  order  to  accomplish  quickly  and  efii- 
ciently  the  tremendous  task  with  which  we  were 
faced,  those  who  handled  these  supplies  in  both 
countries  and  directed  them  towards  the  winning 
of  the  war  found  that  a  certain  amount  of  stand- 
ardization of  equipment  followed  inevitably  and 
aided  tremendously  in  the  efficient  prosecution  of 
the  war.  In  many  cases  new  types  of  equipment 
were  developed  jointly.  Wherever  standardiza- 
tion was  effected,  there  was  saving  in  time,  money, 
and  manpower. 

It  is  natural  and  inevitable  for  the  armed  forces 
to  standardize  necessary  military  equipment  to  the 
greatest  degree  practicable.  Economy  really 
means  the  utmost  efficiency  in  utilizing  resources, 
including  most  especially  the  appropriations  made 
by  Congress.  The  American  people  are  particu- 
larly interested  in  economy  and  in  reducing  the 
cost  of  government. 

Because  of  the  effectiveness  of  these  measures 
there  have  from  time  to  time  been  informal  ex- 
changes of  views  on  standardization  of  arms,  no- 
tably with  the  United  Kingdom  and  Canada.  Our 
close  association  with  these  two  countries  in  the 
war  and  the  degree  of  standardization  accom- 
plished as  a  result  thereof  have  made  this  logical. 

It  would  be  a  mistake,  however,  to  conclude  that 
this  very  natural  development  implies  political  ar- 
rangements or  commitments.  As  the  Secretary  of 
State  said  on  March  16  of  this  year :  "We  do  not 
propose  to  seek  security  in  an  alliance  with  the 
Soviet  Union  against  Great  Britain,  or  in  an  alli- 
ance with  Great  Britain  against  the  Soviet 
Union."  ^ 

There  has  been  no  change  in  policy.  The  com- 
mitments of  the  United  States  are  to  the  United 
Nations. 


1191 


THE   RECORD   OF  THE   WEEK 


Signing  of  Income-Tax  Convention 
Witii  Union  of  Soutii  Africa 

[Released  to  the  press  December  17] 

A  convention  between  the  United  States  and  the 
Union  of  South  Africa  for  the  avoidance  of  double 
taxation  and  the  establishment  of  rules  of  recip- 
rocal administrative  assistance  on  income  taxes 
was  signed  at  Pretoria  on  December  13,  1946  by 
Gen.  Thomas  Holcomb,  American  Minister  to  the 
Union  of  South  Africa,  and  J.  H.  Hofmeyr,  Act- 
ing Minister  of  External  Affairs  of  the  Union  of 
South  Africa. 

The  convention  provides  that  it  shall  be  ratified, 
that  instruments  of  ratification  shall  be  exchanged, 
and  that  it  shall  become  effective  (retroactively)  as 
of  July  1,  1946,  and  except  in  matters  of  adminis- 
trative assistance  shall  first  be  applied  to  income 
arising  on  or  after  that  date.  The  convention  was 
signed  in  duplicate.  Upon  receipt  by  the  Depart- 
ment of  State  of  the  duplicate  original  of  the  con- 
vention, arrangements  will  be  completed  for  its 
submission  to  the  United  States  Senate  for  advice 
and  consent  to  ratification. 

The  provisions  of  the  convention  are  similar  in 
general  to  those  contained  in  certain  conventions 
now  in  force  between  the  United  States  and  for- 
eign countries.  Conventions  for  the  avoidance  of 
double  taxation  on  income  taxes  are  now  in  effect 
between  the  United  States  and  Canada,^  France," 
Sweden,^  and  the  United  Kingdom.* 

Negotiations  are  in  progi'ess  between  the  United 
States  and  the  Union  of  South  Africa  for  the  con- 
clusion of  a  convention  relating  to  double  taxation 
in  the  case  of  estate  taxes  or  death  duties. 

Department  of  State  Bulletin  Subscrip- 
tion Price  Increased 

The  annual  subscription  price  of  the  Depart- 
ment OF  State  Bulletin  will  rise  from  $3.50  to 
$5.00  on  January  1,  1947  owing  to  a  combination 
of  factors  which  has  left  the  Superintendent  of 
Documents,  Government  Printing  Office,  no  choice 
but  to  take  this  action.  These  factors  are  the  con- 
stantly expanding  size  and  scope  of  the  Bulletin, 
as  it  attempts  to  cover  the  vast  range  of  American 
international  relations,  and  the  rising  cost  of  pro- 
duction. The  printing  and  publishing  of  govern- 
ment publications  are  affected  as  much  by  the 
rising  prices  of  materials  and  other  production 
factors  as  any  other  integral  part  of  the  national 
economy. 

