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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 




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bulletin 

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



For sale by the Superintendent of Documents 

U. S. Government Printing Office 

Washington 25, D. C. 

SOBSCRIPTION : 

52 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 which are published 
at the end of each quarter, as well as 
legislative material inthefieldof inter- 
national relations, arelistedcurrently. 



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. 


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 
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 
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 

Washington 25, D. C. 

Sdescrii'Tion : 

52 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 tvork 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 fieldof inter- 
national relations, are listedcurrently. 



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 


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 



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U. S. Government Printing Office 

Washington 25. D. C. 

Subscription: 
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Published with the approval of the 
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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 
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 



798 



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 



800 



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 




I 



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DEC d 1946 



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ty/ie zl^eha/yi^e^ a)j 



o/^tate bulletin 



Vol. XV, No. 384 : Publication 2686 
November 10, 1946 



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The Department of State BULLETIN, 
a tceekly 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 interiuitional 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 fieldof inter- 
natioruil relations, arelistedcurrently. 



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