1192 


The  need  to  take  this  action  is  regretted  both 
by  the  Department  of  State  and  by  the  Superin- 
tendent of  Documents.  After  thorough  study  of 
the  problem  during  recent  months  the  Department 
of  State  considers  that  the  increase  in  price  is 
preferable  to  the  only  alternative,  which  would 
have  been  to  make  drastic  reductions  in  the  quan- 
tity of  original  documentation  and  other  material 
provided  readers. 

Erratum 

In  the  Bulletin  of  November  10,  1946,  p.  866, 
left-hand  column,  in  footnote  1,  change  the  number 
"733"  to  read  "773". 

UNESCO     Constitution     Comes     Into 
Force 

The  British  Embassy  informed  the  Department 
by  a  note  dated  December  10, 1946  that  the  consti- 
tution of  the  United  Nations  Educational,  Scien- 
tific and  Cultural  Organization,^  opened  for  signa- 
ture at  London  November  16, 1945,  came  into  force 
on  November  4,  1946  upon  its  acceptance  by  20 
signatories,  as  provided  in  paragraph  3,  article 
XV  of  the  constitution. 

Countries  which  have  accepted  the  constitution, 
with  the  dates  upon  which  the  acceptances  were 
deposited,  are  as  follows : 

Australia June  11,  1946 

Brazil , October  14,  1946 

Canada September  6,  1946 

China September  13,  1946 

Czechoslovakia October  5,  1946 

Denmark September  20,  1946 

Dominican  Republic July  2, 1946 

Egypt July  16,  1946 

France June  29,  1946 

Greece November  4.  1946 

India June  12,  1946 

Lebanon October  28,  1946 

Mexico June  12,  1946 

New  Zealand March  6,  1946 

Norway August  8,  1946 

Poland November  6,  1946 

Saudi  Arabia April  30,  1946 

Turkey July  6,  1946 

Union  of  South  Africa June  3,  1946 

United  Kingdom February  20,  1946 

United  States September  30,  1946 

'  Treaty  Series  983.  ' 

'  Treaty  Series  988  and  Treaties  and  Other  International 
Acts  Series  1572. 

'  Treaty  Series  958.  ^ 

'  Treaties  and  Other  International  Acts  Series  1546.        p 
'  Treaties  and  Other  International  Acts  Series  1580.         * 

Department  of  State  Bulletin     •     December  29,  1946 


PUBLICATIONS 


Department  of  State 


During  the  quarter  beginning  October  1,  1946 
the  following  publications  have  been  released  by 
the  Department : ' 

2540.  United  States  Import  Duties,  June  1946.  1.  Titles  I 
and  II  of  the  Tariff  Act  of  1930  (Dutiable  and  Free 
Lists).  2.  Changes  in  Import  Duties  Since  1930  (Pre- 
pared by  the  United  States  Tariff  Commission). 
Commercial  Policy  Series  87.     437  pp.     IQi. 

2579.  Report  of  the  United  States  Education  Mission  to 
Japan.     Far  Eastern  Series  11.     62  pp.     200. 

2590.  Is  UNESCO  the  Key  to  International  Understand- 
ing? A  radio  broadcast  by  the  Department  of  State, 
June  1,  1946.  United  States-United  Nations  Infor- 
mation Series  7.     23  pp.     50. 

2597.  The  International  Trade  Organization — How  Will  It 
Work?  Foreign  Affairs  Outline  No.  7.  Commercial 
Policy  Series  92.    8  pp.    Free. 

2601.  Purchase  of  Natural  Rubber:  Agreement  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  28 
and  March  1,  1946.  Treaties  and  Other  International 
Acts  Series  1526.     3  pp.     50. 

2602.  Papers  Relating  to  the  Foreign  Relations  of  the 
United  States,  1931.  Vol.  I.  961  pp.  $2.75  (buck- 
ram). 

2603.  Purchase  of  Natural  Rubber:  Agreement  Between 
the  United  States  of  America  and  France — Effected 
by  exchange  of  notes  signed  at  Washington  January 
28  and  February  7,  1946.  Treaties  and  Other  Inter- 
national Acts  Series  1525.     4  pp.     50. 

2604.  Mutual  Aid  Settlement:  Agreement  Between  the 
United  States  of  America  and  India— Signed  at 
Washington  May  16,  1946;  effective  May  16,  1946. 
Treaties  and  Other  International  Acts  Series  1532. 
8  pp.     50. 

2605.  Disposition  of  Lend-Lease  Supplies  in  the  United 
States:  Agreement  Between  the  United  States  of 
America  and  China— Signed  at  Washington  June  14, 
1946 ;  effective  from  September  2,  1945.  Treaties  and 
Other  International  Acts  Series  1533.     6  pp.     50. 

2606.  Mutual  Aid  Settlement :  Agreement  Between  the 
United  States  of  America  and  New  Zealand— Signed 
at  Washington  July  10,  1946 ;  effective  July  10,  1946. 
Treaties  and  Other  International  Acts  Series  1536. 
7  pp.     50. 

2608.  Recent  Publications  of  the  Department  of  State, 
1940.    4  pp.    Free. 


'  Serial  numbers  which  do  not  appear  in  this  list  have 
appeared  previously  or  will  appear  in  subsequent  lists. 
'After  January  1,  1947,  subscription,  $5  a  year. 


THE  RECORD  OF  THE  WEEK 

2609.  Department  of  State  Publications,  July  1,  1946.  A 
semi-annual  list  cumulative  from  October  1,  1929. 
37  pp.     Free. 

2611.  Military  Mission  to  Venezuela :  Agreement  Between 
the  United  States  of  America  and  Venezuela — Signed 
at  Washington  June  3,  1946 ;  effective  June  3,  1946. 
Treaties  and  Other  International  Acts  Series  1522. 
13  pp.     50. 

2612.  Diplomatic  List,  September  1946.  153  pp.  Subscrip- 
tion, $2  a  year ;  single  copy,  200. 

2613.  Trial  of  Japanese  War  Criminals.  Documents:  (1) 
Opening  Statement  by  Joseph  B.  Keenan,  Chief  of 
Counsel;  (2)  Charter  of  the  International  Military 
Tribimal  for  the  Far  East;  (3)  Indictment.  Far 
Eastern  Series  12.     104  pp.     200. 

2614.  The  Department  of  State  Bulletin,  vol.  XV,  no.  376, 
September  15,  1946.     48  pp.     100.= 

2615.  Report  of  the  West  Indian  Conference.  Second  Ses- 
sion. St  Thomas,  Virgin  Islands,  United  States  of 
America,  February  21  to  March  18,  1946.  Conference 
Series  88.     86  pp.     Free. 

2616.  Restatement  of  U.S.  Policy  in  Germany.  Address 
by  the  Secretary  of  State,  delivered  in  Stuttgart,  Ger- 
many, September  6,  1946.  European  Series  13.  17 
pp.     50. 

2617.  Eighth  Report  to  Congress  on  Operations  of  UNRBA, 
as  of  June  30,  1946.     68  pp.     150. 

2618.  Building  a  New  World  Economy.  Commercial  Policy 
Series  94.     10  pp.     Free. 

2610.  The  Textile  Mission  to  Japan.  Report  to  the  War 
Department  and  to  the  Department  of  State,  January- 
March  1946.     Far  Eastern  Series  13.     39  pp.     150. 

2620.  Disposition  of  Lend-Lease  Supplies  in  the  United 
States:  Agreement  Between  the  United  States  of 
America  and  Brazil— Signed  at  Washington  June  28, 
1946;  effective  June  28,  1946.  Treaties  and  Other 
International  Acts  Series  1537.     3  pp.     50. 

2621.  What  We  Are  Doing  in  Germany — And  Why.  For- 
eign Affairs  Outline  No.  11.  European  Series  14.  4 
pp.     Free. 

2622.  Activities  of  the  Interdepartmental  Committee  on 
Scientific  and  Cultural  Cooperation,  June  30,  104a 
Inter-American  Series  31.     45  pp.     150. 

2623.  Goals  for  the  United  Nations— Political  and  Secu- 
rity. Foreign  Affairs  Outline  No.  8.  United  States- 
United  Nations  Information  Series  10.     4  pp.     Free. 

2624.  The  Department  of  State  Bulletin,  vol.  XV,  no.  377, 
September  22,  1946.     40  pp.     100. 

2625.  Mutual  Aid  Settlement:  Agreement  Between  the 
United  States  of  America  and  Australia — Signed  at 
Washington  and  at  New  York  June  7,  1946;  effective 
June  7,  1946.  Treaties  and  Other  International  Acts 
Series  1528.    7  pp.    50. 

2626.  Economic  and  Financial  Cooperation  :  Agreement  Be- 
tween the  United  States  of  America  and.  Poland — 
Effected  by  excliange  of  notes  signed  at  Wa.shington 
April  24,  1946.  Treaties  and  Other  International  Acts 
Series  1516.    4  pp.    50. 

2627.  Occupation  — Why?  What?  Where?  Foreign  Af- 
fairs Outline  No.  10.    4  pp.    Free. 


1193 


THE  RECORD   OF  THE  WEEK 


2628.  Report  of  the  Mission  on  Japanese  Combines.  Part 
I.  Analytical  and  Technical  Data.  Far  Eastern 
Series  14.     Processed  material.    230  pp.    750. 

2629.  Foreign  Service  List,  July  1, 1946.  151  pp.  Subscrip- 
tion, 50(J  a  year ;  single  copy,  20^. 

2630.  United  States  Economic  Policy  Toward  Germany. 
European  Series  15.    149  pp.    405(. 

2631.  Goals  for  the  United  Nations — Economic  and  Social. 
Foreign  Affairs  Outline  No.  9.  United  States  -  United 
Nations  Information  Series  11.    4  pp.     Free. 

2632.  The  Department  of  State  Bulletin,  vol.  XV,  no.  378, 
September  29,  1946.    44  pp.    10«J. 

2633.  What  We  Are  Doing  in  Japan  — And  Why.  Foreign 
Affairs  Outline  No.  12.  Far  Eastern  Series  15.  4  pp. 
Free. 

2634.  Guide  to  the  United  States  and  the  United  Nations. 
United  States-United  Nations  Information  Series  12. 
8  pp.     Free. 

2635.  Report  of  the  U.S.  National  Commission  for 
UNESCO,  with  letter  of  transmittal  from  Assistant 
Secretary  Benton  to  the  Secretary  of  State,  September 
27,  1946.  The  United  States  and  the  United  Nations 
Report  Series  4.     27  pp.     100. 

2637.  Diplomatic  List,  October  1946.  156  pp.  Subscrip- 
tion, $2  a  year ;  single  copy,  200. 

2638.  The  Department  of  State  Bulletin,  vol.  XV,  no.  379, 
October  6,  1946.     44  pp.     100. 

2639.  The  Department  of  State  Bulletin,  vol.  XV,  no.  380, 
October  13,  1946.     44  pp.     100. 

2640.  Private  Enterprise  in  the  Development  of  the  Amer- 
icas.    Inter-American  Series  32.     14  pp.     100. 

2641.  Inter-American  Coffee  Agreement :  Protocol  Between 
the  United  States  of  America  and  Other  American 
Republics  Modifying  and  Extending  for  One  Year 
From  October  1,  1945  the  Agreement  of  November  28, 
1940 — Open  for  Signature  at  Washington  September 
1-November  1,  1945 ;  ratified  by  the  President  of  the 
United  States  of  America  April  29,  1946 ;  ratification 
of  the  United  States  of  America  deposited  with  the 
Pan  American  Union  at  Wasldngton  May  1,  1946; 
proclaimed  by  the  President  of  the  United  States  of 
America  May  7,  1946 ;  effective  from  October  1,  1945. 
Treaties  and  Other  International  Acts  Series  1513. 
14  pp.     50. 

2642.  Cooperative  Education :  Agreement  Between  the 
United  States  of  America  and  the  Dominican  Re- 
public— Effected  by  exchange  of  notes  signed  at 
Ciudad  Tru.iillo  October  13,  1945;  effective  October 
13,  1945.  Treaties  and  Other  International  Acts 
Series  1530.     12  pp.     50. 

2644.  Wheat :  Agreement  Between  the  United  States  of 
America,  Argentina,  Australia,  Canada,  and  the  United 
Kingdom  Amending  the  Agreement  initialed  at  Wash- 
ington April  22,  1942  and  effective  June  27,  1942— 
Effected  by  exchanges  of  notes  signed  at  Washington 
March  IS,  March  20,  March  25.  April  9,  May  3,  and 
June  3.  1946;  effective  June  3,  1946.  Treaties  and 
Other  International  Acts  Series  1.540.    6  pp.     5«S. 

2646.  Air  Transport  Services:  Articles  of  Agreement  Be- 
tween the  United  States  of  America  and  Belgium  and 
Provisional  Agreement — Articles  of  agreement  signed 

1194 


at  Brussels  April  5,  1946 ;  effective  April  5,  1946. 
Treaties  and  Other  International  Acts  Series  1515. 
26  pp.    100. 

2647.  Purchase  of  Brazilian  Rice  Surpluses :  Agreement 
Between  the  United  States  of  America  and  Brazil — 
Effected  by  exchange  of  notes  signed  at  Rio  de 
Janeiro  December  21,  1943,  and  exchange  of  notes 
of  July  20,  1945  extending  the  agreement.  Treaties 
and  Other  International  Acts  Series  1517.  26  pp. 
100. 

2648.  Telecommunications :  Agreement  Between  the  Gov- 
ernment of  the  United  States  of  America  and  Certain 
Governments  of  the  British  Commonwealth  and 
Protocol  Between  the  Government  of  the  United 
States  of  America  and  the  Government  of  the  United 
Kingdom  of  Great  Britain  and  Northern  Ireland — 
Signed  at  Bermuda  December  4,  1945.  Treaties  and 
Other  International  Acts   Series  1518.     11   pp.     50. 

2651.  Foreign  Policies :  Their  Formulation  and  Enforce- 
ment. Address  by  Loy  W.  Henderson,  Department  of 
State.    20  pp.    100. 

2654.  Marine  Transportation  and  Litigation  :  Agreement 
Between  the  United  States  of  America  and  the  United 
Kingdom  Amending  the  Agreement  of  December  4, 
1942 — Effected  by  exchange  of  notes  signed  at  Wash- 
ington March  25  and  May  7,  1946 ;  effective  May  7, 
1946.  Treaties  and  Other  International  Acts  Series 
1558.    2  pp.    50. 

2656.  The  Department  of  State  Bulletin,  vol.  XV,  no.  381, 
October  20,  1946.     40  pp.     10^. 

2657.  Papers  Relating  to  the  Foreign  Relations  of  the 
United  States,  1931.  Vol.  II.  1082  pp.  $3  (buck- 
ram ) . 

2661.  Tlie  International  Control  of  Atomic  Energy: 
Scientific  Information  Transmitted  to  the  United  Na- 
tions Atomic  Energy  Commission  June  14,  194&- 
Oetober  14,  1946.  Prepared  in  the  otiice  of  Mr.  Ber- 
nard M.  Baruch,  United  States  Representative.  The 
United  States  and  the  United  Nations  Report  Series  5. 
195  lip.     300. 

2662.  The  New  Republic  of  the  Philippines.  Article  by 
Edward  W.  Mill,  Department  of  State.  Far  Eastern 
Series  10.     16  pp.     50. 

2663.  Fundamentals  of  U.S.  Trade  Policy.  Address  by 
Clair  Wilcox,  Department  of  State.  Commercial 
Policy  Series  95.     14  pp.     100. 

2664.  Report  of  the  United  States  Education  Mission  to 
Germany.     European  Series  16.     50  pp.     150. 

2667.  The  Department  of  State  Bulletin,  vol.  XV,  no.  382, 
Octoljer  27,  1946.     48  pp.     100. 

2669.  United  States  and  Italy,  1936-1946:  Documentary 
Record.     European  Series  1".     236  pp.     650. 

2670.  U.S.  Aims  and  Policies  in  Europe.  Address  by  the 
Secretary  of  State.     European  Series  18.     12  pp.     50. 

2671.  Occupation  of  Japan :  Policy  and  Progress.  Far 
Eastern  Series  17.     173  pp.     350. 

2673.  The  Department  of  State  Bulletin,  vol.  XV,  no.  383, 
November  3,  1946.     48  pp.     100. 

2681.  The  International  Control  of  Atomic  Energy. 
Speech  by  Bernard  M.  Baruch,  United  States  Repre- 
sentative to  the  United  Nations  Atomic  Energy  Com- 

Deparfment  of  Sfafe  Bulletin     •     December  29,  7946 


mission,  Freedom  House,  New  York  City,  October  8, 
1946.     8  pp.     5(f. 
2682.  Report  on  tlie  Paris  Peace  Conference.     Address  by 
tlie  Secretary  of  State.     Conference  Series  90.     14  pp. 

2686.  The  Department  of  State  Bulletin,  vol.  XV,  no.  384, 
November  10,  1946.     48  pp.     10«(. 

2690.  Diplomatic  List,  November  1946.  159  pp.  Subscrip- 
tion, $2  a  year ;  single  copy,  20<S. 

2694.  The  Department  of  State  Bulletin,  vol.  XV,  no.  385, 
November  17,  1946.     48  pp.     10«(. 

2697.  The  Department  of  State  Bulletin,  vol.  XV,  no.  386, 
November  24,  1946.     48  pp.     100. 

2700.  A  New  Instrument  of  U.S.  Foreign  Policy.  Address 
by  Assistant  Secretary  Benton.     16  pp.     10(f. 

2701.  The  Department  of  State  Bulletin,  vol.  XV,  no.  387, 
December  1,  1946.     52  pp.     100. 

2705.  The  Department  of  State  Bulletin,  vol.  XV,  no.  388, 
December  8,  1916.     48  pp.  100. 

Teeatt  Series 

994.  Utilization  of  Waters  of  the  Colorado  and  Tijuana 
Rivers  and  of  the  Rio  Grande.  Treaty  Between  tlie 
United  States  of  America  and  Mexico  signed  at  Wash- 
ington February  3, 1944— And  Protocol  signed  at  Wash- 
ington November  14,  1944.  Ratified  by  the  President 
of  the  United  States  of  America  November  1,  1945; 
ratified  by  Mexico  October  16, 1945 ;  proclaimed  hy  the 
President  of  the  United  States  of  America  November 
27,  1945 ;  effective  November  8, 1945.     57  pp.     150. 

The  Department  of  State  publications  entitled  Treaty 
Series  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  other  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  between 
the  United  States  of  America  and  other  countries.  The 
texts  printed  in  the  pre.sent  series,  as  in  the  Treaty  Series 
and  Executive  Agreement  Scries,  are  authentic  and,  in 
appropriate  cases,  are  certified  as  such  by  the  Department 
of  State.  The  Treaties  and  Other  International  Acts 
Series  begins  with  the  number  1501,  the  combined  numbers 
In  the  Treaty  Series  and  Executive  Agreement  Sei-ies  hav- 
ing reacheti  1.500,  the  last  number  in  the  Treaty  Series 
being  994  and  the  last  number  in  the  Executive  Agreement 
Series  being  506. 

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 
ifter  adjournment  sine  die  of  each  regular  session  of 
Congress.  The  laws  are  also  publislied  in  separate  prints, 
popularly  known  as  slip  laws,  immediately  after  enact- 
nent.  These  are  issued  in  two  series :  Public  Laws  and 
'rivate  Laws,  consecutively  numbered  according  to  the 


THE  RECORD  OF  THE  WEEK 

dates  of  approval  or  the  dates  upon  which  bills  or  joint 
resolutions  otherwise  become  law  pursuant  to  the  provi- 
sions of  the  Constitution.  Treaties  al.so  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  issued ;  in  addition, 
some  of  them  are  subdivided  into  series  according  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  Oflice,  Wash- 
ington 25,  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  dep<:isitor  when  the  deposit  is  exhausted. 

As  a  possible  Indication  of  the  amount  which  might  be 
deposited  for  a  given  period,  the  cost  to  depositors  of  a 
complete  set  of  the  publications  of  the  Department  for  the 
12  months  ending  October  31, 1946  was  somewhat  In  excess 
of  $25.  Orders  may  be  placed  separately  for  the  Depart- 
ment of  State  Bulletin,  for  the  Foreign  Relations  volumes, 
for  the  Diplomatic  List,  for  the  Foreign  Service  List,  for 
the  Treaties  and  Other  International  Acts  Series,  or  for 
other  series  listed  herein. 

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  Manu- 
facture; Tariff;  Immigration;  Alaska  and  Hawaii;  In.su- 
lar  Po.ssessions ;  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. 


THE  DEPARTMENT 
Appointment  of  Officers 

Allan  Evans  as  Director,  Office  of  Intelligence  Coordina- 
tion and  Liaison,  effective  November  19,  1946. 

Willard  F.  Barber  as  Chief,  Division  of  Caribbean  Af- 
fairs, effective  December  1,  1946. 

Departmental  Regulations 

185.1     National     Historical     Publications     Commission: 

(Effective  9-16-46) 

I  The  Chief  of  the  Division  of  Publications  (PB)  is 
designated  as  Historical  Adviser  for  the  purpose  of  repre- 
sentation on  the  National  Historical  Publications  Com- 
mission pursuant  to  44  U.S.C.  30Oe. 


1195 


lo/yUe/n^ 


Economic  Affairs 

Report    on    the    International    Wool    Talks.       Page 
Article  by  Clarence  W.  Nichols    ....      1163 

Suppression  of  the  Use  of  Smoking  Opium. 
Exchange  of  Notes  Between  U.S.  and 
U.K.    Governments 1165 

Draft    Resolution    on    Abolition    of    Opium 

Smoking  in  the  Far  East 1170 

Meeting  of  Commissions  of  Inter-American 

Committee  on  Social  Security 1176 

Negotiations  on  Elimination  of  Tariff  Prefer- 
ences            1188 

Allocation  of  Funds  Under  Philippine  Re- 
habilitation Act 1190 

General  Policy 

U.S.   Policy   Toward   China.     Statement  by 

the  President 1179 

Provisions  for  Immigration  of  Refugees  and 
Displaced  Persons.  Statement  by  the 
President 1184 

U.S.  Interest  in  Netherlands  Agreement  With 

Indonesia 1188 

Visit  of  Greek  Prime  Minister 1189 

Radio    Broadcast    on    Our    Relations    With 

Latin  America 1191 

Advantages   in   Standardization   of   Military 

Equipment 1191 

United  Nations 

Security  Council:  Discussion  of  Border  Viola- 
tions Along  Greek  Frontier: 
Statement  by  U.S.  Representative  .    .    .    .      1171 
U.S.  Resolution  for  Establishing  Commis- 
sion of  Investigation 1172 

Summary  Statement  by    Secretary-General: 

Matters   of    Which   the   Security    Council 

is  Seized  and  of  the  Stage  Reached  in 

Their  Consideration 1172 

Statement  by  International  Monetary  Fund 

on  Initial  Par  Values 1173 

UNESCO  Constitution  Comes  Into  Force  .    .      1192 


Occupation  Matters 

Principles  for  Japanese  Trade  Unions  . 


1177 


Occupation  Matters — Continued 

Interim  Reparations  Removals:  paga 

Temporary    Retention    of    Electric    Steel 

Furnaces 1178 

Steel- Rolling  Industry 1178 

U.S.  Position  on  Economic  Rehabilitation  of 
Germany.  Comments  on  Address  by 
Netherlands  Official 1184 

Ambassador   Murphy   Named    U.S.    Deputy 

for  Germany 1186 

General  Clark  Named  U.S.  Deputy  for  Aus- 
tria          1186 

Appointment  of  Members  and  Alternate 
Member  of  Military  Tribunal  Estab- 
lished for  Trial  and  Punishment  of  Major 
War  Criminals  in  Germany 1187 

Treaty  Information 

UNESCO  Constitution  Comes  Into  Force.    .  1192 

Quadripartite  Tin  Negotiations  Concluded .    .  1186 

Tax  Convention  With  France 1187 

Convention  for  Industrial  Property   Protec- 
tion Applied  to  Western  Samoa  ....  1188 
Air-Transport  Agreement  With  Uruguay   .    .  1189 
U.S.-Philippine  Trade  Agreement  Amended   .  1190 
Signing    of    Income-Tax    Convention    With 

Union  of  South  Africa 1192 

International  Information 

New  Shortwave  Relay   Point  for  American 

Radio  in  Germany 1187 

Cultural  Cooperation 

Specialist  in  Veterinary  Medicine  To  Lecture 

in  Uruguay 1189 

Grants  to  U.S.  Citizens  for  Study  in  Other 

American  Republics 1189 

Calendar  of  International  Meetings   .    .      1175 

The  Department 

Appointment  of  Officers 1195 

Departmental  Regulations 1195 

Publications 

Department  of  State 1193 


[D<m/(mitd(y)^ 


Clarence  W.  Nichols,  author  of  the  article  on  the  International 
Wool  Talks,  is  Assistant  Chief  of  the  International  Resources  Divi- 
sion, Office  of  International  Trade  Policy,  Department  of  State. 


BOSTON  PUBLIC  LIBRARY 


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